Plc Uutechnic Group Oyj: Review of Financial Statements 1 January – 31 December 2019

Plc Uutechnic Group Oyj Review of Financial Statements, February 25, 2020 at 9.00 am

Plc Uutechnic Group Oyj Review of Financial Statements 1 January – 31 December 2019

This is a summary of Plc Uutechnic Group Oyj’s Financial Statements release January 1 – December 31, 2019. The full report is a pdf file attachment to this stock exchange release, and it is also available on the company’s website at

Divestments Completed – Focus on Mixing Technology

Plc Uutechnic Group Oyj announced on February 20 that it renews its brand and visual identity and shortens its Group name into three letters: UTG. Where appropriate, industry reference can be used, which will be UTG Mixing Group. The official name of the parent company is Plc Uutechnic Group Oyj and its subsidiaries Uutechnic Oy and Stelzer Rührtechnik International GmbH. The new brand and visual identity will be fully released during the first half of the year.

UTG Mixing Group’s turnover from continuing operations from the period 1.1.-31.12.2019 was EUR 16,8 million (16.5 million) and its operating profit was EUR 0,9 million (2,0 million). The profit for the whole fiscal year including discontinuing operations was EUR 1,0 million (0,6 million). The balance sheet of the Group strengthened with the Sale of AP-Tela significantly. UTG Mixing Group’s continuing operations received new orders EUR 16,3 million (17,8 million) and the order book was at the end of the year EUR 6,2 million (6,7 million). The earnings per share from the Group’s continuing operations was EUR 0,02 (0,03).

Discontinuing operations
As announced on June 3, 2019 Plc Uutechnic Group Oyj sold the share capital of AP-Tela Oy in Kokkola with the price of EUR 3,5 million. AP-Tela Oy has been consolidated into the Group until June 3, 2019 and will be reported in the discontinued operations. The figures from the reference period have been changed accordingly. The discontinuing figures from the reference period include also Japrotek Oy Ab, sold in 2018.

In the preparation of the financial statements, an error was detected in the figures reported in the half year report on the allocation of deferred taxes to discontinued operations. Deferred tax liability allocation to discontinued operations was EUR 294 thousand too low. After the correction the result from discontinued operations improved EUR 294 thousand to -30 thousand. The correction had EUR 294 positive effect to the Group’s equity and to the profit for the fiscal year on 30.6.2019. The correction effected also to the Key figures. The corrected half year report of the Group is published as an attachment to this financial statement release.

July-December in brief
The turnover from continuing operations from July – December was EUR 9,0 million (9,2 million) and the operating profit was EUR 0,9 million (1,3 million). New orders were EUR 6,7 million (8,1 million) and the order book stood at EUR 6,2 million (6.7 million).

Key figures 2019
Turnover, continuing operations 16 849 16 545 9 043 9 177 7 806 7 368
Operating profit/loss, continuing operations 881 2 045 840 1 345 41 700
% of turnover 5,2 12,4 9,3 14,7 0,5 9,5
Profit/loss, continuing opeartions 1 077 1 791 1 204 1 265 -127 526
Profit/loss, discontinuing operations -33 -1 218 -3 741 -30 -1 959
Profit/loss for the period 1044 573 1 201 2006 -157 -1433
Order book, continuing operations 6 214 6 671 6 214 6 671 8 529 7 640
New orders, continuing operations 16 273 17 846 6 658 8 072 9 615 9 774

 In income statement AP-Tela Oy is classified as discontinued operations. The reference period has been changed accordingly. The discontinued operations from the reference period include also Japrotek Oy Ab, sold in 2018.


During 2019, we took crucial steps to focus on our special expertise and core business: Mixing Technology. In June 2019, we sold all of the shares in Kokkola-based AP-Tela Oy to a Finnish industry company. Now, all of the functions and the entire personnel of UTG Mixing Group share the same focus, which makes the management and development of the Group’s strategy and operations in the desired direction more natural.

As we focused on mixing technology, we condensed our name to three letters: UTG. We also encapsulated UTG our brand promise and revised our visual identity, which will be officially published during the first half of 2020. We already use the new logos and colours in this annual report. “Partnership built to last – and perform” is our brand promise to all of our stakeholders. We want to build long-term successful cooperation with our customers.

Financial development is based on our new structure
The turnover of our continuing operations remained almost at the level of the previous year, but operating profit decreased significantly. In spite of the challenging market situation, new orders decreased by only 9,6% compared to previous year. The biggest challenges regarding profit were caused by the uneven distribution of orders between units and increased proportional administrative costs following the divestment. The main focus in orders was in Central Europe, and the Scandinavian market was clearly softer. There were still obvious differences between the profit-making capabilities of the units in 2019, but we expect the differences to shrink along the introduction of the unified operating model. We already succeeded in distributing the workload between our units with partially harmonized operations.

During the second half of 2019, we built organic growth by allocating resources to it internally and recruiting new employees. We also revised our brand and business systems. The measures will still be visible as cost factors at least in 2020. However, we have already achieved the desired business structure and launched investments in seeking organic and inorganic growth.

Onward leaning on digitalization
Focusing on mixing technology complies with our strategy of migrating to providing increasingly in-depth technological expertise. In the mixing technology business, we sell know-how and solve our customers’ process engineering challenges. As a technology company, we are able to make use of significant synergy benefits between our Finnish and German units in product development, design, sales and manufacturing. We can now optimise our new digital business systems for the mixing technology business. Digitalization will continue to be in very important role when we develop our future businesses.

With regard to technological expertise, we are competing with the world’s biggest agitator suppliers. Our aim is to offer our global top expertise locally to our customers. We want to know our customers’ processes and needs in depth and build durable and successful partnerships.

Our most important asset is the right people. Motivated professionals genuinely willing to serve our customers and committed to solving their challenges in the long term is our success factor. Our top experts make decisions locally in the customer interface to respond to the individual needs of our customers.

Our business is built on several foundations. Our customers operate in most main industrial segments, and agitators are needed in almost all process industry facilities. Global macrotrends with effects on our operations include the growing demand for e.g. industrial food production, renewable energy and battery materials.

We have a clear business roadmap ahead of us
We have returned to our roots and focused on our core business as a larger, more international and more capable group than we initially were. We have a clear business roadmap ahead of us and share a vision of the objectives and methods for reaching them. Our aim is profitable growth organically and through potential mergers and acquisitions.

Expectations of slow economic growth in 2020 are repeated in different growth outlooks for the global economy.  Our customers’ market situation has effects on their investment needs. Yet our own operations have a significant impact on our market share, turnover and performance. Our own business portfolio is largely complete, laying down a solid foundation for generating UTG’s future growth.
Our global technology expertise and ability to serve locally provide us with good opportunities for profitable growth this decade. I would like to thank our customers and other partners for their trust in us, and our personnel for their motivation and commitment as we continue our long-term work this year.

UTG Mixing Group’s strategy is to improve profitability as well as profitable growth, both organically and inorganically, by focusing on mixing technology of liquid-based processes.

Our vision: Good is not enough. We want to be the best, so we are constantly trying to evolve.

Our brand promise is: Partnership built to last- and perform.

The basic idea is several companies one group and one culture. We provide competitive mixing solutions focusing on customers’ needs to minimize life-cycle costs. We always serve the customer in the best possible way by bringing our global capabilities locally close to the customer. Our reputation is measured by the quality of our latest work.

We seek profitable organic growth from four main lines, of which:

the first is to improve the profitability of existing plants by reducing material costs, increasing efficiency and minimizing fixed costs.

The second main line is to increase production capacity without significant investment and recruitment of office staff. We will also increase capacity by optimizing the locations where different products are manufactured and, if necessary, by adjusting production capacity between units. In addition, we optimize our own manufacturing and subcontracting.

The third main line is to increase efficiency through synergies by streamlining and digitizing processes, systems and products. In addition, we pay special attention to developing and harmonizing corporate culture.

The fourth main line is to increase sales by expanding and developing the sales network and marketing. We are targeting to the growth sectors of the global economy suitable for us such as the industrial food production in developing countries, the fertilizer production in the wake of the food industry and the growing metallurgical industry in the production of battery materials. Other interesting megatrends influencing the growth of agitator investments are biofuels in renewable energy production and in the growing circular economy biorefineries and the chemical treatment, recycling and refining of metals.

In addition, we seek profitable inorganic growth through mergers and acquisitions.


In year 2022, our revenue target is EUR 25 million and the EBIT target is 15%. The figures do not take into account possible inorganic growth. The targets are based on a normal world market situation.

Net Gearing
The net gearing ratio should be less than 60%. We may temporarily deviate from this restriction, for example due to a corporate acquisition.

Dividend policy
The aim is to distribute a dividend of 30-50% of the Group’s net profit, starting from 2019 financial statements.
The distribution of dividends takes into account the Group’s earnings and financial position, investments required for growth and other factors deemed essential by the Board of Directors.

Market outlook for the year 2020 is even more unclear than last year due to, among other things, international politics and challenges faced in our customers’ industries. Nonetheless, at the beginning of the new year UTG Mixing Group has a reasonable orderbook, updated strategy and clearer plans than before. UTG mixing group’s financial targets for the upcoming years are challenging. We are more profitable already on the current year than before, however to a major growth and profitability leap we believe only after year 2020.

The parent company’s profit for the financial year 2019 is EUR 4,3 million. At the end of the financial year, the parent company’s distributable funds stood at EUR 8,6 million. The Board of Directors proposes to the Annual General Meeting that from fiscal year 2019 dividend of 0,01 euros per share will be paid. At the time of the proposal, there were 56,501,730 shares, which means that the proposed dividend amount is EUR 565,017.30, representing 54.1% of the Group’s profit for the financial year 2019.


The Annual General Meeting of Plc Uutechnic Group Oyj will be held at Scandic Hotel Simonkenttä in Helsinki on March 25, 2020 at 1:00 p.m. The invitation to the Annual General Meeting will be published not later than March 4, 2020.

In Uusikaupunki February 25, 2020

Board of Directors

Further information: Jouko Peräaho, CEO, +358 50 074 0808

UTG Mixing Group is a global technology group that provides competitive mixing solutions with a customer-oriented approach, minimizing life cycle costs. “Partnership built to last – and perform” is our brand promise. We always serve the customer in the best possible way by bringing our global capabilities locally close to the customer.
Our main customer sectors are the chemical, food, metallurgical and fertilizer industries, as well as environmental technology, water treatment and pharmaceuticals.
The parent company of UTG Mixing Group is Plc Uutechnic Group Oyj, whose shares are listed on the Nasdaq Helsinki. The business is carried out in the subsidiaries of the group, Uutechnic Oy and Stelzer Rührtechnik International GmbH.
n income statement AP-Tela Oy is classified as discontinued operations. The reference period has been changed accordingly. The discontinued operations from the reference period include also Japrotek Oy Ab, sold in 2018.