FNG Nordic AB’s 2020 annual report, published today, indicates that 2020 was a strong year for Ellos Group, with sales of SEK 3.2 billion, an adjusted EBITA margin of 9.1%, positive operating cash flow and strong liquidity. It also indicates that FNG Nordic AB has chosen to make a SEK 401.3 million provision for settlement pertaining to claims made by Ellos Group’s previous owners against FNG Nordic AB.

The positive development of the Ellos Group business has been previously communicated in FNG Nordic AB’s 2020 year-end report, published 26 February 2021.

As a consequence of circumstances previously communicated in a press release issued 19 April 2021 regarding the settlement agreement entered into between FNG N.V., FNG Nordic AB and Ellos Group’s previous owners, FNG Nordic AB has chosen to make a SEK 401.3 million provision for settlement, which is reported as other costs for the financial year 2020.

The settlement agreement pertains to the previously announced arbitration proceedings between the parties. As part of this settlement, FNG Nordic AB has agreed to pay an amount of EUR 40 million relating to certain claims by Ellos Group’s previous owners in relation to the acquisition documents. Although no payment is currently due under the terms of the settlement agreement, under certain circumstances FNG Nordic AB will be liable for payment at a later stage. The company has accordingly chosen to take this accounting measure at this time.

As previously disclosed, payment of any settlement amount is fully contingent upon completion of the strategic review which will be initiated with the objective of providing Ellos Group with the best possible setting, capital structure and possibilities for the future. FNG Nordic AB’s bonds will also be refinanced (or repaid) in advance of payment of the settlement.

The annual report is available at www.ellosgroup.com.

For more information:
Johan Stigson, CFO, Telephone. +46 (0)33-16 08 05

ABOUT ELLOS GROUP

Ellos Group – with online stores Ellos, Jotex, Stayhard and Homeroom – is the Nordic region’s leading e-commerce group. Working closely with our millions of customers, we constantly strive to develop and offer attractive, sustainable fashion and home furnishings for the entire family. Our focus is always on the customer. Through innovation, creativity and sustainability, we continuously seeking new avenues, both large and small. Ellos Group is headquartered in Borås and operates in all Nordic countries.
www.ellosgroup.com