Detection Technology
Overview
Financial overview
Equity research
DT’s Q1 didn’t contain many surprises other than MBU being weaker and SBU stronger than expected. We estimate EBITA margin to be headed above 15% as growth continues.
DT’s Q1 earnings were clearly above estimates even though revenue was basically as expected. MBU revenue fell more than expected, while SBU grew a lot more than was estimated. SBU outlook continues to be strong, and while MBU weakness will still limit Q2 growth DT should see revenue increase in H2.
DT reports Q1 results on Apr 25. Q1 may have been a bit muted, but growth is likely to pick up pace over the year. We see significant earnings upside for this year and next.
DT’s Q4 results topped estimates as costs remained under control while SBU continued to drive growth. MBU outlook is still challenging in the short-term, but valuation isn’t too demanding assuming MBU returns to growth later in FY ‘24.
DT’s Q4 results were somewhat better than estimated. All three units grew, while fixed costs decreased, and the EUR 4.6m EBITA figure came in above our EUR 4.2m estimate.
DT reports Q4 on Feb 1. MBU may not grow much this year, yet organic SBU-driven recovery and recent measures are to underpin earnings growth this year as well as next.
DT’s cost measures were visible in Q3 figures, and SBU-driven growth is to show more earnings gains next year.
DT’s Q3 revenue declined y/y much as expected, however profitability figures came in a bit above our estimates as cost measures have already had an effect.
DT reports Q3 results on Oct 27. Q3 results will remain modest, but aviation rebound helps SBU to drive growth over the next year or so while cost savings also help.
As a part of its cost-saving program, DT today initiated change negotiations which may end up in a termination of a maximum of 9 employments and changes in roles. In addition, other measures to improve cost efficiency will be taken in all of the company’s operations.
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Detection Technology Plc company announcement 28 June 2024 at 16:00 (EEST)
Detection Technology: Notification of change in holdings according to Chapter 9, Section 5 of the Securities Markets Act
In accordance with Chapter 9, Section 5 of the Securities Markets Act, Detection Technology Plc has received a notification from Aktia Rahastoyhtiö Oy. According to the notification, the combined share of the funds it manages in Detection Technology's shares and votes has decreased below the 5% flagging threshold on 27 June 2024. The reason for the flagging notification is the amendment to the Securities Market Act, which expanded the flagging obligation to companies listed on the Nasdaq First North Growth Market Finland.
Total positions of person subject to the notification obligation
% of shares % of shares and Total Total number
and voting rights of of shares and
voting through financial both voting rights
rights(total instruments (total in of the issuer
of A) of B) %(A
+ B)
Resulting 4,94% 4,94% 14,655,930
situation on the
date on
which threshold
was crossed or
reached
Position of a 5,05% 5,05% 14,655,930
previous
notification
(if applicable)
Notified details of the resulting situation on the date on which the threshold was crossed
A: Shares and voting rights
Class / type of Number % of shares and voting rights
shares (ISIN of
code) shares
and
voting
rights
Direct Indirect Direct Indirect
(SMA 9:5) (SMA 9:6 (SMA 9:5) (SMA 9:6 ja 9:7)
ja 9:7)
FI4000115464 724,549 4,94%
SUBTOTAL A 724,549 4,94%
Information in relation to the person subject to the notification obligation
Full chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively held starting with the ultimate controlling natural person or legal entity.
Name % of shares % of shares and voting rights Total
and voting through financial instruments of
rights both
Aktia Pankki Oyj 0,00% 0,00%
Aktia rahastoyhtiö Oy 0,00% 0,00%
Aktia Capital 3,24% 3,24%
-sijoitusrahasto
Aktia Nordic Small Cap 0,96% 0,96%
-sijoitusrahasto
Aktia Mikro Markka - 0,75% 0,75%
Erikoissijoitusrahasto
Detection Technology Plc
Further information
Hannu Martola, President and CEO
+358 500 449 475,
Nordea is the company's Certified Advisor under the Nasdaq First North GM rules, +358 9 5300 6774
Detection Technology is a global provider of X-ray detector solutions and services for medical, security, and industrial applications. The company's solutions range from sensor components to optimized detector subsystems with ASICs, electronics, mechanics, software, and algorithms. It has sites in Finland, China, France, and the US. The company's shares are listed on Nasdaq First North Growth Market Finland under the ticker symbol DETEC.
Distribution: Nasdaq Helsinki, key media, www.deetee.com
Detection Technology Plc Managers' Transactions 11 June 2024 at 16:00 (EEST)
Detection Technology Plc - Managers' Transactions
Person subject to the notification requirement
Name: Jyrki Vainionpää
Position: Member of the Board
Issuer: Detection Technology Plc
LEI: 743700IXKYKNXJ6BFL39
Notification type: INITIAL NOTIFICATION
Reference number: 64486/7/4
____________________________________________
Transaction date: 2024-06-10
Venue: FIRST NORTH GROWTH MARKET FINLAND (FSME)
Instrument type: SHARE
ISIN: FI4000115464
Nature of transaction: ACQUISITION
Transaction details
(1): Volume: 53 Unit price: 18.45 EUR
(2): Volume: 26 Unit price: 18.4 EUR
(3): Volume: 170 Unit price: 18.4 EUR
(4): Volume: 50 Unit price: 18.4 EUR
(5): Volume: 111 Unit price: 18.45 EUR
(6): Volume: 125 Unit price: 18.45 EUR
(7): Volume: 341 Unit price: 18.5 EUR
(8): Volume: 102 Unit price: 18.5 EUR
Aggregated transactions (8):
Volume: 978 Volume weighted average price: 18.46007 EUR
Further information
Hannu Martola, President and CEO
+358 500 449 475,
Nordea is the company's Certified Advisor under the Nasdaq First North GM rules, +358 9 5300 6774
Detection Technology is a global provider of X-ray detector solutions and services for medical, security, and industrial applications. The company's solutions range from sensor components to optimized detector subsystems with ASICs, electronics, mechanics, software, and algorithms. It has sites in Finland, China, France, and the US. The company's shares are listed on Nasdaq First North Growth Market Finland under the ticker symbol DETEC.
Distribution: Nasdaq Helsinki, key media, www.deetee.com
Detection Technology Plc company announcement 6 June 2024 at 17:00 (EEST)
Detection Technology: Notification of change in holdings according to Chapter 9, Section 5 of the Securities Markets Act
In accordance with Chapter 9, Section 5 of the Securities Markets Act, Detection Technology Plc has received a notification from Ahlstrom Capital B.V. According to the notification, its share of Detection Technology's shares and votes has crossed the 30% flagging threshold before 19 April 2024. The reason for the flagging notification is the amendment to the Securities Market Act, which expanded the flagging obligation to companies listed on the Nasdaq First North Growth Market Finland.
Total positions of person subject to the notification obligation
% of shares % of shares and Total Total number
and voting rights of of shares and
voting through financial both voting rights
rights(total instruments (total in %(A of the issuer
of A) of B) + B)
Resulting 36.03% 36.03% 14,655,930
situation on the
date on
which threshold
was crossed or
reached
Position of a
previous
notification
(if applicable)
Notified details of the resulting situation on the date on which the threshold was crossed
A: Shares and voting rights
Class / type of Number of % of shares and voting rights
shares (ISIN shares
code) and
voting
rights
Direct Indirect Direct Indirect
(SMA 9:5) (SMA 9:6 (SMA 9:5) (SMA 9:6 ja 9:7)
ja 9:7)
FI4000115464 5,280,167 36.03%
SUBTOTAL A 5,280,167 36.03%
Information in relation to the person subject to the notification obligation
Full chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively held starting with the ultimate controlling natural person or legal entity.
Name % of shares % of shares and voting rights Total of both
and voting through financial instruments
rights
A. 0.00% 0.00%
Ahlström
Oy
Ahlstrom 36.03% 36.03%
Capital
B.V.
Detection Technology Plc
Further information
Hannu Martola, President and CEO
+358 500 449 475,
Nordea is the company's Certified Advisor under the Nasdaq First North GM rules, +358 9 5300 6774
Detection Technology is a global provider of X-ray detector solutions and services for medical, security, and industrial applications. The company's solutions range from sensor components to optimized detector subsystems with ASICs, electronics, mechanics, software, and algorithms. It has sites in Finland, China, France, and the US. The company's shares are listed on Nasdaq First North Growth Market Finland under the ticker symbol DETEC.
Distribution: Nasdaq Helsinki, key media, www.deetee.com
Detection Technology Plc Managers' Transactions 5 June 2024 at 18:00 (EEST)
Detection Technology Plc - Managers' Transactions
Person subject to the notification requirement
Name: Richard Ingram
Position: Member of the Board
Issuer: Detection Technology Plc
LEI: 743700IXKYKNXJ6BFL39
Notification type: INITIAL NOTIFICATION
Reference number: 65301/4/4
____________________________________________
Transaction date: 2024-06-05
Venue: FIRST NORTH GROWTH MARKET FINLAND (FSME)
Instrument type: SHARE
ISIN: FI4000115464
Nature of transaction: ACQUISITION
Transaction details
(1): Volume: 96 Unit price: 17.15 EUR
(2): Volume: 50 Unit price: 17.15 EUR
(3): Volume: 9 Unit price: 17.15 EUR
(4): Volume: 23 Unit price: 17.15 EUR
(5): Volume: 102 Unit price: 17.15 EUR
(6): Volume: 106 Unit price: 17.15 EUR
(7): Volume: 467 Unit price: 17.15 EUR
(8): Volume: 125 Unit price: 17.15 EUR
Aggregated transactions (8):
Volume: 978 Volume weighted average price: 17.15 EUR
Further information
Hannu Martola, President and CEO
+358 500 449 475,
Nordea is the company's Certified Advisor under the Nasdaq First North GM rules, +358 9 5300 6774
Detection Technology is a global provider of X-ray detector solutions and services for medical, security, and industrial applications. The company's solutions range from sensor components to optimized detector subsystems with ASICs, electronics, mechanics, software, and algorithms. It has sites in Finland, China, France, and the US. The company's shares are listed on Nasdaq First North Growth Market Finland under the ticker symbol DETEC.
Distribution: Nasdaq Helsinki, key media, www.deetee.com
Detection Technology Plc Managers' Transactions 5 June 2024 at 18:00 (EEST)
Detection Technology Plc - Managers' Transactions
Person subject to the notification requirement
Name: Hannu Syrjälä
Position: Chairman of the Board
Issuer: Detection Technology Plc
LEI: 743700IXKYKNXJ6BFL39
Notification type: INITIAL NOTIFICATION
Reference number: 65290/4/6
____________________________________________
Transaction date: 2024-06-03
Venue: FIRST NORTH GROWTH MARKET FINLAND (FSME)
Instrument type: SHARE
ISIN: FI4000115464
Nature of transaction: ACQUISITION
Transaction details
(1): Volume: 30 Unit price: 17 EUR
(2): Volume: 34 Unit price: 17 EUR
(3): Volume: 69 Unit price: 17 EUR
(4): Volume: 81 Unit price: 17 EUR
Aggregated transactions (4):
Volume: 214 Volume weighted average price: 17 EUR
____________________________________________
Transaction date: 2024-06-04
Venue: FIRST NORTH GROWTH MARKET FINLAND (FSME)
Instrument type: SHARE
ISIN: FI4000115464
Nature of transaction: ACQUISITION
Transaction details
(1): Volume: 40 Unit price: 17.45 EUR
(2): Volume: 145 Unit price: 17.45 EUR
(3): Volume: 125 Unit price: 17.45 EUR
(4): Volume: 74 Unit price: 17.55 EUR
(5): Volume: 83 Unit price: 17.55 EUR
(6): Volume: 200 Unit price: 17.4 EUR
(7): Volume: 94 Unit price: 17.4 EUR
(8): Volume: 423 Unit price: 17.25 EUR
(9): Volume: 111 Unit price: 17.25 EUR
(10): Volume: 105 Unit price: 17.2 EUR
Aggregated transactions (10):
Volume: 1400 Volume weighted average price: 17.35568 EUR
____________________________________________
Transaction date: 2024-06-05
Venue: FIRST NORTH GROWTH MARKET FINLAND (FSME)
Instrument type: SHARE
ISIN: FI4000115464
Nature of transaction: ACQUISITION
Transaction details
(1): Volume: 116 Unit price: 17.5 EUR
Aggregated transactions (1):
Volume: 116 Volume weighted average price: 17.5 EUR
Further information
Hannu Martola, President and CEO
+358 500 449 475,
Nordea is the company's Certified Advisor under the Nasdaq First North GM rules, +358 9 5300 6774
Detection Technology is a global provider of X-ray detector solutions and services for medical, security, and industrial applications. The company's solutions range from sensor components to optimized detector subsystems with ASICs, electronics, mechanics, software, and algorithms. It has sites in Finland, China, France, and the US. The company's shares are listed on Nasdaq First North Growth Market Finland under the ticker symbol DETEC.
Distribution: Nasdaq Helsinki, key media, www.deetee.com
Detection Technology Plc company announcement 25 April 2024 at 09:00 (EEST)
DETECTION TECHNOLOGY PLC BUSINESS REVIEW JANUARY-MARCH 2024
Detection Technology Q1 2024: Strong sales in Security, improved financial performance
- Net sales decreased by -0.2% to EUR 22.7 million (22.8)
- Net sales of Industrial Solutions Business Unit (IBU) increased by 5.3% to EUR 3.6 (3.4)
- Net sales of Medical Business Unit (MBU) decreased by -20.9% to EUR 9.5 million (12.0)
- Net sales of Security Business Unit (SBU) increased by 31.5% to EUR 9.6 million (7.3)
- Operating profit (EBITA) was EUR 2.3 million (1.5)
- Operating margin (EBITA-%) was 10.0% of net sales (6.5%)
UNAUDITED (Figures in parentheses refer to the corresponding period of the previous year.)
President and CEO, Hannu Martola:
"Q1 closed as we expected. Our overall year-on-year net sales remained stable and our financial result improved. Our security application sales were particularly strong, whereas sales in industrial applications were more modest than expected. Medical sales, however, were weak. Our market shares remain broadly unchanged.
The industrial market recovered towards the end of Q1; demand in the food sector in particular showed positive signs of recovery. Nevertheless, the development of sales in the food sector lagged behind our expectations due to customers' stocks, which resulted in our industrial sales lagging behind target. This was compensated by good development in TFT (thin-film transistor) flat panel detector sales. We expect our industrial solution sales to head towards stronger growth in Q2, thanks to improving demand in the food industry and our TFT product portfolio.
The measures of the Chinese government to modernize its healthcare sector and the related anticorruption campaign targeted at healthcare sector end operators, along with fiercer price competition and turmoil in the global medical market, curbed our medical sales more than we expected. We expect demand in medical applications to remain muted in Q2 and expect a positive turn at the beginning of Q3.
Our security application sales grew significantly in markets outside China, in particular in Europe and India. The most important growth driver in terms of applications was computed tomography (CT) applications for the aviation market. In addition to aviation, the global security market is expected to grow this year faster than previously expected. We anticipate annual market growth to be around 8 percent in the medium term.
Our year-on-year result for Q1 improved, and cash flow turned positive. We are this year making strong progress towards our operating margin target of 15 percent (EBITA). Improved productivity, sales mix, and growth in sales continue to boost our result.
During the period, we decided to expand our business to India and recruited a local director to develop our Indian business. India is about to make significant investments in infrastructure, namely in the healthcare, traffic, and manufacturing industries, and we want to be there to promote these projects.
Other important events in Q1 included the opening of our new premises in Oulu, Finland. The project was completed according to our targets and production has already been launched. We will gradually increase our production capacity for EU-origin products.
In our view, the reform of Chinese healthcare sector and the related anticorruption campaign will continue, and the global medical market in Q2 as well as our sales will decrease. Growth will continue in our other main markets, and both our security and industrial application sales will see double-digit growth in Q2. We expect our year-on-year total net sales to remain stable in Q2 and turn to a growth path in Q3 for the rest of the year."
Key figures
(EUR 1,000) 1-3/2024 1-3/2023 1-12/2023
Net sales 22,706 22,753 103,794
Change in net sales, % -0.2% 12.0% 5.3%
EBITA excluding NRI 2,263 1,477 9,656
EBITA excluding NRI, % 10.0% 6.5% 9.3%
Non-recurring items (NRI) 0 0 -873
EBITA 2,263 1,477 8,784
EBITA, % 10.0% 6.5% 8.5%
R&D costs 2,512 2,962 11,702
R&D costs, % of net sales 11.1% 13.0% 11.3%
Cash flow from operating 2,980 -485 9,672
activities
Net interest-bearing debt -14,508 -19,572 -12,665
at end of period
Investments 1,132 452 14,426
Return on investment (ROI), 11.2% 7.1% 9.9%
%
Gearing, % -20.3% -28.0% -17.4%
Earnings per share, EUR 0.11 0.06 0.38
Earnings per share 0.11 0.06 0.38
(diluted), EUR
Number of shares at the end 14,655,930 14,655,930 14,655,930
of the period
Weighted average number of 14,655,930 14,655,930 14,655,930
shares outstanding
Weighted average number of 14,655,930 14,669,582 14,660,912
shares outstanding, diluted
Development of net sales
Detection Technology expected its overall year-on-year net sales to remain stable in Q1, which also materialized. Medical sales decreased significantly. Sales in security applications shot up and sales in industrial applications grew, too. Growth in other businesses was not, however, sufficient to create positive overall growth. The company's total net sales decreased by -0.2% (12.0%) year-on-year, totalling EUR 22.7 million (22.8).
Recovery in the industrial market that started in the previous review period continued; NDT (nondestructive testing) being a significant growth driver. Demand in food industry applications showed signs of recovery, even though sales in the segment remained below expectations due to customers' stocks. As a result, Detection Technology's sales in industrial applications grew but lagged behind expectations. The net sales of the Industrial Solutions Business Unit (IBU) grew by 5.3% (-3.0%), totaling EUR 3.6 million (3.4) in Q1 of 2024. Growth in net sales was mainly created by TFT flat panel detector sales in Asia. IBU generated a total of 15.9% (15.0%) of the company's total net sales.
The measures taken by the Chinese government to modernize its healthcare sector and its anticorruption campaign targeted at healthcare end operators continued in Q1, which further delayed purchasing processes. On the other hand, fiercer price competition and turmoil in the global market also affected demand dynamics. As a result, the net sales of the Medical Business Unit (MBU) decreased by -20.9% (14.6%), totalling EUR 9.5 million (12.0) in Q1. MBU generated a total of 42.0% (52.9%) of the company's total net sales.
The net sales of the Security Business Unit (SBU) increased by 31.5% (16.2%) year-on-year, totalling EUR 9.6 million (7.3) in Q1. Demand in security applications increased in markets outside China, particularly in Europe and India. The most important growth driver in sales was CT applications for the aviation industry, but demand was also solid for line scanner applications. SBU generated a total of 42.2% (32.0%) of the company's total net sales.
The Asia-Pacific countries (APAC) accounted for the company's largest geographical market area in Q1 of 2024, with its 72.0% (68.5%) share. The share of the net sales for Europe, Middle East and Africa (EMEA) was 24.0% (20.5%) and Americas 4.0% (11.0%). The share of Americas fell below ten percent due to one-timers. The share of net sales accounted for by Detection Technology's top five customers was 53.2% (51.6%) in Q1.
Strategy implementation
During the review period, Detection Technology made a strategically important decision to expand its business to India. The company has recruited a local director to develop the company's business in India in a holistic manner.
India is expected to be one of the fastest growing global economies in the coming years. India is about to make significant investments in infrastructure such as the healthcare, traffic, and manufacturing industries in order to boost economic growth. According to the government's plans, more than 100 airports will be built in India in the coming years.
Detection Technology completed its business premises project in Oulu, Finland, within schedule and within the set budget. The operations were moved to the premises and production was launched in Q1 of 2024. Production capacity in Oulu will be increased to meet demand. The company has the capability to make 10 percent of its sales in Oulu by the end of the year. The company will expand its production in Oulu in order to be able to offer a wider range of EU Origin products and to minimize risks.
In the review period, the company has continued the development of TFT flat panel detector solutions and their sales in the medical and industrial X-ray imaging market. According to the company's view, the new business will grow faster than its legacy business.
Business outlook
Detection Technology expects its year-on-year total net sales to remain stable in Q2 and turn to growth in Q3 of 2024.
Geopolitical situation, U.S.-China relations, global economy, inflation, the measures taken in China to reform its healthcare, price competition especially in China, the indirect impacts of the war in Ukraine, and events in the Middle East create uncertainty.
Detection Technology aims to increase its sales by at least 10% per annum and to achieve an operating margin (EBITA) of 15% in the medium term.
Half-yearly report 2024
Detection Technology will publish the half-yearly report on 6 August 2024.
Espoo, Finland 24 April 2024
Board of Directors, Detection Technology Plc
Further information
President and CEO Hannu Martola will be available for interviews and further information on the release date at 9:00-11:00 (EEST).
Hannu Martola, President and CEO
+358 500 449 475,
Nordea is the company's Certified Advisor under the Nasdaq First North GM rules, +358 9 5300 6774
Detection Technology is a global provider of X-ray detector solutions and services for medical, security, and industrial applications. The company's solutions range from sensor components to optimized detector subsystems with ASICs, electronics, mechanics, software, and algorithms. It has sites in Finland, China, France, and the US. The company's shares are listed on Nasdaq First North Growth Market Finland under the ticker symbol DETEC.
Distribution: Nasdaq Helsinki, key media, www.deetee.com
Detection Technology Plc company announcement 24 April 2024 at 10:30 (EEST)
Detection Technology: Notification of change in holdings according to Chapter 9, Section 5 of the Securities Markets Act
In accordance with Chapter 9, Section 5 of the Securities Markets Act, Detection Technology Plc has received a notification from OP-Rahastoyhtiö Oy. According to the notification, the combined share of the funds it manages in Detection Technology's shares and votes has crossed the 5% flagging threshold before 19 April 2024. The reason for the flagging notification is the amendment to the Securities Market Act, which expanded the flagging obligation to companies listed on the Nasdaq First North Growth Market Finland.
Total positions of person subject to the notification obligation
% of shares % of shares and Total Total number
and voting rights of of shares and
voting through financial both voting rights
rights(total instruments (total in of the issuer
of A) of B) %(A
+ B)
Resulting 6.72% 6.72% 14,655,930
situation on the
date on
which threshold
was crossed or
reached
Position of a
previous
notification
(if applicable)
Notified details of the resulting situation on the date on which the threshold was crossed
A: Shares and voting rights
Class / type of Number % of shares and voting rights
shares (ISIN of
code) shares
and
voting
rights
Direct Indirect Direct Indirect
(SMA 9:5) (SMA 9:6 (SMA 9:5) (SMA 9:6 ja 9:7)
ja 9:7)
FI4000115464 984,395 6.72%
SUBTOTAL A 984,395 6.72%
Information in relation to the person subject to the notification obligation
Full chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively held starting with the ultimate controlling natural person or legal entity.
Name % of shares % of shares and voting rights Total
and voting through financial instruments of
rights both
OP-Rahastoyhtiö Oy 0.00% 0.00%
OP-Suomi 2.50% 2.50%
Pienyhtiöt
-sijoitusrahasto
OP-Suomi 4.21% 4.21%
-sijoitusrahasto
Detection Technology Plc
Further information
Hannu Martola, President and CEO
+358 500 449 475,
Nordea is the company's Certified Advisor under the Nasdaq First North GM rules, +358 9 5300 6774
Detection Technology is a global provider of X-ray detector solutions and services for medical, security, and industrial applications. The company's solutions range from sensor components to optimized detector subsystems with ASICs, electronics, mechanics, software, and algorithms. It has sites in Finland, China, France, and the US. The company's shares are listed on Nasdaq First North Growth Market Finland under the ticker symbol DETEC.
Distribution: Nasdaq Helsinki, key media, www.deetee.com
Detection Technology Plc company announcement 27 March 2024 at 18:30 (EET)
Detection Technology: Organising meeting of the Board of Directors
In its organising meeting, the Board of Directors of Detection Technology Plc has elected Hannu Syrjälä as the Chair of the Board in accordance with the recommendation of the Shareholders' Nomination Board and Henrik Roos as the Vice Chair until the next Annual General Meeting. In addition, the Board of Directors elected members of the Remuneration and Audit Committees from among its members.
The compositions of the Board committees were decided to be as follows:
Remuneration Committee
Hannu Syrjälä, Chair
Amy Chen
Henrik Roos
Audit Committee
Jyrki Vainionpää, Chair
Marion Björkstén
Richard Ingram
The Board of Directors assessed the independence of its members and concluded that all members are independent of the company. The members are also independent of the company's significant shareholders, apart from Marion Björkstén, who acts as a Chair of the Supervisory Board of A. Ahlström Oy, and Jyrki Vainionpää, who acts as a President and CEO of A. Ahlström Oy. The largest shareholder of Detection Technology Plc, Ahlstrom Capital BV is a group company of A. Ahlström Oy.
The Board of Directors held its organising meeting after the Annual General Meeting of Detection Technology Plc on 27 March 2024.
Further information
Hannu Martola, President and CEO
+358 500 449 475,
Nordea is the company's Certified Advisor under the Nasdaq First North GM rules, +358 9 5300 6774
Detection Technology is a global provider of X-ray detector solutions and services for medical, security, and industrial applications. The company's solutions range from sensor components to optimized detector subsystems with ASICs, electronics, mechanics, software, and algorithms. It has sites in Finland, China, France, and the US. The company's shares are listed on Nasdaq First North Growth Market Finland under the ticker symbol DETEC.
Distribution: Nasdaq Helsinki, key media, www.deetee.com
Detection Technology Plc company announcement 27 March 2024 at 16:45 (EET)
Resolutions of the Annual General Meeting of Detection Technology
The Annual General Meeting of Detection Technology Plc was held on 27 March 2024 in Espoo, Finland. The Annual General Meeting adopted the financial statements and resolved to discharge the members of the Board of Directors and the President and CEO from liability for the financial year 1 January - 31 December 2023.
Use of the profit shown on the balance sheet and the distribution of funds
The Annual General Meeting resolved that a dividend of EUR 0.23 per share for the financial year 2023 is paid. The dividend shall be paid to shareholders who are registered in the company's register of shareholders, maintained by Euroclear Finland Ltd, on the record date for payment, 2 April 2024. It was resolved that the dividend is paid on 9 April 2024.
The Board of Directors and the Auditor
The Annual General Meeting resolved that the Board of Directors consists of six (6) members. Marion Björkstén, Richard Ingram, Henrik Roos and Hannu Syrjälä were re-elected while Amy Chen and Jyrki Vainionpää were elected as new members to the Board of Directors.
Authorised Public Accounting firm KPMG Oy Ab was elected as the Auditor of the company, and Petri Kettunen, Authorised Public Accountant, will act as the Responsible Auditor.
It was resolved that an annual fixed remuneration of the members of the Board of Directors is paid as follows: annual fee of EUR 69,000 to be paid to the Chair, EUR 51,000 to the Vice Chair, and EUR 39,000 to other members of the Board of Directors. It was also resolved that the members of the Board of Directors be paid a meeting-specific fee as follows: EUR 1,000 to the Chair of the Board of Directors and EUR 500 to the members of the Board of Directors per each meeting held in the home country of the respective member, and EUR 1,500 to the Chair of the Board of Directors and EUR 1,000 to the members of the Board of Directors per each meeting held elsewhere than in the home country of the respective member.
An elected member of the Board of Directors may, at his/her discretion, choose to receive the annual fixed remuneration partly in company shares and partly in cash so that approximately 40% of the annual fixed remuneration is paid in Detection Technology Plc's shares. The number of shares forming the above remuneration portion, which would be payable in shares, will be determined based on the share value in the public trading maintained by Nasdaq Helsinki Ltd, calculated as the trade volume weighted average quotation of the share during the one-month period immediately following the date on which the interim report of January-March 2024 of the company is published.
It was resolved that the members of the Audit Committee and the Remuneration Committee would be paid a meeting fee of EUR 500 per meeting. The travel expenses of the members of the Board of Directors are compensated in accordance with the company's travel rules. It was resolved that the remuneration for the Auditor is paid according to the Auditor's reasonable invoice.
Authorization of the Board of Directors to resolve on repurchase of own shares and on a share issue and an issue of special rights entitling to shares
The Board of Directors was authorized to resolve on the repurchase of a maximum of 732,795 shares in the company in one or several tranches by using funds in the unrestricted shareholders' equity. The own shares may be repurchased other than in proportion to the shareholdings of the shareholders, if the Board of Directors deems that there are weighty financial reasons for such directed repurchase, in public trading arranged by Nasdaq Helsinki Oy for the market price formed at the moment of purchase. The authorization revokes all previous unused authorizations on the repurchase of shares and is valid until the closing of the next Annual General Meeting, however, no longer than until 30 June 2025.
The Board of Directors was authorized to resolve on the share issue and the issuance of special rights entitling to shares as referred to in Chapter 10 Section 1 of the Finnish Limited Liability Companies Act in one or several parts, either against payment or without payment. The aggregate number of shares to be issued, including the shares to be received based on special rights, shall not exceed 1,465,593 shares, which corresponds to approximately 10% of the current number of all shares in the company. The Board of Directors may resolve to issue either new shares or to transfer treasury shares potentially held by the company.
The new shares, the special rights referred to in Chapter 10 Section 1 of the Finnish Limited Liability Companies Act and the own shares held by the company may be issued and transferred to the shareholders in proportion to their current shareholdings in the company or in deviation from the shareholders' pre-emptive rights by way of a directed issue if there is a weighty financial reason for the company to do so. The deviation from the shareholders' pre-emptive rights may be carried out for example in order to develop the company's capital structure, to finance or carry out acquisitions, investments or other business transactions, or to use the shares as a part of an incentive scheme. A directed share issue may be executed without consideration only if there is an especially weighty financial reason for the company to do so, taking into account the interests of the company and all its shareholders.
The Board of Directors may also, based on the authorization, decide on a share issue to the company itself without consideration so that the number of own shares held by the company after the issue does not exceed 10 % of all shares in the company. The own shares held by the company and its subsidiaries shall be included in the amount as set out in Chapter 15 Section 11 Subsection 1 of the Finnish Limited Liability Companies Act.
The Board of Directors is authorized to decide on all other matters related to the issuance of shares and special rights. The authorization is valid until the closing of the next Annual General Meeting, however, no longer than until 30 June 2025. The authorization revokes all previous unused authorizations of the Board of Directors to resolve on the issuance of shares and issuance of special rights entitling to shares.
The minutes of the Annual General Meeting will be available on the company's website at www.deetee.com latest on 10 April 2024.
Detection Technology Plc
Board of Directors
Further information
Hannu Martola, President and CEO
+358 500 449 475,
Nordea is the company's Certified Advisor under the Nasdaq First North GM rules,
+358 9 5300 6774
Detection Technology is a global provider of X-ray detector solutions and services for medical, security, and industrial applications. The company's solutions range from sensor components to optimized detector subsystems with ASICs, electronics, mechanics, software, and algorithms. It has sites in Finland, China, France, and the US. The company's shares are listed on Nasdaq First North Growth Market Finland under the ticker symbol DETEC.
Distribution: Nasdaq Helsinki, key media, www.deetee.com
Detection Technology Plc company announcement 6 March 2024 at 10:00 (EET)
Detection Technology's annual review, financial statements and CG statement 2023 published
Detection Technology Plc's annual review and financial statements 2023 have been published. The reports are available on the company's website (https://www.deetee.com/reports-and-presentations/annual-reviews/annual-review-2023/) and attached to this release. The annual review and the financial statements are available in Finnish and English.
Today, Detection Technology has also published its Corporate Governance Statement for 2023. The CG Statement is available in English at https://www.deetee.com/corporate-governance/.
Detection Technology Plc
Board of Directors
Further information
Hannu Martola, President and CEO
+358 500 449 475,
Nordea is the company's Certified Advisor under the Nasdaq First North GM rules, +358 9 5300 6774
Detection Technology is a global provider of X-ray detector solutions and services for medical, security, and industrial applications. The company's solutions range from sensor components to optimized detector subsystems with ASICs, electronics, mechanics, software, and algorithms. It has sites in Finland, China, France, and the US. The company's shares are listed on Nasdaq First North Growth Market Finland under the ticker symbol DETEC.
Distribution: Nasdaq Helsinki, key media, www.deetee.com
Detection Technology Plc company announcement 6 March 2024 at 10:00 (EET)
Notice to the Annual General Meeting of Detection Technology Plc
Notice is given to the shareholders of Detection Technology Plc to the Annual General Meeting to be held at Aalto University's campus in Otaniemi, Finland, Undergraduate Centre, meeting room H304, address Otakaari 1, Espoo on Wednesday 27 March 2024 at 15:00 (EET). The language of the Annual General Meeting shall be Finnish.
The reception of persons who have registered for the meeting and distribution of voting tickets will commence at the meeting venue at 14:00 (EET).
A. Matters on the Agenda of the General Meeting
The following matters will be considered at the General Meeting:
1. Opening of the meeting
2. Calling the meeting to order
3. Election of persons to scrutinize the minutes and to supervise the counting of votes
4. Recording the legality of the meeting
5. Recording the attendance at the meeting and adoption of the list of votes
6. Presentation of the Financial Statements, the Report of the Board of Directors and the Auditor's Report for the year 2023
Review by the President and CEO
7. Adoption of the Financial Statements, including the adoption of the Consolidated Financial Statements
8. Resolution on the use of the profit shown on the balance sheet and the distribution of funds:
The Board of Directors proposes to the Annual General Meeting that, based on the adopted financial statements for 2023, a dividend of EUR 0.23 per share be paid.
The dividend shall be paid to a shareholder who is registered in the company's register of shareholders, maintained by Euroclear Finland Ltd, on the record date for payment, 2 April 2024.
The Board of Directors proposes to the Annual General Meeting that the dividend be paid on 9 April 2024.
9. Resolution on the discharge of the members of the Board of Directors and the CEO from liability
10. Resolution on the remuneration of the members of the Board of Directors and the Auditor
The Shareholders' Nomination Board of Detection Technology Plc (The Nomination Board) proposes that the annual fixed remuneration of the Board of Directors would be as follows: annual fee of EUR 69,000 (2023: EUR 65,000) to be paid to the Chair, EUR 51,000 (2023: EUR 49,000) to the Vice Chair, and EUR 39,000 (2023: EUR 37,000) to other members of the Board of Directors.
An elected member of the Board of Directors may, at his/her discretion, choose to receive the annual fixed remuneration partly in company shares and partly in cash so that approximately 40% of the annual fixed remuneration is paid in Detection Technology Plc's shares. The number of shares forming the above remuneration portion, which would be payable in shares, will be determined based on the share value in the stock exchange trading maintained by Nasdaq Helsinki Ltd, calculated as the trade volume weighted average quotation of the share during the one-month period immediately following the date on which the interim report of January-March 2024 of the company is published.
The Nomination Board proposes that the meeting-specific fees payable for each board meeting remain unchanged and would be as follows: for each meeting held in the home country of the respective member, EUR 1,000 to the Chair of the Board of Directors and EUR 500 to other members of the Board of Directors and for each meeting held elsewhere than in the home country of the respective member, EUR 1,500 to the Chair of the Board of Directors and EUR 1,000 to other members of the Board of Directors.
In addition, the Nomination Board proposes that the members of the audit committee and the remuneration committee would be paid a meeting-specific fee of EUR 500 per meeting.
The travel expenses of the members of the Board of Directors are compensated in accordance with the company's travel policy.
The Board of Directors proposes, upon the proposal by the Audit Committee, that the remuneration and travel expenses for the Auditor to be elected be paid according to the Auditor's reasonable invoice.
11. Resolution on the number of members of the Board of Directors
The Nomination Board proposes to the Annual General Meeting that the number of members of the Board of Directors would be six (6).
12. Election of members of the Board of Directors
The Nomination Board proposes that Marion Björkstén, Richard Ingram, Henrik Roos and Hannu Syrjälä would be re-elected members of the Board of Directors. Out of the current members of the Board of Directors, Carina Andersson and Pasi Koota have informed that they are not available for re-election to the Board of Directors. The Nomination Board proposes that Amy Chen and Jyrki Vainionpää would be elected as new members of the Board of Directors.
Amy Chen (born 1978, MBA) currently works as Senior Vice President - Chief Innovation Officer at KONE. Prior to that, she has held positions such as Head of Strategy & Business Development at CARIAD China, a Volkswagen Group company, General Manager of Mobility Business Unit at Li AUTO, CEO at car2go China, a Mercedes-Benz Group company, Director, Business Development and M&A, at AES Corporation, and Engagement Manager at McKinsey & Company. She is a Chinese citizen.
Jyrki Vainionpää (born 1976, M.Sc. Econ., CFA) currently works as a President and CEO at A. Ahlström Oy. Prior to that, he has held positions such as the Group CEO at Koiviston Auto, CEO at Adven, and Deputy CEO, COO and CFO at Vapo. In addition, he has approximately ten years of experience in strategy and M&As while working for Nokia, Dresdner Kleinwort, and McKinsey. He is a member of the Board of Terrafame. He is a Finnish citizen.
All candidates have given their consent to the election. All candidates are independent of the company. The candidates are also independent of Detection Technology Plc's significant shareholders, apart from Marion Björkstén, who acts as a Chair of the Supervisory Board of A. Ahlström Oy, and Jyrki Vainionpää, who acts as a President and CEO of A. Ahlström Oy. The largest shareholder of Detection Technology Plc, Ahlstrom Capital BV is a group company of A. Ahlström Oy.
The Nomination Board recommends that Hannu Syrjälä is re-elected Chair of the Board of Directors.
The presentation of the persons nominated for the Board of Directors is available at Detection Technology Plc's website.
13. Election of the Auditor
The Board of Directors proposes, as recommended by the Board of Directors' Audit Committee, that Authorized Public Accounting firm KPMG Oy Ab is elected as the Auditor of the company for the following term of office ending at the conclusion of the next Annual General Meeting. KPMG Oy Ab has informed if elected as the Auditor of the company, Authorized Public Accountant Petri Kettunen will act as the Responsible Auditor.
14. Authorization to the Board of Directors to decide on the repurchase of own shares
The Board of Directors proposes that the Annual General Meeting authorizes the Board of Directors to resolve on the repurchase of a maximum of 732,795 shares in the company in one or several tranches by using funds in the unrestricted shareholders' equity. The own shares can be repurchased otherwise than in proportion to the shareholdings of the shareholders, if the Board of Directors deems that there are weighty financial reasons for such directed repurchase, in public trading arranged by Nasdaq Finland Ltd for the market price formed at the moment of purchase.
It is proposed that the authorization be valid until the closing of the next Annual General Meeting, however, no longer than until 30 June 2025. If this authorization is granted, it will revoke all previous unused authorizations to resolve on the repurchase of own shares.
15. Authorization of the Board of Directors to resolve on a share issue and an issue of special rights entitling to shares
The Board of Directors proposes that the Annual General Meeting authorizes the Board of Directors to resolve on the issuance of shares and the issuance of special rights entitling to shares as referred to in Chapter 10 Section 1 of the Finnish Limited Liability Companies Act in one or several parts, either against payment or without payment. The aggregate number of shares to be issued, including the shares to be received based on special rights, shall not exceed 1,465,593 shares, which corresponds to approximately 10% of the current number of all shares in the company. The Board of Directors may resolve to issue either new shares or to transfer treasury shares potentially held by the company.
The new shares and the special rights referred to in Chapter 10 Section 1 of the Finnish Limited Liability Companies Act may be issued and transferred to the shareholders in proportion to their current shareholdings in the company or in deviation from the shareholders' pre-emptive rights by way of a directed issue if there is a weighty financial reason for the company to do so. The deviation from the shareholders' pre-emptive rights may be carried out for example in order to develop the company's capital structure, to finance or carry out acquisitions, investments or other business transactions, or to use the shares for an incentive scheme. A directed share issue may be executed without consideration only if there is an especially weighty financial reason for the company to do so, taking the interests of all its shareholders into account.
The Board of Directors is also authorized to decide on a share issue to the company itself without consideration so that the own shares held by the company after the issue does not exceed 10% of all shares in the company. The own shares held by the company and its subsidiaries shall be included in the number of shares as set out in Chapter 15 Section 11 Subsection 1 of the Finnish Limited Liability Companies Act.
The Board of Directors is authorized to decide on all other matters related to the issuance of shares and special rights.
It is proposed that the authorization be valid until the closing of the next Annual General Meeting, however, no longer than until 30 June 2025. If this authorization is granted, it will revoke all previous unused authorizations of the Board of Directors to resolve on the issuance of shares and issuance of special rights entitling to shares.
16. Closing of the meeting
B. Documents of the Annual General Meeting
The proposals for the resolutions on the matters on the agenda of the Annual General Meeting set out above as well as this notice are available on Detection Technology Plc's website at www.deetee.com. The Financial Statements, the Report of the Board of Directors and the Auditor's Report of Detection Technology Plc are available on the above-mentioned website no later than Wednesday, 6 March 2024. The proposals for the resolutions and the other above-mentioned documents are also on view at the Annual General Meeting.
The minutes of the Annual General Meeting will be available on the above-mentioned website no later than 10 April 2024.
C. Instructions for the Participants in the Annual General Meeting
1. Shareholders registered in the shareholders' register
Each shareholder, who is registered on 15 March 2024 (the record date of the Annual General Meeting) in the shareholders' register of the company held by Euroclear Finland Ltd, has the right to participate in the Annual General Meeting. A shareholder, whose shares are registered on his/her personal Finnish book-entry account, is registered in the shareholders' register of the company.
Changes in shareholdings occurring after the record date of the Annual General Meeting shall not affect the right to attend the Annual General Meeting or the number of votes of the shareholder.
A shareholder, who is registered in the shareholders' register of the company and who wants to participate in the Annual General Meeting, shall register for the meeting at the latest by 10:00 (EET) on Friday, 22 March 2024 by giving a prior notice of participation, which shall be received by the company no later than the above-mentioned time.
Such notice can be given:
a) through the notice link on the company's website www.deetee.com/ir-highlights;
b) through email to
c) by regular mail to Detection Technology Plc, A Grid, Otakaari 5A, 02150 Espoo, Finland.
In connection with the registration, a shareholder shall notify his/her name, personal identification number or Business ID, address, telephone number and the name of a possible assistant or proxy representative and the personal identification number of a proxy representative. The personal data given to Detection Technology Plc is used only in connection with the Annual General Meeting and with the processing of related registrations.
The shareholder, his/her authorized representative or proxy representative shall, where necessary, be able to prove his/her identity and/or right of representation at the meeting.
2. Holders of Nominee Registered Shares
A holder of nominee registered shares has the right to participate in the Annual General Meeting by virtue of such shares based on which he/she would be entitled to be registered in the shareholders' register of the company held by Euroclear Finland Ltd on 15 March 2024 (the record date of the Annual General Meeting). The right to participate in the Annual General Meeting requires, in addition, that the shareholder has been registered into the temporary shareholders' register held by Euroclear Finland Ltd on the basis of such shares at the latest by 10:00 (EET) on Friday, 22 March 2024. As regards nominee registered shares, this constitutes due registration for the Annual General Meeting.
A holder of nominee registered shares is advised to request all necessary instructions regarding the registration in the temporary shareholders' register of the company, the issuing of proxy documents and registration for the Annual General Meeting from his/her custodian bank without delay. The account management organization of the custodian bank has to register a holder of nominee registered shares, who wants to participate in the Annual General Meeting, into the temporary shareholders' register of the company at the latest by the time stated above.
3. Proxy representatives and powers of attorney
The shareholders may participate in the Annual General Meeting and exercise their rights at the meeting by way of proxy representation.
A proxy representative shall produce a dated proxy document or otherwise in a reliable manner demonstrate their right to represent the shareholder at the Annual General Meeting. When a shareholder participates in the Annual General Meeting by means of several proxy representatives representing the shareholder with shares at different securities accounts, the shares by which each proxy representative represents the shareholder shall be identified in connection with the registration for the Annual General Meeting.
Any proxy documents should be delivered either as a scanned copy to
As an alternative to a traditional proxy document, a shareholder may authorise a proxy representative by using the Suomi.fi e-authorisation service. The proxy representative is authorised via the Suomi.fi service at www.suomi.fi/e-authorizations (authorisation for `Representation at the General Meeting'). In the General Meeting registration service, the proxy representative must identify themselves by using strong electronic identification, after which they can register on behalf of the shareholder they represent. Strong electronic identification requires Finnish online banking credentials or a mobile certificate. For more information on e-authorisation, please see www.suomi.fi/e-authorizations.
4. Other instructions and information
Pursuant to Chapter 5 Section 25 of the Finnish Limited Liability Companies Act, a shareholder or their representative who is present at the Annual General Meeting has the right to request information with respect to the matters to be considered at the meeting.
On the date of this notice to the Annual General Meeting, 6 March 2024, the total number of shares and votes in Detection Technology Plc is 14,655,930.
Detection Technology Plc
Board of Directors
Further information
Hannu Martola, President and CEO
+358 500 449 475,
Nordea is the company's Certified Advisor under the Nasdaq First North GM rules, +358 9 5300 6774
Detection Technology is a global provider of X-ray detector solutions and services for medical, security, and industrial applications. The company's solutions range from sensor components to optimized detector subsystems with ASICs, electronics, mechanics, software, and algorithms. It has sites in Finland, China, France, and the US. The company's shares are listed on Nasdaq First North Growth Market Finland under the ticker symbol DETEC.
Distribution: Nasdaq Helsinki, key media, www.deetee.com
Detection Technology Plc company announcement 1 February 2024 at 9:00 (EET)
Detection Technology's Board decided on a Performance Share Plan 2024-2026
The Board of Directors of Detection Technology Plc decided on a Performance Share Plan 2024-2026 (PSP 2024-2026). The performance period of the PSP 2024-2026 program has started in the beginning of January 2024 and will expire at the end of the year 2026. The potential awards under the performance share plan will be paid during H1 2027 as listed shares of Detection Technology.
The primary performance measure on the basis of which the potential share rewards under the PSP 2024-2026 program will be paid is the total shareholder return (absolute TSR) of Detection Technology's share. In addition, performance is evaluated with a sustainability metric, which is connected to the reduction of carbon dioxide emissions.
If all the performance targets set for the PSP 2024-2026 program are fully achieved, the aggregate maximum number of shares to be paid as a reward under the plan is approximately 270,000 shares (gross earnings before the applicable withholding tax). Approximately 60 people, including the members of Detection Technology's management group, are eligible to participate in the PSP 2024-2026 program.
The PSP 2024-2026 program is a part of Detection Technology's share-based long-term incentive scheme established for the company's management and other key employees, that the company announced on 3 August 2022. The performance share plan consists of separate stock award plans, which the company's Board of Directors resolve on each year. The performance period of the first performance share plan, PSP 2022-2024, started at the beginning of August 2022 and will finish at the end of 2024. The performance period of the second performance share plan, PSP 2023-2025, started at the beginning of January 2023 and will finish at the end of 2025.
The objective of the performance share plan is to align the interests of Detection Technology's management and key employees with those of the company's shareholders and, thus, to promote shareholder value creation in the long term. In addition, the aim is to commit the management and key employees to achieving Detection Technology's strategic targets.
Each plan comprises a performance period followed by the payment of the potential share rewards in listed shares of Detection Technology. The payment of the rewards is subject to the achievement of the performance targets set by the Board of Directors for the respective plan.
Other terms
The maximum value of the reward payable to the participants based on PSP is limited by a cap which is linked to Detection Technology's share price development with a multiplier set by the Board of Directors.
If the individual's employment with Detection Technology terminates before the payment of the reward, the individual is not, as a main rule, entitled to any reward based on the respective plan.
Detection Technology applies a share ownership recommendation to the members of the company's management group. According to the recommendation, each member of Detection Technology's management group is expected to accumulate and retain in their ownership at least half of the shares received under the share-based incentive plans of the company until the value of their share ownership in the company corresponds to at least their annual gross base salary.
The Board of Directors, Detection Technology Plc
Further information
Hannu Martola, President and CEO
+358 500 449 475,
Nordea is the company's Certified Advisor under the Nasdaq First North GM rules, +358 9 5300 6774
Detection Technology is a global provider of X-ray detector solutions and services for medical, security, and industrial applications. The company's solutions range from sensor components to optimized detector subsystems with ASICs, electronics, mechanics, software, and algorithms. It has sites in Finland, China, France, and the US. The company's shares are listed on Nasdaq First North Growth Market Finland under the ticker symbol DETEC.
Distribution: Nasdaq Helsinki, key media, www.deetee.com
Detection Technology Plc company announcement 1 February 2024 at 09:00 (EET)
DETECTION TECHNOLOGY PLC FINANCIAL STATEMENTS REVIEW JANUARY-DECEMBER 2023
Detection Technology Q4 2023: Record-breaking sales, results at target level
- Net sales increased by 10.9% to EUR 31.3 million (28.2)
- Net sales of Industrial Solutions Business Unit (IBU) increased by 7.1% to EUR 5.0 million (4.6)
- Net sales of Medical Business Unit (MBU) increased by 3.6% to EUR 13.1 million (12.7)
- Net sales of Security Business Unit (SBU) increased by 21.1% to EUR 13.2 million (10.9)
- Operating profit (EBITA) excluding NRI was EUR 4.6 million (2.8)
- Operating margin (EBITA-%) excluding NRI was 14.8% of net sales (9.9%)
- Operating profit (EBITA) was EUR 4.6 million (2.8)
- Operating margin (EBITA-%) was 14.8% of net sales (9.9%)
- Earnings per share were EUR 0.24 (0.16)
- Earnings per share (diluted) were EUR 0.24 (0.16)
- Net sales increased by 5.3% to EUR 103.8 million (98.6)
- Net sales of IBU increased by 0.2% to EUR 16.1 (16.1)
- Net sales of MBU increased by 0.5% to EUR 48.4 million (48.1)
- Net sales of SBU increased by 14.3% to EUR 39.3 million (34.4)
- Operating profit (EBITA) excluding NRI was EUR 9.7 million (6.1)
- Operating margin (EBITA-%) excluding NRI was 9.3% of net sales (6.2%)
- Operating profit (EBITA) was EUR 8.8 million (5.8)
- Operating margin (EBITA-%) was 8.5% of net sales (5.9%)
- Earnings per share were EUR 0.38 (0.35)
- Earnings per share (diluted) were EUR 0.38 (0.35)
- Dividend EUR 0.23 per share* (0.20)
UNAUDITED (Figures in parentheses refer to the corresponding period of the previous year.) (*The Board of Directors' proposal to the AGM.)
President and CEO, Hannu Martola:
"The year 2023 culminated in record-breaking Q4 sales and a significant improvement in our result. Efficiencies carried out in Q3 along with good growth in sales boosted our profitability to the target level. Despite fiercer competition, we maintained our market positions in all our businesses. This is a solid foundation to go forward.
Our industrial sales increased thanks to our new thin-film transistor (TFT) flat panel detector portfolio but still lagged behind our growth target. Regarding sales split by applications, the lion's share of sales originated from applications optimized for quality inspection in the automotive industry. Whereas demand in the food sector, which has traditionally been important to us, remained modest. We believe that our product portfolio, which expanded thanks to our business acquisition, will open up opportunities in new applications and help us to turn our industrial sales onto a stronger growth path.
Despite the continuing uncertainty in the global medical market, the Chinese government's ongoing anti-corruption campaign targeted at end-operators in the healthcare sector, and fierce price competition, our medical application sales grew slightly. Demand improved toward the end of the year, as the Chinese public administration's annual budgets closed. In our view, the impacts of the anti-corruption campaign on demand dynamics will continue during H1 2024. We are cautiously optimistic that demand will increase globally at the end of H1 2024.
Growth in demand continued to take off in aviation computed tomography (CT) and line scanner applications in India and particularly in the Americas, which resulted in a significant increase in our security applications sales. Demand also recovered in other applications, such as cargo scanning applications. In terms of geographies, malaise continued in China, but we expect investments in aviation CT applications to restart there during this year. We have a strong position in higher-end solutions in the global security markets.
The efficiencies carried out in Q3 2023 paid off: our fixed costs decreased, in addition to which the increase in sales exceeded expectations. Thanks to these factors, we reached our profitability target. We generated cost savings of about one million euros in H2 of 2023 and expect annualized savings of around two million euros going forward.
The development of our new facilities in Oulu, Finland progressed as planned. The modification works were completed in January, and this morning, as we publish our results, our team will start working on the new premises. Our customers have warmly welcomed our expanded production in Oulu¬-this strategic change will improve our global capabilities and competitiveness.
The most significant event this year was our business acquisition. We successfully completed the integration process of Haobo Imaging in Q4 2023, and we have continued the development and sales of our new product portfolio. We believe our new business will grow faster than our traditional businesses.
Given the Chinese anti-corruption campaign, uncertainty in the medical markets will continue, and in our view, medical sales will decrease in Q1 and H1 2024. We expect growth, however, to continue in our other main markets, and both our security and industrial applications sales to see double-digit growth in Q1 and H1 2024. Overall, we anticipate our year-on-year sales to remain stable in Q1 and H1 of 2024, and annual growth to be close to our target."
Key figures
(EUR 1,000) 10-12/2023 10-12/2022 1-12/2023 1-12/2022
Net sales 31,315 28,226 103,794 98,580
Change in net sales, % 10.9% 14.1% 5.3% 9.8%
EBITA excluding NRI 4,622 2,804 9,656 6,135
EBITA excluding NRI, % 14.8% 9.9% 9.3% 6.2%
Non-recurring items (NRI) 0 0 -873 -335
EBITA 4,622 2,804 8,784 5,801
EBITA, % 14.8% 9.9% 8.5% 5.9%
R&D costs 2,723 3,069 11,702 12,549
R&D costs, % of net sales 8.7% 10.9% 11.3% 12.7%
Cash flow from operating 2,987 3,730 9,672 -294
activities
Net interest-bearing debt -12,665 -20,584 -12,665 -20,584
at end of period
Investments 1,121 654 14,426 1,628
Return on investment (ROI), 9.9% 7.5% 9.9% 7.5%
%
Gearing, % -17.4% -28.3% -17.4% -28.3%
Earnings per share, EUR 0.24 0.16 0.38 0.35
Earnings per share 0.24 0.16 0.38 0.35
(diluted), EUR
Number of shares at the end 14,655,930 14,655,930 14,655,930 14,655,930
of the period
Weighted average number of 14,655,930 14,655,930 14,655,930 14,655,930
shares outstanding
Weighted average number of 14,655,930 14,655,930 14,660,912 14,717,042
shares outstanding, diluted
Business outlook
Detection Technology expects its year-on-year total net sales to remain stable in Q1 and H1 of 2024.
Geopolitical situation, U.S.-China relations, global economy, inflation, the high stocks of some of the company's customers, the indirect impacts of the war in Ukraine, and events in the Middle East create uncertainty.
Detection Technology aims to increase its sales by at least 10% per annum and to achieve an operating margin (EBITA) of 15% in the medium term.
Q4 2023 webcast
Hannu Martola, the President and CEO of Detection Technology, will present the Q4 and January-December financial performance and events to analysts, investors, and media at a webcast. The live webcast in English will begin on 1 February 2024 at 13:00 (EET).
A link to the webcast is available on the company's website at https://www.deetee.com/reports-and-presentations/webcasts/. A recording of the webcast will be available later on the same web address.
This release is a summary of Detection Technology's financial statements review January-December 2023. The complete report can be found attached to the release and on the company's website.
Board of Directors, Detection Technology Plc
Further information
President and CEO Hannu Martola will be available for interviews and further information on the release date at 9:00-11:00 (EET).
Hannu Martola, President and CEO
+358 500 449 475,
Nordea is the company's Certified Advisor under the Nasdaq First North GM rules, +358 9 5300 6774
Detection Technology is a global provider of X-ray detector solutions and services for medical, security, and industrial applications. The company's solutions range from sensor components to optimized detector subsystems with ASICs, electronics, mechanics, software, and algorithms. It has sites in Finland, China, France, and the US. The company's shares are listed on Nasdaq First North Growth Market Finland under the ticker symbol DETEC.
Distribution: Nasdaq Helsinki, key media, www.deetee.com
Detection Technology Plc company announcement 30 January 2024 at 16:30 (EET)
Matti Nylander appointed CFO and a member of the management group at Detection Technology
Matti Nylander (M.Sc. Eng., born in 1978) has been appointed Chief Financial Officer (CFO) and a member of the management group at Detection Technology. He will be responsible for the Group's financial management and its development globally. Matti Nylander will start in his new role on 13 May 2024, and will report to the President and CEO Hannu Martola.
Matti Nylander has around twenty years of leadership experience in financial management and development tasks in international electronics industry organizations. He joins Detection Technology from Varjo Technologies Ltd., where he has served as CFO since 2017. He joined Varjo Technologies from HMD Global and prior to that, he worked for Microsoft and Nokia.
"Matti has diverse experience in financial management and leadership across various sizes of technology companies and their different developmental stages. He also has a strong background in business and control systems development. We warmly welcome him to our team," says Hannu Martola, the President and CEO of Detection Technology.
On 7 November 2023, Detection Technology announced that CFO and a member of the management group Petri Hiljanen is leaving his position with the Group as of 22 December 2023. At the same time, the company announced that Tiina Välkky has been appointed interim CFO and a member of the management group of Detection Technology as of 1 December 2023. Tiina Välkky will continue in this role until 12 May 2024.
Detection Technology Plc
Further information
Hannu Martola, President and CEO
+358 500 449 475,
Nordea is the company's Certified Advisor under the Nasdaq First North GM rules, +358 9 5300 6774
Detection Technology is a global provider of X-ray detector solutions and services for medical, security, and industrial applications. The company's solutions range from sensor components to optimized detector subsystems with ASICs, electronics, mechanics, software, and algorithms. It has sites in Finland, China, France, and the US. The company's shares are listed on Nasdaq First North Growth Market Finland under the ticker symbol DETEC.
Distribution: Nasdaq Helsinki, key media, www.deetee.com
Detection Technology Plc company announcement 23 January 2024 at 10:00 (EET)
Proposals of the Shareholders' Nomination Board of Detection Technology to the Annual General Meeting 2024
Proposal on the number of the members, on the composition, and on the Chair of the Board of Directors
The Shareholders' Nomination Board of Detection Technology Plc (Nomination Board) proposes to the Annual General Meeting 2024 that the number of members of the Board of Directors would be six (6).
The Nomination Board proposes that Marion Björkstén, Richard Ingram, Henrik Roos and Hannu Syrjälä would be re-elected members of the Board of Directors. Out of the current members of the Board of Directors, Carina Andersson and Pasi Koota have informed that they are not available for re-election to the Board of Directors. The Nomination Board proposes that Amy Chen and Jyrki Vainionpää would be elected as new members of the Board of Directors.
Amy Chen (born 1978, MBA) currently works as Senior Vice President - Chief Innovation Officer at KONE. Prior to that, she has held positions such as Head of Strategy & Business Development at CARIAD China, a Volkswagen Group company, General Manager of Mobility Business Unit at Li AUTO, CEO at car2go China, a Mercedes-Benz Group company, Director, Business Development and M&A, at AES Corporation, and Engagement Manager at McKinsey & Company. She is a Chinese citizen.
Jyrki Vainionpää (born 1976, M.Sc. Econ., CFA) currently works as a President and CEO at A. Ahlström Oy. Prior to that, he has held positions such as the Group CEO at Koiviston Auto, CEO at Adven, and Deputy CEO, COO and CFO at Vapo. In addition, he has approximately ten years of experience in strategy and M&As while working for Nokia, Dresdner Kleinwort, and McKinsey. He is a member of the Board of Terrafame. He is a Finnish citizen.
All candidates have given their consent to the election. All candidates are independent of the company. The candidates are also independent of Detection Technology Plc's significant shareholders, apart from Marion Björkstén, who acts as a Chair of the Supervisory Board of A. Ahlström Oy, and Jyrki Vainionpää, who acts as a President and CEO of A. Ahlström Oy. The largest shareholder of Detection Technology Plc, Ahlstrom Capital BV is a group company of A. Ahlström Oy.
The Nomination Board recommends that Hannu Syrjälä is re-elected Chair of the Board of Directors.
Proposal on the remuneration of the Board of Directors
The Nomination Board proposes that the annual fixed remuneration of the Board of Directors would be as follows: annual fee of EUR 69,000 (2023: EUR 65,000) to be paid to the Chair, EUR 51,000 (2023: EUR 49,000) to the Vice Chair, and EUR 39,000 (2023: EUR 37,000) to other members of the Board of Directors.
An elected member of the Board of Directors may, at his/her discretion, choose to receive the annual fixed remuneration partly in company shares and partly in cash so that approximately 40% of the annual fixed remuneration is paid in Detection Technology Plc's shares. The number of shares forming the above remuneration portion, which would be payable in shares, will be determined based on the share value in the stock exchange trading maintained by Nasdaq Helsinki Ltd, calculated as the trade volume weighted average quotation of the share during the one-month period immediately following the date on which the interim report of January-March 2024 of the company is published.
The Nomination Board proposes that the meeting-specific fees payable for each board meeting remain unchanged and would be as follows: for each meeting held in the home country of the respective member, EUR 1,000 to the Chair of the Board of Directors and EUR 500 to other members of the Board of Directors, and for each meeting held elsewhere than in the home country of the respective member, EUR 1,500 to the Chair of the Board of Directors and EUR 1,000 to other members of the Board of Directors.
In addition, the Nomination Board proposes that the members of the audit committee and the remuneration committee would be paid a meeting-specific fee of EUR 500 per meeting.
The travel expenses of the members of the Board of Directors are compensated in accordance with the company's travel policy.
All of the proposals made by the Nomination Board were unanimous. The proposals will be included in the Notice to the Annual General Meeting. The Annual General Meeting is scheduled for 27 March 2024.
As of 1 September 2023, the Nomination Board has consisted of the Chair of the Nomination Board Lasse Heinonen as the representative of Ahlstrom Capital BV; and Deputy CEO of OP Asset Management Kalle Saariaho representing the OP mutual funds, and Director, Sustainability of Aktia Bank Markus Lindqvist representing Aktia's mutual funds. The Chair of Detection Technology's Board of Directors Hannu Syrjälä has served as an expert member of the Nomination Board.
Detection Technology Plc
Further information
Lasse Heinonen, +358 10 888 4450
Chair of the Shareholders' Nomination Board of Detection Technology Plc
Nordea is the company's Certified Advisor under the Nasdaq First North GM rules.
Detection Technology is a global provider of X-ray detector solutions and services for medical, security, and industrial applications. The company's solutions range from sensor components to optimized detector subsystems with ASICs, electronics, mechanics, software, and algorithms. It has sites in Finland, China, France, and the US. The company's shares are listed on Nasdaq First North Growth Market Finland under the ticker symbol DETEC.
Distribution: Nasdaq Helsinki, key media, www.deetee.com
| Shareholders | Date | % of Shares | % of Votes |
|---|---|---|---|
| Ahlstrom Capital Bv | 31.01.2024 | 36% | 36% |
| OP-Finland Value Fund | 31.01.2024 | 4.2% | 4.2% |
| Sijoitusrahasto Aktia Capital | 31.01.2024 | 3.7% | 3.7% |
| Varma Mutual Pension Insurance Company | 31.01.2024 | 3.5% | 3.5% |
| Ilmarinen Mutual Pension Insurance Company | 31.01.2024 | 3% | 3% |
| Martola Hannu Veikko | 31.01.2024 | 3% | 3% |
| OP-Finland Small Firms Fund | 31.01.2024 | 2.5% | 2.5% |
| Veritas Pension Insurance Company Ltd. | 31.01.2024 | 2.3% | 2.3% |
| Evli Finnish Small Cap Fund | 31.01.2024 | 1.9% | 1.9% |
| Säästöpankki Kotimaa | 31.01.2024 | 1.8% | 1.8% |
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Company Facts
Financial targets
At least 10% annual sales growth and EBIT margin at or above 15% in the medium term
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