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CEO LETTER
Adapting to a tougher market
Our revenue in 2014 was somewhat lower than in 2013. This
is mainly related to adaptation to the market situation in New
Sales, but we are pleased that despite this we have achieved
better earnings than in 2013. We are especially pleased that we
have generated a good cash flow from the operational activities
through the year and that the company has a solid financial
position.
Our largest market niche, consisting of different variants of
offshore vessels, has been affected by lower oil prices and
reduced activity. However, we have experienced a positive
effect of a weaker Norwegian krone, especially against the Euro
and US dollar. This sharpens our competitive edge in a tough
market situation, compared with our international competitors.
Based on the current orders on hand, incoming orders and the
activity level in the After-Sales service segment, we are
optimistic about achieving revenue growth for 2015 and
ensuring a strong and steady level of activity.
We have completed many changes in recent years, with the
introduction of new ICT systems, rationalization projects,
development of the organization and strategy work. These
efforts will and must continue if we are to be able to meet the
challenges of tomorrow.
Strong, broad-based participation was a key factor when we
revised our strategic plan three years ago. We also found words
to express the values that will form the basis for further
development of our company.
Trustworthy, Innovative and Goal-Oriented.
- These values
must be in the backbone of everything we do in our work, every
single day, so that we will achieve our defined strategic goals.
After abiding by these expressed values for three years, we see
that we still have potential to take further advantage of this in
our workday, in our communication, and in our collaboration
in-house. All managers at Brunvoll will be strongly committed
to our values in their management work in the time ahead. It
is also important to spread this to all our employees, so that we
achieve the effect that we want from our values.
In 2014, for the first time, we conducted a large employee
survey organized by «Great Place to Work». The results and
feedback that we received through the survey are being used
directly in our further development efforts, with a focus on
management development. Our experience is that we are
regarded as an attractive employer, and we will conduct the
survey again in 2015 to monitor the effects of the actions that
we have taken to maintain this reputation.
To be competitive in a weaker market, with tough international
competition, we must constantly seek improvements and
opportunities to reduce costs. This means that we have a great
deal of good rationalization and improvement work ahead of us.
A significant part of this is the Brunvoll Competence Centre,
our new headquarters under construction right next to our
production facilities, which we will move into in April 2016.
From this strategic investment, we will achieve major internal
gains in the form of more efficient processes as well as closer
communication and follow-up, to name some of the synergies.
To summarize, we will strive to develop our company further
when it comes to better operations and management to the
advantages of all stakeholders: our employees, shareholders, and
our customers.
Best regards
Odd Tore Finnøy
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Annual Report 2014