Blücher Metal A/S

Ledelsesberetning

Financial highlightsDKKm2023 2022202120202019Key figuresRevenue524563505462519Operating profit7561807697Profit/loss from financialincome and expenses3-2-1-1-2Profit before tax9966797595Profit for the year8253645974Fixed assets161168174169141Current assets248330287203171Total assets409499461372312Share capital1818181818Equity293397344279220Non-current liabilities otherthan provisions43114Current liabilities other thanprovisions98861058277Investment in property,plant and equipment76183914RatiosOperating margin14.3%10.9%15.8%16.4%18.7%Current ratio253.1%384.4%272.8%247.9%220.7%Solvency ratio71.6%79.6%74.4%75.0%70.7%Average number of full-timeemployees326361326324362In 2023, BLÜCHER Metal A/S merged with Watts Denmark Holding ApS with accounting effect from 1January 2023, with BLÜCHER Metal A/S as the succeeding company. Comparative figures have beenrestated accordingly to reflect the uniting-of-interests method applied in measuring the intra-group merger.As from 2020, the financial statements were no longer prepared in accordance with IFRS, and instead theDanish Financial Statements Act was used as the financial reporting framework. The change from IFRS tothe Danish Financial Statements Act has no effect on the financial highlights.The financial ratios have been calculated as follows:Operating profit/loss x 100Operating marginRevenueCurrent assets x 100Current ratioCurrent liabilitiesEquity x 100Solvency ratioTotal equity and liabilities at year-endDevelopment in activities and financial positionRevenue for 2023 came in at DKK 523.8 million as against DKK 562.8 million in 2022, accounting for andecrease of 6.9%. Operating profit represented DKK 75.0 million as against DKK 61.4 million in 2022, accounting for anoperating margin of 14.3% as against 10.8% in 2022. The increase was mainly the result of cost reductioninitiatives and decreasing inflation on e.g. stainless steel and energy. Profit after tax was DKK 82.4 million as against DKK 53.2 million for 2022. Results were up on forecastand are considered satisfactory seen in the light of the general market situation. For 2023, the Company anticipated reporting revenue in line with prior year. However, revenue was 7%down on forecasted. The revenue decrease was, for the most part, driven by the general market situation.Despite unchanged revenue, results were expected to increase in the range 10-15% due to cost reductionand slowdown in inflation. Cost reduction initiatives were implemented, and inflation decreased, especiallyon stainless steel and energy. The result after tax for the year excl. income from subsidiaries ended withan increase of 14.4 % compared to 2022. Management outlooked in the Management's review for 2022 aprojected increase between 10-15 % in result for the year and hence the result for the year was realisedas projected.In 2023, BLÜCHER Metal A/S merged with Watts Denmark Holding ApS with accounting effect from 1January 2023, with BLÜCHER Metal A/S as the succeeding company. The merge was made to simplify the Group structure.BranchesThe Company has active branches in Finland, Australia and Poland where sales representatives aresupporting Blücher Metal A/S with operations in the respective countries. Outlook for 2024For 2024, the Company expects to report revenue approx. 2% up on the year under review. Thisexpectation is based on projected financial performance and the competitive situation in the mostimportant markets. Cost reduction initiatives have been implemented, so results are expected to increasein the range of 3-4% compared to the year under review.Business modelBLÜCHER Metal A/S conducts business within the production and sale of stainless steel drainagesystems. The products consist of standard products and customised products. The products are mainlyproduced in Denmark, and there is a continous focus on reducing environmental impact and improvingsafety for the employees.Operating reviewThe Company takes a business approach to CSR, creating value both for the Company and itsstakeholders - i.e. customers, vendors, employees, shareholders and the surrounding community.The most important CSR activities comprise the following:• Environment & Climate• Employees• VendorsIntellectual capitalIt is important for the Company to develop and retain know-how accumulated in the Company both withregard to products, processes and business aspects. Environment and ClimateThe Company has intergrated Environment and Climate in one policy, as it is close connected.BLÛCHER Metal A/S is certified to the ISO 14.001:2015 standard, certification number: 157638-2014-AE-DEN-DANAK, meaning that a management system and policy are in place, ensuring that relevantlegislation is complied with, and regular measures are taken to improve the Company's environmentalimpact. Our environmental policy reads as follows:In accordance with business and managerial objectives and approaches, the Company will reduce itsimpact on the surrounding community by regularly developing eco-friendly processes, efficiently using rawmaterials and energy and reducing emission from its processes. The Company strives to: communicate openly about environmental impact from its processes and products,  promote responsible behaviour on the part of its employees with regard to the environment andcomply with internal and external rules and eliminate any risk of pollution,engage in positive co-operation with regulatory authorities and encourage our vendors to make use ofenvironmentally acceptable raw materials, products and services,  constantly promote a better environment, even though legislative requirements have been met,  subject new projects to an environmental assessment and encourage employees to take part inpreventive environmental action,  take care that external workers and contractors working for the Company are aware of and complywith the same environmental requirements when working at the Company and  inform buyers of the Company's products about environmental aspects in relation to the use anddisposal of the Company's products. In 2023, the Company improved its eco efficiency on water consumption, greenhouse gas and hazardouswaste accordingly to goals and plans. Energy hunt is implemented on a monthly basis. In 2023, theCompany implemented a new waste handling system in terms of sorting in more fractions in bothproduction and administrative areas. Learnings from best practices are shared on monthly corporateglobal EHS meetings.Working environmentThe Company strives to ensure that each day all employees leave the workplace in the same healthycondition as they came to work. This is ensured in the form of hazard control, compliance with relevantlegislation, regular optimisation and a proactive approach.Our working environment policy reads as follows:The Company will through internal training ensure that all activities are planned and carried outconsidering the employees, working environment and their surroundings. Management is to ensure adynamic working environment, allowing optimum utilisation of work efforts and resources while still takingtechnical and financial aspects into account. All activities in the Company must, at any time, be conducted in accordance with relevant legislation andany corporate deadlines for maintaining a sound working environment. The Company has high focus on improving safety for the employees, and will continue to encourageemployees actively to contribute to this, e.g. through reporting of near misses and reporting of safetyobservations.During 2023, the Company held regular workshops and training related to safety on job to ensure fullcommitment by its employees to working environment governance on working environment. The companywill continue the high focus on proactive safety approach by training of employees, and faster responseand action on reported safety observations and near misses.VendorsThe Company strives to contract only with vendors working in accordance with the same ethical guidelinesas the Company. Accordingly, the Company strives to work with vendors pursuing good business ethicsas described in the Watts Water Technologies' (WWT´s) Code of Conduct(https://investors.wattswater.com/corporate-governance/code-of-conduct/default.aspx).Human right and anti-corruptionWe conduct business in a manner respecting human rights and requiring dignity from us all, and wesupport international measures promoting and protecting human rights, including measures to preventslavery and human trafficking. The Company's global policy to combat human trafficking reflects our obligation to comply with all anti-slavery and anti-child labour legislation as laid down in local legislation, including the British ModernSlavery Act, California Transparency in Supply Chains Act of 2010 and International Labour Organization(ILO) Standards.This i.a. involves that we: Ensure that all new employees are aware of our policy (Code of Conduct), Train our employees in our Code of Conduct, The Company has a hotline to report breaches thereof, andThe Company carries out control of relevant work aspects to ensure compliance with the Code ofConduct WWT´s Code of Conduct, applying to the Company, lay down additional guidelines for employee rights,environment/climate and anti-corruption. Operating reviewThe Company will maintain an open and active dialogue with employees, authorities, customers, vendorsand other stakeholders. Regarding policies for corporate social responsibility, human rights, environmental and climate impact,reference is made to the Code of Conduct prepared by the Parent Company, Watts Water Technologies,which is effective for the entire Watts Group.Within the relevant areas, the Company did, during 2023, not identify any breaches of the Code ofConduct. In 2023, a risk analysis was made, which did not disclose any material risks within the relevantareas. Through continuous focus and open dialogue with its vendors, the Company does not expect toidentify any breaches of the Code of Conduct in 2024. Research and development activitiesThe Company regularly engages in product development and business optimisation.RisksThe Company is only, to a limited extent, exposed to financial risks. Receivables and payables do not carry any unusual business risks. The Company does not engage in any speculation, and forward contracts are entered into only to hedgefuture cash flows. Currency risks are, only to a limited extent, hedged in the form of forward contracts for outstandingexchange credit and debit. The Company was not a party to any forward contracts in 2023.Events after the balance sheet dateNo events have occurred after the balance sheet date of material importance to the annual report for2023.

Beskrivelse af virksomhedens væsentligste aktiviteter

Principal activitiesBLÜCHER Metal A/S conducts business within the production and sale of stainless steel drainagesystems. The products consist of standard products and customised products.