VIKING prospers despite tough conditions
Annual accounts: 2009 saw VIKING Life-Saving Equipment A/S defy a difficult market to attain a record turnover in excess of DKK 1.1 billion. Profit for the year is described as satisfactory.
Esbjerg, Denmark, March 18, 2010 – Tough market conditions weren’t enough to stop VIKING Life-Saving Equipment A/S, the global manufacturer of safety equipment for the maritime, offshore and fire industries, from achieving all-time-high sales of DKK 1,136.4 million, up just over 6 percent on 2008. The group's profit also improved slightly compared with 2008.
The company’s management attributes the record performance to increased focus on cost reduction and working capital. Despite pressure on margins and the establishment of new subsidiaries and servicing stations, the tightened cost controls enabled VIKING to maintain its momentum. At the same time, a decrease in capital tied up in inventory and debtors resulted in a significant reduction in the group's interest bill.
Strict controls bear fruit
The most significant effect of the increased control over working capital can be seen in the company's liquidity, which improved by approximately DKK 147 million for 2009. A decrease in balance sheet totals combined with an increase in equity thus resulted in the group's equity ratio increasing from 36.9 to 45.8 per cent in 2009.
Today, VIKING is less dependent on external lenders, enabling the company to maintain the implementation of its key strategies for market, product and concept development.
Successful new shipowner concept
Further fuelling the company’s growth has been the introduction of a new safety equipment service concept that has been warmly welcomed by shipowners. Called the “VIKING Shipowner Agreement”, it leverages the company’s unique ownership of the world's largest and most specialized network within maritime safety equipment.
“In the hard-pressed maritime market, new ways to free resources and streamline expenses are in great demand,” says VIKING’s CEO Henrik Uhd Christensen. “Shipowners are looking for long-term, packaged solutions, and our ability to offer our customers flexible, fixed-price agreements for delivery and servicing of maritime safety equipment, as well as direct access to a global network of specialists makes VIKING an attractive partner.”
Global growth focused on BRIC countries and the US
VIKING has boosted its international position in several aspects and, with the recent opening of a sales office in India, secured its presence in all parts of the BRIC (Brazil, Russia, India and China) countries.
“We foresee a great future in the BRIC countries,” says Uhd Christensen. “At the same time, with the acquisition of Colorado-based fire suit producer Quest Enterprises, Inc., we’re well on the way to building a strong bastion in the US market.”
Financial controls aside, VIKING’s CEO gives the bulk of the credit for the company’s continued success to its global network and degree of closeness to its customers.
KEY FIGURES: VIKING Life-Saving Equipment A/S
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