Accoat A/S, a 100% owned SP Group subsidiary, will close all production activities at the facility in Kvistgaard within the next 12 months.
Phasing out the activities will entail minor one-off costs, the extent of which is still being assessed, and will be included in the budget for 2025. The one-off costs relate to the phase out of the production facilities, where certain activities may be transferred to other parts of the group, dismissal of employees etc.
The decision is made after evaluations of how Accoat, not being a core activity, matches the future strategy for the entire SP Group. Furthermore, there is uncertainty associated with the future use of PFAS substances in production due to upcoming international and Danish regulation combined with a recognition that the production plant is inappropriately located in the middle of a residential area.
There are no changes to SP Group’s expectations for 2024, which remain a revenue growth of 10-16%, an EBITDA margin of 19-21% and an EBT margin of 11-13%.
Accoat is expected to generate approx. 1% of total SP Group revenue and approx. 1% of total EBITDA in 2024. Consequently, the phase out of the activities will have only a minor impact on future financial results for SP Group.
Reference is made to the attached press release published by Accoat today.
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