Managing Director s comments

Transcription

1 Annual Report

2 Managing Director s comments A year of expansion and considerably increased order intake Following our parent company s strong growth on the UK market the past few years we received this year another four orders for semi-dry flue gas treatment to their turnkey contracts. At the end of the year an important milestone was set by the hand-over of Babcock & Wilcox Vølund s and Götaverken miljö s first energy recovery facility to Great Britain after nearly three years project execution from date of contract. Götaverken Miljö has supplied the semi-dry flue gas treatment system to the Peterborough plant, based on fabric filters where absorbents are injected before the filters in order to clean the flue gases. The turnkey delivery included latest technologies in terms of higher efficiency and lower emissions and the facility is well prepared for EU s new coming standards for energy-from-waste plants. I am very proud that we managed to hand over a top modern plant to a very satisfied customer, Viridor, and that we did it on time and on budget. Further expansion on the UK market Based on Babcock &Wilcox Vølund s great success on the British market in a short period, we were in 2015 contracted for another four semi-dry flue gas treatment plants to their plant supplies in Dunbar, Scotland, Margam in Wales and Templeborough and Teesside in England. These contracts truly confirm the customers confidence in B&W Vølund s technology and its benefits included latest technology from Götaverken Miljö for flue gas treatment and environmental control. These plants are expected to be completed in the period May to December of 2017 and purchasing and manufacturing of our equipment have started. Increased sales and marketing of ADIOX for dioxin removal Our leading position in respect of dioxin removal has resulted in many new ADIOX material deliveries including a major delivery to Mälarenergi, Sweden. Their energyfrom-waste plant is the world s largest single unit and the delivery has given successful result. Besides our agent and dealer network we now also collaborate with B&W MEGTEC to find new markets in countries where operators and authorities follow-up on dioxin emissions and are eager to minimise environmental impact from their operations. Growing number of employees In view of present and coming intense project execution periods, above all involving the UK projects, a number of new co-workers have joined us in the year and we are still looking for other qualified people in order to be prepared for our ongoing expansion. In the year we have also expanded our office pre mises in order to house our increasing number of employees. I look forward to another exciting year and continuous good collaboration with our customers. Lennart Gustafsson Managing Director, Götaverken Miljö Summary 2015 Considerably increased order intake Successful delivery of semi-dry FGT to Great Britain Major ADIOX delivery to the world s largest waste-to-energy line Four new contracts in UK partnered with B&W Vølund Expansion with enlarged office premises and new employees Net sales m 10,4 Operating profit, EBITDA m 1,1 Gross profit, % 30,2 Profit margin, % 10,6 Equity/assets ratio, % 33,5 Liquidity ratio, % 239,2 Number of employees 32 2 ANNUAL REPORT 2015 GÖTAVERKEN MILJÖ AB

3 Peterborough energy recovery facility a state-of-the-art EfW plant Plant data Annual waste capacity Electrical power generation capacity Annual electrical production tonnes 7,25 MW MWh Guaranteed flue gas values to stack HCl SO x Dust Dioxin 10 mg/nm 2, dg 50 mg/nm 2, dg 10 mg/nm 2, dg 0,1 mg/nm 2, dg Latest technology from Babcock & Wilcox Vølund and Götaverken Miljö The turnkey energy-from-waste plant in Peterborough, England, is now operating. The complete project has been supplied by Babcock & Wilcox Vølund, Götaverken Miljö and Interserve Construction Ltd., on behalf of Viridor. The plant provides large waste capacity and cutting-edge incineration technology, making it most efficient in terms of electricity output and meeting the highest safety and emission standards. The plant will process waste from Peterborough City for the next 30 years and has an annual capacity of up to 85,000 tonnes of waste. With this new energy-from-wasteplant, 94% of the city s landfill waste will instead be used to generate electricity. The plant s annual electrical production will be around 53,000 MWh, which corres ponds to 15% of the total annual household electrical consumption in Peterborough. Götaverken Miljö s delivery to Peterborough energy recovery facility includes two fabric filter modules, conditioning tower, PAC-silo, ash and lime silo.). ANNUAL REPORT 2015 GÖTAVERKEN MILJÖ AB 3

4 Financial Report General information about the business Götaverken Miljö AB is owned by Babcock & Wilcox Vølund A/S, registration number , seated in Esbjerg, Denmark, and acts as an independent supplier or in collaboration with its parent company in certain larger projects. Götaverken Miljö AB is a dedicated Cleantech company, specialising in flue cleaning and energy recovery to facilities for incineration of waste and biomass. ADIOX for removal of dioxins and MERCOX TM for removal of mercury from flue gases are successful market leaders. The company develops, designs and delivers complete systems and plants and carries out servicing as well as engineering and consultancy assignments. Plants, consultancy services and servicing are delivered direct to customers in mainly Scandinavia and by way of subcontracting to the parent company, who also works up markets outside Europe. Unique products such as ADIOX dioxin removal material and scrubbers are delivered direct or via agents and partners in strategically-selected countries to customers throughout the world. The company also carries out servicing and conversion activities, chiefly aimed at delivered systems and existing large heat pumps and chillers. The company has 32 employees, of which eight are female, and the head office is located in Gothenburg. Considerably increased order intake and many ADIOX -deliveries The company has a leading position in respect of removal of dioxins and this resulted this year in a major delivery of ADIOX material to the world s largest waste-to-energy line at Mälarenergi, Sweden, and it was carried out with a successful result. The parent company also ordered semidry flue gas cleaning to four new projects in Great Britain. Revenue-recognised turnover totalled SEK thousand (SEK thousand) and generated an operating profit of SEK thousand (SEK thousand). Babcock & Wilcox Vølund A/S brings considerably increased order intake Götaverken Miljö AB has a powerful industrial owner with a well-developed international network that is utilised for marketing and sale of the company s products on new markets. The company has a clear strategy to be competitive in a broad field of flue gas cleaning and flue gas condensation for energy production from waste and biofuel. This makes the company a perfect match for the parent company, which is one of the world s leading suppliers of facilities for energy production from waste and biomass fuel. The parent company has a big market share in Scandinavia and is growing strongly on new markets as Great Britain. As outcome of this, the company has in 2015 received a conside rably increased order intake on semi-dry flue gas cleaning systems. Of the year s turnover, SEK thousand (SEK thousand) is sales to the parent company. Internal pro fits total SEK thousand (SEK thousand). Purchases from the parent company total SEK 982 thousand (SEK thousand). Development of our international sales network Since the introduction of the ADIOX technology this solution has been taken up by more than 100 energy production facilities throughout the world, with excellent results. With these reference facilities as a basis, we have established an agent and dealer network in a number of selected countries but we also utilize the marketing channels offered by B&W MEGTEC. The aim is to intensify local marketing and sales of ADIOX material in countries where dioxin emissions are followed-up by authorities and to extend the offer to also include ADIOX dioxin absorbers and multi-stage scrubbers for flue gas cleaning. Our larger project activities In June 2013 our parent company ordered a semi-dry flue gas cleaning facility for its delivery of a complete facility for energy production from waste to Viridor Waste Management Limited, to be constructed in Peterborough, UK. The main part of the components was delivered to site in 2014 and the facility was taken over by the end customer in December In August 2013 Borås Energi and Miljö ordered flue gas condensation to its plant for energy production from waste at Ryaverket in Borås, Sweden. Trial run and performance test were completed in January and the plant was taken over in April In March 2014 AffaldPlus, Næstved, Denmark, ordered a complete flue gas condensation facility including absorption heat pump to its plant for energy production from waste. Trial run was carried out in 2015 and the plant, excluding the heat pump, was taken over in June The trial run and performance test of the heat pump could not be finalized during 2015 and is planned to take place in the winter of In September 2014 I/S Vestforbrænding ordered a sludge dewatering system and fly ash discharge system to its plant for energy production from waste. At the end of 2014 most of the engineering work had been completed. Erection of the main components was carried out in January 2015 and the plant was taken over by the customer in May ANNUAL REPORT 2015 GÖTAVERKEN MILJÖ AB

5 The parent company ordered during the year semidry flue gas cleaning plants to be delivered to its four turnkey deli veries of facilities for electricity production in Great Britain. These facilities will be finalized during the period up to the end of 2017 and the company s deliveries to its pa rent company include: Viridor Dunbar WTE, a semi-dry flue gas cleaning to a facility for incineration of waste for electricity production with two incineration lines. Purchases of major components were made in 2015 and the production of large components has started. The main part of the deliveries to site will take place during 2016 and take-over by customer is planned in December Margam Green Energy, a semi-dry flue gas cleaning for incineration of waste wood for electricity production. Purchases of major components were made in 2015 and the production of large components has started. The main part of the deliveries to site will take place during 2016 and take-over by customer is planned in spring of Templeborough Brite Biomass Power Plant, a semidry flue gas cleaning for incineration of waste wood for electricity production. Purchases of major components were made in 2015 and the production of large components has started. The main part of the deliveries to site will take place during 2016 and take-over by customer is planned in second half of Port Clarence Teesside, a semidry flue gas cleaning for incineration of waste wood for electricity production. Purchases of major components were made in 2015 and the production of large components has started. The main part of the deliveries to site will take place during 2016 and take-over by customer is planned in December Continued investment in servicing Götaverken Miljö AB operates and refines its servicing and conversion activities. This covers servicing of flue gas cleaning and water treatment plants, absorption heat pumps and chillers, heat exchangers and auxiliary systems. The bookings for ADIOX refill material to previous installations are still increasing. Among the larger service projects can be mentioned the delivery of sludge dewatering system to I/S Vestforbrænding, Copenhagen, Denmark, replacement of a quench to Tekniska Verken in Linköping, Sweden, extensive revision of compressor heat pump to Fortum in Stockholm, Sweden, as well as replacement of heat exchanger to a flue gas condensation system at Uddevalla Energi, Sweden. Human resources Götaverken Miljö s business activities have chiefly been handled with current employees. Five-year overview Net sales, SEK th Operating profit, SEK th Gross profit (%) 30,2 20,4 30,4 10,8 32,2 Profit margin (%) 10,6 6,2 8,3 Neg 11,8 Equity/assets ratio (%) 33,5 50,8 48,1 32,7 49,5 Earning capacity on equity (%) 30,8 24,1 27,6 Neg 56,6 Liquidity ratio (%) 239,2 223,0 207,6 148,0 201,1 Proposed distribution of unappropriated earnings The following profit is available for distribution by the Annual General Meeting (in SEK). Profit brought forward Profit for the year Total SEK The Board proposes that the profit of the year and the profit brought forward be distri buted as follows: Dividend to the owner (SEK per share) Carried forward Total SEK The proposed dividend does not influence the company s ability to redeem its present and expected payment liabilities on time. the company s financial position does not give rise to other assessment than that the company can continue its business and that it can be expected that the company fulfils its short term and long term obligations. Equity/assets ratio before dividend amounts to 33,5% and after dividend to 26,2%. The dividend is proposed to be paid at the annual general meeting. ANNUAL REPORT 2015 GÖTAVERKEN MILJÖ AB 5

6 Income statement Current operations Note Net sales Cost of goods sold Gross profit Operating costs Sales expenses Research and development Administrative expenses Depreciation OPERATING PROFIT 1,2,3,4, Profit from financial investments Interest income and similar items Interest expense and similar items PROFIT BEFORE TAX Tax NET PROFIT FOR THE YEAR Cash flow statement Current operations Operating profit before financial items Depreciation Provision, guarantee commitments Other adjustment items Interest received 7 29 Interest paid Tax paid Increase/decrease, stocks Increase/decrease, current receivables Increase/decrease, accounts payable Increase/decrease, current operating liabilities Cash flow from current operations Investment operations Investments in tangible fixed assets Investments in financial assets Cash flow from investment operations Financial operations Loans raised/amortisation of liability 0 0 Cash flow from financing operations 0 0 Cash flow for the period Liquid funds at the beginning of the period Liquid funds at the period-end Balance sheet ASSETS Note Fixed assets Tangible assets Equipment and tools Financial assets Other long-term holdings Deferred prepaid tax 0 0 Total fixed assets Current assets, stocks etc. Stocks Current receivables Accrued non-invoiced income Accounts receivable Group company-receivables Prepaid expenses and accrued income Tax receivable Other current receivables Cash and bank balances Total current assets TOTAL assets Equity and liabilities Equity Restricted equity Share capital, shares at a nominal value of SEK Statutory reserve Non-restricted equity Profit brought forward Profit for the year Total equity Provisions Provisions for guarantee commitments Provisons for pensions 1, 9, Current liabilities Accounts payable Accrued expenses and prepaid income Advance payments from customers Other current liabilities Total current liabilities TOTAL LIABILITIES TOTAL EQUITY AND LIABILITIES Memorandum items Pledged assets Floating charges In own custody deposit Contingent liabilities Guarantee undertakings none none 6 ANNUAL REPORT 2015 GÖTAVERKEN MILJÖ AB

7 Notes to the accounts Accounting and valuation principles The financial statements have been prepared in accordance with the Swedish Accounts Act and the general recommendations of the Swedish Accounting Standards Board, number BFNAR 2012:1 regarding annual financial report and consolidated accounts (K3). The accounting policies are unchanged from previous year. The comparative figures have not been re-calculated and have not influenced balancies brought forward. Income Income from works at a fixed price is recognised at the rate at which the work is completed, the so-called percentage of completion for revenue recognition in accordance with the above general recommendations. The degree of completion is established from accrued time and accrued expenses. Inventories Inventories are measured at the lowest cost or net realizable value on a first-in, first-out basis. Income taxes Recognized income tax includes taxes to be paid or to be received in present year, adjustments regarding current taxes in previous years and changes in deferred tax. Pensions The company has presently pensions plans for all employees. The pension plans are premium-based and calculated on a certain percentage of the salary. Benefit-based pension plans are recognized according to the standardized method described in chapter 28, 14 b. Lease contracts The company recognizes all lease contracts as operational lease. Financial instruments Financial assets have been assessed as to the lowest of the acquisition value or the replacement value according chapter 11 and 27. Cash flow statement Cash flow statement has been prepared according the indirect principle. Estimations and assessments The company does not have any essential evaluation and assessment items, having significant effect on the company s accounting records. Key figures The following definitions have been used for key ratios. Gross profit: Gross profit or loss/turnover. Profit margin: Profit or loss after depreciation + interest income/turnover. Equity/assets ratio: Equity + 78% of untaxed reserves/equity + liabilities. Earning capacity on equity: Profit or loss after net interest income/ expense minus standard tax rate/average equity + 78% of untaxed reserves. Liquid ratio: Current assets minus stock/current liabilities. Note 1 - Salaries, other remuneration and social security expenses Average number of employees Men Women 8 7 Total Board and President Salary costs Social security expenses Of which pension costs Total, Board and President Other employees Salary costs Social security expenses Of which pension costs Total, other employees The company has, according agreement, undertaken to pay pension to the managing director. The commitment refers to the pension provision in the balance sheet. Other long-term holdings refer to endowment policy, pledged to guarantee this pension provision. Auditor Auditor s commitment Other business acitivities 0 7 Note 2 - Gender distribution, executive management Board members Men 4 4 Women 0 0 Total 4 4 President and other officers of the Company Men 1 1 Women 0 0 Total 1 1 Note 3 - Breakdown of depreciation Tangible asset Total Tangible assets have been depreciated according to plan with 20% of equipment. Note 4 - Equipment and tools Opening acquisition value Purchases Sales and disposals 0 0 Closing accumulated acquisition value Opening depreciation Depreciation for the year Sales and disposals 0 0 Closing accumulated depreciation Residual value according to plan Note 5 - Work in progress Projects in progress where revenue recognized amount exceeds invoiced amount Projects in progress where pre-invoiced amount exceeds revenue recognized amount As security for the company s customers, the company has issued advance payment guarantees and performance guarantees with bank and insurance company toalling SEK (SEK ) Note 6 - Leasing Future minimum leasing charges as per closing day Within a year Later than within a year but within five years Later than five years 0 0 Leasing charges written off for the year The leasing charges include benefit cars, office equipment and rental of office premises. Note 7 - Equity Share capital Statutory reserve Non-res. equity Amount at the beginning of the year Profit allocation as decided at the AGM Dividend 0 Profit for the year Amount at year-end Tax consultancy 0 0 Other services 3 3 Total All values as thousands SEK if not otherwise stated. ANNUAL REPORT 2015 GÖTAVERKEN MILJÖ AB 7

8 Note 8 - Prepaid expenses and accrued income Prepaid rent Other prepaid costs Accrued income Total Note 9 - Other provisions Guarantees Opening provisions Provisions for the year Provisions used Closing provisions Pensions Opening provisions Provisions for the year Provisions used Closing provisions Note 14 - Income tax Tax as per income statement: Tax Change of deferred tax - - Total tax Average effective tax rate (%) 22,4 22,4 Reconciliation effective tax rate: Profit before tax Tax according current tax rate, 22% Tax effect of: Non-taxable income Non-dedectible expenses Total tax Effective tax rate (%) 22,4 22,4 Note 10 - Financial assets Opening acquisition value Investment for the year Closing acquisition value Opening depreciation 50-4 Depreciation Cancellation of previous depreciation 0 4 Value regulation 0 50 Accounted value Note 11 - Financial investments The company s interest income includes: Exchange profit 0 0 Other interest income 7 29 Total interest income 7 29 The company s interest expenses include Current group liabilities 0 0 Exchange loss Other interrest expenses 0 0 Total interest expenses Note 12 - Accrued expenses and prepaid income Accrued social security contributions Accrued holiday pay Accrued salaries Other accrued costs Total Note 13 - Liquid funds Bank balances Total liquid funds All values as thousands SEK if not otherwise stated. 8 ANNUAL REPORT 2015 GÖTAVERKEN MILJÖ AB

9 Göteborg, February 4, 2016 John Veje Olesen Chairman Jacob Rosenhøj Jørgensen Kasper Lundtorp Sven Brantebäck Ingemar Håkansson Lennart Gustafsson Managing Director Audit Report To the annual meeting of the shareholders of Götaverken Miljö AB, Corporate identity number Report on the annual accounts I have audited the annual accounts of Götaverken Miljö AB for the year January 1, 2015 December 31, Responsibility of the Board of directors and the Chief Executive Officer for the annual accounts The Board of Directors and the Chief Executive Officer are responsible for the preparation and fair presentation of these anual accounts in accordance with the Annual Accoutns Act, and for such internal control as Board of Directors and Chief Executive Officer determine is necessary to enable the preparation of annual accounts that are free from material misstatement, whether due to fraud or error. Auditor s responsibility My responsibility is to express an opinion on the annual accounts based on my audit. I conducted my audit in accordance with International Standards on Auditing and generally accepted auditing standards in Sweden. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the annual accounts are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the annual accounts. The procedures selected depend on the auditor s judgement, including the assessment of the risks of material misstatement of the annual accounts, whether due to fraud or error. In making those risk assess ments, the auditor considers internal control relevant to the company s preparation and fair presentation of the annual accounts in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors and the Chief Executive Officer, as well as evaluating the overall presentation of the annual accounts. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for may audit opinion. Opinions In may opinion, the annual accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of Götaverken Miljö AB as of December 31, 2015 and of its financial performance and cash flows for the year then ended in accordance with the Annual Accounts Act. The statutory administration report is consistent with the other parts of the annual accounts. I therefore recommend to the annual meeting of shareholders that the income statement and balance sheet be adopted. Report on the statutory and regulatory requirements In addition to my audit of the annual accounts, I have examined the proposed appropriations of the company s profit or loss and the administration of the Board of Directors and the Chief Executive Officer of Götaverken Miljö AB for the financial year January 1, 2015 December 31, Responsibility of the Board of directors and the Chief Executive Officer The Board of Directors is responsible for the proposal for appropriations of the company s profit or loss, and the Board of Directos and the Chief Executive Officer are responsible for administration under the Companies Act. Auditor s responsibility My responsibility is to express an opinion with reasonable assurance on the proposed appropriations of the company s profit or loss and on the administration based on my audit. I conducted the audit in accordance with generally accepted auditing standards in Sweden. As a basis for my opinion on the Board of Directors proposed appropriations of the company s profit or loss, I examined whether the proposal is consistent with the Companies Act. As a basis for my opinion concerning discharge from liability, in addition to my audit of the annual accounts, I examined significant decisions, actions taken and circumstances of the company in order to be able to determine the liability, if any, to the company of any member of the Board of Directors or the Chief Executive Officer. I also examined whether any member of the Board of Directors or the Chief Executive Officer has, in any other way, acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Opinions I recommend to the annual meeting of shareholders that the profit be appropriated in accordance with the proposal in the statutory administration report and that the members of the Board of Directors and the Chief Executive Officer be discharged from liability for the financial year. Göteborg, February 4, 2016 Adrian & Partners AB Mats Olsson Authorized Public Accountant ANNUAL REPORT 2015 GÖTAVERKEN MILJÖ AB 9

10 10 ANNUAL REPORT 2015 GÖTAVERKEN MILJÖ AB

11 Members of the board and auditor From the left: John Veje Olesen, Chairman of the Board, Managing Director, Babcock & Wilcox Vølund A/S Jacob Rosenhøj Jørgensen, Financial Director, Babcock & Wilcox Vølund A/S Kasper Lundtorp, Manager, Mergers & Acquisitions, Babcock & Wilcox Vølund A/S Sven Brantebäck, staff representative Ingemar Håkansson, deputy staff representative Auditor: Mats Olsson, corporate lawyer and authorized public accountant. Partner in Adrian & Partners AB Management Upper row, from the left: Ulf Hägg, Manager Process, Lennart Gustafsson, Managing Director, Per Lindgren, Manager Sales Bottom row: Therese Tillander, Manager Service, Anders Lorén, Manager Projects ANNUAL REPORT 2015 GÖTAVERKEN MILJÖ AB 11

12 Götaverken Miljö is located in Göteborg and has its origin in the Götaverken companies, a large industrial group compri sing, among other things, shipyards and boiler manufacturing with a history dating back to Our office has an attractive location on Hisingen, on the banks of the river, the Göta Älv, where Götaverken previously ran its shipbuilding operations. The company was founded in 1988 as a spin-off from Götaverken Energy and is owned by Babcock & Wilcox Vølund A/S, headquartered in Esbjerg, Denmark. GÖTAVERKEN MILJÖ AB Visiting address: Anders Carlssons gata 14 Postal address: Box 8876, SE Göteborg, Sweden Tel: +46(0) Fax: +46(0) a Babcock & Wilcox Vølund company 12