Profitable growth in Block Watne Gruppen
(Oslo 15 May 2007) Operating revenues for the 1st quarter 2007 amounted to NOK 400 million, up NOK 43 million (12.1 percent). EBIT was NOK 60 million, up NOK 10 million (20.9 percent). The EBIT margin rose from 13.9 percent in the 1st quarter 2006 to 15.0 percent. The order backlog at the end of the 1st quarter amounted to NOK 971 million, up 9.5 percent.
- The operating revenues, operating profit and margins for the 1st quarter 2007 confirm profitable growth. Sales are deferred for individual projects to obtain a better balance between the order backlog and production capacity. Block Watne Gruppen has in the previous periods strengthened its competence and capacity to meet the demand for new homes. The in-house production capacity has been increased with 68 carpenters and 17 project managers/building supervisors compared with the 1st quarter 2006. New orders, an increased order backlog and expanded production staff form a solid start for 2007, comments Lars Nilsen, CEO in Block Watne Gruppen.
On 23rd March 2007 Block Watne Gruppen entered into an agreement to acquire Prevesta AB (Myresjöhus and SmålandsVillan). The acquisition is expected to be completed by end of May 2007. The 1st quarter 2007 accounts for Prevesta show 10.4 percent increase in the operating revenues, 39.5 percent increase in new orders and 22 percent increase in the order backlog compared with the 1st quarter 2006. Operating margins have been strained in the period due to a scheduled closure of the production plants in Vrigstad and Sundsvall for planned alterations to a new technical platform. The planned refitting for the new technical production platform has been completed.
- We see the market prospects for Norway and Sweden as positive in our core business. The demand for detached/low-rise houses and flats outside city centres is expected to be on a par with 2006. New orders, the order backlog and strengthend production capacity will contribute to ensure stable turnover and profitable growth for the coming periods, comments Lars Nilsen.
Key figures 1st quarter 2007
- Operating revenues NOK 400 million (NOK 357 million). Growth 12.1 percent
- Operating profit (EBIT) NOK 60 million (NOK 50 million). Growth 20.9 percent
- EBIT margin 15.0 percent (13.9 percent)
- Profit before tax (EBT) NOK 52 million (NOK 44 million). Growth 19.4 percent
- EBT margin 13.0 percent (12.2 percent)
- New orders NOK 423 million (NOK 454 million). Down 6.7 percent
- Order backlog NOK 971 million (887 million). Growth 9.5 percent
For more details, see the attached interim report.
Further information from:
Lars Nilsen, president and CEO, Block Watne Gruppen ASA, tel: +47 23 24 60 00
Ketil Kvalvik, chief financial officer, Block Watne Gruppen ASA, tel: +47 23 24 60 42, +47 90 77 13 15