OUR OUTLOOK - Pressalit A/S

SAYING GOODBYE TO A TOUGH YEAR
– AND LOOKING FORWARD TO BETTER TIMES AHEAD
Take a look at the world around us
Dear reader!
I won’t hesitate in calling 2009 a tough year. As
we look back at the highlights of 2009, we can
safely say that, as feared, it was a year marred by
financial crisis – not only for us, but for many others
as well. The whole sanitation sector suffered
as a result of fluctuations in the construction industry,
causing even well-established HWS companies
to come under severe pressure.
The financial crisis cannot be said to be one of
our making, as in no way does it reflect problems
linked to Pressalit Group’s business foundation.
Rather the crisis is rooted in a global meltdown in
which we have no part. This said, it is inevitable
that we have been affected by its repercussions
and have had to act accordingly. As early as the
beginning of 2009, it became clear that our annual
revenue budgets were no longer realistic.
The annual accounts show that Pressalit Group’s
turnover for the year amounted to DKK 460.3
million, which is 14% lower than in 2008. Nevertheless
we were able to respond to the situation
quickly and substantially reduce our costs thanks
to an extraordinary effort. Unfortunately this
meant parting company with a number of dear
colleagues, which proved difficult for everyone in
the company.
A black zero on the bottom line
Our annual earnings before interest and taxes
(EBIT) show a modest profit of DKK 1.6 million –
corresponding to a “black zero” on the bottom line.
This must be viewed as a satisfactory result in
light of the current crisis. We have benefited from
tight financial management, which together with
the reduction in stocks has had a positive impact
on our liquidity. The company also has a sizeable
equity ratio, despite the fact that a few years ago
the banks tried to convince us that this was passé.
At a time of intense focus on costs, it is good to
see that throughout 2009 we have been able to
improve productivity in our plastics factory. As
the global economy begins to move from recession
towards recovery, we know we have a sustainable
streamlined company geared to the future. We
have made the right investments that equip us for
global competition – not least our decision to
build a new toilet seat production facility in Thailand
in 2010.
As the global economy
begins to move from recession
towards recovery,
we know we have a sustainable
streamlined company
geared to the future.
Generational shift
In terms of ownership, the company has undergone
a generational shift inasmuch as my brother,
and former COO Erik Boyter, sold his shareholding
in the company in October. My mother, Fay
Boyter, also decided to sell the majority of her
shares in the company at the close of 2009. This
means that Kim Boyter and myself have acquired
their shares and now each own 45% of the A
shares in Pressalit Group A/S. Fay Boyter continues
to own the remaining 10% of B shares.
Insight and outlook
The Executive Committee has used the year to
look beyond our own borders. We have visited
nearly all our international distributors – excellent
strategic business partners crucial to our two
core business areas. This has taken us to such
faraway destinations as Japan,
Israel, Spain and Australia. This
annual profile therefore focuses
on our international outlook, but
equally the insight yet another
year of financial hardship has
given us.
Happy reading!
Dan Boyter
Executive Vice President & COO