Dansk Wilton A/S

Management's review

The Company’s principal activitiesThe Company’s main activity is the design, development, and production of individual design carpet in high quality for the professional contract market. The Company’s carpet solutions are sold worldwide focusing on the international cruise industry and hotel chains among others. The Company has an export share of more than 94%.Development in nancial activities and nancesbetter market conditions than in the previous 3 years. The company’s primary customer groups: The global cruise industry and land based hotels around the world slowly recovered in 2023 after the global COVID-19 pandemic.     as the world economy also in 2023 was impacted negatively by big increases in raw materials and within sustainability in 2023 supporting the hospitality industry’s agenda of responsible      sustainable business development and has gone         Axminster carpet solutions, so that at the beginning of 2024 The Company expect to achieve a Cradle to carpet solutions according to the new, even more    Cradle to Cradle Certied®, Version 4.0.The Company is continuously exploring ways to reuse carpet waste that is generated during dry docks and hotel renovation projects. The Company developed the RE:SHAPE material through pilot projects and partnerships, The Company has looked for possibilities of transforming carpet waste into new interior design solutions keeping the material in the world of interiors.One of The Company’s latest RE: SHAPE projects is the product ReBond. In collaboration with Annual Report 2023Modulex A/S and Elektro-Isola A/S in Denmark The Company found a way to turn the RE:SHAPE material, based on carpet waste, into architectural signage.The recycling as well as other sustainable business development initiatives are described in more detail in the dedicated “Environmental, Social and Governance” reporting.During 2023 The Company made big investment in its production facilities in Herning. One of the most advanced high speed Axminster looms was installed at The Company during Q2 and has since August been running at full production capacity. A second high speed Axminster installation will be added during summer 2024.The Boards of Directors considers the Company’s result for the year 2023 to be lower than under normal market conditions but also acknowledge       operated under during 2023. The result for 2023 has been realised within the levels communicated in the 2022 outlook.OutlookThe Company expect that also 2024 will be challenging year with continued war in Ukraine and in Gaza. Also, the increased geopolitical tension among major world leading countries can have a negative impact on the world economics in 2024. However, there are also signs that the hospitality sector will grow stronger in 2024, the Company expects a positive result at a level between 5 - 10,0 mio. DKK.Uncertainty relating to recognition and measurementRecognition and measurement of items in the annual report have not been subject to any uncertainty.43Special riskCurrency related riskThe Company’s main transactions is done in EURO and Danish kroner, resulting in a much-reduced currency risk.Interest rate related risk      interest rate related risk is much reduced.Research and development activitiesExisting products and design concepts are continuously developed in the company and thesustainable business development is ongoing, both        recycling initiatives. Costs for this are recognisedin the income statement.Knowledge resourcesThe company’s knowledge resources consist of competent and experienced employees. Itis important for Dansk Wilton A/S to be able to attract and retain competent employees. In order to ensure high and at the same time competitiveproduct quality and concepts, continuous investment is made in continuing the education ofthe company’s employees.Environment risk The Company has made a comprehensive risk assessment on both environment and humanrights, covering not only the activities under directcontrol of the company itself, but the entire value chain including raw materials. Also, the company has made extensive Life Cycle Assessments of all product groups.Detailed information on environmental and humanright risks are reported in our dedicated ESG reporting.Unusual matters               Subsequent eventsNo events have occurred after the balance sheet      position.