NRC Group - Report for first quarter 2016 results
HIGHLIGHTS
- Strong organic growth - revenues improved by 106 per cent compared to Q1 2015
- Record high order backlog of NOK 1,863 million (NOK 761 million) - improved by 144 per cent compared to Q1 2015
- First ISO certified railway construction company in Norway
- Divestment of Blom Nordic and acquisition of Railcap to increase focus on rail infrastructure
KEY FIGURES Q1 2016
- Revenues of NOK 356.1 million (NOK 172.5 million)
- EBITDA of NOK 5.1 million (NOK -5.0 million)
- EBITA of NOK -0.1 million (NOK -8.9 million)
MAJOR CONTRACT AWARDS
- SEK 159 million contract appointed by Trafikverket for track renewal
- SEK 117 million contract appointed by Trafikverket for track and switch renewal
- SEK 73 million contract by Trafikverket for changing rails
- SEK 115 million contract by Trafikverket for groundwork, track, electro and signal work
- NOK 65 million contract by Sporveien for groundwork, track, electro and signal work
- NOK 40 million contract by Jernbaneverket for preparatory ballast cleaning
COMMENTS ON FIRST QUARTER 2016
NRC Group delivered strong revenue and order book growth in the first quarter of 2016. The integration of the Swedish companies acquired in the second half of 2015 have so far been successful.
To increase our market share we will continue to build on our good entrepreneurial culture and strength as a full service rail specialist.
After the end of the first quarter, we acquired the Norwegian company Railcap. The acquisition will significantly strengthen our signalling resources, and will enable us to undertake larger projects going
forward. Railcap will further be a key resource for NRC Group in Norway as part of the extensive European Rail Traffic Management System (ERTMS) roll-out, which is expected to be completed within 2030. The coming ERTMS project will be the largest signal project ever undertaken in Norway, with an estimated investment frame of NOK 12bn and up to NOK 30bn including associated work.
In March, NRC group entered into an agreement to divest its Geo business in Norway, Sweden and Finland to Terratec AS.
The NRC Group's Rail division became the first ISO certificated railway constructor in Norway. All policies, practices and procedures of NRC Rail AS were reviewed as part of this process. This further ensures consistent quality and secures reliability, availability, safety and efficiency in the services we provide.
We have a positive outlook for 2016. Based on the momentum achieved in the first quarter, expected market growth and strong order book, we are confident we are well positioned for 2016 and the future.
The financial report and the presentation document will be made available under the company's ticker "NRC" on www.newsweb.no and on the company's homepage: www.nrcgroup.no.
For further information, please contact Dag Fladby, Chief Financial Officer, NRC Group ASA on tel: +47 90 89 19 35.
ABOUT NRC GROUP ASA:
NRC Group is a leading company within the Nordic infrastructure market. The group operates within two business segments, Rail and Geo.
RAIL: The Rail division is a fully integrated rail infrastructure contractor covering the Norwegian and Swedish markets. The Rail division is a full-range supplier for the construction of all types of rails including train, tram and subway. Main service offerings include groundwork, specialized track work, power supply and signalling work. The Rail division has all the necessary approvals to work within the train, tram and subway segments.
GEO: The Geo division operates within acquisition, processing and modelling of geographic information. The Geo division supplies a wide range of mapping and geographic services that satisfy various standards and specifications, in addition to customized client solutions.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.