Plc Uutechnic Group Oyj

Review of Financial Statements 1 January – 31 December 2020 - Seite 2

Business 2020

Net sales for the financial year were higher than in the previous year, but operating profit was weaker. In the second half of the year, non-recurring items of EUR 1.2 million were recognized in operating profit. Excluding non-recurring items, profitability was slightly better than in the previous year. The order backlog increased from the end of June and extends to 2022.

The pandemic did not significantly hamper the operations of the Group companies. Production has been in operation and remote work has gone well in terms of basic functions. The challenge has been a reduced delivery reliability of suppliers, but with a flexible organization, our delivery times to customers have been in a reasonably good level. Travel restrictions have further hampered planned new customer acquisition as well as internal development projects. Pandemic preparedness continues. 

In connection with the brand reform, the updating of the new website has continued, and the digital marketing environment was introduced. After the financial year and the change of the ownership, the decision to implement the information system project has been cancelled. Therefore, in the financial statements 2020, the information system investment, EUR 0.5 million, has been recognized as an expense.

  
Outlook
Despite the slowdown in the global economy, there will be no clear decline in the mixer market in the near future. Based on the steady order acquisition and good order backlog so far, the outlook for the near future is moderately good.

The outlook for the mixer market remains uncertain due to the impact of the corona pandemic. However, in the medium term, the growth of the mixer market is not expected to reach previous long-term forecasts, as uncertainty and labour challenges caused by pandemic will delay large industrial investments. Also increasing market share in the new operating environment is challenging, and the effectiveness of new sales and marketing methods cannot yet be assessed.

A Public cash tender offer for all shares in Plc Uutechnic Group Oyj
On December 2020 Plc Uutechnic Group Oyj announced that SPX Flow Technology Germany GmbH, a German limited liability company indirectly wholly owned by SPX FLOW, Inc. a corporation incorporated under the laws of the State of Delaware in the United States, have entered into a combination agreement pursuant to which SPX Flow will make a voluntary recommended public cash tender offer to purchase all of the issued and outstanding shares in UTG that are not owned by UTG or any of its subsidiaries. In the Tender Offer, UTG’s shareholders will be offered a cash consideration of EUR 0.60 for each share. The Board of Directors of UTG has unanimously decided to recommend that the shareholders of UTG accept the Tender Offer. The acceptance period under the Tender Offer commenced on 15 December 2020 and expired on 12 January 2021. On 18.1.2021 SPX Flow announced that According to the preliminary result of the Tender Offer, the Shares which have been validly tendered (and not validly withdrawn) during the Offer Period represent 97.94 % of all issued and outstanding Shares and votes in UTG.