Capital

iStock_000001095558SmallBedfriten A/S's better utilisation of capital


During a period of strong growth, Bedriften A/S invests in consultants and ICT equipment. New production equipment is purchased to increase earnings through taking smaller printing jobs in-house. However, management can see that the time shift between revenue and costs squeezes liquidity.


The company has a strategy to keep production and ICT equipment on a "fast follower" level. The objective is to run the company as rationally as possible and have at least the same level of technology as partners and competitors.

The management of Bedriften A/S see that they have difficulties in maintaining this strategy. The company is facing a significant investment to upgrade and maintain production equipment and therefore assess alternatives to owning the equipment themselves.

A new model for financing

Operational leasing gives Bedriften A/S the opportunity to take significant values off the balance sheet and get a better correlation between expenditure and revenue. The company also sees opportunities to use operational leasing as a long-term instrument to optimise the company's capital needs through having a more strategic relationship to what the company will own and what it will rent/lease.

In relation to the immediate situation concerning production equipment, the company makes a sale-leaseback transaction of both ICT and production equipment. This releases significant capital, while maintaining the strategy on the utilisation of technology.