REVENUE AND ORDER BOOK INCREASED AS PROFITABILITY WEAKENS
Destia Group Plc
STOCK EXCHANGE RELEASE
August 11, 2015 at 9.00 (CET +1)
This is a summary of the January-June 2015 interim report. The complete report with tables is attached to this release and available at www.destia.fi/en
Destia interim report for January−June 2015
REVENUE AND ORDER BOOK INCREASED AS PROFITABILITY WEAKENS
• Revenue increased by 5.8 per cent to MEUR 179.6 (169.7).
• Operating result fell short of the comparison period and was MEUR -3.7 (0.0).
• The order book developed positively in the first half of the year and was MEUR 821.4 (717.6). Growth in comparison to the corresponding period last year was 14.5 per cent.
• The MEUR 65 bond released to institutional investors by Destia Group Plc on 19 June 2014 was listed on the Helsinki Stock Exchange maintained by NASDAQ OMX Helsinki Oy on 17 June 2015.
• Occupational safety remained at an excellent level: the accident frequency was 6.8 (6.8).
• Destia’s revenue is forecasted to grow slightly but operating profit is forecasted to fall significantly from the previous year in 2015.
Market guidance for 2015 changed regarding the operating profit
• NEW MARKET GUIDANCE: Destia’s revenue is forecasted to grow slightly but operating profit is forecasted to fall significantly from the previous year in 2015.
• PREVIOUS MARKET GUIDANCE: Destia’s revenue is forecasted to grow slightly but operating profit is forecasted to fall short of the previous year in 2015.
Destia lowers its market guidance regarding the 2015 operating profit. The result was weakened by maintenance procedures caused by challenging weather conditions in winter in certain parts of Finland and by two large on-going failed projects.
| Destia Group | Destia subgroup | Destia Group | Destia subgroup | Destia Group | Destia subgroup | |||
| Group’s key figures (IFRS), MEUR | 4-6/2015 | 4-6/2014 | 1-6/2015 | 1-6/2014 | 7-12/2014 | 1-12/2014 | ||
| Revenue | 105.3 | 102.0 | 179.6 | 169.7 | 261.8 | 431.5 | ||
| Operating result | 1.1 | 4.0 | -3.7 | 0.0 | 12.5 | 15.1 | ||
| % of revenue | 1.1 | 3.9 | -2.0 | 0.0 | 4.8 | 3.5 | ||
| Result for the period | -0.1 | 2.9 | -4.7 | -0.4 | 5.5 | 10.5 | ||
| % of revenue | -0.1 | 2.8 | -2.6 | -0.2 | 2.1 | 2.4 | ||
| Return on investment, % | 6.9 | 21.1 | 9.2 | 20.9 | ||||
| Earnings per share, EUR | -1.8 | -58.6 | 68.6 | |||||
| Equity ratio, % | 28.2 | 47.8 | 29.4 | 34.3 | ||||
| Net gearing, % | 99.3 | -51.3 | 42.4 | -41.2 | ||||
| Average personnel | 1 474 | 1 501 | 1 502 | 1 502 | ||||
| Occupational accidents resulting in | ||||||||
| absence from work *) | 6.8 | 6.8 | 9.3 | 9.3 | ||||
| Order book at the end of period | 821.4 | 717.6 | 628.2 | 628.2 | ||||
| *) Occupational accidents of Destia´s own personnel per one million working hours | ||||||||
President & CEO Hannu Leinonen comments on the reporting period:
"Destia’s first half-year went moderately well in a challenging market situation. Whilst overall demand was at a relatively stable level, competition for projects continued to be fierce. Our revenue and order book increased during the reporting period. Our order book is clearly on a better level compared to the corresponding time of the previous year. During the reporting period, we concluded significant new contracts, both in our core businesses and in our focus areas of strategic growth.
The weakening of our profitability during the period was disappointing. The result for the corresponding period last year was improved by individual ongoing projects that were particularly successful. This spring, on the other hand, the result was encumbered by challenging weather conditions in winter in certain parts of Finland and by two large on-going failed projects. We are paying particular attention to risk management and profitability in projects from the tendering stage on in order to improve profitability.
I am satisfied that our occupational safety has remained at a good level. At Destia we have been investing in the improvement of occupational safety, and I am happy that this also shows in what we do in practice. In our business, an accident frequency of 6.8 is excellent."
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 will contract by one per cent this year, and growth will not be evident until next 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 for increasing 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, 10 August 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 2015
Destia will publish its interim report for January−September on 27 October 2015.
DISTRIBUTION:
NASDAQ OMX Helsinki
Key media
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
Tags: