The Danish car detailing chain Byens Bilpleje has a deficit on the bottom line again. There is a deficit of almost 2 million kroner in the accounts. A takeover has been expensive.
The car care chain Byens Bilpleje ended 2024 with a deficit in the millions. The result shows a minus of 1.7 million kroner.
This is despite a significant increase in revenue. According to Motormagasinet, director Dennis Odgaard points to the acquisition of Steamrex as part of the explanation.
Revenue for the entire group reached DKK 365 million. This is an increase of DKK 85 million compared to the previous year.
However, the growth in revenue has not been enough to ensure a positive result.
The deficit in 2024 is an improvement compared to 2023. Here, Byens Bilpleje lost 4.5 million kroner. Nevertheless, management had expected a somewhat better year.
The acquisition of Steamrex in particular has proven to be a challenge. Steamrex is Denmark's largest provider of mobile car cleaning. The acquired company is not delivering the expected earnings.
Steamrex contributed 44 million kroner to the group's total revenue. However, Steamrex alone accounted for a loss of 3.2 million kroner. This is a significant reason for the group's total loss, explains Dennis Odgaard.
Challenges after Steamrex acquisition
Byens Bilpleje is a nationwide chain. The chain specializes in painting and preparing cars. It has a total of 61 branches spread across Denmark.
In addition to the Danish branches, the group also operates eight branches in Sweden, demonstrating its ambition for growth beyond Denmark's borders.
It's not just the operations that have changed for Byens Bilpleje. The ownership has also changed hands recently.
Back in August 2022, there was a significant change in the ownership structure. The Swedish private equity fund Procuritas chose to sell all of its shares.
The shares were sold back to the original founders of Byens Bilpleje. Since then, the founders have continued to run the business.
From private equity fund back to the founders
The exit of the private equity fund marked a new phase for the company. The original owners are now back at the helm. They are faced with the task of turning losses into profits.
The focus is now on improving earnings, especially in those parts of the business that are not meeting expectations. The integration of Steamrex is a central part of that task.
The future will show whether the new initiatives and continued operations under the founders' leadership can ensure black numbers on the bottom line for Byens Bilpleje in the coming years. The challenge is clear for Dennis Odgaard and the rest of the management.
At Boosted.dk you can read much more about car care, maintenance and that part of the industry in general.
Also when it comes to laws and regulations. Some politicians would like to ban you from washing your own car by hand. Read more about it here .
