Multiconsult positioned for new growth opportunities
Today, Multiconsult presents its update to the capital markets, announcing a step-up in its growth strategy towards 2020. The updated ambitions for 2020 represent a growth to NOK 6 billion in revenue while maintaining a 10% EBIT margin over the cycle. A balance between acquisitions and organic growth will be supported by a robust financial capacity to drive the growth.
Multiconsult has delivered strong growth and become an engineering and architectural powerhouse with a flexible business model and strong and long-standing customer relationships. The company has a proven track record of developing and growing the business. The IPO in May 2015 was an important step towards enabling the company for future growth. Multiconsult is on track to deliver on the 3-2-1 strategy ambitions for 2017, presented at the IPO in 2015. Today, the company presents updated ambitions and key strategic priorities towards 2020.
The updated strategy is focusing on six key priorities:
- Develop a multidisciplinary business in Sweden
- Stepwise international build-up in renewable energy
- Establish a leading position within health buildings in Scandinavia
- Capture a leading position within urbanism in Scandinavia
- Scandinavian market leader in digitalisation
- One Multiconsult – Stronger organisation built by a shared, distinct culture
“I am pleased to see that we are on track to deliver on the profitable growth ambitions for 2017. We are now in a position to exploit growth opportunities outside Norway. I believe that we possess the right tools to expand internationally and we are stepping up and intensifying our ambitions”, says CEO of Multiconsult, Christian Nørgaard Madsen.
An expansion of the multidisciplinary business in Sweden will primarily be realised by acquisitions. Multiconsult will leverage on the similarity in engineering standards and customer demand between Norway, which is the home market, and Sweden. LINK arkitektur’s strong presence in Sweden will be an advantage and solidify the expansion further.
A stepwise build-up of renewable energy will mostly be realised through acquisitions with focus in South-East Asia and East Africa. Multiconsult will leverage on its long history and hydropower expertise since 1908.
The company will take advantage of the growing market and significant investments within health buildings in Scandinavia and combine architectural and engineering efforts to succeed capturing a leading position.
Multiconsult is already in the urbanism market with its “Urban LINK” initiative and will utilise the combined efforts of architects, engineers and analysis to succeed capturing a leading position in Urbanism in Scandinavia.
Within digitalisation, Multiconsult will focus on the growing customer demand for increased efficiency through innovative solutions and become a market leader.
The organic growth will come from continued strengthening of expertise in the Multidisciplinary business in Norway, especially within Buildings & Properties and Transportation & Infrastructure.
The ability to realize the growth and profitability ambitions rests on the operational excellence in sales processes, project execution and client relations. “One Multiconsult” is an internal strategic project with the intention to strengthen the organisation and build a shared, distinct and enabling corporate culture.
Multiconsult comes from a period with strong financial performance. In order to secure a robust financial capacity to realise intensified growth, Multiconsult has expanded the financial policy, which now allows the company to include long-term debt of 1.5 times the NIBD/EBITDA (Net interest bearing debt/Earnings before interest tax depreciation and amortisation).
The accelerated growth strategy will not affect the current dividend policy, which implies a dividend ambition equaling 50% of net income.
For further information, please contact:
Mirza Koristovic, Head of Investor Relations
P hone: +47 93 87 05 25
Gaute Christensen, VP Communications
Phone: +47 911 70 188
ABOUT MULTICONSULT ASA
Multiconsult is a leading Norwegian multidisciplinary engineering consulting company, with more than 2 200 employees and 45 offices in Norway and abroad. The Company focuses on seven market areas: Buildings & Properties, Transport & Infrastructure, Energy, Oil & Gas, Industry, Environment & Natural resources and Architecture. The Company has an operating history that spans more than a century, with the inception of Norsk Vandbygningskontor in 1908. In 2015 Multiconsult completed more than 9 000 projects for approx. 4 000 different customers.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.