The turnover for Lappset Group in the 2018 financial year grew dramatically to 63.5 million euros (50.8 MEUR in 2017), representing a growth of 25 % compared to the previous year. Each of the Group’s three business divisions exceeded sales targets. The Group’s profit for the 2018 financial year was 2.9 million euros, representing 4.5 % of turnover (3.1 MEUR in 2017). The reduction in profits was largely due to increases in staff expenses and challenges with feasibility of contracts. The Group’s equity ratio was 56.1 %.
Lappset made structural changes to its organisation during the financial year and combined the ground operations of Finland and Sweden into a single business division, thereby establishing the Nordic Business Division. The operations of the International Business Division remain the same, despite the change concerning Sweden.
Commercial significance of theme parks expands
Lappset Creative Division, focusing on theme parks, expands as Lappset acquired majority shareholding of Fantasia Works Oy from Kuopio. Lappset Creative signed the most groundbreaking agreement of its history with the world’s second largest entertainment company, Merlin Entertainments Group. With this strategic partnership, Lappset Creative is designing and supplying a number of Peppa Pig-themed activity parks for China and the United States. The world’s first Peppa Pig activity park was completed in Shanghai in early October, the first park for the United States reached completion in the end of January this year, and the third park is due to open in the United States in the next few days.
Construction of sports and fitness venues strengthens
The Group’s commercial activities also expanded in the construction of sports and fitness venues, as Lappset acquired the entire share capital of Aaba Group Oy in the end of 2017 and continued its business under the name Lappset Liikuntapaikat Oy.
With this expansion, Lappset strengthened its role as a supplier of comprehensive services for sports and fitness venues. Lappset Liikuntapaikat Oy is the novice and top-level sport business unit for the Lappset Group that focuses on supplying high-quality conditions particularly for soccer enthusiasts, including e.g. artificial turf and air domes. The PlayCare service business unit is responsible for implementation of lifecycle services related to these facilities. Lappset Liikuntapaikat Oy and the PlayCare service business unit belong to the Nordic Division.
Subsidiary network widens
During the financial year, Lappset established subsidiaries in China and the United States, particularly for handling theme park business in those nations. Lappset’s subsidiary in the Netherlands, Yalp (Lappset Nederland B.V.) also established subsidiaries in the United States and Germany for boosting the sales of interactive products. In the end of 2018, the Lappset Group comprised a total of 15 companies in nine different countries.
The total number of employees in the Group averaged 398, compared to 333 in the previous year.
Lappset predicts strong growth to continue through 2019 and 2020 and continues its investments into human resources. The investments in human resources during the financial year affected the profit trend for 2018.
Key figures for the commercial activities of the Lappset Group 31 December 2018:
Figures related to Group employees:
- Managing Director Tero YlinenpAA, tel. +358 400 290 234, email@example.com