April 5 - It has been reported that non-asset based logistics provider - CEVA Logistics - has withdrawn its plans for an initial public offering (IPO). The apparent reason for the U-turn is the company's unfavourable performance that would have adversely
For financial year 2012, ending December 31, 2012 CEVA Logistics saw revenues grow by 4.8 percent to EUR7.22 billion (USD9.33 billion). Although earnings before tax, interest, depreciation, amortisation (EBITDA) in both its freight management and contract logistics divisions sharply fell, in what the company says was due to adverse economic conditions.
EBITA for FY2012 dropped by 21.8 percent over FY2011 to EUR251 million (USD324.4 million).
CEVA ceo Marvin Schlanger commented: "These are difficult times for everyone in the global logistics industry and CEVA has not been immune to those pressures," although he added that the performance "simply isn't good enough and we have taken action to reverse this decline in profitability".
In a further development, CEVA has announced that in cooperation with its owners it has secured a recapitalisation agreement that, subject to completion, will eliminate over EUR1.2 billion (USD1.55 billion) of consolidated net debt, reduce annual cash interest costs by 50 percent (EUR135 million/USD174.5 million), and allow for EUR205 million (USD264.9 million) of capital investment in the company.
"We have been working with our financial advisors over the past few months to develop a long-term financial plan for the company … we are pleased that a substantial majority of our creditors have already committed their support," added Schlanger.