General
FORCIT Group operates three business units: FORCIT Explosives operates the civil explosives business, as well as software related to drill and blast; FORCIT Defence is oriented towards the armed forces and manufacturers of defence materials; and FORCIT Consulting provides measurement, monitoring, consulting and training services. 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 financial development of the company in 2023 was broadly in line with the previous year. The overall European economic development and the challenging construction market in our core geographical areas of operation resulted in a demanding business environment.
The partial normalisation of key raw material prices after the high peak in 2022, combined with the devaluation of the Swedish and Norwegian currencies versus the euro, implied a decrease in the company’s reported turnover.
The key figures below describe the development during the recent financial years. Group level operating profit was stable in 2023 compared with 2022.
| The Group | 2023 | 2022 | 2021 |
|---|---|---|---|
| Net Sales, million Euro | 214.3 | 228.3 | 150.5 |
| Operating profit, million Euro | 26.6 | 26.9 | 8.6 |
| Operating profit as % of net sales | 12.4 | 11.8 | 5.7 |
| Return on equity (%) | 30.5 | 41.3 | 14.2 |
| Solidity % | 55.1 | 48.0 | 44.1 |
| Average number of employees | 553 | 533 | 499 |
| Salaries & renumeration, million Euro | 34.2 | 32.5 | 29.1 |
| The Parent company | 2023 | 2022 | 2021 |
|---|---|---|---|
| Net Sales, million Euro | 109.8 | 112.7 | 72.0 |
| Operating profit, million Euro | 13.6 | 13.6 | 3.3 |
| Operating profit as % of net sales | 12.3 | 12.1 | 4.6 |
| Return on equity (%) | 25.5 | 26.7 | 14.9 |
| Solidity % | 49.3 | 49.2 | 48.8 |
| Average number of employees | 288 | 265 | 250 |
| Salaries & renumeration, million Euro | 18.6 | 16.4 | 15.3 |
Sustainability
Environment
During 2023, the company progressed on its plan to reach CO2 neutrality in its operations by 2035 and carried out a large number of investments and improvements in line with this goal. Furthermore, the company took into use a new dedicated software to collect, analyse and report environmental and sustainability data. R&D work connected to sustainability focused on the recycling of emulsion components, evaluating greener raw materials, and the further development of a nitrogen-free product range with high focus on securing the occupational safety aspects of a new explosives product.
Safety and security
Safety is always FORCIT´s key priority. In 2023, the company continued to strengthen its safety culture, and the accident frequency (LTIF) decreased by 5% in comparison to the previous year. The 2023 LTIF was 3.1. Moreover, the company continued developing its security policies and procedures, both related to cyber and physical security.
Personnel
FORCIT Group’s personnel continued to increase along with growing operations. At the end of 2023, FORCIT had 590 employees. The sick absence rate remained on a low level and was 3.2% in 2023.
During the year, a personnel survey was conducted throughout the Group to measure personnel engagement and satisfaction. The results remained high and showed that the personnel’s engagement continues to be at a very good level with eNPS index at 40.
Administration
At Oy Forcit Ab’s Annual General Meeting on April 4, 2023 Edoardo Santamaria was elected as a new board member and the re-elected board members were Hans Karlander, Jarmo Lindberg, Lauri Stadigh, Alexander Tallberg, and Pasi Tolppanen. Jarmo Lindberg resigned from his position as board member on April 6, 2023. Lauri Stadigh has continued as the chairperson of the board and Joakim Westerlund has continued as FORCIT Group’s CEO. The company’s auditors have been KPMG Oy Ab, with Christian Hällström as the auditor in charge, CGR.
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 | 37,587,879.15 EUR |
| Reserve for invested unrestricted equity | 1,500,630.00 EUR |
| Profit for the financial period | 23,069,267.47 EUR |
| Total | 62,157,776.62 EUR |
The board of directors proposes that the funds be allocated as follows:
| Paid out to the shareholders as a dividend: | |
|---|---|
| 35 euro/share | 7,047,600.00 EUR |
| Disposition fund | 53,609,546.62 EUR |
| Reserve for invested unrestricted equity | 1,500,630.00 EUR |
| Total | 62,157,776.62 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
The company has only one series of shares. Each share carries one vote at shareholder meetings and confers identical dividend rights.
| Number of shares | 2023 | 2022 |
|---|---|---|
| 201,360 | 201,360 |
The company still has a valid authorization to issue new shares.
Loans to related parties
The company has granted loans to group companies. The total amount of the loans are 318,039.60 euros and the loan period is a maximum 5 years. The loans are repaid in even instalments and the interest is paid in conjunction with the loan instalment. The interest on the loans is mainly linked to fixed interest or calculated interest. The loans do not have collateral.