Genan Holding A/S has today presented its annual report for 2016, and progress is notable in terms of both turnover and earnings. With this new, solid financial foundation, the Genan group is now truly free to look ahead after several years of turnaround.

Environmental company Genan, the largest tyre recycler in the world, has just now closed its accounts for the first 12-month period since the reconstruction initiated in the spring of 2015. The 2016 accounts show notable progress both top and bottom line, and the company may now start to bury the past and focus on meeting the high demand in the market for Genan’s product and knowhow:

– We are most satisfied with the development in 2016, when Genan started to show its potential. In cooperation with our owners and bank lenders, we have established a solid, financial foundation for the Genan group – showing an equity of DKK 273m and a solvency ratio of 30.4%. This allows us the economic latitude to focus on future growth – for our core business as well as for the new products and applications we are working to develop, states chairman of the board Peter Thorsen, who was instated as chairman in February 2015.

In 2016, Genan had a net turnover of DKK 299m compared to DKK 201m the previous year. In this connection, it should be noted that the 2015 accounts represent an 8-month period. 2015 and 2016 are thus not directly comparable. However, if the 2015 accounts are converted to 12 months, Genan still shows an 18% increase in turnover.

– The growth achieved and the positive development in the 2016 operating profit demonstrate that we have managed to keep our focus on operations, while managing to finalise a very extensive financial reconstruction of the Genan group, Peter Thorsen continues.

With opposite sign of value in comparison to the 2015 accounts, the financial reconstruction now completed has thus had an immense impact on the 2016 accounts. These unusual items set aside, the operating income for the year, EBITDA, increased from just under DKK 20m in 2015 to nearly DKK 40m in 2016, reflecting the true operational improvement.

– We are satisfied with the development of our core business. The ability to generate positive earnings before depreciation and financial items is indeed crucial for Genan’s future, underpinning the current, positive development of the group, states Poul Steen Rasmussen, who was recruited as managing director in September 2015, and who has since then worked determinedly on the turnaround now starting to show results.

The recycling of tyres is still Genan’s core business – as is the production and sale of rubber granulate and powder as well as by-products steel and textile. In this field, the Genan group is the largest player in the world, possessing state-of-the-art production equipment in Denmark, Germany and the USA as well as know-how in high demand in e.g. Asia and other parts of the world, where end-of-life tyres pose a growing problem:

– In general, sustainability and recycling are increasingly gaining ground, and time is thus working for Genan products. Furthermore, end-of-life products are increasingly seen as a resource which may substitute virgin raw materials; and in this connection, we and other Danish environmental companies have something unique to offer, says Poul Steen Rasmussen. He continues: – We must thus continue to further develop our portfolio in the form of new products and applications. This will give us more strings to our bow, to the benefit of our business – short-run as well as long-run.

Both board and management are thus optimistic about the future. In the short run, 2017 will be the first fiscal year to reflect the true business of Genan. Genan expects to show improved earnings (EBITDA) of around DKK 5-10m.

About Genan Holding A/S
Genan Holding A/S owns the environmental company Genan, the largest tyre recycler in the world. Sustainability is the core element of the Genan group, and through the reutilisation of the resources of huge quantities of end-of-life tyres, Genan helps solving an immense, global problem. Genan strives to manufacture as environmentally correct and as energy-saving as possible, and all five factories – one in Denmark, three in Germany and one in the USA – have implemented an ISO 14001 certified environmental management system. The total production capacity is 375,000 tonnes of tyres per annum, equalling an output of approx. 280,000 tonnes of rubber granulate and powder, approx. 55,000 tonnes of steel and approx. 40,000 tonnes of textile.

For further information, please contact:
•    Chairman of the board Peter Thorsen, Genan, mobile +45 4070 0676
•    CEO Poul Steen Rasmussen, Genan, tel. 8728 3000, mobile 2129 6800, e-mail

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