BroBizz A/S Annual report 3 Company objective BroBizz A/S’s objective is to facilitate mobility for motorists in Scandinavia and in the rest of Europe through the issue of BroBizz®, EuroBizz® and PayByPlate®, which can be used as a means of identification for a number of transport-related payment services, such as toll roads, bridges, ferries, parking, etc. BroBizz A/S is responsible for customer relationships in respect of private and business customers, including contract administration and the collection of fees between operators and the customer. Highlights of the year BroBizz A/S has solid experience of payment solutions across national borders. BroBizz currently operates on toll roads, bridges and ferries in Denmark and the rest of Scandinavia and in Austria. In addition, the BroBizz solution is used at certain parking areas and for access control. The BroBizz A/S business concept is unique and widespread in the Danish market, but the company expects to be met with increasing competition from foreign companies and new technologies. The company’s strategy is to be a competitive, digital mobility company which, through strong partnerships, will deliver exemplary mobility services to customers in Scandinavia and during their journeys through Europe. In 2019, this resulted in an intensification of the company’s business development. This will occur through digitalisation in order to continue to provide efficient payment solutions and excellent services for customers, making BroBizz’s products and services more attractive at even more points of use. In 2018, the company launched the option to pay by number plate with the product PayByPlate. Since its launch on Storebælt, PayByPlate has been made available on the Øresund Bridge, on the Mols ferries on Kattegat and on the Bornholm service. It is also possible to use it as a means of payment at WashWorld car wash. As it has become more widespread, BroBizz A/S has gained over 400,000 PayByPlate sign-ups. BroBizz A/S’s BroBizz® solution can be used at the Fjord Link Frederikssund, which opened in the autumn of 2019. PayByPlate® cannot be used, however, because the Fjord Link Frederikssund has developed a local number plate product via fjordpay.dk In March 2019, it became possible for BroBizz A/S’s business customers to register for a new service – EuroBizz – which provides access to toll roads at seven central and southern European countries in addition to Scandinavia. This was achieved through a partnership with TelePass S.p.A., and the plan is to expand the number of included countries and to expand the service to include BroBizz’s private customers in 2020. In accordance with its strategy, BroBizz A/S posted an increase in revenue from DKK 91 million to DKK 97 million. In 2019, investments were made in business development and in digital platforms in accordance with the strategy from 2017, and operating profit amounted to DKK 1 million. BroBizz A/S is a 100 per cent owned subsidiary of Sund & Bælt Holding A/S. BroBizz A/S is not covered by the State guarantee Key figures, DKK million BroBizz A/S Revenue Expenses Depreciation Operating profit (EBIT) 2019 97.1 -77.5 -18.8 0.8 2018 91.3 -69.6 -17.1 4.6 Financial items, excl. value adjustments Profit before financial value adjustments -0.3 2.2 0.5 4.6 Cash flow Cash flow from operating activities is positive and totals DKK 28 million, which comprises changes in current assets and noncurrent debt. Cash flow from investing activities is negative and totals DKK 17 million. The free cash flow is thus positive at DKK 11 million. At the end of 2019, the company’s cash funds totalled DKK 115 million. Events after the balance sheet date Reference should be made to the section on future outlook. Outlook for 2020 The outlook for 2020 – based on the budget adopted in November 2019 – is for a profit before fair value adjustments and tax in the order of DKK 2.5 million. Since then the outbreak of COVID-19 and the subsequent closure of workplaces and borders has created great uncertainty about the coming year’s results. As the company’s revenue is mainly based on handling payments from infrastructure usage, the company’s revenue is significantly affected by the closure of workplaces and borders not only in Denmark but in the company’s other markets too. Based on very limited experience, it is estimated that the company will lose revenue in the order of approximately DKK 3 million per month in that there will be a simultaneous reduction in variable costs. This assessment carries a great deal of uncertainty, however. The company has implemented initiatives to reduce the impact of the decline in revenue. \\Sv-data2-hals\transfer\Aarsrapport alle selskaber\ÅR_2019_ENG.xlsx
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