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Weaker results in Block Watne, improvements in Swedish operations in Q4 2013

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BWG Homes Group operating revenues for Q4 2013 amounted to NOK 1 036 million, an increase of 7.8 per cent when compared to Q4 2012. Operational EBITDA for the quarter was NOK 107 million, down by 26.6 per cent. Operational EBITDA margin for the quarter was 10.3 per cent (15.2 per cent), and operational EBIT margin was 10.0 per cent (15.2 per cent). 

The order backlog at the end of 2013 was NOK 1 675 million, up NOK 221 million when compared to the end of 2012. This is mainly due to an increased order backlog for BWG Homes AB and the consolidated order backlog for Kärnhem.

Cash flow from operations for the quarter was negative at NOK 102 million against negative NOK 30 million in Q4 2012. The negative cash flow from operations meant that net interest-bearing debt increased by NOK 118 million from the previous quarter.

In November a new bond issue of NOK 350 million was completed.  

“Operational earnings for the 4th quarter were affected by weaker sales for Block Watne combined with a levelling off in unit prices and increased production costs. BWG Homes AB (Myresjöhus and SmålandsVillan) continues the trend from Q3 2013 showing growth in results, sales and margins. Kärnhem as well achieved positive growth. The improvement in the Swedish housing market was largely behind the increase in the order intake, which rose by 19.0% to NOK 951 million. For 2013 as a whole, the Group reports historically high revenues and a strong order intake”, comments Ole Feet, CEO in BWG Homes ASA.

“In Norway, growth in house prices and the sales rate have levelled off in recent months, and appear to be stabilising at more normal levels. Block Watne is adapting its operations to the market situation and is prioritising less complex and more affordable housing with a shorter completion time. There is a strong focus on reducing tied-up capital and achieving a positive cash flow, among other factors by sale of completed homes”.

“The Swedish housing market showed a positive development through 2013. Residential projects and products adapted to housing cooperatives (BRF) are expected to have a positive effect on volumes and earnings for BWG Homes AB. In the second half of 2013, the company commenced sales in six housing cooperative projects, which have been well received in the market, and production of the first projects has started in the 1st quarter of 2014. Kärnhem has shown good growth and a higher level of activity than previously planned. With a large number of projects for sale and in production, Kärnhem is well positioned for 2014”, Ole Feet comments further.

Dividend for the 2013 financial year

The Board will propose to the Annual General Meeting that a dividend of NOK 0.25 per share be paid for the 2013 financial year. The total dividend will amount to NOK 34 million. The Board has decided to deviate from the previously announced dividend level corresponding to at least 50% of profit after tax, and instead prioritize down-payment of debt.

Key operational figures Q4 2013*:

  • Operating revenues: NOK 1 036 million (NOK 961 million)
  • Operational EBITDA: NOK 107 million (NOK146 million)
  • Operational EBITDA-margin: 10.3 % (15.2 %)
  • Operational EBIT: NOK 104 million (NOK 146 million)
  • Operational EBIT margin: 10.0 % (15.2 %)
  • Cash flows from operations after interest and tax: NOK -102 million (NOK -30 million)
  • Order intake: NOK 951 million (NOK 800 million)
  • Order backlog: NOK 1 675 million (NOK 1 455 million)
  • Units in production: 1 266 (1 220)
  • Units sold: 406 (310)
  • Units delivered: 458 (367)
  • Unsold completed units: 131 (107)

Key operational figures for 2013*:

  • Operating revenues: NOK 3 926 million (NOK 3 483 million)
  • Operational EBITDA: NOK 458 million (NOK 457 million)
  • Operational EBITDA margin: 11.7 % (13.1 %)
  • Operational EBIT: NOK 441 million (NOK 446 million)
  • Operational EBIT margin: 11.2 % (12.8 %)
  • Cash flows from operations after interest and tax: NOK -279 million (NOK -281 million)
  • Order intake: NOK 3 941 million (NOK 3 374 million)
  • Units sold: 1 610 (1 356)
  • Units delivered: 1 576 (1 381)

* The operational figures are based on the internal management reports which differ somewhat from the consolidated accounts; see note 1 in the interim report. The figures include Kärnhem AB with effect from May 2013.

For the consolidated income statement (IFRS), reference is made to page 11 in the interim report. For more details, see the attached interim report.

Further information from:

Ole Feet, CEO, tel: +47 900 91 230

Arnt Eriksen, CFO, tel: +47 922 14 625

BWG Homes develops, sells and constructs residential homes in the Nordic region. The brands owned by the Group are Block Watne and Hetlandhus in Norway, Kärnhem, Myresjöhus and SmålandsVillan in Sweden. Ranked as a leading residential house builder in its markets, the Group annually completes approx. 2 000 new homes through own residential projects and for individual customers. BWG Homes has 1 040 employees. In 2013 the turnover was NOK 3.9 billion. More information about the Group at www.bwghomes.no/en

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