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DT’s Q3 performance was a bit better than estimated, however the company trimmed its growth outlook for the next two quarters.
DT’s Q3 earnings were slightly better than estimated as EBITA margin already topped 15%, however the company also trimmed its growth outlook for the next couple of quarters.
DT reports Q3 results on Oct 29. The growth rate of MBU still lags those of SBU and IBU, but its stabilization should lift DT to a double-digit rate in the short-term while SBU and IBU are unlikely to grow as fast as they did in Q2.
Strong SBU and IBU sales helped DT Q2 earnings clearly above estimates as they made up for the weakness of MBU and further improved overall sales mix and hence margins.
DT’s Q2 results clearly topped estimates as SBU and IBU grew a lot faster than expected, while MBU sales were lower than estimated. The top line beat and favorable sales mix led to an EBITA of EUR 3.3m, compared to our EUR 2.7m estimate.
DT reports Q2 results on Aug 6. We make no big estimate changes, while earnings multiples aren’t yet too demanding.
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Detection Technology Plc company announcement 17 December 2024 at 15:00 (EET)
Proposals of the Shareholders' Nomination Board of Detection Technology to the Annual General Meeting 2025
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 2025 that the number of members of the Board of Directors would be six (6).
The Nomination Board proposes that Marion Björkstén, Amy Chen , Richard Ingram, Henrik Roos and Jyrki Vainionpää would be re-elected members of the Board of Directors. Out of the current members of the Board of Directors, Hannu Syrjälä has informed that he is not available for re-election to the Board of Directors. The Nomination Board proposes that Antti Vasara would be elected as a new member of the Board of Directors.
Antti Vasara (born 1965, D.Sc. in Technology, Engineering Physics) possesses extensive experience in the technology and telecommunications sectors, encompassing research and development, business leadership, and innovation. Since 2015, he has served as President and CEO of VTT Technical Research Centre of Finland Ltd. He is also a member of the Supervisory Board of Ilmarinen (since 2024), the Board of Directors of the Jane and Aatos Erkko Foundation (since 2018), Elisa Plc (since 2017), and the Research and Innovation Council of Finland (since 2016). His previous roles include executive positions at Tieto Plc (2012-2015) and Nokia Plc (2003-2012), CEO of SmartTrust Oy (2000-2003), and management consultant at McKinsey & Company (1993-2000). 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 Henrik Roos is elected Chair of the Board of Directors.
"Hannu Syrjälä has served as Chair of the Board of Directors since 2018 and as a member since 2017, in addition to his role on the Remuneration Committee. I extend my gratitude to him for his significant contributions to Detection Technology. Looking ahead, we are confident that the proposed new Board member, Antti Vasara, will bring valuable competence and expertise to the Board, further strengthening the company's competitiveness in the growth market," says Peter Seligson, Chair of the Shareholders' Nomination Board.
Proposal on the remuneration of the Board of Directors
The Nomination Board proposes that the annual fixed remuneration of the Board of Directors would remain unchanged and would be as follows: annual fee of EUR 69,000 (2024: EUR 69,000) to be paid to the Chair, EUR 51,000 (2024: EUR 51,000) to the Vice Chair, and EUR 39,000 (2024: EUR 39,000) 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 2025 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 2025.
As of 2 September 2024, the Nomination Board has consisted of the Chair of the Nomination Board Peter Seligson as the representative of Ahlstrom Capital BV; and Head of Investments Tomi Viia representing the OP mutual funds and Director, Sustainability of Aktia Bank Markus Lindqvist representing the Aktia 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
Peter Seligson, +31 615 308 635
Chair of the Shareholders' Nomination Board of Detection Technology Plc
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, India, and the US. The company's shares are listed on Nasdaq First North Growth Market Finland under the ticker symbol DETEC.
Circulation: Nasdaq Helsinki, main media, www.deetee.com
Detection Technology Plc company announcement 29 October 2024 at 9.00
Changes to Detection Technology's operating model and management group
Detection Technology changes its operating model and Group's management group in order to advance the implementation of its strategy and meet its growth targets. The new planned organization and reporting structure are intended to enter into force as of 1 January 2025.
Detection Technology's new planned sales and product organisation will consist of three regional business units: Asia-Pacific (APAC), Europe, Middle East, India and Africa (EMEIA), and the Americas. The business units will have end-to-end responsibility for sales, customer relationship management, and product management within their respective areas. The company's existing Security (SBU), Industrial Solutions (IBU) and Medical Business Units (MBU) will be discontinued.
President and CEO Hannu Martola says: "The world is changing, and the importance of regional business in relation to global operations is increasing. The aim of the change is to sharpen the local account management, improve customer service, as well as speed up decision-making. The new operating model boosts our market and customer orientation, learning curve, and competitiveness in a rapidly changing world. All in all, the change will create a solid foundation for our future growth."
The Group level functions, which include research and development (R&D), operations, financial administration and IT, and HR, will remain the same. In addition, a member responsible for business development, who will focus on Group level development projects and finding new business opportunities, will be appointed to the management group. The area of responsibility will also include possible mergers and acquisitions.
As a part of the renewal, the following changes will be made to the Group's management group:
Mr. Bree Allen (B.Sc. Eng., MBA, born 1974) will be appointed President, Americas Business Unit, and a new member of the management group. He has worked as President, Americas, at Detection Technology since 2022. His areas of responsibility have included industrial and security business as well as the promotion of medical sales. He has over 20 years of experience in senior roles in sales, business development, product management, and marketing. Before joining Detection Technology, he worked as President at Rigaku Analytical Devices since 2012.
Mr. Arve Lukander will be appointed President of the EMEIA Business Unit. His current role is the company's Vice President of the Security Business Unit (SBU).
Mr. Chen Wu will be appointed President of the APAC Business Unit. His current role is the company's Vice President of the Medical Business Unit (MBU).
Mr. Juha Talasmäki will be appointed Vice President, Business Development. His current role is the company's Vice President of the Industrial Solutions Business Unit (IBU).
Mr. Hannu Martola will continue as the President and CEO of the Group, Mr. Matti Nylander as CFO, Ms. Sari Holopainen as Vice President of People and Culture, Mr. Jyrki Still as CTO and Mr. Kai Utela as Vice President of Operations. The bios of the members of the management group are available at the company's website.
- Mr. Hannu Martola, President and CEO
- Mr. Matti Nylander, CFO
- Mr. Bree Allen, President, Americas Business Unit
- Mr. Arve Lukander, President, EMEIA Business Unit
- Mr. Chen Wu, President, APAC Business Unit
- Mr. Juha Talasmäki, Vice President, Business Development
- Ms. Sari Holopainen, Vice President, People and Culture
- Mr. Jyrki Still, CTO
- Mr. Kai Utela, Vice President, Operations
The company will also change the net sales split reporting method used in its financial reporting to correspond to its new operating model as of 1 January 2025. In the future, the company will report net sales for each region in line with the new geographical division as well as for its three main applications, namely, medical, industrial and security. The company will report comparison figures according to the new model at the beginning of 2025.
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, India, and the US. The company's shares are listed on Nasdaq First North Growth Market Finland under the ticker symbol DETEC.
Circulation: Nasdaq Helsinki, main media, www.deetee.com
Detection Technology Plc company announcement 29 October 2024 at 09:00 (EET)
DETECTION TECHNOLOGY PLC BUSINESS REVIEW JANUARY-SEPTEMBER 2024
Detection Technology Q3 2024: Improved result and double-digit growth
- Net sales increased by 10.6% to EUR 27.1 million (24.5)
- Net sales of Industrial Solutions Business Unit (IBU) increased by 24.0% to EUR 4.9 (4.0)
- Net sales of Medical Business Unit (MBU) increased by 0.6% to EUR 10.9 million (10.8)
- Net sales of Security Business Unit (SBU) increased by 16.2% to EUR 11.3 million (9.7)
- Operating profit (EBITA) excluding non-recurring items (NRI) was EUR 4.2 million (2.2)
- Operating margin (EBITA-%) excluding NRI was 15.3% of net sales (9.0%)
- Operating profit (EBITA) was EUR 4.2 million (1.3)
- Operating margin (EBITA-%) was 15.3% of net sales (5.4%)
- Net sales increased by 4.7% to EUR 75.9 million (72.5)
- Net sales of IBU increased by 24.5% to EUR 13.9 (11.1)
- Net sales of MBU decreased by -15.9% to EUR 29.7 million (35.3)
- Net sales of SBU increased by 24.1% to EUR 32.3 million (26.1)
- Operating profit (EBITA) excluding non-recurring items (NRI) was 9.7 million (5.0)
- Operating margin (EBITA-%) excluding NRI was 12.8% of net sales (6.9%)
- Operating profit (EBITA) was EUR 9.7 million (4.2)
- Operating margin (EBITA-%) was 12.8% of net sales (5.7%)
UNAUDITED (Figures in parentheses refer to the corresponding period of the previous year.)
President and CEO, Hannu Martola:
"The improved result in Q3 of 2024 was pleasing. Our result improved both year-on-year and from Q2 and was in line with our targets. Thanks to security and industrial sales, our overall net sales experienced double-digit growth, although medical sales lagged behind expectations. Our position as the trusted partner in X-ray imaging is stable in all segments, and our global long-term growth drivers are in the right place.
Good demand in our industrial solutions continued, and the food industry market also returned to a growth path. In addition to the food industry, demand was also strong in industrial computed tomography (CT) imaging and the specialty tire industry. We saw growing demand for our line scanner products in particular. Our industrial sales grew above the market, and we expect growth to continue in Q4, albeit clearly more moderately due to the excellent sales outcome in the comparison period.
Medical sales grew slightly despite the continuing impacts of the healthcare reform in China, globally stagnant investment, and price competition. Although the direction improved, we expected growth against a modest comparison period. In our view, despite the uncertainty, the sharp market decline has stopped, and the Chinese market is likely to recover slowly. We expect year-on-year medical sales to decline slightly in Q4.
Demand for security applications remained stable in the Western markets and, thanks to our position, our sales grew above the market. Growth was boosted by both CT and line scanner detector solutions for the aviation industry. We expect the tail wind in the aviation industry to continue in the Western markets, and investments to accelerate also in border control and critical infrastructure security. We expect the growth of our security solution sales to continue from Q3 to Q4 but remain at the level of the exceptionally strong comparison period.
We are pleased with the decrease in working capital, the excellent cash flow and the improved result in Q3. Our result was in line with our medium-term profitability target of 15 percent. The growth in net sales, improved productivity, and sales mix enabled the good development. In our view, the direction will remain unchanged, and our result will slightly improve in Q4.
The development of our business operations progressed in the growing Indian market. We are establishing a service and production facility in the Greater Delhi area. Our goal is to dispatch first deliveries from our new facility in H1 of 2025. The project is important from the perspectives of developing local customer service and competitiveness, as well as risk management, as is the case with strengthening production in Finland.
The importance of regional business in relation to global operations is increasing, and we are renewing our operating model accordingly. The new regional business units to be established will be at the heart of the reform. We believe that this will strengthen our market and customer orientation as well as our competitive position in the fast-moving world. The new planned leadership model is intended to enter into force at the beginning of 2025.
Global growth in the medical market will continue to be modest, and the demand constraints indirectly affecting our business due to the healthcare reform in China will continue through the end of the year. We expect medical sales to decline slightly in Q4. Our security and industrial sales will continue to grow, but high year-on-year comparative figures will make security sales growth, in particular, appear modest. In our view, our security and industrial sales will grow in Q4. We expect our year-on-year total net sales to remain stable in Q4 of 2024 and Q1 of 2025."
Key figures
(EUR 1,000) 7-9/2024 7-9/2023 1-9/2024 1-9/2023 1-12/2023
Net sales 27,103 24,507 75,901 72,479 103,794
Change in net 10.6% -10.2% 4.7% 3.0% 5.3%
sales, %
EBITA 4,157 2,207 9,726 5,034 9,656
excluding NRI
EBITA 15.3% 9.0% 12.8% 6.9% 9.3%
excluding
NRI, %
Non-recurring 0 -873 0 -873 -873
items (NRI)
EBITA 4,157 1,334 9,726 4,161 8,784
EBITA, % 15.3% 5.4% 12.8% 5.7% 8.5%
R&D costs 2,694 2,938 8,255 8,979 11,702
R&D costs, % 9.9% 12.0% 10.9% 12.4% 11.3%
of net sales
Cash flow 6,415 3,279 13,242 5,598 9,672
from
operating
activities
Net interest -20,797 -10,887 -20,797 -10,887 -12,665
-bearing debt
at end of
period
Investments 248 11,389 1,733 12,217 14,426
Return on 17.0% 6.9% 17.0% 6.9% 9.9%
investment
(ROI),
%
Gearing, % -27.1% -15.5% -27.1% -15.5% -17.4%
Earnings per 0.22 0.05 0.48 0.13 0.38
share, EUR
Earnings per 0.22 0.05 0.48 0.13 0.38
share
(diluted),
EUR
Number of 14,655,930 14,655,930 14,655,930 14,655,930 14,655,930
shares at the
end
of the period
Weighted 14,655,930 14,655,930 14,655,930 14,655,930 14,655,930
average
number of
shares
outstanding
Weighted 14,666,184 14,655,930 14,661,289 14,662,573 14,660,912
average
number of
shares
outstanding,
diluted
The development of net sales
Detection Technology's total net sales increased by 10.6% (-10.2%) year-on-year, totaling EUR 27.1 (24.5) million in Q3 of 2024. The double-digit growth was the result of good demand continuing in particular in security and industrial applications, but also the levelling of the downturn in the medical sector.
Despite the continued uncertainty in the industrial market, demand in X-ray imaging applications continued to recover as expected in Europe in particular, in addition to which the food industry also returned to the growth path. In addition to the food industry, demand was strong in industrial CT imaging and the tire industry. The net sales of the Industrial Solutions Business Unit (IBU) grew by 24.0% (1.6%) year-on-year, totaling EUR 4.9 (4.0) million in Q3 of 2024. Improved growth in the sales of the company's legacy solutions was an important growth driver. IBU generated a total of 18.2% (16.2%) of the company's total net sales.
The healthcare reform in China and the related anticorruption campaign continued, which caused further delays in the purchasing processes of medical X-ray imaging solutions. In addition, similar to Q2, stagnant investment and price competition in the global market corroded demand in medical applications. The company's medical sales improved from Q2 and year-on-year, but, despite the soft Q3 of 2023, net sales from Q3 of 2024 lagged behind expectations. The net sales of the Medical Business Unit (MBU) increased by 0.6% (-27.0%) year-on-year, totaling EUR 10.9 (10.8) million in Q3 of 2024. MBU generated a total of 40.2% (44.1%) of the company's total net sales.
Growth in the demand for security applications remained stable in the Western markets. Regarding sales per applications, the main growth driver was aviation, but there is also increasing demand for X-ray imaging solutions in border control and critical infrastructure security. The net sales of the Security Business Unit (SBU) increased above market by 16.2% (13.7%) year-on-year, totaling EUR 11.3 (9.7) million in Q3 of 2024. Growth was mainly generated by aviation CT and line scanner applications. SBU generated a total of 41.7% (39.6%) of the company's total net sales.
The Asia-Pacific countries (APAC) accounted for the company's largest geographical market area in Q3 of 2024, with its 66.1% (70.4%) share of total net sales. The share of Europe, Middle East and Africa (EMEA) was 26.5% (20.0%) and Americas 7.4% (9.6%). Sales in the Americas were still decreasing due to client structural reasons. A significant proportion of end products sold in the American markets are manufactured elsewhere. The share of net sales accounted for by Detection Technology's five largest customers was 56.9% (53.4%).
The company's total net sales grew by 4.7% (3.0%), totaling EUR 75.9 (72.5) million in January-September 2024. IBU's net sales grew by 24.5% (-2.6%), totaling EUR 13.9 (11.1) million. MBU's net sales decreased by -15.9% (-0.6%), totaling EUR 29.7 (35.3) million. SBU's net sales grew by 24.1% (11.2%), totaling EUR 32.3 (26.1) million. IBU generated a total of 18.3% (15.4%) of the company's net sales, MBU a total of 39.1% (48.7%) and SBU a total of 42.6% (36.0%).
APAC's share of total net sales was 67.8% (68.7%), that of EMEA's 26.3% (19.7%), and that of the Americas' 5.9% (11.6%) in January-September 2024. The company's five largest customers accounted for 52.1% (50.5%) of the company's total net sales.
Strategy implementation
During Q3 of 2024, Detection Technology commenced the establishment of a service and production facility in India, where significant infrastructural investments will be made in healthcare, transport and the manufacturing industry at the national level. For example, more than 100 airports will be built in India over the coming years. The objective of the establishment of the new facility is to enhance customer experience in the growing Indian market by offering a local service, shorter response and delivery times and cost-efficient local product solutions.
Deliveries from the new facility are scheduled to start in the first half of 2025. In its new Indian facility, the company will first focus on the end-assembly and final testing of X-ray detector solutions optimized for security applications. The company's goal is to also scale up production capabilities to cover TFT (thin-film transistor) flat panel detector solutions, so that it can offer local solutions to the diverse range of imaging needs in the industrial and medical sectors.
The new service and production facility is located in an industrial hub Cyberwalk Tech Park in the Delhi area with excellent connections to all corners of India and the rest of the world. The Indian subsidiary fully owned by Detection Technology is registered as DT Detection Technology India Private Ltd.
The manufacturing of EU Origin products at the company's Oulu site has progressed as planned and production capacity will be scaled up based on the demand. The company will have the capability to manufacture in Finland 10 percent of its sold products by the end of the year. Production in Finland has been expanded in order to offer a wider range of EU Origin products and to minimize risks.
Events after the review period ended
Detection Technology announced on 29 October 2024, that it will change its operating model and corresponding organization. The new sales and product organization will consist of three regional business units: Asia-Pacific (APAC), Europe, Middle East, India and Africa (EMEIA), and Americas. The Group level functions, which include research and development (R&D), operations, financial administration and IT, and HR, will remain the same. In addition, a member responsible for business development will be appointed to the management group. The planned new organization and reporting structure are intended to enter into force as of 1 January 2025.
Business outlook
Detection Technology expects its year-on-year total net sales to remain stable in Q4 of 2024 and Q1 of 2025.
Detection Technology refines its previous H2 of 2024 estimate of double-digit growth in total net sales (published 6 August 2024) to growth in total net sales for H2 of 2024.
Geopolitical situation, U.S.-China relations, global economy, 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.
Financial statements review 2024
Detection Technology will publish its financial statements review for 2024 on Thursday 6 February 2025.
Espoo, Finland 28 October 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 (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, India, and the US. The company's shares are listed on Nasdaq First North Growth Market Finland under the ticker symbol DETEC.
Circulation: Nasdaq Helsinki, main media, www.deetee.com
Detection Technology Plc company announcement 6 September 2024 at 13:00 (EEST)
Shareholders' Nomination Board appointed at Detection Technology
A Shareholders' Nomination Board has been appointed at Detection Technology according to holdings on 2 September 2024. Chair of the Board of A. Ahlström Peter Seligson has been appointed Chair of the Nomination Board as the representative of Ahlstrom Capital BV, and Head of Investments Tomi Viia representing the OP mutual funds and Director, Sustainability of Aktia Bank Markus Lindqvist representing the Aktia mutual funds have been appointed as Members. The Chair of Detection Technology's Board of Directors Hannu Syrjälä serves as an expert of the Nomination Board. The organizing meeting of the Nomination Board was held on 6 September 2024.
The Shareholders' Nomination Board is responsible for preparing and presenting proposals to the General Meeting concerning the remuneration and number on members of the Board of Directors, as well as proposals related to appointing members of the Board. The Nomination Board will submit its proposals for the next Annual General Meeting to the Board of Directors of Detection Technology at the latest on 31 January 2025.
The Nomination Board consists of three members appointed by the company's three largest shareholders, each of which is entitled to nominate one member. The largest shareholders are determined based on the holdings listed in the shareholders' register of the company maintained by Euroclear Finland Ltd as of the first working day in September preceding the next AGM. The Chairman of the Board of Detection Technology serves as an expert on the Nomination Board but is not an official member of the Nomination Board and does not have voting rights.
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, India, 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 5 September 2024 at 13:00 (EEST)
Detection Technology's financial calendar for 2025
- Financial statements review 2024: 6 February 2025
- Business review January-March 2025: 24 April 2025
- Half-yearly report January-June 2025: 7 August 2025
- Business review January-September 2025: 30 October 2025
The financial statements and annual review for 2024 will be published on 6 March 2025. The Annual General Meeting is scheduled for 27 March 2025 at 15:00 (EET). The Board of Directors of the company will convene the meeting.
Detection Technology's financial calendar can be found from the company's website at https://www.deetee.com/ir-services/.
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, India, 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 August 2024 at 09:00 (EEST)
DETECTION TECHNOLOGY PLC HALF-YEARLY REPORT JANUARY-JUNE 2024
Detection Technology Q2 2024: Strong result, record industrial sales
- Net sales increased by 3.5% to EUR 26.1 million (25.2)
- Net sales of Industrial Solutions Business Unit (IBU) increased by 42.6% to EUR 5.3 million (3.7)
- Net sales of Medical Business Unit (MBU) decreased by -25.3% to EUR 9.3 million (12.4)
- Net sales of Security Business Unit (SBU) increased by 26.7% to EUR 11.5 million (9.1)
- Operating profit (EBITA) was EUR 3.3 million (1.4)
- Operating margin (EBITA-%) was 12.7% of net sales (5.4%)
- Net sales increased by 1.7% to EUR 48.8 million (48.0)
- Net sales of IBU increased by 24.8% to EUR 8.9 million (7.2)
- Net sales of MBU decreased by -23.1% to EUR 18.8 million (24.5)
- Net sales of SBU increased by 28.8% to EUR 21.1 million (16.3)
- Operating profit (EBITA) was EUR 5.6 million (2.8)
- Operating margin (EBITA-%) was 11.4% of net sales (5.9%)
UNAUDITED (Figures in parentheses refer to the corresponding period of the previous year.)
President and CEO, Hannu Martola:
"Our Q2 result strengthened both year-on-year and when compared to Q1. Our total net sales were slightly better than expected, thanks to strong sales in security and record sales in industrial applications. Sales in the medical market were weak as expected, but market signals are encouraging.
The positive trend in the industrial market continued and our industrial application sales soared, which resulted into record quarterly sales. Better-than-expected demand in TFT (thin-film transistor) flat panel detectors in Asia and growth in our legacy business were the underlying factors of this positive turn. Demand improved in all main applications, including the applications for the food industry. We expect growth to continue in Q3, too.
Demand in the medical market was particularly poor, and our sales remained modest, as anticipated. Sales were negatively affected by the same factors as in Q1, including, in particular, the measures by the Chinese government to reform its healthcare sector and the related anticorruption campaign targeted at healthcare end operators. However, it was delightful to see some positive signals from the market indicating the easing of the anti-corruption campaign towards the end of the year. Our order book and sales prospects have improved, and we, therefore, expect medical sales to increase from Q3 onwards.
Robust growth in our security application sales continued. Sales in computed tomography (CT) applications for the aviation industry in the Western market were strong, but demand was also good for line scanner applications. Our view on the accelerated growth in the global security market strengthened. We have an advantageous position to meet increasing demand in particular in the CT segment, and we expect our security application sales to continue growing.
Our Q2 result improved both year-on-year and when compared to Q1. Improved productivity, sales mix, and growth in sales from Q1 were the cornerstones of our good result. Good results and strong cashflow allowed the early repayment of the long-term loan used for the acquisition of Haobo Imaging. We are confident that we will be close to our medium-term operating margin target of 15 percent this year.
We have made progress in the development of our Indian business and founded a subsidiary in the New Delhi area. Our goal is to build a local service and manufacturing unit for the growing Indian market. India is spending big on infrastructure, and we want to participate in these projects.
The first EU Origin products were delivered from our Oulu unit during the review period, and our modular production will allow us to flexibly increase our production capacity. This has enhanced customer experience and improved our competitiveness and risk mitigation. Nearly 10 percent of our products sold will be manufactured in Finland by the end of the year.
The factors that have negatively impacted business due to the healthcare reform in China and the related anti-corruption campaign are estimated to gradually ease towards the end of the year, and we expect our medical sales to grow in Q3. Robust growth will continue in our other main markets, and both our security and industrial application sales will experience double-digit growth in Q3. We expect our total net sales to have double-digit growth in Q3 and H2 of 2024."
Key figures
(EUR 1,000) 4-6/2024 4-6/2023 1-6/2024 1-6/2023 1-12/2023
Net sales 26,093 25,219 48,799 47,972 103,794
Change in net 3.5% 10.8% 1.7% 11.4% 5.3%
sales, %
EBITA 3,306 1,351 5,570 2,827 9,656
excluding NRI
EBITA 12.7% 5.4% 11.4% 5.9% 9.3%
excluding
NRI, %
Non-recurring 0 0 0 0 -873
items (NRI)
EBITA 3,306 1,351 5,570 2,827 8,784
EBITA, % 12.7% 5.4% 11.4% 5.9% 8.5%
R&D costs 3,049 3,079 5,560 6,041 11,702
R&D costs, % 11.7% 12.2% 11.4% 12.6% 11.3%
of net sales
Cash flow 3,911 2,426 6,827 1,941 9,672
from
operating
activities
Net interest -14,744 -18,530 -14,744 -18,530 -12,665
-bearing debt
at end of
period
Investments 352 376 1,485 828 14,426
Return on 13.9% 6.5% 13.9% 6.5% 9.9%
investment
(ROI),
%
Gearing, % -19.9% -27.2% -19.9% -27.2% -17.4%
Earnings per 0.15 0.03 0.26 0.09 0.38
share, EUR
Earnings per 0.15 0.03 0.26 0.09 0.38
share
(diluted),
EUR
Number of 14,655,930 14,655,930 14,655,930 14,655,930 14,655,930
shares at the
end
of the period
Weighted 14,655,930 14,655,930 14,655,930 14,655,930 14,655,930
average
number of
shares
outstanding
Weighted 14,661,754 14,662,206 14,658,842 14,665,894 14,660,912
average
number of
shares
outstanding,
diluted
Business outlook
Detection Technology expects its total net sales to grow double-digit in Q3 and H2 of 2024.
Geopolitical situation, U.S.-China relations, global economy, 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.
Q2 2024 webcast
Hannu Martola, the President and CEO of Detection Technology, will present the Q2 and January-June 2024 financial performance and events to analysts, investors, and media at a webcast. The live webcast in English will begin on 6 August 2024 at 13:00 (EEST).
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 accessible later on the same page.
This release is a summary of Detection Technology's half-yearly report January-June 2024. 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 (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, India, 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 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
| Shareholders | Date | % of Shares | % of Votes |
|---|---|---|---|
| Ahlstrom Capital Bv | 30.09.2024 | 36% | 36% |
| OP-Finland Value Fund | 30.09.2024 | 4.2% | 4.2% |
| Varma Mutual Pension Insurance Company | 30.09.2024 | 3.5% | 3.5% |
| Sijoitusrahasto Aktia Capital | 30.09.2024 | 3.2% | 3.2% |
| Ilmarinen Mutual Pension Insurance Company | 30.09.2024 | 3% | 3% |
| Martola Hannu Veikko | 30.09.2024 | 3% | 3% |
| Veritas Pension Insurance Company Ltd. | 30.09.2024 | 2.7% | 2.7% |
| Evli Finnish Small Cap Fund | 30.09.2024 | 2.4% | 2.4% |
| OP-Finland Small Firms Fund | 30.09.2024 | 2.3% | 2.3% |
| Säästöpankki Kotimaa | 30.09.2024 | 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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