General
FORCIT Group operates three business units: FORCIT Explosives operates the civil explosives business, as well as software related to drill and blast; FORCIT Consulting provides measurement, monitoring, consulting and training services; and FORCIT Defence is oriented towards the armed forces and manufacturers of defence materials. FORCIT’s goal is to further develop its position as the Nordic market leader and preferred supplier of services, products and knowledge related to explosives, charging, and monitoring of environmental effects.
Within the Defence area, the goal is to be a preferred technology partner and leading system supplier in the world market for insensitive munitions.
FORCIT’s quality system is certified according to the ISO 9001 standard, and its environmental system according to the ISO 14001 standard. The Defence business is certified to NATO’s AQAP 2110 quality norms. Apart from the ISO and AQAP standards, the Defence business has also been accredited in compliance with the Finnish National Security Auditing Criteria (KATAKRI).
Financial overview
The company’s operations continued to develop positively in 2022. The overall European economic development and the operating environment have been heavily influenced by the pandemic, the war in Ukraine, and the aftermaths of these.
Despite an overall challenging business environment, all business units grew in comparison to the previous year in local currencies. The Consulting business, however, declined in euros.
The key figures below describe the development during the recent financial years. Group level operating profit increased clearly in 2022 compared with 2021. The profitability has increased with rising revenues and a more profitable business area mix.
| The Group | 2022 | 2021 | 2020 |
|---|---|---|---|
| Net Sales, million Euro | 228,342 | 150,466 | 127,413 |
| Operating profit, million Euro | 26,905 | 8,645 | 8,576 |
| Operating profit as % of net sales | 11,8 | 5,7 | 6,7 |
| Return on equity (%) | 41,3 | 14,2 | 16,2 |
| Solidity % | 48,0 | 44,1 | 45,8 |
| Average number of employees | 533 | 499 | 432 |
| The Parent company | 2022 | 2021 | 2020 |
|---|---|---|---|
| Net Sales, million Euro | 112,676 | 71,999 | 61,654 |
| Operating profit, million Euro | 13,586 | 3,336 | 3,723 |
| Operating profit as % of net sales | 12,1 | 4,6 | 6,0 |
| Return on equity (%) | 26,7 | 14,9 | 12,7 |
| Solidity % | 49,2 | 48,8 | 46,4 |
| Average number of employees | 265 | 250 | 225 |
Sustainability
Environment
During 2022, we have strengthened our sustainability work, particularly related to CO2 emissions. We have now defined an ambitious long-term roadmap towards our goal to achieve CO2 neutrality in our operations by 2035, and initiated R&D work to develop a green product line. In this roadmap, we plan investments and key projects on how to reduce emissions, improve energy efficiency and further increase the share of green energy. The initiative to develop a nitrogen free explosive is another important project within the FORCIT sustainability framework.
Additionally, FORCIT is developing a method where emulsion explosive waste can be broken down back to its raw materials and partly recycled back to FORCIT`s own production.
Safety and security
Safety is always our key priority. In 2022, we took several steps to further strengthen consciousness and safety culture at FORCIT and the accident frequency decreased by 53% in comparison to the previous year, to 3.3 in 2022.
A new program to improve safety practices and increase awareness of risks (Day With Operator) was initiated in Finland, involving 25 visits to production facilities and blasting sites from the sustainability team and CEO to observe safety issues in the organization. This initiative will be continued in the other Nordic countries in 2023.
The strong focus on security, on a wide front, ranging from cyber security to physical security has been further increased.
Personnel
FORCIT Group’s personnel has continued to increase with growing operations and increased revenue. At the end of 2022, FORCIT had 544 employees.
During the year, a personnel survey was conducted throughout the Group to measure personnel engagement and satisfaction. The results improved further from the previous year and showed that the personnel’s engagement continues to be at a high level with eNPS index at 40.
After the pandemic, the new normal has become a hybrid solution where many of the white-collar workers work partly from home, in compliance with FORCIT Group’s policy on remote work. This seems to be appreciated by the employees, contributing to a healthy work-life balance.
Administration
Oy Forcit Ab’s Annual General Meeting on April 7, 2022, elected Alexander Tallberg as a new board member, besides the existing board members Lauri Stadigh, Tom Melbye, Hans Karlander, Pasi Tolppanen and Jarmo Lindberg. Lauri Stadigh has continued to be the chairperson of the board and Joakim Westerlund has continued as FORCIT’s CEO. The company’s auditors has been KPMG Oy Ab, with Christian Hällström as the auditor in charge, APA.
The Board of directors’ proposal for the allocation of profits
If the annual accounts are accepted, Oy Forcit Ab’s general meeting has at its disposal
| Disposition fund | 28 576 232,35 EUR |
| Reserve for invested unrestricted equity | 1 500 630,00 EUR |
| Profit for the financial period | 14 045 646,80 EUR |
| Total | 44 122 509,15 EUR |
The board of directors proposes that the funds be allocated as follows:
| Paid out to the shareholders as a dividend: | |
|---|---|
| 25 euro/share | 5 034 000,00 EUR |
| Disposition fund | 37 587 879,15 EUR |
| Reserve for invested unrestricted equity | 1 500 630,00 EUR |
| Total | 44 122 509,15 EUR |
No significant changes have occurred in the company’s financial position after the end of the financial year. The company’s liquidity is good, and the proposed allocation of profit does not compromise the company’s solvency.
Shares in the company
450 new shares were issued during 2021 as a part of the management long term incentive plan approved in the Extraordinary General Meeting held in November 2020. These shares were registered in 2022 and have right to a dividend.
The company has only one series of shares. Each share carries one vote at shareholder meetings and confers identical dividend rights.
| Number of shares | 2022 | 2021 |
|---|---|---|
| 201 360 | 200 910 |