Svanehøj Group has realized sales of DKK 644.3 million in the first financial year since the divestment from Wärtsilä. Despite COVID-19, Svanehøj Group is well-positioned for 2020.
Strong commercial momentum and growth in the core business, but a financial result which has been impacted by extraordinary one-off costs.
These are the headlines for Svanehøj Group’s first financial year, which spanned a period of 14 months (23 October 2018 – 31 December 2019). The company was established in late October 2018, when private equity fund Solix acquired the activities of what was then Wärtsilä Pumps and established Svanehøj Group with Svanehøj Danmark A/S and Hamworthy Pumps Singapore PTE Ltd as underlying, independent companies.
Turnover amounted to DKK 644.3 million and was realized through significant progress under the auspices of both Svanehøj Denmark and Hamworthy Pumps. 2019, in isolation, represents revenue growth of 66% against 2018. The net result is a deficit of DKK 6.7 million and has been negatively impacted by the carve-out from Wärtsilä. Without extraordinary one-off costs related to the establishment as a stand-alone business, the operating profit before amortization and depreciations for 2018/19 amount to DKK 59 million.
Significant initiatives to support new strategy
The effect of COVID-19 remains unclear, but we expect to be somewhat negatively impacted by the pandemic. However, Svanehøj Group is well-positioned, and we expect continued high business activity in 2020 – with flat revenue and normalized profit before tax compared to 2018/2019.
The expectations are partly driven by the new IMO marine fuel regulation, which will increase demand for Svanehøj’s pump solutions for gas.
With a new corporate strategy, ‘Towards 2023’, Svanehøj Group aims to contribute to a cleaner world by offering excellent technical solutions that match the conversion to cleaner energy types.
Key strategic goals have been identified to ensure that the Group’s brands are visible and known to target customers.
To support the strategy and business development Svanehøj Group have launched several significant initiatives. We have opened a representative office in Suzhou, China, to support our sourcing activities. We have opened a sales office in Kobe, Japan, to strengthen our local presence and our commercial organization. We have established a large service centre in Singapore to strengthen customer service and after-sales. And recently, we have initiated a major refurbishment and modernization of our headquarters in Aalborg, Denmark.
Further information: Søren K. Nielsen, CEO, Svanehøj Group A/S (+45 96 37 22 79, firstname.lastname@example.org)
Svanehøj Group annual report 201819
Svanehøj Holding annual report 201819