The Army Painter Group Holding Aps

Development in activities and financesWith the successful launch of the new product ‘Speedpaint 2.0’ replacing the previous ‘Speedpaint’ line in Q1 2023, The Army Painter has expanded the product offering from the traditional acrylic paint range, appealing to both the inexperienced user and veteran alike.

During 2023, The Army Painter has focused on the development of a new improved and expanded version of the existing range of acrylic paint - the core product in our paint range. The new range started shipping in Q1 24 with expected release date mid-March 2024. As a result, the stock build-up during 2023 reflects our biggest launch ever while phasing out the previous acrylic product line.

We have successfully grown the community around our brand and prepared the market for the 2024 product launch through extensive social media campaigns in Q3 and Q4, increasing our YouTube subscriber base from 36.000 to more than 220.000.

Building The Army Painter for future growth and scalability has also included an upgrade of the ERP platform to Dynamics 365 BC and the preparation of a migration of our website to the Shopify platform executed in January 2024.

To support our high ambitions, The Army Painter has throughout 2023 invested in building organizational strength and increased the workforce with 21 employees.

A board of directors was established alongside the new ownership and in August the new chairman of the board, Søren Torp Laursen, was appointed.

During Q4, management and the board have engaged in search processes to hire a new CEO and CFO. The new CEO, Henning Nielsen, started in February 2024 and we expect the new CFO to be onboarded during Q2 2024.


Risks
The Board of Directors of the Company and the Management continuously monitor both internal and external business risks. Below are the risks that have been deemed salient:



Currency risks
A significant share of the group's income is received in USD.
Meanwhile, a large portion of the group's procurement takes place in
Europe in EUR. The group continually monitors fluctuations in the
USD / EUR exchange rate. Forward contracts or other financial instruments
may be used to manage the currency-related risk.

Interest rate risks
The Army Painter group is exposed to interest rate risks on its debt financing, which consists of senior facilities and a revolving credit facility. The company monitors interest rate risks on an ongoing basis and may apply interest hedging instruments to manage the risk.

IT risks
As with other companies of a comparable size, The Army Painter is exposed to IT risks. During 2023, the company
has entered an agreement with an external IT partner to minimize the risk and further develop the IT platform to be able to support the future growth.


Suppliers
Most of The Army Painter’s suppliers are European, with a minor subset being Chinese. To manage the risks of an international supplier base, all new suppliers are presented with a supplier manual and code of conduct. These policies have been developed to ensure that all products have the same quality and follow the same guidelines for production.

The Army Painter maintains close relationships with its main suppliers and adjusts forecasts throughout the year to safeguard the supply of raw materials.