Delivery of the 3rd set of MPCV-ESM SAW FEE to Airbus DS, Bremen in October 2017
January 9, 2018
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January 9, 2018

Capital Increase to Strengthen Rovsing’s Development

At a board meeting on 7 December, the Board of Directors of Rovsing A / S has adopted a number of initiatives developed under the lead of the CEO and aimed at strengthening the Company’s capital structure, earnings capacity, and profitable growth over the next 3 years.

Business Portfolio
Together with standardization and continuous improvement of the existing product and system portfolio to respond to the trends of digitalization and Internet of Things (IoT), the company will expand into further emerging markets such as testing services for New Space activities.

Rovsing has entered into a cooperation with European players for security and military markets for the future EU and national Danish defense activities. Through this collaboration, Rovsing will become an active player in the framework of future European defense.

Alongside continuing its ESA related activities, Rovsing will strive for expanding its market position in the European non-ESA markets, including national activities in ESA member and non-member states. The company will further pursue its activities in the US market, strengthening its sales force and expertise in this key market environment of institutional and commercial space industry.
The company will expand into the Asian-Pacific market, with a first focus on the Chinese market in 2018, via cooperation with strong and sustainable sales representation.

Rovsing intends to distribute its standard products worldwide to serve all space-faring nations in their commercial and institutional programmes.

To support the above activities, the company has launched a process to strengthen coordination with its representatives. The objective is to excel on a high quality level in sales plus keeping a lean sales infrastructure.

Rovsing will improve its cost base, competence matrix and organization continuously, with a strong fit between the company’s order book, sustainable deliveries and cost. To this end, the company adapts its company infrastructure in line with its strategy programme, portfolio and operations.

The company continues to optimize and re-balance its capital structure, strengthening its own capital base, reducing debt exposure and improving credit financing conditions.

The above strategic plan was accompanied by a capital increase through issuing new shares and implementing a warrants programme for Board members and Rovsing’s management team, thus strengthening Rovsing’s working capital for future investments and implementing a strong performance based incentive scheme. Rovsing intends to realize for 2021/22 a revenue of 64 MDKK and an EBITDA margin of 10{917ba39f88fe861139c17fe11186bd263ba48fc35b4dd675ef53fbced150206f}.

More details on the capital increase can be found in announcement no. 268 in the Investor Relations section.