Major Turnaround
- 9. september 2024
With an annual result of minus 326 million NOK in 2023, Sterner Group AS brought back former CEO and co-owner Bjarne E. Pettersen in 2024 to steer the ship in a new direction.
«We have received an expensive lesson, where we aimed to go from being a technology supplier to becoming co-owners in international aquaculture. We had to realize that it was far more time- and capital-consuming than expected, and the global situation didn’t help. Now we’re back to the ‘old Sterner,’ as a supplier of world-leading technology in various types of water treatment,» says Pettersen.
In the 2023 accounts, the losses have been accounted for, which Pettersen refers to as «all the old ventures,» including write-downs and depreciation of nearly 216 million NOK. Additionally, the company downsized and restructured last year, while also securing large and important contracts within its core business.
«We are not completely there yet, and we will likely still have a deficit in 2024, but of a significantly smaller size,» says Pettersen, hinting at a result this year around 10 million NOK in the red.
«Considering where we’ve come from, this is a major achievement. The measures we have implemented will fully materialize now, and we are very optimistic about Sterner’s future. A remarkable turnaround has been accomplished,» says Pettersen.
He himself reduced his ownership in the company and stepped down as CEO when the Singapore-based Austrian, Erich Erber, became a 49% owner in the summer of 2022. Through a 2023 share issue, Erber now owns 85% of the company. When Erber came on board as an investor, Sterner shelved its plans for a stock market listing but continued to develop the strategy of becoming co-owners and operational drivers of international land-based fish farming facilities.
At the end of last year, this strategy was changed, and Pettersen was brought back in February. The company is now returning to being a focused technology group that delivers technology and solutions within aquaculture, drinking water, wastewater, and maritime water treatment. This was the success formula of the business Pettersen built up and led for more than 30 years, where he has now temporarily resumed the CEO position.
«As an owner and board member, I was part of the decision-making on the strategy that we now had to reconsider, so it’s natural that I’ve stepped in again to help make the company profitable. We are already seeing clear results from the joint efforts of all the employees. We are also well underway in finding a successor for me, and we expect to announce soon who will lead Sterner forward after this remarkable turnaround,» says Pettersen.
Sterner Group’s total revenue in 2023 was 321 million NOK. The company’s adjusted EBITDA was minus 45 million NOK. The owners provided 140 million NOK in new funds throughout 2023, which have now been decided to be converted into equity. The owners have borne the cost of the expansion and continue to provide strong support to the company through the turnaround.
«This has been a tough period, and I want to commend the employees who have persevered during this time. We have both further developed existing and created new technology, and the feedback from our customers indicates that we are still a preferred supplier. Our results in land-based aquaculture technology, particularly in relation to sustainability, fish health, and survival rates, have attracted attention,» says Pettersen, adding that both he and the board have great confidence in the future of the company.
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