Kamstrup, who is selling intelligent metering solutions worldwide, has been successful for many years and particularly the last two quarters have been positive. Here the order intake has been at the highest level during the last three years. The potential for growth is big, but the corona crisis is slowing down the expansion plans.
‘’We are currently experiencing a significant decrease in order intake, and we expect to see a decrease between 15-40% over the coming months. Many of our customers in both Denmark and abroad do not have the opportunity to install our solutions and they postpone orders and decision processes. Therefore, we experience a much lower run rate, which currently is 60-75% of the budgeted level,’’ says Kim Lehmann, CEO at Kamstrup and continues:
’’Unfortunately we do not think this is a short-term situation, and we expect that the effect of the crisis will affect our business over a long period of time.’’
The company introduced hire freeze when the crisis began but this was not enough. Therefore, they must now say goodbye to 5% of the company’s employees.
‘’Today, we have dismissed the Danish employees who have been affected by a dismissal round of a total of 75 people worldwide. It is very regrettable to say goodbye to good employees, and I wish the situation was different. However, it is our responsibility to ensure Kamstrup’s business going forward, which is why it has unfortunately been a necessary decision at this time,’’ says Kim Lehmann.
Kamstrup expects the turnover for 2020 to decrease 10-20% compared to last year’s turnover, but the CEO is optimistic about the future:
‘’We are in a crisis right now, but the demand for sustainable digital solutions will continue and the world will move forward again. Therefore, we continue our high level of investment in technological development, which is a major driver for digitization of the supply sector and the green transition. The investments we make now will help us come out stronger on the other side’’.
‘’The goal is not a high level of earnings. We want a healthy business with great innovation power so that we can make a technological difference and create value for our customers and the society. That is why we will not regulate our planned investments in development and expansion in relation to the decrease we experience in order intake. Technological leadership is part of our business strategy and crucial to our future,’’ explains Kim Lehmann.
Over the past two years, Kamstrup has employed over 200 employees a year, of which approximately half has been new positions. The crisis has brought Kamstrup into a new situation, but there is still optimism for future growth.