Panostaja Oyj Business Review Q3 1.11.2020-31.7.2021
Panostaja Oyj Business Review Q3 September 2, 2021 10.00 a.m.
Panostaja Oyj Business Review Q3 1.11.2020-31.7.2021
Active summer in corporate acquisitions
May 1, 2021-July 31, 2021 (3 months)
- Net sales increased in two of the five segments. Net sales for the Group as a whole increased by 3% to MEUR 32.7 (MEUR 31.7).
- EBIT improved in one of the five segments. The entire Group’s EBIT declined from the reference period, standing at MEUR 0.5 (MEUR 0.7).
- Grano’s net sales for the review period increased by 8% from the reference period in the previous year. EBIT totaled MEUR 1.1 (MEUR 0.7).
- Earnings per share (undiluted) were 0.6 cents (-0.4 cents).
- In the review period, Panostaja signed an agreement on selling the share capital of Heatmasters Oy and its Polish subsidiary. Panostaja Group recorded a sales profit of about MEUR 0.5 for the trade.
- Panostaja’s associated company Spectra Yhtiöt Oy was sold to Lassila & Tikanoja Oyj. Panostaja divested its ownership and recorded a sales profit of about MEUR 0.4.
November 1, 2020-July 31, 2021 (9 months)
- Net sales increased in one of the five segments. Net sales for the Group as a whole weakened by 6% to MEUR 103.5 (MEUR 109.6).
- EBIT improved in one of the five segments. The entire Group’s EBIT declined from the reference period, standing at MEUR -1.5 (MEUR 0.9).
- Grano’s net sales for the review period dropped by 2% from the reference period in the previous year. EBIT totaled MEUR 1.8 (MEUR 1.5).
- Earnings per share (undiluted) were -6.9 cents (-3.6 cents).
CEO Tapio Tommila:
“Activity in the corporate acquisitions market has remained good in the review period, and we ended up making two deals. We sold Heatmasters to a Finnish investment group at the beginning of June and our associated company Spectra Yhtiöt to Lassila & Tikanoja Oyj in early July. Our journey with both companies had been long, and now was the right time to divest and usher the companies to their next phase of development with new owners. The divestments also support our goal of actively developing our portfolio.
Over the course of the review period, the total net sales of our segments increased by 3% from the review period, thanks to the improved net sales of Grano and Hygga. Grano’s net sales grew by 8% especially due to strong demand early on in the review period and the strong performance of the construction sector through the summer. The increase in Hygga’s net sales resulted from the services sold to the City of Helsinki, which is still somewhat constrained by the availability of labor.
The decline of the net sales of Carrot and CoreHW continued in the review period. Carrot’s customer activity increased during the summer, but the shortage of skilled labor makes it more difficult to increase net sales. CoreHW’s customer demand and number of tenders have continued to grow in the review period but, due to lengthy negotiation processes, this is not reflected by the development of net sales. Moreover, the development of Oscar Software’s net sales was lower than intended in the review period, largely due to resource challenges affecting the project organization. The shortfalls in net sales impacted profitability and, overall, the Group’s EBIT declined slightly from the review period.”
Impacts of Covid -19
The effects of the Covid -19 pandemic on the business operations of Panostaja and its subsidiaries continued in the review period. The companies have conducted measures to curb the effects, and the development of the pandemic will continue to be monitored closely going forward.
Key Figures
| MEUR | Q3 | Q3 | 9 months | 9 months | 12 months |
| 5/21- 7/21 | 5/20- 7/20 | 11/20- 7/21 | 11/19- 7/20 | 11/19- 10/20 | |
| Net sales, MEUR | 32.7 | 31.7 | 103.5 | 109.6 | 147.5 |
| EBIT, MEUR | 0.5 | 0.7 | -1.5 | 0.9 | 0.1 |
| Profit before taxes, MEUR | -0.1 | 0.1 | -3.4 | -0.8 | -2.4 |
| Profit/loss for the financial period, MEUR | 0.4 | -0.2 | -4.5 | -1.9 | -3.4 |
| Distribution: | |||||
| Shareholders of the parent company | 0.3 | -0.2 | -3.6 | -1.9 | -4.4 |
| Minority shareholders | 0.1 | 0.0 | -0.9 | 0.0 | 0.9 |
| Earnings per share, undiluted (EUR) | 0.01 | -0.00 | -0.07 | -0.04 | -0.08 |
| Interest-bearing net liabilities | 60.3 | 65.8 | 60.3 | 65.8 | 64.0 |
| Gearing ratio, % | 93.7 | 90.2 | 93.7 | 90.2 | 90.1 |
| Equity ratio, % | 36.9 | 34.0 | 36.9 | 34.0 | 33.6 |
| Equity per share (EUR) | 0.72 | 0.87 | 0.72 | 0.87 | 0.82 |
Division of the net sales by segment
| MEUR | Q3 | Q3 | 9 months | 9 months | 12 months |
| Net sales | 5/21- 7/21 | 5/20- 7/20 | 11/20- 7/21 | 11/19- 7/20 | 11/19- 10/20 |
| Grano | 25.1 | 23.1 | 79.3 | 80.9 | 109.9 |
| Hygga | 2.0 | 1.0 | 6.0 | 3.1 | 4.1 |
| CoreHW | 1.2 | 1.5 | 4.3 | 6.2 | 8.1 |
| Carrot | 2.0 | 3.6 | 5.9 | 11.4 | 14.5 |
| Oscar Software | 2.5 | 2.6 | 8.1 | 8.2 | 11.0 |
| Others | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Eliminations | 0.0 | 0.0 | -0.1 | -0.2 | -0.2 |
| Group in total | 32.7 | 31.7 | 103.5 | 109.6 | 147.5 |
Division of EBIT by segment
| MEUR | Q3 | Q3 | 9 months | 9 months | 12 months |
| EBIT | 5/21- 7/21 | 5/20- 7/20 | 11/20- 7/21 | 11/19- 7/20 | 11/19- 10/20 |
| Grano | 1.1 | 0.7 | 1.8 | 1.5 | 4.8 |
| Hygga | 0.0 | 0.1 | -0.4 | 0.0 | -0.3 |
| CoreHW | -0.3 | -0.2 | -1.2 | 0.4 | 0.5 |
| Carrot | -0.1 | 0.0 | -0.6 | -0.5 | -4.0 |
| Oscar Software | -0.1 | 0.5 | 0.3 | 1.0 | 1.1 |
| Others | -0.1 | -0.4 | -1.4 | -1.5 | -2.0 |
| Group in total | 0.5 | 0.7 | -1.5 | 0.9 | 0.1 |
Panostaja Group’s business operations for the current review period are reported in six segments: Grano, Hygga, CoreHW, Carrot, Oscar Software and Others (parent company and associated companies).
In the review period, two associated companies, Gugguu Group Oy and Spectra Yhtiöt Oy, issued reports to the parent company. The profit/loss of the reported associated companies in the review period was MEUR 0.1 (MEUR 0.2), which is presented on a separate row in the consolidated income statement. Panostaja’s associated company Spectra Yhtiöt Oy was sold to Lassila & Tikanoja Oyj in the review period.
Outlook for the 2021 Financial Period
As regards the corporate acquisition market, plenty of opportunities are available and the market is active. The need to leverage ownership arrangements and growth opportunities will persist for SMEs, but the high market liquidity and increased price expectations of sellers are making the operating environment more 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 will remain good.
- The demand for Hygga, Grano and CoreHW remained satisfactory. Carrot’s demand has increased to a satisfactory level thanks to the increased labor needs of customers.
Panostaja Oyj
Board of Directors
For further information, contact CEO Tapio Tommila, +358 (0)40 527 6311
Panostaja Oyj
Tapio Tommila
CEO
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 start-ups in the role of 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 five 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. Carrot provides staffing, recruitment and outsourcing services. Oscar Software provides ERP systems and financial management services.
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