WindowMaster International A/S: WindowMaster publishes Annual Report for 2020

Today, the Board of Directors has approved the Annual Report of 2020 for WindowMaster International A/S and propose the report for final approval at the Ordinary General Meeting on 25^th of March.

The highlights of the Annual Report

• The results are fully in line with the profit update in company announcement no. 7 of 9^th of December 2020. Turnover constituted 189.5m DKK and EBITDA 14.6m DKK – excluding non-recurring costs.
• Cash flow in 2020 demonstrated the strong underlying business model – giving 22.7m DKK in cash flow from ordinary operating activities – compared to 15.3m DKK in 2019. Investments were under tight management, but despite the company’s COVID-19 action plan vital investments were maintained during 2020 to boost further digitalization of the business model (new webpage and backbone infrastructure, further digital lead generation, software development for products etc.).
• The COVID-19 crisis had especially in 2^nd quarter of 2020 affected the sales performance due to lock downs and delayed projects in several markets – main effects coming from United Kingdom, Switzerland, Norway, and United States. However, sales performance picked up again in the 3^rd and especially in the 4^th quarter driven by;
•  A mix of structural growth in demand due to more focus on green-tech and increased public investments in buildings
•  Backlog contribution from the lockdown in 1^st half of the year.
• The increase in 2^nd half of the year – which matched the budget – was not able to compensate for lost sales in 1^st half of the year.
• As a result of the COVID-19, crisis management also initiated a cost savings action plan to secure profitable growth going forward. All actions were implemented in 2020 with full effect from Q3 2020 and full-year impact in 2021 and have no one-off cost effects. The focus was to reach approx. 10% saving on fixed costs - mainly on salary costs - compared to the budget of 2020. This ambition was reached. These actions have also been the baseline for the expectations for the financial performance of 2021. 
• There was a one-off cost related to an ongoing patent case – which is expected to be concluded during 2021. Costs linked to the case are seen as non-recurring costs and amounted to 2.6m DKK in financial year 2020.
• The effect of the listing on NASDAQ First North Growth Market has strengthened the balance sheet and improved the equity ratio, which is now at 35% (43% when netting cash positions).

The outlook for 2021 remains unchanged compared to company announcement no. 7 of 9^th of December.