The year of strong development implies future growth

In 2024, Oscar Software conducted active development efforts in the customer interface and internally. The company’s net sales and profitability saw positive development, and the company grew moderately. In May, Jakke Vyyryläinen was appointed as the new CEO.

The strategic decision to shift from a project focus to a more product-oriented model was reflected by Oscar’s operations throughout the financial period. Over the course of the year, development continued on a comprehensive service that marries the essential areas of the business operations and enables the customer to develop its own business activities and digitalization.

The pace of work at the software company is excellent, but the persistently difficult economic trends made the early part of the year challenging. Even though the customers had investment needs and the willingness regardless of the field, decisions were delayed due to the uncertain economic situation. Toward the end of the year, however, the market began to show positive signs in the form of decreasing interest rates and slower inflation. Despite the challenges, customer interest in Oscar’s products and services remained unchanged through the year.

There has been positive development in net sales and especially profitability. The direction has been correct.

Launch of a modern ERP system and tools for the VAT reform

One of the most significant achievements of the year was the launch of a new modern ERP business platform, Oscar P1, at Subcontracting Fair Finland in October. The company’s two other production lines also made significant development efforts, with a specific focus on productization. The user experience of the Oscar T5 ERP system was improved, and a new version of the Oscar eCommerce online business solution was released.

The VAT reform that took effect in the fall had a positive impact on Oscar’s business. The company provided its customers with tools and services to implement the VAT reform as smoothly as possible. The official VAT change took place on a weekend, during which Oscar’s own VAT team was on call to assist customers. The help provided by Oscar generated substantial added value to the customers and lightened their work load in tackling the VAT reform.

Investments in responsibility continued

Responsibility has been a key element of Oscar’s mission statement in recent years, and the company redoubled its efforts in 2024. The focuses of the responsibility measures have included the carbon footprint (e.g., machine room and operating facilities) and carbon handprint (e.g., resource efficiency and transparency).

More attention will also be paid on responsible options in the choices of partners. In the next financial period, the aim is to transition to anonymous recruitment with finding the right kind of expertise at its core. Oscar has made significant investments in developing the company’s internal operating models, which has been received extremely well by the staff.

Panostaja’s Heikki Tukiainen got started as a new member of the company’s Board of Directors, bringing his expertise and insight into the company’s operations. This year, too, Panostaja continued to provide strong financial expertise, sparring assistance, and the freedom and peace to push the agreed areas forward.

The anniversary year is expected to be a year of growth

In 2025, Oscar will be celebrating its 20-year journey. The company has a significant growth goal for the anniversary year, which is supported by well-laid plans and practical measures. In addition to focusing on the basic business operations, development work will continue in areas such as improving operating models, and improved efficiency will be sought through marketing automation, for example. In 2025, the customer will witness positive developments made in the customer service system.

A year of development and commercialization

CoreHW’s year had its ups and downs, with some spice added to the mix by the challenging first half of the design services (DS) which delayed the customers’ procurement decision. In the second half of the year, the situation for the design services started to improve, especially with orders picking up and the increased invoicing rate bolstering the last quarter of the financial period. The successful end of the year is expected to be reflected by the beginning of the 2025 financial period. The module and equipment business (RTLS) shifted into the piloting phase, and customers have provided positive feedback on the products.

For the microchip design business, profitability was an important theme in 2024. The number of active customer projects was lower than expected early in the year, due to customers postponing their design projects. Still, the active sales efforts throughout the year were eventually rewarded. Important customers for the design services were found in Europe, Asia and the United States.

In the indoor positioning module and equipment business (RTLS), CoreHW actively continued the development and commercialization of its own products. In 2024, the business activities took significant strides with the equipment business moving into the piloting phase. The products have massive global customer potential, and there have been long-term efforts to push products into the commercialization phase. As regards the indoor positioning technology, the first customer references were gained on the United States health care market and a product was launched on the Japanese market. Substantial orders are sought for 2025 as well as a transition to the mass production phase.

The commercialization phase of the RTLS business is an important achievement for us, and the customer feedback indicates that we are producing groundbreaking technology.

Technological successes

CoreHW has made long-term development efforts with customer projects and in-house production development. Currently, the company has an RF and analog-mixed signal portfolio of over 250 IPs. The company’s foundation is in good shape and, despite the difficult market situation in 2024, CoreHW was able to navigate the market and identify the right customer potential with the willingness to invest in future technological development.

An important milestone was reached in the design sevice business when an entirely new radar solution was completed for testing in the context of a customer project. The project has been the company’s most expensive one, and bringing it to this stage is a success that has taken great effort. The technology in question has plenty of further development potential, which creates excellent opportunities for the coming years.

In the RTLS business, making progress toward the mass production phase is also a substantial accomplishment for CoreHW. The feedback from the customers has been very encouraging so far, and the technology is seen to be the best in its field.

Support from Panostaja with financing and responsibility efforts

In 2024, CoreHW faced challenges due to the substantial payment delays of some customers, which has made the company’s own cash management more difficult. CoreHW received financial assistance from Panostaja in the difficult situation, which enabled the company to focus more on its core business and open new doors commercially.

CoreHW’s responsibility work particularly emphasizes social responsibility. The commitment and work satisfaction (eNPS) of the company’s staff were excellent in both Finnish and international comparisons. The strong commitment of the employees has been key in reaching the company’s goals.

CoreHW has been actively involved in the Panostaja-led CSRD, which focuses on the responsibility reporting of companies. CoreHW also carried out an ESG self-assessment process in 2024, according to which the business operations stand on a solid foundation.

The year 2025 looks positive for CoreHW. The aim is to push new technology forward on a variety of fronts, with a special focus on growing the RTLS business by launching new devices. For the design services, keeping profitability high through sales promotion and a high invoicing rate will be a core theme in the coming year.

The best result in history is overshadowed by concerns about the future

Hygga’s financial period included plenty of successes, and the company’s net sales increased by roughly a million euros. Despite the challenging trends of the economy and the social welfare and health care sector, Hygga has succeeded in growing its business in recent years. While the company has celebrated the best result in its history, concerns about the future have increased.

The clinic providing outsourced services to the City of Helsinki and dental care to private customers increased its profitability. The company’s investments in areas such as the management of the clinic and supervisory work were also mirrored by successful recruitments and staff comfort.

More than half of the clinic’s net sales come from the City of Helsinki outsourced services and the rest from private customers. The oursourced services agreement with the City of Helsinki concluded at the end of the financial period. The agreement was for 3+1 years, so Hygga was aware of the situation well in advance. Helsinki decided not to arrange a competitive bidding process for the continuation of the agreement. Preparations for the discontinuation of the outsourced services were made during the financial period and, as regards the clinic, the focus was on updating the strategy for the coming years.

We have succeeded in achieving an excellent result in a difficult economic situation.

Significant changes in the service business

The service business focusing on the Hygga Flow ERP system carried out new successful pilots in Finland. In Sweden, Hygga Flow expanded to a new area, and the customer day held there for the first time was a success. Promising results have been achieved on the Swedish market, and the number of clinics is expected to grow in 2025.

Hygga Flow has been widely used in Finland. The financial challenges of the wellbeing services counties have resulted in some terminations of Hygga Flow agreements. The financial impacts of the termination and discontinuation decisions will be reflected by Hygga’s operations in the 2024–2025 financial period.

The terminations and rapid changes in the services business came as a surprise to Hygga – effective systems and concepts were abandoned in order to save money and bridge deficits in the short term. The danger of abandoning methods that maintain productivity is longer wait times for treatment. Hygga is looking for alternative ways to continue providing services to current customers.

Hygga Flow is based on the idea that patients are provided with the treatment they need in one go. The ERP system increases the efficiency of patient care and saves resources but is also a highly responsible solution at the same time. Hygga Flow’s responsibility was examined in a study conducted by Tampere University, which indicated that Hygga Flow’s carbon footprint was 27% smaller than the traditional oral health care operating model. Compared to the traditional model, it consumes 24% less disposable materials, especially microplastics that are harmful to nature, and 25% less electricity and water. The results also highlighted social responsibility, because Hygga Flow was, among other things, found to reduce travel and, thanks to its effectiveness, improve the equality and availability of oral health care.

The focus in 2025 will be on increasing customer numbers

The year 2025 will be challenging for Hygga in terms of both financial and operational aspects. The discontinuation of the Helsinki outsourced services has a significant impact on the company’s net sales, which will be compensated for in the coming financial periods by increasing the number of private customers.

Hygga differentiates itself from its competitors in many ways, such as its effective operating methods and pricing. Hygga is the only private operator on the market that is able to offer a dental examination at a price equal to the Kela reimbursement. The affordable pricing is an important way to increase customer numbers. Hygga is seen as a highly appealing alternative for people who do not currently use any oral health care services.

As regards the service business, the financial period 2024–2025 is expected to be challenging in Finland. The most significant growth opportunities can be seen in Sweden and on other international markets.

Persistent change efforts in a challenging market situation

For Grano, the year 2024 continued in a difficult market situation that kept customer caution high with regard to procurement decisions. In January, the company initiated change negotiations to improve profitability and strengthen competitiveness. The negotiations were concluded in March, and 56 work tasks had to be discontinued as a result.

In part, the measures are elements of Grano’s longer-term operational development and structural streamlining efforts. The adaptation measures continued in the fall season in the form of structural and organizational changes as well as other cost-saving procedures. The aim of the changes was to achieve MEUR 4.5 in annual savings. The market situation and demand are expected to improve in 2025.

Our long-term change efforts and investments in responsibility will create a good foundation for the coming year.

Customer-oriented strategic development

This year, Grano celebrated its 10th anniversary. The company was born in 2014 with the merger of Kopijyvä and Digital Media Partners. Multiprofessional expertise in marketing, print products and technologies as well as a strong customer focus have formed the common thread for Grano’s strategy.

In 2024, Grano continued to carry out its strategy with the focuses of developing the Grano 360 range of service solutions, increasing the packaging and labels business, and optimizing production and processes. The company has also initiated multiple measures to increase its net sales.

Responsibility and artificial intelligence as the themes of the year

Grano has been engaged in systematic high-level responsibility work for a long time. The company aims to be the most environmentally responsible operator in its field. In October, all of the work was rewarded with a golden EcoVadis label. The valued accolade is an indication that the company is committed to continuously develop responsibility work. As an acknowledgement of the investments in social responsibility, Grano was also granted the ISO 45001 certificate for occupational health and safety.

Grano’s second core theme for the year was artificial intelligence – the company set out to build its own AI strategy in the spring of 2024. The strategy covers developing the company’s internal and external operations through AI. Grano will utilize AI particularly to develop new products and services and to support its operations in the customer interface.

Panostaja provides support in the midst of changes

Over the course of the challenging year, Grano was engaged in active dialogue with Panostaja. The difficult market situation required commitment to making changes, and Panostaja has supported Grano through persistent guidance and stable ownership. Grano has been actively involved in Panostaja’s management coaching, which has provided concrete tools for management work.

Grano will be entering 2025 with confidence. The expectation is that the abatement of inflation and the development of the market will turn demand to an upward trend. The company is on a good path and actively developing its operations. The structural change efforts and the staff commitment to business development will create a good foundation for the coming year.

First steps into international playing fields

The challenges continued in the textile field in 2024, and the generally poor economic situation made the purchasing behavior of customers difficult to predict. Despite the challenges posed by the operating environment, Gugguu’s year was successful and the focus of business operations was on measures aiming at profitability.

Gugguu’s emphasis in 2024 was in improving profitability and preparing for the next growth period.The measures will strengthen the company’s profitability as demand recovers. Through committed team work and quick reactions, significant results were achieved within a short time span.

Among the key changes during the financial period were the role changes in the company’s management. The founder of Gugguu Anne Valli became the company’s CEO in the spring. The company’s other founder, previous CEO Miia Riekki, continued as the brand’s creative director. Sini Savela was appointed as the chief operating officer in Valli’s place.

Despite the increased costs and difficult financial situation, Gugguu succeeded in expanding its operations, and its first subsidiary began operating in Norway. The online store and a pop-up outlet were launched in Oslo in September. Establishing the company in Norway was a long process. That said, business operations in the new country are off to a good start, and the first customer events garnered plenty of positive feedback. The aim was to increase awareness about Gugguu in Norway through events, among other measures.

The development efforts for a new product group and responsible recycling continued

The two-year project carried out in cooperation with Business Finland reached its conclusion in June. As part of the project, Gugguu has been developing an entirely new product group, which is planned to be launched in the fall. In addition to this, existing product groups have been expanded and significant investments have been made in the development of merino wool products, for example.

Despite the difficult economic situation, operations were successfully expanded with the establishment of the first subsidiary in Norway. The efforts to develop an entirely new product group also continued.

Ecology was also at the core of Gugguu’s operations in 2024. The Gugguu Preloved store, which encourages the recycling of children’s clothing, was expanded and updated, and customers were provided with an even faster way to recycle Gugguu products that are in good condition. Ninyes, which is the first and only recycling platform for responsibly manufactured clothing in Northern Europe, will continue as the company’s recycling partner.

Toward a new growth period with positive expectations

Gugguu has spent the challenging years honing its strategy, which has been integrated very well into the company’s daily operations. Panostaja has brought structure and strategic vision to the company’s board work, which focused everyone’s sights on the future and long-term goals in a positive way. In addition to providing financial support, Panostaja was involved in developing the company’s internal processes to support decision-making and management.

The coming year seems bright for Gugguu, as purchasing power is expected to increase gradually. The development efforts in recent years have created a strong foundation, and the results will begin to crystallize in 2025. Gugguu’s most important goal in 2025 is to grow profitably. Future milestones include the launch of a new product group, and the efforts to strengthen the Norwegian market continue. In the future, the company’s growth will lean heavily on internationalization.

* In contrast to Panostaja, Gugguu’s financial period is April 1–March 31