CEO’s review

Viria started the year 2019 once again as a slightly transformed company. The data analytics company Aureolis Oy, which had been Viria’s associated company for eighteen months, became Viria’s subsidiary at the turn of the year and its result is now included in the consolidated financial statements for the first time. From an operational point of view, Aureolis was part of the Group already when it was an associated company but last year, cooperation has further intensified.

There was also another corporate acquisition during the first months of the year. With Spellpoint Ltd, Viria acquired identity and access management competence, which has become increasingly significant in ensuring companies’ cyber security as cloud services have become more common.

Even though we acquired new companies, the entire year’s revenue was slightly lower than in the previous year. This was no surprise as the combined revenue of the companies acquired is lower than that of AB Sappa, the subsidiary we sold in autumn 2018.

Furthermore, the early-year performance was impaired by some major customers cutting their digital development purchases. With successful sales efforts, this could be compensated with new customers in the summer and the autumn and the downturn was only a temporary one.

In the security business, organic growth remained good throughout the year and even accelerated during the last months of the year. The profitability development in the security business was good also during this financial period.

In several years, Viria’s result has been influenced by changes in the group structure and many non-recurring items, which weaken the comparability of profit performance. This was also true for 2019. In addition to the change in the group structure, the factor that had the biggest impact on comparability was the capital gains arising from the selling of DNA shares. On the other hand, the result was decreased by impairment in certain properties as well as by the amortisation of goodwill, resulting from the numerous corporate acquisitions carried out during the past few years.

Our operational profitability has not yet reached the desired level and we are continuously developing our operations to improve it. Nevertheless, the best way to improve profitability in the long term is growth, enabling us to reap the benefits of higher volumes.

During the year, we carried out an extensive strategy project, led by the Board of Directors, in which Viria’s mission and future were defined on the basis of various scenarios. It was great to see that the guidelines that we established a couple of years ago and that we have adhered to when building Viria have led us in the correct direction. They serve as a solid foundation for continuing Viria’s development.

Viria’s main mission is to build a better and safer tomorrow with the aid of data and smart technology. Our goal is strong growth that is based on the development of our offering and competence, driven by customer needs, and the cooperation among our business operations in sales and customer solution creation.

We have two strong business areas: Information Solutions and Security Solutions. Both are growing and performing well and have a solid position in their respective markets. What makes Viria special is the close cooperation among business operations and the resulting shared solutions. The data accumulated from security solutions can also be used by refining it for use in business operations. Examples of shared solutions include, for instance, the property occupancy rate and user comfort analytics that utilises cameras or motion sensors as well as the user-driven renewal of the security management system.

Another year has passed by very quickly. Although we slowed down the pace of high-profile changes, such as corporate acquisitions, an enormous amount of work has been done to serve our customers and develop our operations. Surveys have shown that our customers’ satisfaction is at a very high level. For this, I would like to thank our skilled and committed personnel – thank you! Our goal is to turn this into an unparalleled competitive advantage for Viria. I would also like to thank all our customers for their cooperation and all our shareholders for being so committed to Viria’s development.