Etk Ems Group Aps

Development in activities and financesThe income statement for the year ending June 30th, 2023 shows an increase in revenue of around 23% and a profit for the year of EUR 6.7m.

The equity is 20m EUR, and the equity ratio is at 42%.

The financial year 2022-23 has been a satisfactory year for the shareholders.

The year has been challenging, as we had to deal with supply chain constraints, continued international unrest arising from the Russian invasion of Ukraine, global tensions with potential trade wars, and continued inflation leading to price increases on raw materials and components. In the later part of the year 2022/23 we have experienced somewhat normalization, lead times have dropped somewhat, albeit not to pre-pandemic levels, inflation has returned to more normal levels, and customers have to a larger degree shifted their focus from securing materials to focussing on risk mitigation, inventory reduction and cash flow improvements. As a consequence, we have during the later stages of the year seen an increase in customers requesting to postpone demand and reducing liabilities.

Despite these challenges, we managed to secure reliable and steady deliveries to our customers.

We have continued investing in new and improved technology for our production in all four sites, with the largest single investment in ETK’s history being made in Skanderborg where a combined SMT and IMT production line has been installed. Furthermore, investments into a new SMT line for our Rayong factory have also been initiated, with installation during Q4 2023. The additional capacity will be a further enhancement to the strength of our Rayong factory and ETK in supporting the competitiveness of our customers going forward. Additional investments are planned for implementation during 2023/24 to support a continued scaling of the company.

The Næstved site, which was acquired during 2022, has since Q3 2022 been fully integrated into the ETK operating model, including implementing our backbone ERP system, so the Næstved site enjoys the same AI driven planning systems as their sister companies. Additionally, further optimization of our digital setup and planning systems has been implemented, enabling an improved control over component scheduling, capacity utilization and delivery service to our customers.

Our Sourcing and Purchase teams have initially spent a large part of their focus on securing components for our customers utilizing alternative vendors and routes, but have during the year 2022/23 shifted focus to cost optimization, postponing supply and supporting new business opportunities.

This year's increase in revenue is a confirmation of our ability to integrate acquisitions, to scale and grow in co-operation with our customers and to support them in their expansions, despite market challenges.

As of 1st June 2023, ETK has onboarded new CEO Troels Hornsved to lead the company during the next stages, supported by the Board of Directors.