Detection Technology contemplates IPO and stock market listing

Global X-ray imaging products maker Detection Technology is considering a 20 million Initial Public Offering followed with a possible First North Helsinki listing. The IPO proceeds would be used to finance further growth and business development. Existing shareholders would also sell some of their holdings. The largest shareholder with a 71% share is Oy G.W.Sohlberg Ab, a Finnish family holding company which is also a major shareholder in Glaston (HEL: GLA1V) and Staffpoint. Institutions such as Bocap SME Achievers Fund and Veritas Pension Insurance hold about 15% and key personnel hold about 14% of shares.

For the past five years, the company has shown around 30% annual sales growth. That same pace continued in 2014, with sales reaching 33 million Euros. Operating profit is expected to print a hair under 3 million for a margin of 9% (comparable margin 12%). Operating profit in 2013 was 3.8 million and in 2012 it was some 3.3 million Euros. Net results for those years were 2.7 million and 1.0 million (including a 1.1 million extraordinary item). Debt maturities run currently to the end of 2016.

Company's products are used in medical technology, security and industrial solutions. Medical applications counted for 38% of 2014 sales with the remainder going to the other business area security & industrial. Key competences are technological, long-term customer relations where the firm has maintained preferred supplier status and specific market knowledge in Asia The percentage of Asia in total sales has constantly grown and last year over half of Detection Technology's revenues came from that region. Europe's share stayed at about one fifth whereas North-America came down to a similar number from over 30% a year before.

The Espoo-based company was founded in 1991 and has offices & production sites in Espoo, Oulu, Beijing, Hong Kong and Boston. In total it employs around 280 people. The firm has close to 150 active customers in 38 counties. Nordea (OMX: NDA, OMXH: NDA1V) is the company advisor and would be the lead manager of the IPO.