Annual Report 2020
Report of the Board of Directors on the Activities of the Company in 2020
With effect from 1 January 2021 TECHO, a.s. changed its name and began trading as Ahrend a.s. (the “Company”). Taking on the Ahrend name underlines the integration of TECHO within the Ahrend group, a European leader in the area of office furniture.
In 2020, Ahrend a.s. pursued its activities fully in accordance with its subject of business declared in the Commercial Register.
The outbreak of the covid-19 pandemic in 2020 has a major impact on people's health and safety, the economic performance of companies and with it the economic development internationally. The management of the Company adopted measures to ensure the health and safety of its employees working at the Company, its customers and other persons associated with the Company’s commercial operations.
Covid-19 has also influenced our business. Offices and administrative space of our existing and potential customers were only open to a limited extent due to the persisting limitations on movement enforced in the Czech Republic and elsewhere in the world. In 2020, employers to a much greater extend allowed their employees to work from home in an effort to slow the spread of the pandemic. Investment in the construction of new offices or renewal of office furnishings were delayed due to uncertain prospects.
Based on available surveys concerning the long-term impact of the pandemic on the office furniture business, we expect the work environment to continue to change in the future and to be a combination of working in and out of the office. Nevertheless, office space will continue to be an important place for meeting, working together and the propagation of company culture. Our strategy too is adjusting to match these new trends.
The net sales of the Company reduced by 11.5% from the CZK 1 456 million achieved in 2019 to CZK 1 296 million in 2020. We have been able to respond quickly to the new situation brought about in 2020 by the pandemic. We achieved improvements in sales margins and significant savings in operating costs (savings of 15.3% year on year). Savings were primarily achieved by reducing labour costs and unnecessary expenses. Support from the state was only received by the Company in a very limited amount.
The Company plans to continue with the implementation of measures to improve productivity with the aim of responding to the market environment and trends.
Ahrend a.s. achieved a profit (excluding received dividends) of CZK 10 million, which is CZK 9 million lower than the previous year – 2019.
The largest portion of revenue was generated from projects for Key Accounts, both in the local market and abroad. The largest customers were ERSTE (Česká spořitelna), ŠKODA AUTO, and Grand Vision.
The financial result of the company after tax for 2020 was CZK 28 million, of which CZK 18 million represents dividends received from subsidiaries. This amount is then deemed a dividend payment to the sole shareholder.
In 2020, investment into tangible and intangible fixed assets stood at CZK 9 million.
The company has an environmental management system certified in accordance with ČSN EN ISO 14001:2016, a quality management system compliant with ČSN EN ISO 9001:2016 and also a health and safety at work system in accordance with the requirements of ČSN EN ISO 45001:2018. The supervisory audits in 2020 confirmed their correct application.