REVENUE AND ORDER BOOK INCREASE, PROFITABILITY WEAKER THAN THE PREVIOUS YEAR
Destia Group Plc
STOCK EXCHANGE RELEASE
October 27, 2015 at 3:00 pm (CET +1)
This is a summary of the January-September 2015 interim report. The complete report with tables is attached to this release and available at www.destia.fi/en.
Destia’s interim report for January−September 2015
REVENUE AND ORDER BOOK INCREASE, PROFITABILITY WEAKER THAN THE PREVIOUS YEAR
• Revenue increased by 8.4 per cent to MEUR 331.8 (306.0).
• The operating result was MEUR 7.9 (11.4).
• The order book developed positively and was MEUR 753.0 (658.7). Growth in reference to the corresponding period last year was 14.3 per cent.
• During the reporting period, working capital increased clearly as accounts receivable increased.
• Occupational safety continued to improve and was clearly on a better level compared to the corresponding time of the previous year: 7.1 (9.8).
• Destia’s revenue is forecasted to grow slightly but operating profit is forecasted to fall significantly from the previous year in 2015.
| Group | Destia Group | Destia Group | Destia Group | Destia subgroup | Destia Group | Destia subgroup |
| Key figures (IFRS), MEUR | 7-9/2015 | 7-9/2014 | 1-9/2015 | 1-9/2014 | 7-12/2014 | 1-12/2014 |
| Revenue | 152.2 | 136.3 | 331.8 | 306.0 | 261.8 | 431.5 |
| Operating profit | 11.5 | 9.3 | 7.9 | 11.4 | 12.5 | 15.1 |
| per cent of revenue | 7.6 | 6.9 | 2.4 | 3.7 | 4.8 | 3.5 |
| Result for the period | 8.3 | 3.4 | 3.6 | 7.8 | 5.5 | 10.5 |
| % of revenue | 5.5 | 2.5 | 1.1 | 2.5 | 2.1 | 2.4 |
| Return on investment, % | 8.3 | 22.4 | 9.2 | 20.9 | ||
| Earnings per share, EUR | 104.09 | 42.49 | 45.46 | 68.59 | ||
| Equity ratio, % | 28.3 | 33.0 | 29.4 | 34.3 | ||
| Net gearing, % | 86.0 | -4.0 | 42.4 | -41.2 | ||
| Average personnel | 1,505 | 1,520 | 1,502 | 1,502 | ||
| Occupational accidents resulting in absence from work*) | 7.1 | 9.8 | 9.3 | 9.3 | ||
| Order book at the end of period | 753.0 | 658.7 | 628.2 | 628.2 | ||
| *) Occupational accidents per one million working hours |
President & CEO Hannu Leinonen comments on the reporting period:
“I am satisfied with the growth in our order book and revenue throughout the reporting period despite the challenging market situation. Our order book in particular has developed quite positively despite the competitive situation with new contracts that continues to be fierce.
In the previous quarter, we had to lower our profit forecast. Our operating result in the third quarter, however, was slightly better than the corresponding period of the previous year. In the reporting period, our profitability was weakened particularly by some individual unsuccessful projects. In order to improve profitability, we are continuing to focus particularly on risk management and profitability monitoring throughout the project life-cycle.
In accordance with our strategy, we have succeeded in increasing the volume of private sector orders in our order book, which shows that the development of our customer and sales work has been fruitful. During the reporting period, we also concluded the apron extension contract at Helsinki Airport. It is Destia’s first project implemented based on the alliance model. In this project, which will be implemented in a particularly demanding working environment, we utilise our strong and diverse infrastructure expertise. The co-operative project will be a significant addition to the large project portfolio in our order book.
In the reporting period, we commissioned the annual personnel survey carried out by an external organisation, and I am very happy with the results, which continued to develop positively. The overall average of the survey of 3.81 on a scale of 1−5 was up from the previous year (3.79) and was higher than the average for similar companies. Our occupational safety level also improved and our accident frequency was at an excellent level (7.1). We are continuing our investment in personnel and occupational safety development in accordance with our strategy.”
Outlook for 2015
The operating environment for the infrastructure field and the whole construction sector remains challenging as uncertainty in the economy continues. The infrastructure market is declining this year. According to forecasts by different forecasting bodies, growth will be evident next year and the following year. In a challenging market situation, competition remains fierce. Demand is stable, but projects being tendered for are smaller in size than before.
Destia’s order book, which is at a better level compared to the corresponding time of the previous year, and the measures taken to improve customer work and project management provide a solid foundation for the positive improvement of revenue. Destia is paying particular attention to measures to increase profitability.
Market guidance for 2015
Destia’s revenue is forecasted to grow slightly but operating profit is forecasted to fall significantly from the previous year in 2015.
Vantaa, 27 October 2015
Destia Group Plc
Board of Directors
More information
President & CEO Hannu Leinonen, tel. +358 20 444 4000 and CFO Pirkko Salminen, tel. +358 50 302 2485
Financial reporting
Destia will publish its financial statements for 2015 on 11 February 2016.
Destia is a Finnish infrastructure and construction service company. We build, maintain and design traffic routes, industrial and traffic environments, as well as complete living environments. Our services cover the whole spectrum, from comprehensive overground operations to subterranean construction. In 2014 the revenue of the Destia Group was over €430 million. Destia employs about 1,500 people.
Destia – Building the Bigger Picture. www.destia.fi/en