a particularly intense financial year has just ended and lived in the midst of the outbreak of the Covid 19 pandemic.
Fortunately, the period covered by our exercise allowed us to suffer only to a limited extent the impact that this unexpected event had on our market and the initiatives implemented since the first months of 2020 have ensured that the Company, in all its corporate and geographical realities, has practically not lost any working day.
The rescheduling of orders inevitably implemented by our end customers thus had a limited impact and substantially the results of the year just ended are in line with the growth plan that we had aoutlined in the 2020 – 2024 Budget Plan.
I would therefore like first of all to thank all the staff of the Group who have never stopped engaging in their role and have shown great maturity not only in managing the anti Covid rules implemented in the plants but also in setting their own conduct outside of the Company so as not to import cases internally.
Aside from the favor of fate, the very few Covid cases that have affected us are proof of the responsible behavior maintained by employees and collaborators in the last year.
Expectations towards a gradual end of the pandemic after the summer have in fact disappeared with the occurrence of new waves of infection and with the continuous significant loss of human life in practically all countries of the world.
This resurgence of the pandemic cannot fail to affect the financial year that has just started, making the achievement of the budget objectives approved in September 2020 very challenging, through actions and measures implemented since last year.
If even a large part of the initiatives undertaken, which I will mention in this letter, should be realized, we are confident that the re-alignment to the 2020 – 2024 Plan will be able to take place substantially as of the financial year 2022, allowing the Group to continue its organic growth towards the goal of 170 million euros in turnover in 2024.
In commenting on the results of the year that has just ended, it should be noted that revenues have continued to grow compared to the previous year, even if only by about 7%, with a level of profitability in line with the objectives we set in the budget.
The Group’s performance in terms of quality and adherence to contractual commitments have proved to be excellent and our main customers are acknowledging this by entrusting us with further orders and the development of new products despite the moment of uncertainty in the market which is in any case supported by policies. government agencies that attribute strategic value to the aerospace and defense sector both for its capacity for innovation and for its contribution to the development of economic systems all over the world.
Our strategies were outlined according to the objectives of the Plan, and if anything were strengthened by the discontinuity created by the pandemic, increasing the determination to defend our areas of activity, intensifying the efforts to strengthen the business along three lines considered more resilient with respect to events external and also potentially to a better profitability:
- an expansion of our commitment to maintenance activities (MRO) of both spare parts and helicopters, adding new customers such as Gulfstream for the maintenance of landing gears and starting the involvement of the Group in maintenance activities of new helicopter lines and on its configuration update,
- greater market penetration of government productions with the acquisition of additional orders for U.S. programs Department of Defense, currently only as a make to print, but also prospectively in Europe with the development of make to design projects,
- he expansion of collaboration on the VRT-500 project with Vertex Aero, in the perspective of Urban Aerial Mobility .
To all of the above must be added the particular focus on a significant technological renewal both in the area of flight control and actuation that are part of the Aircraft Systems Business Unit, with particular regard to the electro-mechanical actuation line and the so-called smart actuators. , both in that of the Cabin Comfort Systems of the Aircraft Services Business Unit, through a more extensive use of advanced technologies, from that of the DAMP which is now protected by an international MAG patent up to the introduction of graphene and nano technologies for the improvement of flight comfort.
The path will obviously not be short but the trust placed in us by OEMs strengthens us in the belief that we are on the right path. In support of all these initiatives, a program of substantial investments both material and intangible is aimed at, in resources equipped with the skills necessary for the challenges, in the redevelopment of sites also in terms of sustainability and improvement of energy performance.
There will likely be an initial impact in terms of the use of financial resources that will be managed with the utmost attention and with the certainty that the solidity of our business will be strengthened over the period of the Plan, with an increased ability to withstand the tests and to grasp the opportunities that will arise.
The pursuit of the objectives we have set ourselves will require everyone’s commitment, starting with the staff who have confirmed in this time that they are living the enormous challenge of the present with pride and a sense of belonging, as well as the support of the Shareholders in the ensure continuity of the business project.
Finally, I would also like to take a look at the social relevance that this project has assumed over time and that it can gradually assume with the affirmation of the Group in the markets in which it operates and in the territories in which it is present, for the contribution that in many directions it can bring its ability to innovate, to involve new young talents and to carry out its economic conduct with responsibility.
Borgomanero (Novara), 23 December 2020
Chairman and CEO