Financial statements review January-December 2019

Forecasts in the industry estimate the medical X-ray imaging market to grow on average by about 5% a year, security X-ray imaging by 6% and industrial X-ray imaging market by some 5%. Detection Technology estimates annual growth to remain at this level in all market segments in 2020, but the indirect impacts of the corona virus epidemic in Asia may have a temporary adverse impact on growth in H1.

The company estimates the temporary slowdown in the global medical CT market to continue in Q1, and the situation to normalize at the end of 2020, but demand may fluctuate significantly. Although CT scanning is used to detect virus-related pulmonary changes, which increases demand for scanners, it is too early to estimate its overall impacts on the company’s operations. Detection Technology expects its net sales to grow in 2020 after these temporary market slowdowns have passed. There is some uncertainty regarding demand, and intense competition may reflect on pricing.

Financial targets

Targets until 10 February 2020:

Detection Technology aims to increase sales by at least 15% per annum and to achieve an operating margin at or above 15% in the medium term. The company aims to distribute approximately 30–60% of the Group’s annual result (earnings per share) to shareholders either in the form of dividend or returned capital.

New targets as of 10 February 2020:

The company will adjust its annual growth target to correspond to the market situation and keep its profitability target and dividend distribution policy unchanged.

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. The company aims to distribute approximately 30–60% of the Group’s annual result (earnings per share) to shareholders either in the form of dividend or returned capital.