Adapteo Q3 business review – stable profit development despite market slowdown
Adapteo, a leading modular space solution provider in Northern Europe, was listed on Nasdaq Stockholm in the beginning of the third quarter upon the demerger from Cramo. The company’s report for the third quarter shows a stable profit development in a slowing market hampering the company’s growth.
– We saw a stable profit development in the third quarter due to a lower market activity during the year, which impacted our growth. Our profit levels where kept by disciplined cost improvements. We maintained our already strong market position despite challenges in our main markets where specifically Sweden was impacted by the uncertain governmental situation in the beginning of the year and the municipalities desire to reduce short-term cost. The number of public tenders where on historically low levels, says Philip Isell Lind af Hageby, President and CEO for Adapteo. During the quarter, Adapteo expanded its presence in Business Area Permanent Space to the Norwegian market and continued its expansion in Finland. In Business Area Rental Space, a new modular solution for the German market was introduced – Adapteo.Hybrid. Adapteos’ total portfolio of rentable square metres exceeded one million during the quarter, with a stable and close to optimal utilisation rate of 85%. Now the work to develop the company’s offering, brand and organisation as a standalone company continues, as well as the integration of the acquired Nordic Modular Group with annual synergies of EUR three to four million to be realised in 2020.
– The low market activity we have seen during the year are now being expressed in lower revenues during the third quarter, with impact on quarters ahead. However, the needs in the public sector remains and our long-term view of the market development stays unchanged. An old and ageing building stock with substantial renovation needs, urbanization, demographic changes, growing number of pupils and enrolled children in day-care centres, a growing elderly population as well modular buildings become increasingly more appreciated in the private sector, says Philip Isell Lind af Hageby, President and CEO for Adapteo.
Read Adapteos Q3 Business Review: https://www.adapteogroup.com/files/PDF_Doc/2019/Adapteo-Q3-2019-EN.pdf
Adapteo’s telephone conference:
On 15 November 2019 at 11.00 CET Adapteo presents the periods result via a telephone conference. To participate in the conference, please use following telephone numbers and links:
Finland: +358981710523
Sweden: +46856642706
UK: +443333009264
Link to webcast: https://tv.streamfabriken.com/adapteo-q3-2019
For additional information, please contact
Timo Pirskanen
CFO, Adapteo Group
Mobile: +358 50 3154320
E-mail: timo.pirskanen@adapteo.com
Hanna Wennberg
SVP Marketing and Communication, Adapteo Group
Mobile: +46 76 256 10 62
E-mail: hanna.wennberg@adapteo.com
Adapteo in brief
Adapteo is a leading Northern European provider of modular space solutions. We operate in Sweden, Finland, Norway, Denmark and Germany. Adapteo is a new brand with over 30 years of experience, born from the acquisition of Nordic Modular Group and the demerger from Cramo. We offer premium modular space solutions to schools, daycare centers, offices, accommodation and events for temporary and permanent needs. In 2018, Adapteo’s pro forma net sales were EUR 221 million. Pro forma net sales include the modular space business of Cramo Plc and acquired Nordic Modular Group’s net sales for full year.
A changing society needs adaptable space. At Adapteo, we make sure everyone has the right kind of space, so that people can grow, and societies can move ahead. We create flexible modular spaces that are good for the planet and great for the future. Adapteo is listed on Nasdaq Stockholm.
Space to grow
