Strategic direction of GevekoGeveko made a statement at the Annual General Meeting in April that an overhaul of the Geveko group future strategic direction should be carried out as the rapid growth of the wholly-owned unlisted Industrial Operations could come into conflict with the demand for diversification of risks which apply to investment companies. During the year the Geveko Board has studied various strategic directions taking into consideration the benefit on Gevekos shareholders as well as industrial aspects and tax consequences. The main business within the Geveko Industrial Operations is horizontal road marking. Geveko is currently the leading company in Europe within horizontal road marking. In Western Europe overcapacity, stiff competition and in general low profitability characterize the road marking industry. There is a slight growth in Western Europe and the opposite in Eastern Europe. The aim has been to maintain the position as the leading company, focus on cost efficiency, create a platform on growth markets in Eastern Europe and when opportunities arise participate in the necessary restructuring of the business. The strategy has so far been successful. Geveko is today the most profitable company in the road marking industry, has leading positions on several large markets in Eastern Europe with strong growth and has simultaneously accomplished acquisitions in Western Europe. The board of Geveko state that there are possibilites of further growth with satisfactory profitability. The decentralized organsation is cost-effective and flexible and thus stays strong in the fierce competition. The Geveko group has financial stability. However during autum 2006 the necessity to restructure the road marking industry was again topic on the market when the leading company on the US road marking market, Ennis Paint, acquired Prismo the largest company in the road marking industry in Great Britain. Geveko aims to continue to participate in the restructuring of the road marking field in Europe. The Geveko Industrial Operations could thus grow substantially and Geveko will have to refrain from the investment company status. When changing from investment company status to operating company no taxation will occur, so fas as can be judged, as Geveko has tax losses carried forward which balance income liable to taxation. Göteborg, Sweden January 29, 2007 AB GEVEKO (plc) For further information:Mr Hans Ljungkvist, Managing Director and CEO Phone +46 31 172945, 0705 371110 AB GEVEKO (plc) Org.no.: 556024-6844 P.O. Box 2137, 403 13 Göteborg, Sweden, Phone +46 31 172945info@geveko.se www.geveko.se Attachment: Press release (PDF)Text version / Internet version / Print / Close
Strategic direction of Geveko
| Source: Geveko, AB