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Ailing Danish rail company DSBFirst had a very rotten accounting results - now blame Swedish side for losses



  

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Monday, 27 June 2011
DSBFirst presents the worst accounting for the Danish state railways history. DSBFirst Denmark A / S, DSBFirst Sweden AB and DSBFirst V�st AB had a total deficit of almost Dkr582 million in 2010.

The company's own auditors have painted a gloomy picture of the scandal hit the train company, whose fate seems to be sealed on Tuesday. And it's very hard to see what can prevent a shutdown of the company.

The company is in my opinion at a very critical situation according to the evaluation of the auditor Thorbj�rn Helmos Madsen, who has gone through a recently published 2010 financial statements for DSBFirst ApS, which is the holding company controlling DSBFirst operation in Denmark and Sweden.

“DSBFirst is very close to bankruptcy,” says Thorbj�rn Madsen Helmos to radio Demmark News. For the company to continue operations, three prerequisites must be met.

First, DSB convince the Swedish traffic authorities about a new economic model, and it implies that the Swedes have to get up with the wallet, which they have hitherto rejected.


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Additionally, DSBs partner, Scottish First Group, also need to put money into DSBFirst. And finally, there is a solution, so DSBFirst will not have to pay back huge sums of illegal state aid it received.

The financial statements of the holding company DSBFirst ApS and DSBFirst Denmark A / S also reveals that the really big financial problems was to be found in the Swedish DSBFirst AB. It had a deficit of Skr387 million in 2010.

For comparison, DSBFirst Denmark A / S had a deficit of almost Dkr270 million. But the result is burdened by a change in accounting principles and not least a huge loan of more than Dkr190 million to the Swedish DSBFirst. The actual deficit in DSBFirst Denmark, which operates the traffic on the coastal line near Copenhagen, is "only" about Dkr30 million - so far the blood-red figures comes from the Swedish operation.

Since it looks like Sweden is not the place for DSBFirst to do business, it is suggested that DSBFirst owner can choose to let the company continue to run in Denmark, while it in turn shuts down its sister company in Sweden, unless the Swedish traffic buyers agree to increase the contract payment.

The Swedish traffic authorities will have until Tuesday to notify the DSB of whether they are ready to spit out more money in the scandal hit Rail Company.

A report by auditors KPMG showed recently that the DSB will need to inject about a half billion kroner if they want DSBFirst to run on.
By Scancomark.se Team


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