NYAB continues to develop (I already feel after the first sentence that this will happen, no matter how much I filter to become long-winded). It is a few months until we can sum up the full year 2014, but everything points upwards. Our stated goal of a growth of at least 40% in comparison with Year 2013 will be far exceeded. All business areas Construction, Civil Engineering and Special meet the growth targets for this year individually. A lot has happened during the current year.
During the current year, we have successfully established ourselves in both Gällivare and Kiruna with offices and a visible and clear market presence in the ore fields. All this in line with our goal of playing such a large and active role in ongoing and future societal transformations and mining-related investments as our customers allow us. During the year, we performed and perform contracts from Härnösand and Östersund up to Kiruna municipality.
In the previous CEO words (2014-02-08) communicated company acquisitions have gone well. HT-Bygg, which was the start of our new business area Construction, is now fully implemented in NYAB. It gives us another leg to stand on. Business area Construction offers a lot of synergies with other business areas and in many cases gives us the opportunity to offer our customers a more complete end product.
The acquisition of MMS AB is also considered a success. The company's original operations have been merged into the Special business area. MMS has changed its name to NYAB INFRA and Ronny Nylund is the CEO. NYAB INFRA has won a number of assignments and contracts in the ore fields, where the most prestigious is the land for Kiruna City Hall. Considering that NYAB INFRA has been active since mid-August 2014, we must say that the company has come a long way in just under 3 months.
The new facilities in Luleå AB have now changed their name, the registered name of the legal entity is since 30 October 2014 NYAB Sverige AB, the market name will continue to be NYAB.
The purpose of this is to strengthen the company's brand. This is an important part of our more far-reaching brand strategy, which includes brands in new niches and segments in the coming years.
This year we have had a real impact with our brand, NYAB is starting to be well known and talked about. Our main ambassadors, usually dressed in fluorescent, basically do a fantastic job. This has in the long run led to NYAB being noticed in news programs, local newspapers, business magazines, industry magazines and in various digital contexts.
During the current year, NYAB has made a lot of investments in time and money to implement an business system that can handle the Group's growth in a satisfactory manner. This includes financial systems, payroll systems, invoicing systems. Parts of the business system are implemented in the parent company, shortly after the turn of the year it will be ready and fully operational in both NYAB and NYAB INFRA.
Regarding the prevailing construction and civil engineering market, we feel a certain amount of concern, for the most part it is the world market price of iron ore that makes us feel a degree of caution among our existing and prospective customers in the ore fields. What worries us most is the underlying reason for the low iron ore price, this as the world-leading players / producers after a number of good years with a lot of investment have decided to produce more iron ore than the market wants to buy. This is driven by investors who want a return on the large investments made during the good years. This creates an oversupply and a "self-created" price pressure that has never been seen before and it makes the situation and the bottom level difficult to assess. However, we can conclude that it is likely to be problematic to obtain financing for future mine openings for new players in the near future, given how much value has been lost in recent months. Maybe completely in line with the giants' wishes should be added.
Overall, however, the construction market is to be regarded as favorable and good. In addition, NYAB always dares to see the possibilities. The dangers and risks must always be considered and analyzed, but never at the expense of daring and seeing opportunities.
NYAB today consists of about 60 people and personalities. We have a fantastic leadership in the organization, at NYAB leadership is not linked to a title. The fantastic leadership can be found in, among others, collective employees, working foremen and administrators. A leadership that defines our corporate culture and includes values such as professional pride, responsibility, honesty, joy and commitment.
We see a constant development among the employees in the company. Skilled people from universities and other construction companies have chosen to come to us. We are in phase and well prepared to first and foremost end the current year and then look up and decide how much we will and can manage to grow in the coming years without haggling over customer satisfaction. It is and remains crucial, without satisfied customers we will not survive long. At the same time, there is a constant troubleshooting and the business is monitored with a critical eye to identify the company's weaknesses as well as possible areas for improvement.
As a whole, NYAB is good, we assert ourselves well in existing competition, but we must humbly state that we can and want to be much better. If we skip the humility, we can instead say: "MUST get better" it is our promise to our customers and ourselves.
- Johan Larsson, CEO NYAB