Annual Report 2024: Record performances and strategic portfolio optimisations
Arendals Fossekompani reported a strong financial performance for 2024, with consolidated revenue of NOK 4,363 million, reflecting a 12% growth compared to the previous year. Operating profit (EBIT) was NOK 394 million, corresponding to an operating margin of 9%.
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2024 was marked by record-high results in portfolio companies NSSLGlobal and ENRX, along with top-line growth and margin expansion on adjusted EBITDA level for Volue. Revenue and operating profit from AFK Vannkraft were significantly down from 2023 due to lower power prices.
In 2024, Arendals Fossekompani delisted Volue together with new partners, Advent International and Generation Investment Management, positioning Volue for further growth and value creation. The transaction, priced at NOK 42 per share, resulted in net cash proceeds of NOK 1 billion.
To optimise and de-risk the portfolio, Arendals Fossekompani sold the renewable development company Vergia to Swiss Life Asset Managers and ceased investment in battery company, Commeo.
In 2024 we focused on improving the operational performance of our businesses and increasing the robustness of our portfolio. We entered 2025 with a more focused and balanced portfolio, new partners, improved operations, and a strong balance sheet. Going forward we will focus on growth, operational efficiency and strategic portfolio development to create value for our shareholders.
Benjamin Golding, Chief Executive Officer at Arendals Fossekompani.
Portfolio highlights in 2024
Volue reported operating revenue of NOK 1,634 million (1,464 million), corresponding to a growth of 12% and with an adjusted EBITDA margin of 22%. The company implemented a comprehensive restructuring programme significantly reducing the operational cost base, paving the way for continued margin expansion. Additionally, Volue acquired PowerBot GmbH, a leading provider of algorithmic trading software.
ENRX reported operating revenue of EUR 164.6 million (157.6 million), up 5% from 2023. In 2024 the company achieved its highest ever annual revenue and operating profit. ENRX continued to focus on strengthening its operational capabilities and optimising its product offerings, positioning itself for sustained growth moving forward.
NSSLGlobal reported revenue of GBP 101.9 million (91.8 million) in 2024, corresponding to a growth of 11%. Revenue and operating profit in 2024 were the highest in the company’s history. The company experienced solid sales throughout the year, including new maritime NAVCOM and IT security orders, governmental engineering orders, as well as defense contracts across Europe. Celebrating its 55th anniversary, the company continues to evolve to meet the demands of a rapidly changing market.
Tekna reported operating revenue of CAD 37.2 million (40.9 million) in 2024, down 9% from 2023. The reduced top line was driven by a slow-down in order intake for Systems. Advanced Materials revenue grew by 7% in 2024. The company continued to execute on its comprehensive profitability improvement program in 2024, with recurring cost reductions expected to positively impact profitability and cash generation in 2025.
AFK Vannkraft reported revenue of NOK 363 million (511 million) in 2024. Revenue and operating profit from AFK Vannkraft were significantly down from 2023 due to lower power prices. The construction of Kilandsfoss hydropower plant proceeded according to schedule in 2024.
Alytic reported revenue of NOK 67 million (46 million) in 2024, corresponding to a growth of 44%. The portfolio saw strong focus on commercialisation, expanding product offerings and strengthening management teams including new CEOs in Utel, Kontali and Factlines.
AFK Eiendom reported revenue of NOK 295 million (18 million) and operating profit of NOK 13 million (-10 million). 2024 was largely characterised by revenue recognition of the third stage of the Bryggebyen development project. AFK Eiendom won an attractive contract to build a new production facility for the electronics manufacturing company, Kitron.
