Financial statements announcement: A tough year behind us – positive prospects

Voimatel’s revenue declined and profitability suffered in challenging market conditions. In 2019, the Group generated a revenue of EUR 113.5 million compared to EUR 128.8 million in 2018, a fall of 9% year-on-year. The company’s operating loss in 2019 amounted to -EUR 5.3 million while the corresponding figure for the previous year was EUR -1.5 million.

“During 2019, we took extensive measures to restructure the company, improve business performance and redirect operations that had temporary adverse impact on revenues. At the same time, a number of individual contracts and loss-making long-term projects burdened financial performance substantially in 2019,” says Voimatel’s Chief Executive Officer Timo Rask.

With regard to the identified loss-making projects, the company entered into its accounts substantial provisions that affected its 2019 financial result. As part of the restructuring measures, Voimatel conducted employer-employee consultations concerning Voimatel Oy’s all operations and staff in Finland. The 2019 financial results includes one-off costs and reserves worth EUR 1.0 million due to the rearrangements made following the completion of the consultations.

Despite two consecutive loss-making years, the company’s cash flow turned positive during 2019 thanks to the measures taken to improve efficiency in the deployment of working capital.

At the end of 2019 and in early 2020, the company signed a number of new, more profitable contracts and updated its contract stock substantially with a view to coming years. The current contract stock ensures a healthy level of employment as of 2020. The impacts of the measures taken and the ongoing development projects will reflect positively in the company’s financial performance during the current year.

“We’re working hard to turn the business around to achieve sustained profitability by 2021. Several projects and reforms are under way to increase profits, and we’re making progress as planned. Our goal is to ensure a positive financial result for the Voimatel Group during 2020, and all the measures we’re taking are designed to achieve this,” says Chief Executive Officer Timo Rask.

For more details, contact:
Timo Rask, Chief Executive Officer
tel: +358 (0)50 361 9246