Lehto Group Plc: Lehto declines its financial outlook for the year 2019
Lehto Group Plc
Stock exchange release
9 May 2019 at 07.00 a.m.
Lehto estimates that the Group’s net sales for 2019 will be at level of 2018 (EUR 721.5 million in 2018) and that operating profit will be 2–6% of net sales (5.2% in 2018).
The decrease in the estimated operating profit is due to further decreased project margins in complete renovation, costs related to starting business in Sweden and the loss of the first day care center project in Sweden, and the weakening of the margins of care home and business premises projects and delays in launching new projects.
The outlook is based on the information on the progress of ongoing construction projects and the company’s estimate of construction projects to be started and sold in 2019, and the development of the apartment sales markets.
The main risks associated with the development of net sales and operating profit are related to decrease in apartment sales, delays in care home and school projects as well as delays in negotiations of business premises projects.
The previous outlook, published on 12th February 2019 in financial statement bulletin, was as follows:
Lehto estimates that the Group’s net sales for 2019 will be at level of 2018 (EUR 721.5 million in 2018) and that operating profit will be approximately 5–7% of net sales (5.2% in 2018).
Chief Financial Officer
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Lehto Group PLC:
Lehto is fast growing construction and real estate group. We operate in four service areas: Business Premises, Housing and Social Care and Educational Premises. We are the innovator and pioneer of the construction sector. Our economically driven operating model makes construction more profitable, ensures the quality of construction and brings significant time and cost savings to the customer. We employed around 1,500 people. Our net sales for 2018 amounted to EUR 721.5 million.