CONSTI GROUP PLC INTERIM REPORT 4 MAY 2017, at 8.30 a.m.
Consti Group Plc Interim Report for 1 January - 31 March 2017: Net sales and order backlog grew
1-3/2017 highlights (comparison figures in parenthesis 1-3/2016): · Net sales 57.3 (51.4) million euro; growth 11,5% · EBITDA 0.8 (0.6) million euro and EBITDA margin 1.3 (1.2)% · Operating profit 0.3 (0.2) million euro and operating profit (EBIT) margin % 0.5 (0.4)% · Order backlog 212.9 (191.7) million euro; growth 11.0% · Free cash flow -0.5 (3.4) million euro · Earnings per share 0.00 (-0.01) euro 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) | 1-3/2017 | 1-3/2016 | Change % | 1-12/2016 | |
| Net sales | 57 268 | 51 367 | 11.5 % | 261 558 | |
| Adjusted EBITDA* | 772 | 660 | 17.0 % | 13 142 | |
| Adjusted EBITDA margin, % | 1.3 % | 1.3 % | 5.0 % | ||
| EBITDA | 772 | 637 | 21.2 % | 13 120 | |
| EBITDA margin, % | 1.3 % | 1.2 % | 5.0 % | ||
| Adjusted EBIT* | 278 | 214 | 29.8 % | 11 004 | |
| Adjusted EBIT margin, % | 0.5 % | 0.4 % | 4.2 % | ||
| Operating profit (EBIT) | 278 | 191 | 45.3 % | 10 982 | |
| Operating profit (EBIT) margin, % | 0.5 % | 0.4 % | 4.2 % | ||
| Profit for the period | 17 | -77 | 7 978 | ||
| Order backlog | 212 910 | 191 725 | 11.0 | 190 806 | |
| Free cash flow | -477 | 3 394 | 10 865 | ||
| Cash conversion, % | -61.8 % | 532.6 % | 82.8 % | ||
| Net interest-bearing debt | 15 036 | 15 014 | 0.1 % | 12 097 | |
| Gearing, % | 49.7 % | 61.4 % | 40.8 % | ||
| Return on investment, ROI % | 22.8 % | 17.0 % | 22.7 % | ||
| Number of personnel at period end | 1 029 | 904 | 13.8 % | 935 | |
| Earnings per share, undiluted (EUR) | 0.00 | -0.01 | 1.05 | ||
| * New ESMA (European Securities and Markets Authority) guidelines on Alternative Performance Measures (APMs) have been effective as of the financial year 2016. Consti presents APMs to reflect the underlying business performance and to enhance comparability between financial periods. 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's review
- Demand continued good for renovations and building technology services during the first quarter. New orders increased and our order backlog grew. Our net sales increased 11.5 percent and was 57.3 million euro. Net sales growth was strong in Technical Building Services and Building Facades. Our profitability remained stable for this time of year. Our operating profit developed positively and was 0.3 million euro, which is 0.5 percent of net sales. Our strong order base at the end of the reporting period, 212.9 (191.7) million euro, offers a good starting point for the rest of the year.
The market situation has remained good and new orders increased slightly over 16 percent. New significant work sites include for example the renewal of shopping mall Jumbo in Vantaa, the complete renovation of ATT's 110 apartments at Siilitie 5 in Helsinki Herttoniemi, and a technical building services subcontract in Pasila's Tripla venture.
Consistent with our strategy, we have also expanded our business with acquisitions. During the reporting period acquisitions strengthened our market position in pipeline renovations in the Oulu region and in roof renovations in the Greater Helsinki area. As a result, we took a significant step towards full service Consti-offering in the Oulu region.
I believe that the demand for renovations and technical building services will continue their steady growth this year. At the same time, estimates affirm that the extremely rapid pace of new construction will level off, which will make building technology and renovation professionals more readily available for recruitment and therefore improve our general growth opportunities, says Consti Group CEO Marko Holopainen.
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. The Confederation of Finnish Construction Industries RT estimates in its March review that the extremely rapid pace of new construction will level off significantly during 2017. Growth will slow down particularly due to the stabilizing of new housing construction. RT estimates that the entire construction market will grow 2-3 percent in 2017. Renovation construction growth will remain stable according to RT's estimate and the growth estimate for 2017 is 2.0 percent. The general economic situation has a significantly smaller impact on renovation construction and technical building services than it does on the new construction market. Office renovations, however, are expected to increase as the economic situation improves. Euroconstruct also estimated in its December 2016 forecast that renovation in Finland will increase approximately two percent from the previous year. The Finnish Association of HPAC Technical Contractors estimates in its March review of business conditions that the building technology conditions will remain good in renovation construction. 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 increase need for barrier-free buildings. Consti estimates that its total annual net sales for 2017 will grow compared to 2016
Press conference A press conference for analysts, portfolio managers and media will be arranged on Thursday 4 May 2017 at 10.00 Hotel Haven, at Unioninkatu 17, Helsinki. The conference is hosted by CEO Marko Holopainen and CFO Esa Korkeela.
Financial communication in 2017 Half-year report 1-6/2017 will be published 10 August 2017 Interim report 1-9/2017 will be published 9 November 2017
Further information: Marko Holopainen, CEO +358 400 458 158 Esa Korkeela, CFO +358 40 730 8568
Distribution Nasdaq Helsinki Key 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 about 900 professionals in renovation construction and building technology.
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