Half-yearly report January-June 2020

Prior to the outbreak of the COVID-19 pandemic, industry experts estimated that the global medical X-ray imaging equipment market was growing at an average rate of about 5% per annum, the security segment by 6% and the industrial sector by about 5%. In Detection Technology’s view, the market disruption caused by the pandemic will continue until at least the end of 2020, and the annual growth rate in all segments, with the exception of medical CT imaging, will be lower than the aforementioned estimates in 2020.

Business outlook

Demand in the security segment will continue at a lower level, and SBU sales is expected to decrease in Q3. The company estimates demand in the security segment to decrease at least until the end of the year and industrial segment demand to increase, but growth is likely to fall short of the 5% forecast for the industry. As a result, the company expects SBU sales to decrease in 2020. Whereas demand in medical CT applications will continue at a good level, and MBU sales are expected to grow in Q3. The company expects demand in medical CT applications to continue at a good level in H2, and MBU sales to increase in 2020.

The COVID-19 pandemic creates extraordinary uncertainty for the global economy and the company’s business, and the predictability of the market is still lower than usual. Detection Technology aims to increase sales by at least 10% per annum and to achieve an operating margin at or above 15% in the medium term.