Eagleburgmann Ke A/S

Ledelsesberetning

Key activities The Company's business segment comprises two divisions:**Expansion Joints Division**The division supplies total solutions, which compensate for thermic expansions, vibrations and assembling imbalances in pipes, ducts and other systems, primarily within the energy sector. The solutions are based on compensator technology within fabric, rubber, elastomers and special compensators with steel parts, sealing products and engineering. Focus is on customised quality, design, engineering, installation and after sales service.**Mechanical Seals Division**The Seals division sells sealing products, including mechanical axial sealings, braided and static sealings for the industry. Development in the year The income statement of the Company for 2023 shows a profit of TDKK 22,130, and at 31 December 2023 the balance sheet of the Company shows a positive equity of TDKK 113,210. The past year and follow-up on development expectations from last year The year 2023 was a bit below of budget in regards to Net Sales (-2.1%), however the operating result was above the expectation (by 2.4 mDKK). The improvement in efficiency was mainly due to the higher gross profit and cost awareness. The year 2023 was also a bit below of 2022 in regards to Net Sales (-3.6%), which was due to the fact that after COVID the company received a lot of orders to be delivered within the year (2022). This was not a repeatable situation. But similar to budget the company achieved a bit higher profit in 2023 than a year before. In 2023 the material prices went back almost on 2021 level. There was a significant peak in 2022 which was due to the war in Ukraine. The purchasing department handled this critical situation very professionally. Management was satisfied with the result of 2023 and focusing to keep the actual trend in the received orders and improve the productions and the production efficiencies. Capital resources The Company's capital structure is considered to be sufficient. Targets and expectations for the year ahead The strategy for 2024-2026 has been agreed with the shareholders. Management expects a CAGR on sales in 7-8% which will also have a slightly positive impact on profitability.The expectation for 2024 is a 3.3 % increase in sales (200 mDKK in total) compared to 2023. GP 1 is also expected to increase by around 3 % which is due to the product mix. Profitability is expected to drop due to the fact that the company will start the roll out of SAP, furthermore the allocated group management fees are also increased in 2024 compared to 2023.Management expects an operating result of DKK 560k. Unusual events Regarding the Ukraine war started at 24, February 2022, the management assessed that the entity’s financial position and cash flow has not been significantly affected by this. Due to global regulations, we stopped our sales activity (and all kind of sales support) in Russia. Due to the fact that our intercompany sales towards Russia was insignificant in the past, we didn’t have any measurable negative impact.The war does not have significant impact on our supply chain. Subsequent events No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date.