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Sitowise’s Half-year Report January – June 2023: Solid growth in spite of mixed market environment

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Sitowise Group Plc, Half-year Report, 1 January - 30 June 2023, 16 August 2023 at 8:30 am EEST

This release is a summary of Sitowise Group Plc’s Half-Year Report January-June 2023. The complete report is attached to this release as a PDF file, and also available on the company’s website at www.sitowise.com/investors/reports-and-presentations

April – June in brief

  • Net sales increased by 9% to EUR 56.5 (51.7) million. In constant currency net sales growth was 11%.
  • Organic net sales grew by 5% (4%).
  • Adjusted EBITA was EUR 4.5 (4.9) million, or 8.0% (9.5%) of net sales.
  • Operating profit increased to EUR 3.6 (2.7) million, or 6.4% (5.2%) of net sales.
  • Sitowise acquired the Finnish company Infrasuunnittelu Oy, which strengthened the Group's expertise especially in infrastructure services offered to the mining industry.
  • The personnel survey conducted in May indicated that a good working atmosphere, good supervisory work and equal treatment continue to be Sitowise's key strengths as an employer. The willingness to recommend Sitowise as an employer (Employee Net Promoter Score, eNPS) was good, being 18.

January – June in brief

  • Net sales increased by 11% to EUR 112.5 (100.9) million. In constant currency net sales growth was 13%.
  • Organic net sales grew by 5% (5%).
  • Adjusted EBITA was EUR 11.1 (10.1) million, or 9.9% (10.1%) of net sales.
  • Operating profit improved clearly to EUR 9.1 (5.6) million, or 8.1% (5.6%) of net sales, thanks to lower items affecting comparability.
  • The order book increased by 4% to EUR 175 (169) million and was at the level of the previous quarter.
  • Leverage (net debt / adjusted EBITDA) decreased to 2.4x (2.7x).
  • In the client survey conducted at the beginning of the year, the NPS (Net Promoter Score) totaled 32 (32) and 97% (94%) of respondents would re-select Sitowise as their supplier.
  • Sitowise published its new strategy for 20232025 in February with unchanged long-term financial targets.

The figures in the Half-year report are unaudited. Comparative figures for the corresponding period of the previous year are in brackets. The figures disclosed in the Half-year report are rounded so the sum of individual figures can deviate from the reported sum. This report has been published in Finnish and English. If there are any differences between the English translation and the original Finnish version, the Finnish report shall prevail.

EUR million 4-6
Change, % 1-6
Change, % 112
Net sales 56.5 51.7 9.1 % 112.5 100.9 11.5 % 204.4
EBITA, adjusted 4.5 4.9 -8.4 % 11.1 10.1 9.7 % 20.4
% of net sales 8.0 % 9.5 % 9.9 % 10.1 % 10.0 %
EBITA 4.4 3.3 32.6 % 10.6 6.8 55.4 % 16.1
Operating profit 3.6 2.7 33.6 % 9.1 5.6 61.5 % 13.2
Result for the period 2.2 1.6 38.9 % 5.6 2.7 109.6 % 7.9
Cash flow from operating activities before financial items and taxes 9.6 2.1 366.1 % 15.2 9.0 69.2 % 22.7
Net debt 55.1 58.2 -5.3 % 56.6
Net debt / EBITDA, adjusted 2.4x 2.7x -8.4 % 2.6x
Equity ratio, % 42.5 % 42.9 % 41.6 %
Earnings per share (EPS), EUR 0.06 0.04 44.3 % 0.16 0.07 113.5 % 0.22
Number of personnel, average 2,231 2,115 5.5 % 2,229 2,080 7.2 % 2,151

CEO Heikki Haasmaa: We continue our strategy execution and determined actions to improve our profitability

Sitowise's net sales increased by 9 percent (11 percent in constant currency) year-on-year to EUR 56.5 million in Q2. The growth was supported by the strong performance in Infra and Digital Solutions business areas. Moreover, our operations in Sweden showed healthy growth. Net sales in the Buildings business area, on the other hand, were down due to the difficult market environment in the Finnish construction industry. Our Q2 growth was further slowed down by the lower number of working days (-1) year-on-year. Organic growth was 5 percent, which we consider a very good achievement considering the headwind in Buildings.

Adjusted EBITA decreased in Q2 and totaled 4.5 million euros corresponding to an 8 percent adjusted EBITA margin. This adverse development was due especially to the continued deterioration of the underlying market in the Buildings business area and the negative calendar effects (-1). The difference to the preceding strong Q1 is due to the positive calendar effects in Q1, and the fact agreed salary increases came into effect in April. Our operating profit and cash flow increased clearly, leading to a decline in net debt and leverage both year-on-year and compared to Q1.

In the first half of 2023 we were able to balance salary increases with various sales and pricing initiatives and have successfully mitigated other cost increases with efficiency measures. The current market environment continues to require determined measures to enable us to achieve our growth and profitability targets. These measures include successful transfer of cost increases to client prices, proactive and meaningfully targeted sales efforts as a part of our new sales model, overall cost containment and ensuring high utilization rate. In the Buildings business area, we will take additional actions to improve our competitiveness and profitability. We will re-evaluate our Buildings organization and its operating models and aim for a leaner and more agile organization that will support efficient project and client work. Related to these plans, we have initiated change negotiations in our Buildings business area today.

Apart from the Buildings business area, our operating environment remained reasonably good in Q2. However, the uncertainty related to the general economic development in Finland and Sweden increased and was reflected in our tender pipeline as a lower number of bigger projects than earlier and as tightened price competition. At the same time, the demand for services related to the green transition and digital solutions, including SaaS, has been strong. The Group's order book remained at a healthy level and totaled 175 million euros at the end of June.

The long-term outlook for technical consulting is favorable. We believe that society’s ambitious climate and biodiversity targets will continue to create more demand for bold and creative solutions. In all of our four business areas the key growth drivers are, among others, projects related to the green transition, renovation backlog, digitization of the industry, and security. In addition, we estimate that the digitalization and infrastructure-related goals included in Finland's new government program will have a positive effect on our business in the next few years. This preliminary view will be refined in the fall following the country’s governmental budget negotiations.

Our more than 2,200 experts are developing sustainable ways to overcome the challenges of tomorrow. We want to support our clients through the ongoing transition and to be the most innovative, sustainable, and efficient operator in our field. To succeed in this, having the right talents working for Sitowise and in our client projects is central, and culture is a key element in attracting talents to Sitowise and in keeping them in our service. I am pleased to see that, based on our most recent personnel survey, a good working atmosphere, good supervisory work and equal treatment continue to be our key strengths as an employer.


Outlook for the year 2023

The stable long-term growth in the demand for design and consulting services to create sustainable societies is supported by megatrends such as urbanization, renovation backlog, sustainability, digitalization and security.

The uncertainty in the market brought by the Russian invasion to Ukraine, increasing interest rates and inflationary pressures continues to affect the short-term decision-making of Sitowise’s clients. That said, the effects on Sitowise’s technical consulting business have remained more limited than on the broader construction industry, which is one of Sitowise’s key client segments. During the second quarter of 2023, Sitowise’s order book remained at a good level.

The outlook for the rest of the year in the Buildings business area is weak, and we expect the challenges to continue also in 2024. In other business areas we see both areas of stronger and weaker demand, but as a whole, the outlook for Infra, Digi and Sweden business areas remains good.

In addition to the market development, cost inflation (e.g. relating to salary increases), a lower number of working days in Q3 and Q4 2023 than in the previous year, potential currency fluctuations (EUR/SEK) and higher interest expenses are expected to put pressure on Sitowise’s financial performance during the rest of 2023.

Guidance (unchanged, issued on 28 February 2023)

Sitowise Group estimates that its net sales in year 2023 in euros will increase compared to 2022, and that its adjusted EBITA margin (%) will be broadly at the same level as the adjusted EBITA margin of 2022.

Long-term financial targets

The Board of Directors of Sitowise Group has set the following long-term financial targets:

  • Growth: Annual growth in net sales of more than 10 percent, including acquisitions
  • Profitability: Adjusted EBITA margin of at least 12 percent
  • Leverage: Net debt / adjusted EBITDA should not exceed 2.5x, except temporarily in conjunction with acquisitions

According to its dividend policy, Sitowise’s objective is to pay annually a dividend corresponding to 30–50 percent of net profit to its shareholders.  When distributing a possible dividend, business acquisitions, the company’s financial situation, cash flow and future growth opportunities are taken into account.


On 3 August 2023, Timo Räikkönen was appointed as Executive Vice President for Buildings business area and member of Sitowise’s Group Management Team. He joins Sitowise from the position of Executive Vice President of Destia's Urban Development and Design Services and will start in his position in February 2024 at the latest.

Espoo, 16 August 2023

Sitowise Group Plc

Board of Directors

Additional information

Heikki Haasmaa, CEO, heikki.haasmaa@sitowise.com, tel. +358 50 304 7765
Hanna Masala, CFO, hanna.masala@sitowise.com, tel. +358 40 558 1323
Mari Reponen, Head of IR, mari.reponen@sitowise.com, tel. +358 40 702 5869

Financial calendar

The planned publication dates for Sitowise Group Plc’s financial reports in 2023 are as follows:

  • Interim Report for January–September 2023 on Thursday, 2 November 2023

Webcast for analysts, media and investors

Sitowise’s Q2 2023 earnings webcast will be held today, 16 August 2023, at 12 pm EEST. The webcast can be accessed either live or as a replay available at livekatsomo.fi/Sitowise-Q2-2023-result


Nasdaq Helsinki Ltd

Key media



Sitowise is a Nordic expert in the built environment with strong focus on digitality. We provide design and consulting knowhow to enable more sustainable and smarter urban development as well as smooth transportation. Sitowise offers services related to real estate and buildings, infrastructure, and digital solutions both in Finland and in Sweden. Global megatrends drive huge changes that require a re-evaluation of the smartness in the built environment – therefore we have set our vision to be Redefining Smartness in Cities. The Group's net sales were EUR 204 million in 2022 and the company employs more than 2,200 experts. Sitowise Group Plc is listed on Nasdaq Helsinki under the trading symbol SITOWS.