Geh Invest Aps

Beskrivelse af virksomhedens væsentligste aktiviteter

Geh Invest ApS ("the company") is the holding company of the Gram Equipment Group (together "the Group" or "Gram Equipment"). The Company's only activity is to hold shares in Gram Equipment. The subsidiary Gram Equipment is an engineering company that designs, assembles, and installs equipment and production lines, as well as delivering spare parts and services to the global ice cream industry.
The mission of Gram Equipment is - driven by continuous improvements – to ensure our customers success in the ice cream industry by providing innovative solutions and services while seeking to minimize the environmental impact of our solutions and footprint: We are dedicated to promoting business integrity, ensuring safety and workplace standards, and making all people feel respected.

Beskrivelse af udviklingen i virksomhedens aktiviteter og økonomiske forhold

Revenue for 2024 amounts to DKK 926 million against DKK 943 million last year for the Group.
EBITDA amounts to DKK -85 million against DKK 67 million last year for the Group.
During 2024 Gram experienced negative cash flows from operating activities. As a result, Gram’s shareholders facilitated a complete restructuring of the Group and its parent companies’ financing structure, resulting in a substantial increase in liquidity being made available to the Group.
As we reflect on the fiscal year 2024, it is essential to acknowledge the various challenges Gram Equipment faced and that ultimately resulted in a negative EBITDA for the year. One of the primary challenges were delays during order execution. These delays were largely due to circumstances that disrupted our supply chain and project timelines. In a few legacy projects which were contracted prior to 2024 we encountered technical challenges. The mentioned delays in project delivery resulted in too short in-house testing time (FAT) which in turn resulted in additional challenges on customer sites. Ensuring the quality and reliability on these few projects was challenging. We encountered several instances of performance issues that required immediate attention and resolution. While our team worked diligently to address these problems, the technical difficulties led to increased project costs and extended timelines. Moreover, we experienced cost overruns across several projects. These overruns stemmed from a combination of rising material prices, increased labor costs and unexpected project modifications.
In addition, the implementation of a new ERP system in 2023 negatively impacted transparency in project cost budgeting and general Finance processes which especially impacted projects which were in execution during this period.
The cumulative effect of these challenges and cost increases significantly impacted our overall profitability.
The Company has lost more than half of its share capital during the year. The share capital is expected to be re-established through future earnings.
Lessons Learned
As we move forward, it is crucial to reflect on the lessons learned from the challenges we faced in 2024:
1. Enhanced Project Planning: We have improved our project planning processes to better anticipate potential delays and technical challenges. This includes conducting thorough risk assessments and developing contingency plans.
2. Strengthening Supply Chain Resilience: Build a more resilient supply chain to essential mitigate the impact of unforeseen disruptions. We will focus on diversifying our supplier base and enhancing our inventory management practices.
3. Investing in Training and Development: To address the steep learning curves associated with new technologies, we are increasingly investing in training programs for our employees. This ensures that our teams are well-equipped to handle technological advancements and maintain productivity.
4. Improving Quality Control Measures: Implemented stricter quality control measures including Non-Conformity Reporting helps us identify and resolve system issues more efficiently.
5.Cost Management: We implement more robust cost management practices to prevent overruns and results in more reliable cost forecast.
Risk Management
Gram Equipment’s risk management encompasses the relevant entities in Denmark, Turkey, USA, Italy and China. The process supports local teams by taking a structured approach towards risk management, with risk self-assessments anchored in an annual cycle. Data is consolidated at group level, and the findings are presented to the board of directors.Effective risk management is crucial to navigating the uncertainties and challenges we face. Our approach to risk management involves the following key strategies:
1. Risk Identification: We conduct comprehensive risk assessments to identify potential risks across all aspects of our operations. This includes evaluating strategic risks, operational risks, financial risks, hazard and regulatory compliance risks.
2. Risk Mitigation: Once identified, we develop and implement risk mitigation strategies to minimize the impact of potential risks. This includes diversifying our supplier base, investing in robust cybersecurity measures, and establishing contingency plans for critical projects.
3. Risk Monitoring: Continuous monitoring of risks is essential to ensure timely detection and response. We have during 2024 further worked on the enterprise risk management system that was implemented during 2023 to track risk indicators and address emerging threats promptly.
4. Risk Communication: Effective communication of risks to stakeholders is vital for transparency and collaboration. We have established clear communication channels to keep our shareholders, clients, and employees informed about potential risks and our mitigation efforts.
5. Risk Review and Improvement: Regular review and improvement of our risk management practices will help us stay ahead of evolving challenges. We will conduct periodic evaluations of our risks and make necessary adjustments to enhance their effectiveness.
Operational Risks:
Project risks
A significant part of the Group’s revenues relates to delivery of larger projects (equipment machinery for production of ice cream). Therefore, it is important that the Group has controls and procedures in place to ensure proper project governance and financial control. Proper project governance and financial control procedures will be enhanced by the lessons learnt in 2024 which will significantly reduce project risks within the Group.
Currency risks
The Group sells its products and services globally and invoices predominantly in EUR and USD.Further, the Group has significant receivables and payables in those currencies. Consequently, the Group is exposed to currency development between EUR/DKK and USD/DKK. The Group benefits to some extent from natural hedges due its establishment in the US. Management assesses hedging of USD foreign exchange exposure on a case-by-case basis, while the EUR exchange rate risk is regarded as low because of Denmark's fixed exchange rate policy towards EUR.
Liquidity risks
Due in part to long delivery times and mentioned delays in few projects, as well as late collection of milestone payments it proved difficult to manage the Group´s net working capital in 2024.The Group's ability to manage customer contracts, including, among others, ensuring timely fulfillment of milestone conditions and collection of payments, is important to manage the Group's liquidity.
Credit risks
The primary credit risk for the Group is that customers fail to pay the amounts they owe for products and services delivered to them by the Group. The Group’s customers are predominantly large, international blue-chip producers of ice cream with excellent credit ratings, high solvency ratios, spread across several geographical markets. This provides for a natural hedge of credit risks. The losses from customer payments that failed have been very low in the past.To limit its credit risks further, the Group’s credit policies contain guidelines and regulations for assessing credit risk of new customers, payment terms and procedures and processes for handling outstanding claims. All sales orders, where a certain credit risk is expected, will be covered through letters of credit, prepayments and/or other security.
Specific Risks
In addition to the general risks, we have identified several specific risks that could impact our operations and financial performance:
1. US Tariff Discussions: Ongoing discussions and potential changes in US tariffs could affect our supply chain and cost structure. We are closely monitoring these developments and evaluating their potential impact on our business.
2. Volatile Markets and Currency Fluctuations: The volatility of global markets and fluctuations in currency exchange rates pose risks to our financial stability. We are implementing hedging strategies and diversifying our market presence to mitigate these risks.
3. Inflation: Rising inflation rates can increase our operating costs and reduce our profit margins. We are taking proactive measures to manage inflationary pressures, including negotiating better terms with suppliers and optimizing our cost structure.
Sustainability Initiatives
As part of our commitment to corporate social responsibility, we have implemented several sustainability initiatives aimed at reducing our environmental footprint and promoting sustainable practices. As a result of these efforts Gram Equipment has been awarded in 2024 with the EcoVadis Silver Rating. Our key initiatives include:
1. Energy Efficiency: We are investing in the development of energy-efficient solutions to reduce the energy consumption of our customer deliverables. At the same time, we are working to improve the energy efficiency of our own operations.
2. Waste Reduction: Waste is a significant challenge for our customers in the ice cream industry. Therefore, we are implementing waste reduction initiatives aimed at minimizing waste generation and promoting recycling.
3. Sustainable Sourcing: We are committed to evaluating the sustainability and ESG risks associated with our supply chain partners. Moreover, all suppliers are required to sign our Supplier Code of Conduct, which outlines the sustainability and ethical standards that suppliers to Gram Equipment must adhere to.
4. Carbon Footprint Reduction: We have completed a full inventory of carbon emissions from all of Gram Equipment’s activities (Scope 1, 2, and 3), establishing 2024 as our baseline year. We are committed to reducing our carbon footprint through measures such as optimizing transportation routes, increasing the use of renewable energy, and reducing the energy consumption of our equipment. Our commitment is further demonstrated by joining the Science Based Targets initiative (SBTi), and we will set emissions reduction targets in alignment with their guidelines.
Data ethics
We want to enable digitally based global growth, as a substitution of growth based on travel activities. Reliance on data is becoming a key enabler for more digitally integrated offerings at Gram Equipment. We focus both on expanding our digital market offerings, as well as on optimizing internal digitalsystems. We manage and control the storage and use of data ethically and proactively, to avoid abuse and privacy infringement. We must continually safeguard our position from legal, business, and reputational risks.
Non-financial matters
Gram Equipment’s strategy is to be the world´s best provider of sustainable ice cream equipment and services. While doing so being the Ice cream producers’ preferred supplier of equipment and process solutions, with emphasis on quality, efficiency, on-time delivery, and value-added services. At the same time, Gram Equipment wants to be an attractive employer, as well as a fair and good customer of its suppliers.

Beskrivelse af virksomhedens forventede udvikling

Looking ahead to the fiscal year 2025, we expect revenue growth around 8-10% and a profit before tax margin around 3 - 4%.
Despite the setbacks we faced in 2024, we remain committed to improve our operational efficiency and business excellence. Our focus for the upcoming year will be on enhancing our project management processes, strengthening our supply chain resilience and focus on advancing our Gram Equipment@SMART solutions offering.
We are confident that with these strategic initiatives, we will be better positioned to navigate future challenges and achieve sustainable growth. We appreciate the continued support of our shareholders, clients, and employees as we work towards a more prosperous future.