CEO’s Review

Positive result and market

“Our company’s profitability developed in the right direction during the first half of 2021, and the market outlook remains very positive. Our turnover increased to EUR 114.9 million (+267.7%), and our adjusted EBITDA to EUR 7.4 million (1.4), or 6.4% (4.5) of turnover. Our adjusted operating profit was EUR 3.5 million (0.8), or 3.1% (2.5) of turnover. (The figures concerning the business operations that were transferred to Enersense through the Empower acquisition are included in the Group’s figures from August 2020.)

Our order backlog stood at EUR 301 million at the end of June. Our segments’ order backlogs have developed in line with expectations, and the order backlog has remained at a good level during the first six months of the year.

The performance of the Smart Industry segment and the Power segment developed favourably during the review period. The project profitability of the Smart Industry segment was better than expected, which was reflected in its result. Demand in the Power segment continued to be strong, and the order backlog increased as expected. The Connectivity segment’s result decreased due to challenging weather conditions in fixed networks during the winter and spring, and in mobile networks during the winter, as well as the smaller size of fixed network projects. Challenging weather conditions also had a negative impact on the EBITDA of the International Operations segment in the review period. Winter is often challenging for us because of the weather conditions, and we expect our performance to develop favourably in the second half of the year.

We are optimising our business operations. In May, we signed an agreement on the sale of the entire share capital of Värväämö Oy, our subsidiary offering personnel services for the construction industry. Our company continues to have expertise in personnel services, as well as capacity for project resourcing and internal scaling. The resourcing unit operates as part of our Smart Industry segment.

In May, we announced that we had completed negotiations on refinancing our operations. We are pleased to have new partners to support the development and growth of our operations.

In May, we transferred from applying the Finnish Accounting Standards (FAS) to international IFRS reporting. In June, we were listed on the Nasdaq Helsinki. We successfully executed a directed share issue of 1,775,000 new shares, raising around EUR 16 million. I am very pleased with the outcome of the share issue, which supports our vision of being a creator of zero-emission energy solutions. The share issue in June was a good continuation of the directed share issue executed in March, through which we raised EUR 15 million and gained Nidoco AB as a significant shareholder.

It is our estimate that we have already achieved a large portion of the cost savings we were expecting to achieve after the integration of Enersense and Empower last summer. Our forecast was EUR 4–7 million. We have continued our work to promote a common corporate culture and implement our new strategy. The integration projects will continue in the current and next financial year.

I am pleased with the development of the merger between Enersense and Empower. At the time of the merger around a year ago, Empower was in a very challenging situation, and we have succeeded in turning the whole into a profitable Enersense Group.

The company is ready to take the next step. We are focusing on profitable growth and strategic investments centred on our core operations. Business arrangements are strongly in our focus.”

Jussi Holopainen