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Thursday, 16 February 2017

Consti Group Plc Financial Statements Bulletin for January - December 2016

Consti Yhtiöt Oyj    

Published: 07:30 CET 16-02-2017 /GlobeNewswire /Source: Consti Yhtiöt Oyj / : CONSTI /ISIN: FI4000178256

Consti Group Plc Financial Statements Bulletin for January - December 2016


Consti Group Plc Financial Statements Bulletin for January - December 2016

Profitable growth continued in 2016

10-12/2016 highlights (comparison figures in parenthesis 10-12/2015):

·       Net sales EUR 74.8 (74.9) million; change -0.2 %

·       EBITDA EUR 4.9 (3.5) million and EBITDA margin 6.5 % (4.7 %)

·       Adjusted EBITDA EUR 4.9 (5.1) million and adjusted EBITDA margin 6.5 % (6.8 %)

·       Operating profit (EBIT) EUR 4.4 (3.1) million and EBIT margin 5.9 % (4.1 %)

·       Adjusted EBIT EUR 4.4 (4.6) million and adjusted EBIT margin 5.9 % (6.2 %)

·       Order backlog EUR 190.8 (181.3) million

·       Free cash flow EUR 0.5 (1.8) million

·       Earnings per share EUR 0.44 (0.29)


1-12/2016 highlights (comparison figures in parenthesis 1-12/2015):

·       Net sales EUR 261.6 (256.2) million; growth 2.1 %

·       EBITDA EUR 13.1 (10.5) million and EBITDA margin 5.0 % (4.1 %)

·       Adjusted EBITDA EUR 13.1 (12.6) million and adjusted EBITDA margin 5.0 % (4.9 %)

·       Operating profit (EBIT) EUR 11.0 (8.4) million and EBIT margin 4.2 % (3.3 %)

·       Adjusted EBIT EUR 11.0 (10.5) million and adjusted EBIT margin 4.2 % (4.1 %)

·       Free cash flow EUR 10.9 (8.9) million

·       Earnings per share EUR 1.05 (0.61)

·       The Board of Directors proposes a dividend of EUR 0.54 (0.39) per share


Guidance on the Group outlook for 2017:
The Company estimates that its total annual net sales for 2017 will grow compared to 2016.




Change %



Change %


Net sales



-0.2 %



2.1 %


Adjusted EBITDA*



-3.6 %



4.2 %


Adjusted EBITDA margin, %

6.5 %

6.8 %


5.0 %

4.9 %






40.1 %



24.9 %


EBITDA margin, %

6.5 %

4.7 %


5.0 %

4.1 %



Adjusted EBIT*



-4.0 %



4.6 %


Adjusted EBIT margin, %

5.9 %

6.2 %


4.2 %

4.1 %



Operating profit (EBIT)



45.7 %



30.5 %


Operating profit (EBIT) margin, %

5.9 %

4.1 %


4.2 %

3.3 %



Profit for the period



53.7 %



144.7 %


Order backlog






5.2 %


Free cash flow



-71.0 %



21.9 %


Cash conversion, %

10.4 %

50.1 %


82.8 %

84.8 %



Net interest-bearing debt






-30.5 %


Gearing, %




40.8 %

70.9 %



Number of personnel at period end






5.1 %


Earnings per share, undiluted (EUR)



52.8 %



71.3 %


* New ESMA (European Securities and Markets Authority) guidelines on Alternative Performance Measures (APMs) are effective for the financial year 2016. Consti presents APMs to reflect the underlying business performance and to enhance comparability between financial periods. APMs should not be considered as a substitute for measures of performance in accordance with the IFRS. As of Q1 2016, Consti relabels the previously referenced "before non-recurring items" with "before items affecting comparability" (IAC). For a more detailed description of items affecting comparability, see section "Sales, result and order backlog".



CEO Marko Holopainen's comment

Profitable growth continued in 2016


"2016 progressed nearly as expected at Consti. Our entire year's net sales was 261.6 million euro, which is 2.1 percent more than the previous year. Our comparable EBIT grew to 11.0 million euro which is 4.2 percent of net sales, when in the previous year it was 10.5 million euro and 4.1 percent of net sales. Order intake during the year was 4.5 percent more than in the previous year, and at the end of the year our order backlog was 190.8 million euro.


The slower than anticipated net sales growth was mainly due to our net sales cumulating from relatively small projects, the competition for skilled personnel caused by the active new construction market, and the slow start of large projects. Although the growth of our net sales was slightly slower than we anticipated, 2016 was Consti's best year to date by many measures. Our net sales, result and order backlog were all better than ever. The strong development of our order backlog also warrants positive expectations for 2017.


Strong growth in new construction affected renovation

The past year was marked by the strong increase in new construction. This had a positive impact on the demand of technical building services, as Consti also operates on the new construction market in this field. However, the effect of new construction shows in building technology instalments with a slight delay, and the major share of new construction sites started in 2016 will have building technology installed during 2017.

In contrast, new construction somewhat decreased interest toward large renovations in business premises. Demand for residential building pipeline renovations and facade renovations, as well as maintenance services and service contracting were highlighted in order intake.


Acquisitions strengthened Service Business


We succeeded in expanding our offering with acquisitions both in the Greater Helsinki area and in Pirkanmaa and we will continue scouting good acquisition targets. All three of the acquisitions we made in 2016 strengthen Consti's Service Business. Our goal to increase the share of our service and maintenance business was accomplished well this year as Service Businesses' share of the entire Group's net sales grew from 12 percent to 15 percent. 


Outlook for 2017


Based on our current market and business outlook we believe that the demand for renovations and technical building services will continue to grow steadily next year as well. As new construction stabilises, achieving organic growth will become easier as opportunities for hiring skilled professionals improve."

Operating environment

The European construction business research group Euroconstruct estimates that the Finnish building market in 2016 grew by approximately 8 percent compared to the previous year. Renovation grew an estimated 1.5 percent and new construction is estimated to have grown as much as 15 percent from the previous year. Consti believes that the strong growth in new construction reduced the amount of large-scale renovations particularly in business premises during 2016.

Although renovation growth slowed down somewhat in 2016, the renovation needs of existing building stock are believed to sustain steady growth into the next decade. Euroconstruct's estimate sees Finland's renovation growth in 2017-2019 at approximately two percent per year, while the corresponding time period's average growth estimate for new construction is approximately -1 percent a year. The general economic condition has a clearly smaller impact on renovations and technical building services than on new construction.

In Finland renovation spending has been at least as much as the value of new construction since 2014. Euroconstruct estimates that the total value of Finland's renovation market in 2016 was 12.4 billion euro, which is equivalent to approximately 50 percent of the entire building market. 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 an increasing number of buildings from the 1970s are being renovated in Finland. Renovations will start next in the considerably larger building stock of the 1980s.

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

Renovation markets are concentrating increasingly clearly to growth centres. Renovations in areas where population is declining are not always economically viable. In renovation the largest growth in the next 10 years in expected to come from renovation needs of apartment buildings owned by housing corporations in growth centres.

A significant share of the renovation market comes from building technology. The Finnish Association of HPAC Technical Contractors estimates that the Finnish building technology market amounted to a total of approximately five billion euro in 2016. HPAC technology's share of the building technology market is about two thirds. In new construction the share of building technology continues to grow and modern building technology is also being installed increasingly much into buildings being completely renovated. The significance of building technology and automation is continually emphasised as systems develop and the amount of technology increases in buildings. The building technology market is expected to grow faster than the entire renovation market.

The renovation and building technology market is very fragmented in Finland. Large construction companies focus on new construction with larger projects than in renovation. Renovation and building technology markets consist of numerous small, local companies that usually focus on only one segment of renovation or building technology.

Outlook for 2017

Renovation is expected to continue growing in 2017. Euroconstruct estimated in its December forecast that renovation in Finland will increase approximately two percent from the previous year. The general economic conditions have a considerably smaller impact on renovation and technical building services than on new construction.

Consti estimates that its total annual net sales for 2017 will grow compared to 2016.

Press conference

A press conference for analysts, investors and media will be arranged on Thursday February 16th 2017 at 10.00 a.m. at Hotel Glo Kluuvi, at Kluuvikatu 4, 2nd floor, Helsinki. The conference is hosted by CEO Marko Holopainen and CFO Esa Korkeela.

Financial reporting in 2017

Consti will publish its Financial Statements, Board of Directors' Report, Auditors' Report, and Corporate Governance Statement on the company website during week 11/2017.

Consti Group Plc's Annual General Meeting shall be arranged on Tuesday April 4th 2017 in Helsinki. The complete invitation to the Annual General Meeting, including the Board of Director's proposals to the Meeting, will be published as a separate Stock Exchange release.

Consti Group Plc shall publish three interim reports during 2017:

  • Interim report 1-3/2017 published May 4th 2017
  • Half-year financial report 1-6/2017 published August 10th 2017
  • Interim report 1-9/2017 published November 9th 2017



Further information:

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

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



Nasdaq Helsinki Ltd.

Major media



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 about 900 professionals in renovation construction and building technology.


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


Consti Financial Statements Bulletin 1-12 2016

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
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