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, 15 February 2018

Consti Group Plc Financial Statements Bulletin for January - December 2017

Consti Yhtiöt Oyj    

Published: 07:30 CET 15-02-2018 /GlobeNewswire /Source: Consti Yhtiöt Oyj / : CONSTI /ISIN: FI4000178256

Consti Group Plc Financial Statements Bulletin for January - December 2017

CONSTI GROUP PLC FINANCIAL STATEMENTS BULLETIN 15 FEBRUARY 2018, at 8.30 a.m.

Consti Group Plc Financial Statements Bulletin for January - December 2017

Net sales grew, result was a disappointment

10-12/2017 highlights (comparison figures in parenthesis 10-12/2016):

  • Net sales EUR 86.3 (74.8) million; growth 15.3 %
  • EBITDA EUR -2.1 (4.9) million and EBITDA margin -2.4 % (6.5 %)
  • Adjusted EBITDA EUR -2.1 (4.9) million and adjusted EBITDA margin -2.4 % (6.5 %)
  • Operating profit/loss (EBIT) EUR -2.6 (4.4) million and EBIT margin -3.0 % (5.9 %)
  • Adjusted EBIT EUR -2.6 (4.4) million and adjusted EBIT margin -3.0 % (5.9 %)
  • Order backlog EUR 225.7 (190.8) million; growth 18.3 %
  • Free cash flow EUR 2.6 (0.5) million
  • Earnings per share EUR -0.30 (0.44)

 

1-12/2017 highlights (comparison figures in parenthesis 1-12/2016):

  • Net sales EUR 300.2 (261.6) million; growth 14.8 %
  • EBITDA EUR 1.7 (13.1) million and EBITDA margin 0.6 % (5.0 %)
  • Adjusted EBITDA EUR 1.7 (13.1) million and adjusted EBITDA margin 0.6 % (5.0 %)
  • Operating profit/loss (EBIT) EUR -0.4 (11.0) million and EBIT margin -0.1 % (4.2 %)
  • Adjusted EBIT EUR -0.4 (11.0) million and adjusted EBIT margin -0.1 % (4.2 %)
  • Free cash flow EUR 8.9 (10.9) million
  • Earnings per share EUR -0.14 (1.05)
  • The Board of Directors proposes that no dividend will be paid for 2017

                               

Guidance on the Group outlook for 2018:
The Company estimates that its operating result for 2018 will grow compared to 2017.

KEY FIGURES (EUR 1,000)

10-12/
2017

10-12/
2016

Change %

1-12/
2017

1-12/
2016

Change %

Net sales

86,300

74,823

15.3 %

300,203

261,558

14.8 %

Adjusted EBITDA

-2,050

4,892

 

1,714

13,142

-87.0 %

Adjusted EBITDA margin, %

-2.4 %

6.5 %

 

0.6 %

5.0 %

 

EBITDA

-2,050

4,892

 

1,714

13,120

-86.9 %

EBITDA margin, %

-2.4 %

6.5 %

 

0.6 %

5.0 %

 

Adjusted EBIT

-2,590

4,447

 

-375

11,004

 

Adjusted EBIT margin, %

-3.0 %

5.9 %

 

-0.1 %

4.2 %

 

Operating profit/loss (EBIT)

-2,590

4,447

 

-375

10,982

 

Operating profit/loss (EBIT) margin, %

-3.0 %

5.9 %

 

-0.1 %

4.2 %

 

Profit/loss for the period

-2,294

3,385

 

-1,074

7,978

 

Order backlog

 

 

 

225,721

190,806

18.3 %

Free cash flow

2,581

507

408.7 %

8,936

10,865

-17.8 %

Cash conversion, %

n/a

10.4 %

 

521.4 %

82.8 %

 

Net interest-bearing debt

 

 

 

12,070

12,097

-0.2 %

Gearing, %

 

 

 

47.7 %

40.8 %

 

Return on investment, ROI %

 

 

 

-0.7 %

22.7 %

 

Number of personnel at period end

 

 

 

1,079

935

15.4 %

Earnings per share, undiluted (EUR)

-0.30

0.44

 

-0.14

1.05

 

 


 CEO Esa Korkeela's comment

"Our net sales for 2017 grew 14.8 percent from the previous year and amounted to 300.2 million euro. Net sales grew in all business areas, and we had particularly strong growth in our Building Facades business area.

Even with the growth of our net sales, our result did not reach a satisfactory level. Our less than estimated performance in project deliveries was a disappointment. Especially profitability problems relating to managing and executing projects in Technical Building Services turned out to be greater than initially expected. Additional inquiries showed clear challenges relating to organising, managing and executing projects. We also identified project personnel turnover and price competition in the field as factors contributing to profitability problems.

In the last quarter of 2017 we started reorganising our Technical Building Services business area, and we will finalise this work during the first quarter of 2018. With the reorganising we aim to improve profit responsibility in all of Technical Building Services' units, clarify our service offering, and enhance project management. From the last quarter onwards we have increased our requirements for gross margin on sales in Technical Building Services, and we have also realigned requirements for selecting offered worksites. Additionally, we have started several actions to improve project steering and monitoring, and new operating models will be taken into use during the first quarter of 2018. We have also clarified financial reporting responsibilities for projects in the entire Group.

During the year Consti had approximately 900 ongoing projects. Although we advanced as planned in the majority of these projects, we fell short of our targets in several projects in 2017. In the last quarter we continued assessing projects that were ongoing or at handover phase. Based on the assessments we readjusted cost and profit estimates for our project base. Despite this, certain ongoing projects in Technical Building Services and Renovation Contracting still have open risks, which we have to the best of our ability taken into consideration in our financial statement for 2017.

Consti's strategy was updated during spring 2017.  We will continue to carry out our updated strategy, placing particular emphasis on actions to improve profitability.

The market for renovations and technical building services has mainly remained good. During the year Consti received new orders worth 278.1 million euro, which is a 24.7 percent growth to the comparison period. Also our order backlog at the end of December, 225.7 million euro, was 18.3 percent higher than in the comparison period.

I believe that our strong order backlog and our actions to improve productivity and profitability will help us return to the path of profitable growth."

Operating environment

In Finland, nearly six percent of the GNP is spent on renovations, which is significantly more than the European average. An estimated 12.8 billion euro was spent on renovations in Finland during 2017, of which 7.8 billion was used on renovations of residential buildings and 5.0 billion on other renovations.

During recent years, renovations have increased their share of the total construction market steadily. Due to our building stock's age, growth has been rapid compared to the rest of Europe. New construction has picked up pace and thus in 2017 renovations only amounted to approximately half of all construction, whereas renovations amounted to over half of the total construction in Finland during 2013-2015. In 2017, new construction reached peak levels last seen in the 1970s. Renovation growth was also subdued by the shortage of skilled personnel caused by the fast-paced new construction of residential buildings.

In its October review of the business environment, the Confederation of Finnish Construction Industries RT estimated that construction grew 4.4 percent in 2017. Euroconstruct projected 4.8 percent growth. RT approximated that renovations had grown 1.5 percent and new construction about seven percent. New construction was especially driven by new residential building projects, which RT estimated to have grown by nine percent. In cubic meters, however, construction levels remain under average, as the average size of apartments has decreased. The construction of new office buildings grew by circa nine percent. The growth is mostly coming from the Greater Helsinki area and school and hospital projects.

Euroconstruct estimates that Finland's renovation markets grew 1.8 percent in 2017. Residential building renovation grew by an estimated two percent and office premise renovation by 1.5 percent.

RT predicts that the market for new construction will grow 2.3 percent in 2018 and renovations will grow 1.5 percent. The corresponding estimates from Euroconstruct are 1.8 and 1.5 percent. The general economic situation typically has a significant impact on new construction, but a much lesser impact on renovations.

In the near future, operational programs to improve public service facility health should bring new orders to public facility renovations. According to the Built Environment ROTI-report from 2017, one in five public buildings is damaged. Also, the Ministry of the Environment estimates that 600 000-800 000 Finns are exposed to poor indoor air daily.

Outlook for 2018

Renovation growth is expected to continue in 2018. In its November outlook, Euroconstruct estimated that Finland's renovation market will grow 1.5 percent from the previous year. The general economic situation typically has a significant impact on new construction, but a much lesser impact on renovations.

Consti estimates that its operating result for 2018 will grow compared to 2017.

Press conference

A press conference for analysts, portfolio managers, and media will be arranged February 15th 2018 at 10:00 at Hotel Glo conference room at Kluuvikatu 4, Helsinki. The conference is hosted by CEO Esa Korkeela.

Financial reporting in 2018

Consti will publish its Financial Statements, Board of Directors' Report, Auditors' Report, and Corporate Governance Statement on the company website during week 11/2018.

Consti Group Plc's Annual General Meeting shall be arranged on Wednesday April 4th 2018 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 2018:

  • Interim report 1-3/2018 published April 27th 2018
  • Half-year financial report 1-6/2018 published July 26th 2018
  • Interim report 1-9/2018 published October 26th 2018

 

CONSTI GROUP PLC

Further information:

Esa Korkeela, CEO, 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 2017, Consti Group's net sales amounted to 300 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 Financial Statements Bulletin 1-12 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 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.