CEO'S REVIEW 2H/2020
An exceptional year
This year, the operating environment has been exceptional and challenging, no matter how you look at it. With the current COVID-19 pandemic, society, people and companies have faced new challenges.
At Rolan, too, the arrival of the COVID-19 virus hit us hard across all business sectors. The worst impact of the first wave of the epidemic left its mark on the April-June business quarter, when revenue fell sharply by 37% compared to the previous period. The effects of the second wave are certainly visible in the business, but we were spared the worst repercussions of the crisis. Despite the challenges of the year, our turnover will increase by 50% at the end of the fiscal year.
The normalisation of the operating environment in mid-July accelerated our turnover recovering to healthier levels. People were once again brave enough to get outside and once again needed to be mobile, and along with this, Rolan's business also rose to a profitable level. It is estimated that the company will remain 32% behind the forecasted sales in July-December, but the business will be profitable in the second half of the financial year, with net sales growing by about 50% at the end of the fiscal year. While we will not quite meet our target and forecast, taking into consideration the challenges of the fiscal year, we must be pleased with the growth.
The result for the financial year will be negative for the first time in the company's ten years of operations.
We cannot be satisfied with the result, but given the challenges that the operating environment brought to the business, we must be realistically optimistic in regards to the work done during the financial year.
The seeds of the business planted in the midst of these challenges will bear fruit for a long time to come.
Progress amidst uncertainty
Rolan plays a key role as a provider of smart mobility services. In 2020, in spite of the uncertainty, we have developed new products and refined the ways we operate.
Electric scooters are only a small part of the major change underway, but they are a piece of the evolution that many of us see in our daily lives. The underlying digitalisation of services and ecosystems are a part the progress that we do not see so much in our everyday lives. When we take societies’ emission targets into account, as well, we have in our hands a change that will affect us all. Over the past year, we have focused on the environmental impact of our equipment. We have also tested and developed new technologies and applications. Improving brand recognition has also been a leading theme this year, examples of which can be seen with Rolan's bikes in Salo, Tampere and Pori.
At Rolan, our employees are also a company asset.
Without skilled staff, it is difficult for any business to operate. Challenges like those met this year in particular highlight the need for a comfortable working environment, as well as professional skills.
Over the course of 2020, almost 100 people have worked at Rolan in a variety of positions. We have striven to pay attention to safe working habits among our employees.
Fortunately, the company’s staff have taken the matter seriously and so far, we have survived with little impact. Thank you to our staff, both the supervisors and those working in the field.