Vestergaard Company A/S

Ledelsesberetning

Key activities The activities of Vestergaard Company A/S consist of the manufacture and sale of specialized equipment for use in airports. Vestergaard's product range within de-icing and toilet and water service units sets the standard for quality, functionality and service life in the aviation industry. Vestergaard Company A/S has subsidiaries in the US, France, and Germany, handling the sales and service activities in North America and the German- and French-speaking regions in Europe. In Thailand, the subsidiary company has production for all markets and facilitates sales for the Asian markets. Development in the year The development of Vestergaard Company A/S is closely tied to the overall developments in the aviation industry. The aviation industry was hit exceptionally hard by the worldwide COVID-19 pandemic but has once again reached the level it was before the pandemic began and has, in some instances, even surpassed it. The industry has returned, Vestergaard Company has felt its customers’ increased willingness to invest, as a result of their customers’ increased desire to travel. This financial year, the order intake, from new customers, was the highest yet. It is particularly positive that there has been a very satisfactory customer intake and the company’s market share has been increased in line with the sales strategy. The inventory of finished goods was modest at the beginning of the year which has placed significant demands on the production and capacity adjustments. The year has been characterized by upscaling the production capacity, and the organizational structure has been adjusted to the new level of activity. Additionally, in this financial year, it has been decided that the physical facilities in Denmark will be expanded, and in the spring of 2024, the first step was taken toward building two new production workshops. The construction is expected to be completed in the spring of 2025. The company's revenue and gross profit in 2023/2024 amounted to 878.9 mDKK and 313.2 mDKK, respectively, compared to 822.4 mDKK and 271.8 mDKK last year. The income statement for 2023/2024 shows a profit of 96.4 mDKK after taxes compared to a profit of 84.2 mDKK last year. Equity at the end of 2023/2024 amounts to 645.1 mDKK, which corresponds to a solvency ratio of 56.5%. The past year and follow-up on development expectations from last year The expectation for the year's turnover was an increase of 5-10% when compared to 2022/2023, which has been fulfilled, and the management considers the result to be satisfactory. The company has continued to focus fully on targeted development projects within its core competencies that expand Vestergaard Company's position as a technological leader in the aviation industry. Specifically, focused work is being done on the further development of the automated deicer which will contribute to increased safety during the deicing process and increased user-friendliness. Reaching the stage of complete automation is still under development. However, the assisted solution, along with an anticollision solution, is to be commercially launched in the financial year 2024/2025. Work is continuing on the electrification of the various chassis. The smaller 9-12 tonne E-chassis is now actively offered to the company’s customers, the prototype of the medium type is ready, and the largest E-chassis is in the planning stage. Similarly, a new generation of DTS (Data Transmission System) has been developed, which expands the customers’ control options, when planning their de-icing process. Implementation began in 2023/2024. Special risks - operating risks and financial risks Foreign exchange risks A part of the company revenue is invoiced in foreign currencies, which means that earnings, money flow and equity capital are affected by the exchange rate development of these currencies. The company is primarily exposed to USD. The company does not undertake currency speculation. **Industry risks** The company's products can only be used by industries other than the aviation industry to a limited degree, and the company is, therefore, dependent on the economic development of this particular industry. Targets and expectations for the year ahead The order intake was very satisfactory at the end of the financial year 2023/2024, and this direction has continued into the beginning of the new year, where particularly the American market has developed positively. Consequently, a very satisfactory volume of orders can be stated at the start of the financial year 2024/2025. Revenue growth is expected to be approximately 30% in the financial year 2024/2025 compared to 2023/2024, with a profit margin of around 20%. Uncertainty relating to recognition and measurement There has been no uncertainty regarding recognition and measurement in the Annual Report. Unusual events The financial position at 30 April 2024 of the Group and the results of the activities and cash flows of the Group for the financial year for 2023/24 have not been affected by any unusual events. Subsequent events We refer to note 23.