Sitowise Group Plc 16 December 2025 Inside Information 7.45 p.m EET
As part of the annual financial reporting process, Sitowise tested the carrying
amounts of the Group's intangible assets and goodwill and the value of the
subsidiary shares recorded in the parent company's balance sheet. As a result of
the test, Sitowise will recognize an impairment of approximately 40 million
euros related to its Sweden business area in its fourth-quarter 2025 reporting.
The impairment will reduce the Group's goodwill and the value of Sitowise
Sverige AB shares in the parent company's balance sheet.
The impairment of the Group goodwill has no impact on the Group's adjusted EBITA
or cash flow. It will be reported in the income statement under “Depreciation,
amortization and impairment” and will affect the Group's fourth-quarter result.
The Group's goodwill was tested as one entity, and the impairment was allocated
to the Swedish operations due to their weakened future cash flow assumptions.
The net sales and profitability in the Sweden business area have been weak, and
the anticipated benefits from the 2024-2025 adjustment measures have been
delayed compared to earlier expectations, as described in Sitowise's recent
interim reports. The impaired goodwill originated from acquisitions carried out
between 2018 and 2022 in Sweden that have been included in Sitowise's Sweden
business area.
After the impairment, the carrying amount of Group goodwill will be
approximately 120 million euros, and it originates from Sitowise's Infra,
Buildings, and Digital Solutions businesses, which, as a whole, have been
performing well. As earlier, the goodwill will be tested as one entity.
In connection with the Group goodwill test, the value of the shares of
subsidiaries owned by the parent company Sitowise Group Plc was also reviewed.
As a result, the acquisition cost of Sitowise Sverige AB shares included in the
parent company's balance sheet was impaired by approximately 40 million euros,
which corresponds to about one-third of their acquisition cost in the 2024
financial statements. The impairment of subsidiary shares does not affect the
Group's figures but reduces the amount of distributable funds in the parent
company. Distributable funds remain at a good level after the impairment.
Further information:
Heikki Haasmaa, CEO, tel. +358 50 304 7765
Kim Strömberg, Interim CFO, tel. +358 40 707 6101
Sitowise in brief
Sitowise is a Nordic expert in the built environment and forestry with strong
focus on digitality. We provide design and consulting know-how to enable more
sustainable environment and smarter urban development as well as smooth
transportation. Sitowise offers services related to real estate and buildings,
infrastructure, and digital solutions both in Finland and in Sweden. Global
megatrends drive huge changes that require a re-evaluation of the smartness in
the built environment - therefore we have set our vision to be Redefining
Smartness in Cities. The Group's net sales were EUR 193 million in 2024 and the
company employs approximately 2,000 experts. Sitowise Group Plc is listed on
Nasdaq Helsinki under the trading symbol SITOWS.