H1 2017 results affected by substantial impairment losses
Revenue increased by DKK 32 million in the first six months of 2017 to DKK 8,058 million (DKK 8,026 million in the first six months of 2016). Operating profit (EBITA) showed a negative DKK 51 million (DKK 393 million in the first six months of 2016) following substantial impairment losses on receivables in North America and write-downs on customer-oriented IT systems in Assistance in Denmark.
President and CEO Jakob Riis says:
”The H1 2017 results are not satisfactory. We must increase our profitability considerably and ensure
stable revenue growth going forward. We are in the process of systematically examining the business and are expecting to complete our analysis and the strategy process sometime during the autumn of 2017.
Since taking office, I have spent my time at Falck going around visiting our different divisions and
getting to know and understand the business. Falck is a company with unique strengths, dedicated employees and fantastic growth potential. But our business is commercially complex and we need to simplify and gain efficiencies over the next 12-18 months. It is crucial for us to establish a strong foundation for a sound and robust business so that we can invest in the innovation and new technologies which will form the basis of a profitable growth in future.”
developments in the US healthcare system. The market is undergoing huge changes these years and particularly the US payer environment has become more challenging. In this connection,
management has analysed Falck’s accounts receivables in Q2 and reassessed the valuation of those receivables to the effect that they have been written down by DKK 282 million.
Assistance, which has turned out to be DKK 100 million more expensive to develop than initially
assumed. The value has been written down by those DKK 100 million.
The first half of 2017 confirmed the growth potential of three healthcare-related areas:
Emergency, Healthcare and Global Assistance:
1 July 2017. The contract will increase the number of ambulances in Los Angeles by 55, which
means that the total number is now 157 ambulances.
treatments relating to private healthcare insurance as well as preventive healthcare
programmes for companies.
▪ Global Assistance grew through new contracts with companies wanting to ensure that their
employees and customers will have the necessary assistance if they fall sick while abroad.
Within Assistance and Safety Service Falck is in the process of adapting to the future market
private roadside assistance subscriptions, an increasing number of shared cars and roadside