Financial update: Preliminary EBITA* of NOK 151 million for 2022
NRC Group ASA ("NRC Group" or the "Company") announces preliminary EBITA* of NOK 31 million for the fourth quarter of 2022 and NOK 1.95 billion in revenue. The estimated EBITA* for 2022 is NOK 151 million, resulting in an EBITA* margin of 2.1% for 2022, and the estimated revenue for 2022 is NOK 7.0 billion.
NRC Group Sweden’s preliminary EBITA* for 2022 is NOK -49 million compared to NOK -67 million in 2021. The negative result is due to losses in the Civil construction operations. In 2022, Civil construction had a revenue of approximately NOK 358 million out of a total NOK 2.08 billion of revenue in Sweden. The Company has decided to explore strategic options for the Civil construction operations in Sweden.
“The Swedish Rail construction division improved during 2022, with strong growth in revenue and a positive EBITA* for the year. We have also succeeded in improving results in Maintenance, contributing to positive EBITA* results – and winning 4 maintenance contracts, providing a solid outlook for this business. However, with the losses in Civil we are not able to deliver satisfactory results in Sweden in total. As a consequence, we will do a strategic review of the Civil operations and implement necessary actions to secure profitability in Sweden”, says Henning Olsen, CEO of NRC Group.
Restoring profitability in Sweden is the main priority for the Group. Henning Olsen has assumed the duties of the Managing Director in Sweden, as Robert Röder resigned as EVP and Managing Director for Sweden. Ole Anton Gulsvik, CFO of NRC Group, has assumed the duties of the Head of Finance in Sweden.
The development in NRC Group’s operations in Finland and Norway is according to plan. Finland continues to deliver strong results with a preliminary EBITA* of NOK 155 million corresponding to an EBITA* margin of 6.0%. The positive development in Norway continues with a preliminary EBITA* of NOK 80 million, representing an EBITA* margin of 3.4%.
The Company expects non-cash impairment charges of NOK 370 million in the fourth quarter, related to the Swedish business. NRC Group’s financial position remains solid with a cash position per 31 December 2022 of approximately NOK 472 million, net interest-bearing debt of NOK 950 million, and an equity ratio of 45%.
The market outlook for rail infrastructure investments is strong, and The Company’s medium-term targets and long-term ambitions remain unchanged.
The Company will provide further information regarding the 2023 outlook in connection with the fourth quarter 2022 report, scheduled for release on 21 February 2023 at 07:00 CET.
For further information, please contact: Henning Olsen, CEO of NRC Group, + 47 91 74 15 92.
This information is considered to be inside information pursuant to the EU Market Abuse Regulation, and is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.
The stock exchange announcement was published by Siri McKellar Nilsen, Administration, NRC Group ASA.
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Alternative performance measures and definitions:
EBITA
Operating profit plus amortisations on intangible assets, including intangible assets such as customer relations and order backlog accounted for as part of the purchase price allocation under business combinations and IT software investments.
EBITA*
EBITA plus other income and expenses.
EBITA* margin
EBITA* in relation to operating revenues.
Other income and expenses
Other income and expenses consist of M&A expenses, subsequent adjustment of contingent considerations or other subsequent adjustments of final purchase price allocation in business combinations that are recognised in profit or loss.
Net interest-bearing debt
Interest-bearing liabilities minus cash and cash equivalents.
Equity ratio
Total equity in relation to total assets.