Panostaja Oyj’s Business Review Q1 November 1, 2022–January 31, 2023
March 15 2023 - 4:00AM
Panostaja Oyj’s Business Review Q1 November 1, 2022–January
31, 2023
Panostaja Oyj
Business Review Q1 March 15, 2023
at 10.00 a.m.
Panostaja Oyj’s
Business
Review November 1, 2022–January 31,
2023
Measures to improve profitability are
progressing
November
2022-January 2023 (3
months) in brief:
- The Group’s reported net sales
dropped by -0.9% and were MEUR 35.5 (MEUR 35.8). The comparable net
sales increased in three of the four segments.
- EBIT improved for three of the four
segments. The entire Group’s EBIT improved from the reference
period, standing at MEUR 0.1 (MEUR -0.9).
- Grano’s net sales for the review
period dropped by -1.3% from the reference period. EBIT totaled
MEUR 0.8 (MEUR 0.3). Net sales for the review period increased by
4.3% from the reference period net sales that were adjusted based
on the SokoPro sale.
- Earnings per share (undiluted) were
-1.5 cents (-1.3 cents).
CEO Tapio Tommila:
“We started the new financial period with clear
goals: we want to emphasize measures to improve profitability
across all of our segments and strive to prepare for any risks
brought on by the uncertain economic situation. In accordance with
our strategy, we also strive to add new value-adding segments to
our portfolio. In the first quarter, our measures to increase
profitability began to generate good results and we improved our
performance substantially, particularly in Grano and Oscar
Software.
Alongside focusing the strategy and its
implementation, Grano has worked extremely hard to manage the
challenges brought on by the abnormal cost inflation environment
and support profitability development. I am very pleased that the
persistent efforts are beginning to produce results. In the first
quarter, Oscar Software succeeded with regard to sales efforts and
the efficiency of customer deliveries. We are now heading in the
right direction, with an emphasis on the profitable growth of
continuously invoiced business operations. CoreHW’s customer
project activity has expectedly remained high, and the demand for
the company’s high added value design services is consistently
strong. Hygga continued its determined efforts to solve the
availability challenges related to health care staff and, even
though the goals are yet to be reached, results were achieved near
the end of the quarter.
At CoreHW, we have continued our long-term
investments in the development of our technologies and our own
product business. Customer feedback shows that the company’s indoor
range of component products focused on Bluetooth-based positioning
solutions is among the best in the world in terms of accuracy and
reliability. The indoor positioning technology has become reliable
enough for customers to begin investing in the product development
and commercialization of their own solutions – with the help of
CoreHW’s technology. The company finds that the global market for
indoor positioning solutions is about to see rapid growth in a
variety of application areas, such as industry, retail and health
care. In the coming years, the commercial potential of CoreHW’s
products will be significant. We find that the timing is currently
just right to invest in the accelerating of the commercialization
of CoreHW’s business, which is why we have agreed to allocate
almost MEUR 4 in additional funding to bolstering product
development and commercialization measures. The additional funding
consists of Panostaja’s subordinated loan and a product development
loan granted by Business Finland.
Our additional investment in accelerating the
ramp-up of CoreHW’s product business is a good demonstration of
Panostaja’s strategy of being an active owner partner for growing
SMEs. Through the entire period of Panostaja ownership, CoreHW has
persistently invested in developing its own technologies. Together
with our owner partners, we have systematically worked on building
the company’s value creation path. In fact, our strength as a
balance investor is highlighted when we can, in our chosen way,
bolster the implementation of the company’s value creation strategy
with an additional investment a good while after our initial
investment, once the company has developed to a suitable stage and
the market situation is right.”
Financial Development November 1,
2022-January 31, 2023
KEY FIGURES MEUR |
Q1 |
Q1 |
12 months |
|
11/22-1/23 |
11/21-1/22 |
11/21-10/22 |
Net sales, MEUR |
35.5 |
35.8 |
137.9 |
EBIT, MEUR |
0.1 |
-0.9 |
5.2 |
Profit before taxes, MEUR |
-0.5 |
-1.4 |
3.2 |
Profit/loss for the financial period, MEUR |
-0.7 |
-0.9 |
3.9 |
Distribution: |
|
|
|
Shareholders of the parent
company |
-0.8 |
-0.7 |
1.3 |
Minority shareholders |
0.1 |
-0.2 |
2.6 |
Earnings per share, undiluted, EUR |
-0.01 |
-0.01 |
0.03 |
Interest-bearing net liabilities |
40.1 |
59.8 |
42.3 |
Gearing ratio, % |
69.8 |
90.9 |
72.8 |
Equity ratio, % |
39.8 |
38.2 |
39.1 |
Equity per share, EUR |
0.69 |
0.74 |
0.71 |
Distribution of net sales by segment
MEUR |
Q1 |
Q1 |
12 months |
Net sales |
11/22-1/23 |
11/21-1/22 |
11/21-10/22 |
Grano |
28.5 |
28.9 |
111.5 |
Hygga |
1.7 |
2.0 |
7.3 |
CoreHW |
2.2 |
2.0 |
8.0 |
Oscar Software |
3.1 |
2.9 |
11.2 |
Others |
0.0 |
0.0 |
0.0 |
Eliminations |
0.0 |
0.0 |
-0.1 |
Group in total |
35.5 |
35.8 |
137.9 |
Distribution of EBIT by segment
MEUR |
Q1 |
Q1 |
12 months |
EBIT |
11/22-1/23 |
11/21-1/22 |
11/21-10/22 |
Grano |
0.8 |
0.3 |
8.7 |
Hygga |
-0.2 |
-0.2 |
-0.4 |
CoreHW |
-0.1 |
-0.2 |
-0.5 |
Oscar Software |
0.2 |
-0.1 |
-0.5 |
Others |
-0.6 |
-0.6 |
-2.2 |
Group in total |
0.1 |
-0.9 |
5.2 |
Panostaja Group’s business operations for the
current review period are reported in five segments: Grano, Hygga,
CoreHW, Oscar Software and Others (parent company and associated
companies).
One associated company, Gugguu Group Oy,
provided a report for the review period. The impact on profit/loss
of the reported associated companies in the review period was MEUR
-0.0 (MEUR 0.1), which is presented in a separate row in the
consolidated income statement.
Outlook for the 2023 Financial
Period
As regards the corporate acquisition market, new
opportunities are available and the market is active.SMEs will
still need to utilize ownership arrangements and growth
opportunities, but the consistently high market liquidity and the
high price expectations of sellers, which tend to follow changes in
economic trends with some delay, make the operating environment
challenging for corporate acquisitions.We will continue exploring
new possible investment targets in accordance with our strategy and
assess divestment possibilities as part of the ownership strategies
of the investment targets.
It is thought that the demand situation for
different investments will develop in the short term as
follows:
• The demand for
Oscar Software and CoreHW will remain good.
• The demand of
Grano and Hygga will remain satisfactory.
The demand situation presented above involves
uncertainties relating to any geopolitical and macroeconomic
impacts that are difficult to anticipate. The effects of the war in
Ukraine and the related economic sanctions and geopolitical
tensions will increase economic uncertainty in Finland and abroad,
which may negatively impact segment demand or the availability of
materials, and thereby material prices and delivery capabilities.
If strengthened and prolonged, the inflation may have a negative
impact on the purchasing power of consumers and the willingness of
companies to make investments, which may weaken the demand
situation of our segments from the estimate provided above.
Furthermore, the possible resurgence of the coronavirus pandemic
may impact the future development of Grano and Hygga, in
particular, and rapidly and dramatically change the estimate
provided above.
Panostaja Oyj
Board of Directors
For further information, contact CEO Tapio
Tommila, +358 (0)40 527 6311
Panostaja OyjTapio TommilaCEO
All forecasts and assessments presented in this
business report are based on the current outlook of Panostaja and
the views of the management of the various investments with regard
to the state of the economy and its development. The results
attained may be substantially different.
This is not an interim report compliant with the
IAS 34 standard. The company observes the six-monthly reporting
practice prescribed in the Finnish Securities Markets Act and
publishes business reports for the initial three and nine months of
each year, presenting the key information on the company’s
financial development. The financial information presented in the
business report has not been audited.
Panostaja is an investment company developing
Finnish companies in the growing service and software sectors as an
active shareholder. The company aims to be the most sought-after
partner for business owners selling their companies as well as for
the best managers and investors. Together with its partners,
Panostaja increases the Group's shareholder value and creates
Finnish success stories.
Panostaja has a majority holding in four
investment targets. Grano Oy is the most versatile expert of
content services in Finland. Hygga Oy is a company providing health
care services and the ERP system for health care providers. CoreHW
provides high added value RF IC design services. Oscar Software
provides ERP systems and financial management services.
https://panostaja.fi/en/
- Panostaja Oyj Business Review 15.3.2023 Q1_Appendix
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