The development of Panostaja’s segments in 2021 was still encumbered by the detrimental effects of the coronavirus pandemic that gripped the markets, which is why the Group’s net sales remained at the level of the previous financial year at MEUR 133. Panostaja Group’s EBIT weakened, but the largest segment Grano was able to improve its profitability despite the poor demand.
There are still uncertainties connected to the demand for Panostaja’s segments due to the possible escalation of the COVID-19 pandemic.
2021 financial period in brief
In the financial period November 1, 2020–October 31, 2021 Panostaja held to its strategy to update the investment portfolio and create opportunities for targeted investments in new select fields over the course of 2022.
The development of Panostaja’s segments in 2021 was still encumbered by the detrimental effects of the coronavirus pandemic that gripped the markets, which is why the Group’s net sales remained at the level of the previous financial year at MEUR 133. Net sales increased in two of four segments. Panostaja Group’s EBIT weakened, but the largest segment Grano was able to improve its profitability despite the poor demand. EBIT increased in two of four segments.
In February 2021, Panostaja sold its entire share capital in Helakeskus Oy to HTF Group Oy and divested its business specializing in the import of fittings and the provision of related services. In June 2021, Panostaja sold the fully-owned Heatmasters Oy and Heatmasters Poland Sp. z o.o. to a group of investors and divested the heat treatment segment. In July 2021, Panostaja sold its associated company Spectra Yhtiöt Oy, which specializes in providing maintenance and support services for trade, to Lassila & Tikanoja. After the end of the financial period in November 2021, Panostaja reported selling its shares in Carrot Palvelut Group Oy to shareholders of the company who are actual persons. The trade will decrease Panostaja’s shareholding in Carrot to less than 20% and, in the same context, Panostaja will relinquish the entire Carrot segment and the responsibility of running the company.
Outlook for the 2022 financial period
As regards the demand of Panostaja’s segments, there are uncertainties relating to the possible escalation of the COVID-19 pandemic. Especially the weakening of the pandemic situation may impact the business operations of Grano and Hygga.
The demand for Oscar Software will remain good. The company operates in a market that is expected to see positive development.
The demand for Grano, Hygga and CoreHW will remain satisfactory. The development of Grano’s operating environment is partially dependent on the development of the pandemic, especially in terms of the recovery of event and trade fair activity. Hygga’s demand is supported by the service production for the outsourced services agreement made with the City of Helsinki. CoreHW operates in a market that is expected to develop in a positive way, but there are uncertainties connected to the commencement of customer projects.
The demand for Gugguu is good. Gugguu is aiming for growth particularly through the internationalization of online trade.
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. In the financial period November 1, 2021–October 31, 2022, Panostaja will strive to further its strategic efforts to focus the investment portfolio even more on fields in which the value creation opportunities are supported by increasing customer needs, efforts to build Panostaja’s field-specific expertise, and competence synergies between segments. In this financial period, the focus of our investment activities will be on software and service business even more than before, which will also be evident in the strategies of our current segments.