It hardly needs to be pointed out that domestic investment in Iceland has been minimal and that this has had an effect on the performance of engineering companies. Things now appear to be looking up, and projects that have been merely talked about over the past few years are now becoming a reality. Looking back, we can see how operations fluctuate greatly – frenzied activity for a few years in a row followed by a downturn with barely sufficient operations. This makes any sort of planning or human resources management difficult and is not economical in the long term.
To deal with this situation in the Icelandic market, Mannvit has for a few years now pursued the policy of increasing activities abroad and levelling out these fluctuations. Today, some 30% of the company’s turnover is abroad. This is a significant increase compared to the situation two or three years ago. The plan to break into foreign markets is therefore bringing results. It is, however, important to continue this work even though more is now beginning to happen in the domestic market.
Another Mannvit objective has been to secure more EPCM contracts, in which the company is responsible for the whole process: preparation, planning, design, purchasing and execution. Such contracts have increased in number, and the projects have been successful, both for customers and Mannvit. It is easier to keep to time and cost estimates, ensure quality and deal with safety and environmental issues when all aspects of a project are handled by one party with a good overview.
Corporate Governance Excellence Award for the fourth year in a row
On 10 March, Mannvit received a Corporate Governance Excellence Award for the fourth year in a row. This accolade is awarded by the Iceland Chamber of Commerce, SA – Business Iceland, NASDAQ and the Centre of Corporate Governance (CCG) at the University of Iceland. We at Mannvit believe that good corporate governance can affect a company’s performance and that discipline – rather than arbitrariness – in working methods delivers better results. Clear rules on the roles and responsibilities of managers, together with an annual work programme for management, builds trust between management and shareholders and prevents untargeted action. Market players and shareholders can therefore rely on certain conduct by parties within the company, as the rules are clear and responses to various situations foreseeable.