Hold the Presses is your online newsportal en brings press releases from around the world. Journalists can use it for free, although it is their responsibilty to check the news. Hold the Presses is in no way responsible for the content of the press releases, the Sender is. We hope you enjoy reading the news we bring you on this website. If a message is published that is not acceptable, we apologize. Please contact us and we will remove the message as soon as possible.

Thursday, 10 August 2017

CONSTI GROUP PLC HALF-YEAR FINANCIAL REPORT FOR JANUARY-JUNE 2017: NET SALES GROWING AND ORDER BACKLOG RECORD HIGH

Consti Yhtiöt Oyj    

Published: 07:30 CEST 10-08-2017 /GlobeNewswire /Source: Consti Yhtiöt Oyj / : CONSTI /ISIN: FI4000178256

CONSTI GROUP PLC HALF-YEAR FINANCIAL REPORT FOR JANUARY-JUNE 2017: NET SALES GROWING AND ORDER BACKLOG RECORD HIGH

CONSTI GROUP PLC HALF-YEAR FINANCIAL REPORT 10 AUGUST 2017, at 8.30 a.m.

Consti Group Plc Half-Year Financial Report for January - June 2017

NET SALES GROWING AND ORDER BACKLOG RECORD HIGH

4-6/2017 highlights (comparison figures in parenthesis 4-6/2016):

·       Net sales EUR 78.8 (64.8) million; growth 21.6%

·       EBITDA EUR 3.2 (3.1) million and EBITDA margin 4.1% (4.7%)

·       Adjusted EBITDA EUR 3.2 (3.1) million and adjusted EBITDA margin 4.1% (4.7%)

·       Operating profit (EBIT) EUR 2.7 (2.6) million and operating profit (EBIT) margin 3.4% (4.0%)

·       Adjusted EBIT EUR 2.7 (2.6) million and adjusted EBIT margin 3.4% (4.0%)

·       Order backlog EUR 227.9 (212.6) million; growth 7.2 %

·       Free cash flow EUR 4.0 (0.4) million

·       Earnings per share EUR 0.26 (0.25)

 

1-6/2017 highlights (comparison figures in parenthesis 1-6/2016):

·       Net sales EUR 136.1 (116.2) million; growth 17.1%

·       EBITDA EUR 4.0 (3.7) million and EBITDA margin 2.9% (3.2%)

·       Adjusted EBITDA EUR 4.0 (3.7) million and adjusted EBITDA margin 2.9% (3.2%)

·       Operating profit (EBIT) EUR 3.0 (2.8) million and operating profit (EBIT) margin 2.2% (2.4%)

·       Adjusted EBIT EUR 3.0 (2.8) million and adjusted EBIT margin 2.2% (2.4%)

·       Free cash flow EUR 3.5 (3.7) million

·       Earnings per share EUR 0.26 (0.24)

                               

Guidance on the Group outlook for 2017:
The company estimates that its net sales for the entire year 2017 will grow compared to 2016.

KEY FIGURES (EUR 1,000)

4-6/
2017

4-6/
2016

Change %

1-6/
2017

1-6/
2016

Change %

1-12/
2016

Net sales

78,811

64,813

21.6 %

136,079

116,181

17.1 %

261,558

Adjusted EBITDA

3,206

3,069

4.5 %

3,978

3,729

6.7 %

13,142

Adjusted EBITDA margin, %

4.1 %

4.7 %

 

2.9 %

3.2 %

 

5.0 %

EBITDA

3,206

3,069

4.5 %

3,978

3,706

7.3 %

13,120

EBITDA margin, %

4.1 %

4.7 %

 

2.9 %

3.2 %

 

5.0 %

Adjusted EBIT

2,697

2,614

3.2 %

2,975

2,829

5.2 %

11,004

Adjusted EBIT margin, %

3.4 %

4.0 %

 

2.2 %

2.4 %

 

4.2 %

Operating profit (EBIT)

2,697

2,614

3.2 %

2,975

2,806

6.0 %

10,982

Operating profit (EBIT) margin, %

3.4 %

4.0 %

 

2.2 %

2.4 %

 

4.2 %

Profit for the period

1,996

1,878

6.3 %

2,013

1,801

11.7 %

7,978

Order backlog

 

 

 

227,907

212,590

7.2 %

190,806

Free cash flow

3,980

353

 1026.9 %

3,502

3,747

-6.5 %

10,865

Cash conversion, %

124.1 %

11.5 %

 

88.0 %

101.1 %

 

82.8 %

Net interest-bearing debt

 

 

 

15,514

17,780

-12.7 %

12,097

Gearing, %

 

 

 

55.0 %

76.1 %

 

40.8 %

Return on investment, ROI %

 

 

 

23.7 %

18.3 %

 

22.7 %

Number of personnel at period end

 

 

 

1,165

990

17.7 %

935

Earnings per share, undiluted (EUR)

0.26

0.25

5.7 %

0.26

0.24

11.2 %

1.05

 

CEO Marko Holopainen's comment

Net sales growing and order backlog record high

"Demand for renovation contracting and technical building services continued good during the second quarter. New orders increased and our order backlog grew. Our net sales grew 21.6 percent and was 78.8 (64.8) million euro. Net sales grew in all our business areas and was particularly strong in our Building Facades business area.

Despite the strong comparison period, we succeeded in increasing new orders and our order backlog grew record high. At the end of the reporting period, our order backlog in euro was 227.9 (212.6) million euro, which presents a good footing from which to continue net sales growth. Due to acquisitions and strong net sales growth, our personnel count grew nearly 18% compared to the corresponding period last year. At the end of the reporting period we employed 1165 (990) people.

In the second quarter, we had an all-time-high operating profit in euro. Our relative profitability did not, however, develop as we wanted during the quarter. In April-June our operating profit was 2.7 (2.6) million euro, which is 3.4 (4.0) percent of net sales. Our relative profitability decreased mainly due to the fall in profitability of our Technical Building Services business area, which was caused by fluctuation in profitability in project deliveries, as well as price competition in this business area.

The market situation continued good

The market situation has largely continued good. In April-June new order intake grew approximately 10 percent and new orders amounted to 83.0 (75.6) million euro. New orders grew in Renovation Contracting and Building Facades, but decreased in Technical Building Services. New significant projects include for example a purpose modification project at Koy Helsinki's Satamakatu 3, housing corporation Riutoja's facade renovations, and housing corporation Merisoukka's pipeline renovations.

Strategy 2017-2021 - prerequisites for growth

Consti's strategy update for years 2017-2021 was drawn up during the first half of the year.

Our vision: "Consti professionals are passionate about renovating and developing the built environment in a sustainable and sensible manner. This is why we are number one in renovation construction."

Our strategic goals are 10% annual growth in our current businesses, improving relative profitability, and achieving growth in new businesses.

Our strategic development projects are our chosen methods for reaching these goals. For 2017-2021 our strategic development projects are:

  • Professional employees who enjoy their work - the key to growth is a competent and motivated staff whose operational preconditions and wellbeing are taken care of
     
  • Clear service concepts to meet customer needs - Consti has a broad offering, but services need to be productised into even clearer and more customer-focused service concepts
     
  • Efficient sales and customer relationship management
     
  • Profitable and competitive operations in projects and services, which are advanced e.g. by implementing Lean-principles.
     
  • Expansion in the renovation value chain - we wish to expand our services in the renovation value chain to cover even more ground, all the way from the planning phase to services and maintenance during use. This goal is strongly linked to operating in the forefront of developing new completion methods and technologies.

Growth and profitability are sought in all business areas, but especially in strategic growth areas, which are to a large extent the same as before: Service, various endeavours based on broader collaboration, geographic growth in Finnish growth centres, pipeline renovations, and promising specialty renovation markets such as balcony, concrete and glass structures.

Additionally, we also want new growth in areas we have not previously operated in, or in which we have not had a strong enough foothold. These areas are, for example, even stronger service productisation, indoor ventilation and energy solutions, as well as solutions for row houses and small apartment buildings that are approaching renovation age and require new service development.

Operating environment and outlook for the 2017

Renovation construction's portion of Finland's house construction market has clearly grown during the past ten years. In 2016 Finland's renovation construction market was 12.4 billion euro, which is the equivalent of approximately 50 percent of the entire house construction market.


European construction business research group Euroconstruct estimated in its June 2017 forecast that total building in 2017 will increase approximately 2.7 percent from the previous year, renovation construction will grow about 1.8 percent, and new building 3.5 percent from 2016. In renovation construction demand growth is estimated to continue progressing steadily during upcoming years and the growth is estimated to be faster than new building growth on average.

The ageing building stock increases the demand for technical building renovation, such as pipeline renovations and facade renovations. At the moment mainly buildings from the 1960s and the early 1970s are being renovated in Finland. Renovations will start next in the considerably larger building stock of the later 1970s and 1980s. In renovation contracting the largest growth in the next 10 years is still expected to come from renovation needs of apartment buildings in cities. In the public sector especially municipality-owned real estate such as hospitals and schools have considerable need for renovations.

In addition to ageing, buildings require more renovation, technical building services and building technology maintenance services due to heightened energy efficiency requirements, indoor air quality challenges, urbanisation, modification of the use of buildings, the development of housing automatisation and the ageing populations' need for barrier-free buildings.

In addition, there are currently a great number of buildings in Finland, which would benefit from renovations modifying their use to match current needs. Such renovations would improve both the buildings' usability and profitability. Typical modifications of buildings include the altering of old office buildings and industrial buildings in growth centres into hotels, apartments and assisted living facilities. Modifications of the use of buildings are a central part of Consti's services. One of the new significant work sites acquired during the reporting period is a purpose modification project in a historical building in the Katajanokka district of Helsinki (Koy Helsingin Satamakatu 3).

The company estimates that its net sales for the entire year 2017 will grow compared to 2016.

Press conference

A press conference for analysts, portfolio managers and media will be arranged on Thursday 10 August 2017 at 10.00 at Hotel Kämp's Paavo Nurmi -cabinet, at Pohjoisesplanadi 29, Helsinki. The conference is hosted by CEO Marko Holopainen and CFO Esa Korkeela

Financial communication in 2017

Consti Group Plc shall publish one more interim report during 2017:

  • Interim report 1-9/2017 published 9 November 2017

 

CONSTI GROUP PLC

Further information:

Marko Holopainen, CEO, Consti Group Plc, Tel. +358 400 458 158

Esa Korkeela, CFO, Consti Group Plc, Tel. +358 40 730 8568

 

Distribution:

Nasdaq Helsinki Ltd.

Major media

www.consti.fi

 

Consti is a leading Finnish company concentrating on renovation and technical services. Consti offers comprehensive building technology, pipeline renovation, renovation contracting, façade renovation and other demanding construction and maintenance services for residential and commercial buildings. In 2016, Consti Group's net sales amounted to 262 million euro. It employs over 1000 professionals in renovation construction and building technology.

 

Consti Group Plc is listed on Nasdaq Helsinki. The trading code is CONSTI. www.consti.fi

 



Consti Half-Year Financial Report 1-6 2017



This announcement is distributed by Nasdaq Corporate Solutions (One Liberty Plaza, 165 Broadway, New York, NY 10006. Tel: +1 212 401 8700. www.nasdaqomx.com) on behalf of NASDAQ OMX Corporate Solutions clients. Source: Consti Group Plc, Hopeatie 2, 6. krs, Helsinki 00440, Finland
If you would like to unsubscribe and stop receiving these e-mails click here.