Annual Profile 2008 - Introduction by the COO
This is the first time I have the pleasure of writing the opening lines of Pressalit Group’s annual profile as the company’s Executive Vice President and corporate spokesperson, and as such, I feel privileged to be able to send this greeting to the company’s many stakeholders. On the font page of the annual report are written the words “Each year is a new beginning” – and perhaps this is especially true this year.
In 2008 it is 10 years since my brothers Kim and Erik and I assumed control of Pressalit, and 2008 was also the first time since the generational shift in the company that changes were made to the composition of our management committee. This happened when, in the summer of 2008, Erik Boyter chose to leave the company in order to devote himself to other tasks. Our 10-year anniversary therefore provides us with the opportunity to look back and into the future, and as you will see in the following pages, this is something we have decided to do in this annual profile.
The distribution of roles has been simplified on the new executive board. As President & CEO, Kim Boyter has overall corporate responsibility for our two divisions, Pressalit A/S and Pressalit Care, while I, myself, am responsible for such areas as Human Resource Development (HRD), Corporate Communication, CSR and special development projects. We believe that this constellation gives us the right management framework to meet the challenges that lie ahead.
Recession – but not a crisis
Let me be clear from the outset: 2008 will not go down in the history books as a record financial year for Pressalit Group. Like so many other companies, we have experienced the tangible effects of the global recession, and we must expect that the downturn will also leave its mark on 2009. As in other areas of the corporate sector we had to respond to a substantial fall in orders in the final months of last year, which in turn meant we had to bid farewell to a number of loyal and able staff. It is part of our corporate responsibility to respond to the changed financial climate. But we also know that Pressalit Group remains a vibrant healthy company and that the economic crisis will in no way cause us to falter in relation to the values, qualities and long-term objectives that are at the core of Pressalit Group’s business.
The annual financial result for 2008 shows an annual turnover of DKK 537.4m and an EBIT of DKK 21.8m. Based on our budgeted projections this is clearly an unsatisfactory result, and we openly admit that the recession has had a far more negative impact on the company than zwe could possibly have imagined. We are also aware that the economic downturn will not last forever, and that despite our conservative financial projections for 2009 we expect to meet our growth targets within the foreseeable future.
The Divisions
In recent years our two divisions, Pressalit A/S and Pressalit Care, have undergone organizational changes and have added outside personnel to their management groups. We look forward to further developing the business areas together with our many skilled employees. Pressalit A/S has just participated at the ISH 2009 trade fair in Frankfurt where, once again, we were strongly represented. In the coming months, Pressalit Care is expected to experience growth in line with a well-deserved prioritization of public care and hospital spending following many years’ stagnation. The division has also recently established its own subsidiary in Sweden, Pressalit Care AB, a fact that reflects our expectation that the Swedish market offers further sales growth potential.
I would like to take this opportunity to thank everyone for their collaboration in the year that has passed. On the following pages you can read about some of the exciting products and activities that 2008 had to offer.
Pleasant reading!
Dan Boyter,
Executive Vice President