Teknik

Verdo Teknik operates, maintains and renovates street lighting and traffic lights in many municipalities throughout Denmark. This makes us one of the Denmark’s largest players in the operation and maintenance of street lighting and traffic lights. We thereby contribute to traffic safety and increased accessibility, energy-efficient solutions that benefit the climate and environment, and security for citizens when we ensure that roads and streets are properly lit.

We also offer solutions in relation to speed displays, parking facilities, indoor and outdoor lighting, effect lighting, electrical contracts, technical property operation and service and energy optimisation.

- In 2022, Teknik continued to experience significant price increases averaging 10 per cent for materials and services from suppliers, due to the global shortage of resources and components in the wake of the COVID-19 pandemic – followed by rising commodity prices due to the war in Ukraine. This has affected all business areas in Teknik, but especially street lighting. Since Teknik and the sector overall, in the vast majority of cases, are bound by long contracts that typically run for 4-6 years with guaranteed fixed prices for customers, it has not been possible to demand an adjustment to the price of the services we provide corresponding to the material price increases we are experiencing. Rising energy prices have also led municipalities to spend less money on street lighting in the past year. This has impacted Verdo’s earnings, as we have not received the expected number of municipal projects. As a result of the above, Verdo Teknik had a loss of DKK 14 million after tax in 2022. Several initiatives have been launched to address this going forward, including new organisation, greater use of digitalisation and cost savings.

- Many of our projects deal with energy optimisation and reducing CO2 emissions. For example, we have partnered with the Danish Road Directorate (along with EDF Danmark A/S, Bravida Danmark A/S and Andel Lumen) to install new LED bulbs along government roads throughout Denmark. We have also won a number of new orders for operation and maintenance of street lighting and/or traffic lights, and delivery of traffic management systems for several municipalities.

- Regarding service of electrical installations, we have particularly focused on three large customers in Aarhus, but also regularly service many small and medium-sized customers. There has generally been a strong focus on energy optimisation, such as switching to LED lighting and intelligent control of lighting and ventilation. In the construction sector, we have worked with lighting projects in connection with the renovation and construction of over 600 homes and institutions.

RATIOS: Teknik

- Over the past year, we have focused even more on implementing digital solutions in Teknik to make it easier to be a customer at Verdo. Digitalisation must also contribute to streamlining and optimising the business.

- Even though municipalities are spending less on street lighting than before, we expect earnings in the Teknik division in 2023 to be close to budget.