Revenue was up from DKK 955 million in 2005 (approx. $171 million) to a record level of DKK 1,027 million in 2006 (approx. $183 million), the highest ever as Martin generated new sales records in a number of geographical markets, among them France, Germany and Scandinavia. The year to year improvement in EBT was also the largest in company history and operating cash flow reached DKK 113 million (approx. $20.2 million), the highest level ever.
The improvement was attributable to a more focused sales effort, combined with the successful launch of new products, such as the MAC 700 series and the new MAC TW1, as well as a generally greater propensity to invest in the market, says the company. The substantial profit improvement was driven both by the higher revenue and by reduced fixed costs.
Martin experienced positive performance in all important markets in 2006. Sales of smoke machines and smoke products for the security industry also performed well. Martin met expectations in each quarter of the year, showing the positive effects of initiatives taken during a transition process that began shortly after Christian Engsted took over as company CEO in May 2005. Key initiatives include more customer-focused / application-driven business, improved supply capacity, new product development process and heightened quality standard. Martin expects the ongoing transition process will continue to generate new revenue and increased earnings throughout 2007.
Christian Engsted, Martin Professional president and CEO, commented, "We're quite happy with the results that execution of the plan produced but not completely satisfied. Earnings must continue to improve. Recalling our old slogan, "Tougher than the rest," holds true. Our personnel and partners have really shown their loyalty, diehard dedication and pulled through.
"We have taken some important steps in turning things around and the new initiatives are definitely showing results. A high demand for our newest products so far in 2007 combined with the knowledge that our most innovative products from our very ambitious product development pipeline are still to be launched in the next three quarters, gives us confidence that the positive trend will continue through the year."
(Jim Evans)
