Annual Profile 2007 - Introduction by the CEO
Great design achievements, strengthened Pressalit Care initiatives, and the introduction of Business Excellence, were among the main events of 2007.
From its very inception, design has been a core feature at Pressalit. Ever since 1966, when Sigvard Bernadotte and Acton Bjørn sat down at the drawing board to create their blueprint for the Comfort seat, the combination of aesthetic design and functionality has played a key role in our products and our brand. But again and again, we experience
that our passion for design is not just a throwback to the past but a vibrant part of our contemporary culture. And we can safely say that if anything, 2007 was a tremendous design year for Pressalit Group. For this reason, design plays a prominent role in this annual profile.
Naturally enough, we adopt this same creative approach when we do business with our customers and collaborative partners. At the beginning of 2007, Pressalit A/S challenged its distributors, and subsequently visitors at the ISH 2007 trade fair, with an exhibition featuring the work of different artists who offered their unique interpretation of toilet seat design in their chosen material. The seats were meant as a source of inspiration rather than actual production items, but the gallery gave rise to several new innovative product concepts which have now been incorporated into Pressalit’s product programme. In this way, we make good on our corporate value ”we play”.
A positive year for Pressalit Care
In 2007, Pressalit Care was presented with two major design awards for a new flexible nursing bench. The division has experienced positive growth in 2007 with solid revenue and satisfactory profit. The group sees a tremendous potential in this business area, a fact that is emphasised by current investments in the division.
Pressalit Care has stepped up its efforts in the UK market with the establishment of a new sales office in Reading near London. Production in Eastbourne will also be considerably improved with the introduction of new efficient environment-friendly technology and better facilities. As of 1 January 2008, we have decided to abandon the name ESL so that the UK subsidiary will henceforth simply bear the name Pressalit Care plc.
Our ambition for 2008 is to secure further growth, partly through the establishment of a new subsidiary in Sweden and partly through attractive partner agreements for distribution in selected markets.
Closer cooperation between Pressalit and SaniScan
For a number of years we have predicted that seats featuring soft close will be the product of the future. The future is now. The sale of soft close toilet seats has risen dramatically. In 2007, Pressalit and SaniScan contributed towards this development by introducing several new soft close products onto the market. A great deal of attention has also been generated by those seats that came into being as a result of Pressalit Art Gallery – the Football seat being but one example which – as the name suggests – is aimed at the football enthusiast.
From January 2008, Pressalit and SaniScan will enter into closer collaboration. This collaboration will more take the form of a joint business area that handles distribution via the three sales channels: trade, OEM and DIY. In practical terms this will also mean better
opportunities for collaboration in the areas of product development, sourcing and distribution.
SaniScan continues to extend its range of accessories, the latest example being a series of pedal bins in different colours.
Annual financial result
When we look at the annual financial result, it is clear we failed to achieve the desired growth for 2007. Annual turnover amounted to DKK 555.3m, which is on a par with 2006. EBIT amounted to DKK 42.5m, corresponding to a profit ratio of 7.7 %. Part of the explanation for this is the increased price of raw materials, just as production costs have
generally been high in the past year.
Generating growth remains a key focus area for Pressalit Group in the coming years. Last year saw the launch of a strategy plan that will guide us through to 2012 – and also generate significant growth as regards turnover and profit. The main elements in the growth strategy plan are a number of strategic development projects aimed at boosting central areas within the group. We have also decided that our internal development framework will be the European Foundation for Quality Management’s ‘Business Excellence Model’. Business Excellence deals with management through processes and data, as well as improving all areas. We will be focusing on this approach throughout the organisation.
Given current trends in the global economy, a cyclical downturn seems inevitable. In all probability, this means declining sales in the already overheated construction industry, but the slowing in the economy is only expected to have a marginal impact on Pressalit Group. Experience shows that we sell more products as replacement sales during periods of economic decline. And particularly for the Care sector, this means there is sufficient free capital to initiate housing projects for the elderly. This is an area that typically suffers during periods when construction costs spiral due to a greater volume of luxury building projects. Thus our expectations for 2008 remain positive.
An attractive workplace
Pressalit Group is known for being a good and attractive workplace. For us it is important to treat our employees properly and show them respect. It is therefore with some pride that we have noted that the press continues to point to Pressalit as one of the leading companies in this area. And similarly, it is our experience that Pressalit Group attracts
new employees to the company because of our positive reputation. We will continue to strive to be among the most attractive workplaces in those areas where we operate – and one of our focus areas in the coming years is employee health and welfare. At the heart of Pressalit Group is a highly qualified and committed workforce, and I would like to end by sending a heartfelt thanks to every one of these people – as well as to our good customers and business associates around the world.
Kim Boyter
CEO