Page 5 - Hedengren_vuosikatsaus_2020_EN

Hedtec business review After the previous year’s positive result, the department’s result dropped
“In 2020, we had successes in several important
projects. Some of them will also impact our work in 2021.”
The year 2020 was marked by the COVID-19 pandemic and telecommuting.
Our early estimates of the pandemic’s impact on our turnover fell some-
where between –10% and –30%. In reality, the impact on Hedtec’s perfor-
mance was significantly smaller than expected. However, the pandemic and
generalised telecommuting will likely have a long-term impact on e.g. office
construction. Physical contact with our clients has always been one of the
strengths of Hedtec. The pandemic forced us to adopt digital methods and
approach our clients remotely. The current situation is not ideal. We have
emphasised these new circumstances in our spring 2021 sales training.
The market remained reasonably good for us despite the cancelled and
postponed investments. Our investors did not find office construction or
business construction very appealing during the pandemic. Naturally, we
were able to finish some projects.
In 2020, Hedtec’s turnover declined by 4.6% after two consecutive years of
growth. Our final turnover was MEUR 29.5. In terms of results, we exceeded
the budgeted EBITDA level. The decrease in fixed costs was a significant fac-
tor in this achievement.
Our cables/installation supplies department was even able to grow from the
previous year and double its profits. In 2020, we had successes in several im- by our new spearhead strategy.
portant projects. Some of them will also impact our work in 2021. The light-
ing department had a more challenging year, especially because the ship-
building industry and its subcontractors put the brakes on procurement.
Turnover
Operating profit
EUR 1,000
EUR 1,000
5 OY HEDENGREN AB I ANNUAL REVIEW 2020
down nearly to zero. The operations of our manufacturing department
are heavily dependent of finding suitable projects and their delivery. We
were unable to obtain projects that were on the same scale as our projects
in 2019. The decline in turnover was considerable, but we were still able
to reach an excellent profit level. Facility automation operations suffered
from the market and personnel situation and we failed to advance our
plans as intended. Nevertheless, we were able to complete our dynamic
lighting and KNX pilot projects. The electric car charging pilot initiated in
2020 will be released in 2021.
In February, right before the pandemic hit Northern Europe, we attended
an electricity trade fair in Jyväskylä. This was a significant but very suc-
cessful investment from our part. We had the opportunity to exhibit our
new products and concepts in a beautiful booth.
Our staff number remained unchanged and everyone was able to stay
clear of the coronavirus.
The prolonged pandemic makes predicting our performance in 2021 dif-
ficult. Nevertheless, we are anticipating growth and a return back to form
with an expected turnover of more than MEUR 30. In addition to keeping
our core operations running, we are focusing on the projects introduced
Isto Lehmusvuori
Turnover by area
Industry Lighting
24% 26%
Installation
supplies
50%