Completing the best year ever!
“We are proud of completing the best year ever in AKVA group’s history. High order backlog and continued high market activity also give positive expectations for the financial performance in the quarters to come”, says CEO of AKVA group ASA Trond Williksen.AKVA group ASA: 2014 financial reporting
Financially this has been the best year ever for AKVA group with total revenues of 1.246 MNOK and an EBITDA of 103 MNOK. The market activity has been very good throughout the year. AKVA group ended the year with the second highest order backlog ever.
“We are proud of completing the best year ever in AKVA group’s history. High order backlog and continued high market activity also give positive expectations for the financial performance in the quarters to come”, says CEO of AKVA group ASA Trond Williksen.
Cage Based Technology (CBT)
The increased revenues and margins in 2014 are mainly explained by increased activity in Nordic and increased activity in the rest of the markets in the Northern Hemisphere. Chile had positive development in 2014. However, we continue to monitor the development closely. Canada completed a very good year, with high technology and service and after-sales. Export activity to emerging markets had lower activity in 2014 due to fewer project in the last second half of 2014. UK completed a good 2014 with high activity in both technology and service. Our Turkey operation also completed a good and profitable year.
AKVA group Software AS in Norway continues to deliver stable revenues and good margins and have ended another good year financially. Wise Lausnir ehf in Iceland has had a good second half of 2014. This combined with a slightly slower start of the year, completes a decent full year 2014 financially. Software continues to invest in new product modules. These modules will strengthen the financial perfor-mance of the SW segment further.
Land Based Technology (LBT)
LBT has increased activity and improved performance in 2014 compared to previous years and AKVA group Denmark is profitable in 2014. Despite significant financial improvement over the last years, we are still not satisfied with the overall performance. However, we believe improved organization, controlled cost and cash flow will secure a profitable operation going forward.
Good market activity has materialized in a good order inflow and as a consequence the order backlog is the second best ever for AKVA group. The order inflow in 2014 was 1 231 MNOK (1 132 MNOK). The order backlog at the end of 2014 was 504 MNOK (520 MNOK).
The balance is considered as strong. Working capital in percentage of 12 months rolling revenue is improved YoY from 12% to 10%. We are able to maintain low working capital despite significant activity ramp up in 2014. Cash and unused credit facilities amounted to 144 MNOK at the end of 2014 versus 96 MNOK at the end of 2013. Total assets and total equity amounted to 904 MNOK and 389 MNOK respectively, resulting in an equity ratio of 43% (47%) at the end of 2014.
We have a strong short term outlookdue to high market activity and order backlog. Our target is to outperform 2014. The strong demand in the Nordic market is expected to continue. The positive operational development in the Chilean market is expected to continue in the next quarters due to a solid order backlog. However, our Chilean customer’s struggle with low earnings brings some uncertainty to investments in the medium term. The volcano eruption in Chile in Q1 2015 might have a small impact short term on CBT investments, but pose an opportunity for LBT. We are monitoring the Chilean market closely and will adjust our operation according to the development. UK and Canada are expected to continue to perform well in the next quarters with a significant order backlog and a large portion of reoccurring business. Land based technology is expected to have a positive development with a growing order backlog and prospect mass. We experience historically high market interest for land based technology. Export sales to emerging markets will continue to fluctuate short term, but represents a large potential over time. New geograph-ical regions continuously emerge as markets for our technology. We continue our effort to build service and after sales as a key business element in all markets and segments.
About AKVA group
AKVA group is a technology and service partner to the aquaculture industry worldwide. The company has around 726 employees, offices in 8 countries and a total turnover of 1.246 MNOK in 2014. We are a public listed company operating in one of the world’s fastest growing industries and supply everything from single components to complete installations, both for cage farming and land based aquaculture. AKVA group is recognized as a pioneer and technology leader through more than 40 years. The Corporate Headquarter is in Bryne Norway.