Rehabilitation and realism

Apurgo is growing in a market that still feels resistance

TRONDHEIM – 2024 was a record-breaking year for Apurgo AS, but it was not without its setbacks. In a market characterized by high interest rates, cautious investments and a new-build market on hold, the company has found growth through rehabilitation, sustainability and technological precision.

With operating income of almost NOK 35 million – an increase of 45 percent on the previous year – Apurgo delivered its best year ever. But behind the figures lies a strategy that is about more than growth: It’s about making existing buildings better and saving building owners money and resources.

– “We see that the rehabilitation market is on the move. Many real estate players have put new builds on hold, but they still need to ensure the operation, health and energy efficiency of the buildings,” says CEO Lise Marie Nergaard.

– This is where we come in. Our solutions deliver fast – both financially and in terms of sustainability.

From technology to safety

Apurgo’s technology uses several methods to prevent bacterial growth in water systems, including silver and copper ions, which make it possible to lower the temperature of hot water without compromising safety. This results in both lower energy consumption and improved public health – which is particularly important in schools, nursing homes and commercial buildings.

– “We’re noticing that our customers are more aware of both sustainability and documentation. They want solutions that are easy to follow up and provide measurable results,” says Nergaard.

Read also: Customer survey 2024

The company’s digital platform, Apurgo Cloud, gives property managers a full overview of water quality and system status – reducing the need for manual checks and chemical use.

Ørjan Saur and Sverre Leraand. Sverre is standing in the foreground. He has glasses, dark hair and a short beard. He is holding a bag over his shoulder and is clearly concentrating. Ørjan is standing in the background, reading on a sheet of paper. — *Operations technicians Ørjan Saur and Sverre Leraand checking one of many Apurgo M3 systems.*

New products and new models

Technical Manager Bjørn Vidar Enga explains that in 2024, Apurgo launched new solutions specifically aimed at smaller buildings and housing cooperatives.

*Technical Manager Bjørn Vidar Enga looks over the quality together with Product Manager Morten A. Storrøsæter and Production Team Leader Stian P. Haugen.*

– “We’ve developed compact systems that make it easier and more affordable to ensure water quality in smaller buildings. This opens up for a new customer group that has previously been left without good sustainable alternatives,” says Enga.

Lise Marie Nergaard and Lene K. Vaagan are very pleased with the company’s development.

At the same time, the company has adapted to the economic realities of the market with new financing models.

– In a depressed market where customers do not have large investment budgets, we have made it possible for several to achieve sustainable operations by offering very favorable leases,” says CEO and Marketing Manager Lene K. Vaagan.

– In this way, we help our customers to start saving – both financially and not least in terms of resources, such as water and energy savings.

Read more about: Lease agreements

Reporting for the future

In addition, Vaagan points out that Apurgo’s solutions also support the new sustainability reporting requirements:

– At a time when requirements for European Sustainability Reporting Standards (ESRS) are becoming increasingly stringent, we are focusing on developing products that will make it easier for customers to document sustainable operations.

The new ESRS standards from the European Commission, which came into force in December 2023 and were implemented in Norway, set requirements for reporting from 2024. For listed small and medium-sized enterprises, there will be separate requirements from 2026 (ESRS-LSME).

– We want to be a partner for our customers that makes it easier to meet these requirements in practice,” concludes Lise Marie Nergaard.

*Production worker Steinar Stoen is well underway with the production of cells that will be sent to the market.*

Realism in growth

Even with record sales, Apurgo is aware that margins in the industry are under pressure. Operating profit in 2024 was just over NOK 1 million, and the operating margin fell from 4 to 3 percent. Nevertheless, this is well above the industry average, which in Trøndelag was 0 percent in 2023.