Danish industrial group Mekoprint improved its top line performance in 2018/19 by five percent, passing the DKK 500 m mark in turnover for the first time. Pre-tax profit was just under DKK 23 m, influenced by major investment in factory expansion and implementation of new technologies to ensure continued high growth.
The accounts for Mekoprint Holding A/S for year-ending 30 September 2019 show an increase in net turnover from DKK 478 m to 501 m. That’s equal to an increase of five percent, and reflects the highest level of activity ever in this family-owned Danish industrial group. The result was achieved against a background of a growth strategy, which has so far resulted in annual growth of 15% over the last four years.
Mekoprint develops and produces electromechanical components, metal and turnkey solutions, and is composed of four divisions: Graphic Electronics, Chemigraphics, Mechanics and Cables. High investment has been the order of the day over the last few years, designed to accelerate the group’s development, and is the reason for a fall in earnings from DKK 27.5 m in 2017/2018 to DKK 22.9 m before tax in 2018/2019:
“The accounts for 2018/19 feature an extraordinarily high level of investment of DKK 44 m in factory expansions and new production technologies. We are also working on several major customer projects that require organisational investment now, but will not show through as earnings for another 1-2 years,” explains CEO Anders Kold before continuing:
“We are a family-owned business with a long-term strategy, and the most important thing for us is that customer satisfaction is growing in line with us getting involved in product development with them at an earlier stage.”
Apart from financial growth and rising customer satisfaction, Mekoprint is also focusing on internal collaboration and job satisfaction. Mekoprint has plants in Aalborg, Støvring, Hornslet and Copenhagen in Denmark, and was ranked the country’s 12th biggest employer within medium-sized enterprises in November 2019.
Mekoprint also has subsidiaries in Poland, Ukraine and Hong Kong.
High expectations for the future
Mekoprint intends to continue focus on growth over the next few years, with more international collaboration and presence. The level of investment in the current accounting year (2019/20) is still high at DKK 40 m, going to advanced production technologies, digitisation of customer collaboration and a new factory in Ukraine, all moves expected to give greater global competitiveness.
Mekoprint expects an improved top and bottom line in 2019/20, despite the current market uncertainty. The group will also maintain focus on Corporate Social Responsibility, especially within education and training, and has an ambitious target of being CO2-neutral early in 2020. Results are evaluated in an annual CSR report made to the UN Global Compact as part of the group’s quadruple bottom line.