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    CDON Group to recognise SEK 15 million of one-off costs

    2011-10-10 08:00 - Regulatory press release
    CDON Group AB (publ.) (‘CDON Group’ or ‘the Group’), the leading e-commerce group in the Nordic region, today announced that it will recognise one-off costs of approximately SEK 15 million in its results for the third quarter and nine months ended 30 September 2011. These costs reflect a restatement of Norwegian customs duties and VAT over the past three years, which had historically been inaccurately reported by Nelly.com and Gymgrossisten.com. The recognition will not affect the Group’s underlying business, profitability or revenue growth.

    Approximately SEK 13 million of this amount is attributable to Nelly.com and SEK 2 million to Gymgrossisten.com.

    The error resulting in an understatement of duty costs originated from an incorrect setting of the parameters that determined Norwegian customs duty declaration routines in 2007. This inaccurate setting had been made during the implementation of a new ERP-system and was discovered during a recent internal review of the Group’s exports processes, following the demerger from the former parent company MTG.

    The one-off costs will be reported as a separate line item above the gross profit line in CDON Group’s consolidated income statement, and as an adjustment of interest bearing short term liabilities on the Group’s consolidated balance sheet.

    These one-off costs will not have any impact on the Group’s future earning capabilities.

    CDON Group will announce its financial results for the third quarter and nine months ended 30 September on 17 October.

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