2016-05-12 08:00:59 CEST
2016-05-12 08:00:59 CEST
REGULATED INFORMATION
Consti Yhtiöt Oyj - Interim report (Q1 and Q3)
Consti Group Plc Interim Report for January - March 2016
CONSTI GROUP PLC INTERIM REPORT 12 MAY 2016, at 9.00 a.m. Consti Group Plc Interim Report for January - March 2016 Net sales and order backlog continued to grow 1-3/2016 highlights (comparison figures in parenthesis 1-3/2015): · Net sales 51.4 (47.5) million euro; growth 8.2 % · EBITDA 0.6 (0.6) million euro and EBITDA margin 1.2 % (1.2 %) · Adjusted EBITDA 0.7 (0.9) million euro and adjusted EBITDA margin 1.3 % (1.9 %) · Operating profit (EBIT) 0.2 (0.1) million and operating profit (EBIT) margin 0.4 % (0.1 %) · Adjusted EBIT 0.2 (0.4) million euro and adjusted EBIT margin 0.4 % (0.8 %) · Order backlog 191.7 (179.9) million euro · Free cash flow 3.4 (2.2) million euro · Earnings per share -0.01 (-0.26) euro Guidance on the Group outlook for 2016: The company estimates that its total annual sales for 2016 will grow compared to 2015. Impact of new ESMA guidelines 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). +----------------------------+-------+--------+--------+-----------------------+ |KEY FIGURES (EUR 1,000) | 1-3/ | 1-3/ |Change %| 1-12/ | | | 2016 | 2015 | | 2015 | +----------------------------+-------+--------+--------+-----------------------+ |Net sales | 51,367| 47,494| 8.2 %| 256,151| +----------------------------+-------+--------+--------+-----------------------+ |Adjusted EBITDA* | 660| 881| -25.1 %| 12,613| +----------------------------+-------+--------+--------+-----------------------+ |Adjusted EBITDA margin, % | 1.3 %| 1.9 %| | 4.9 %| +----------------------------+-------+--------+--------+-----------------------+ |EBITDA | 637| 586| 8.7 %| 10,507| +----------------------------+-------+--------+--------+-----------------------+ |EBITDA margin, % | 1.2 %| 1.2 %| | 4.1 %| +----------------------------+-------+--------+--------+-----------------------+ |Adjusted EBIT* | 214| 366| -41.5 %| 10,520| +----------------------------+-------+--------+--------+-----------------------+ |Adjusted EBIT margin, % | 0.4 %| 0.8 %| | 4.1 %| +----------------------------+-------+--------+--------+-----------------------+ |Operating profit (EBIT) | 191| 71| 169.6 %| 8,414| +----------------------------+-------+--------+--------+-----------------------+ |Operating profit (EBIT) | 0.4 %| 0.1 %| | 3.3 %| |margin, % | | | | | +----------------------------+-------+--------+--------+-----------------------+ |Profit for the period | -77| -1,036| 92.6 %| 3,260| +----------------------------+-------+--------+--------+-----------------------+ |Order backlog |191,725| 179,866| 6.6 %| 181,301| +----------------------------+-------+--------+--------+-----------------------+ |Free cash flow | 3,394| 2,184| 55.4 %| 8,910| +----------------------------+-------+--------+--------+-----------------------+ |Cash conversion, % |532.6 %| 372.7 %| | 84.8 %| +----------------------------+-------+--------+--------+-----------------------+ |Net interest-bearing debt | 15,014| 43,307| -65.3 %| 17,407| +----------------------------+-------+--------+--------+-----------------------+ |Gearing, % | 61.4 %|neg. eq.| | 70.9 %| +----------------------------+-------+--------+--------+-----------------------+ |Number of personnel at | 904| 864| 4.6 %| 890| |period end | | | | | +----------------------------+-------+--------+--------+-----------------------+ |Earnings per share, | -0.01| -0.26| 96.1 %| 0.61| |undiluted (EUR) | | | | | +----------------------------+-------+--------+--------+-----------------------+ * For a more detailed description of items affecting comparability, see section "Sales, result and order backlog" CEO Marko Holopainen's comment "The demand in renovation construction and technical building services continued good during the first quarter. Order intake increased and our order backlog grew compared to the turn of the year. Our net sales grew 8.2 percent to 51.4 million euro. Sales growth was strong in Renovation Contracting and Technical Building Services. Our profitability remained solid during the first quarter of the year, which is our slowest season. Our adjusted EBIT was 0.2 million euro, which is 0.4 percent of the net sales, while corresponding figures from the first quarter of 2015 were 0.4 million euro and 0.8 percent of the net sales. At the end of the reporting period our order backlog in euro was strong: 191.7 (179.9) million euro, which provides a good foundation for our business during the rest of the year. The market situation in the beginning of the year has been good. The amount of tender requests has increased positively and we have negotiated about several interesting ventures. New work sites that started during the reporting period include for example a large-scale building automation project at the Helsinki City Theatre, which is one of the largest automation ventures Consti has ever had. In addition, Consti will for instance renovate Samppalinna outdoor swimming stadium in Turku. As defined in our strategy, we have actively sought new acquisition possibilities and continued work to progress our internal development projects. Our goal is to continue profitable growth by strengthening our position in Finland's growth centres. Based on our current market and business outlook, we believe that renovation construction and technical building services will continue their stable growth during 2016." Operating environment Renovation's relative portion of the building market has grown during the past decade in Finland, and it is now already larger than the new building market. The Confederation of Finnish Construction Industries RT (CFCI) estimates that renovation amounted to approximately 54 percent of the building market's total value in 2015. The general economic situation has a significantly smaller impact on renovation construction and technical building services than it does on the new building market. The ageing building stock particularly increases the demand for renovation construction. As buildings age, they require more technical renovations such as pipeline and façade renovations. At the moment mainly buildings from the 1960s are being renovated in Finland. Next, renovations will start on the considerably larger building stock of the 1970s and 1980s. Renovation of this building stock has already been partly started. In renovation construction the largest growth during the next decade is expected to come from residential buildings in large cities. In residential building renovations approximately one third of the renovations are pipelines, one third façades and the rest other structures. In addition to ageing, buildings require more renovation, technical building services and building technology maintenance services due to heightened energy efficiency requirements, urbanisation, modification of the use of buildings, the development of housing automatisation and the ageing populations' need for barrier-free buildings. 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. Renovation construction markets are concentrating on growth areas, akin to new construction. Necessary technical repairs in declining suburbs and less populated areas are often economically unviable. The Confederation of Finnish Construction Industries RT (CFCI) estimated in its April business conditions review that total construction will increase 3-4 percent from the previous year during 2016. Renovation construction is estimated to grow 2.5 percent from the previous year. The majority of renovation is estimated to come from renovations of residential buildings. The boost in new building should have a positive impact on Consti's competitive environment and create new growth opportunities for Technical Building Services. New building growth has a delayed impact on technical building services. The Finnish Association of HPAC Technical Contractors estimated in their April review of business conditions that the economic situation should improve for technical building services by autumn. The renovation market is very fragmented in Finland. Large construction companies focus on new building and the field of renovation has typically consisted of several small companies that usually focus on only one segment of renovation. Measured in sales, Consti is one of Finland's leading companies in renovation and technical building services. Outlook for 2016 Renovation construction is expected to continue steady growth in 2016. The Confederation of Finnish Construction Industries RT (CFCI) estimated in its April review of business conditions that renovation construction will grow approximately 2.5 percent from the previous year during 2016. The European construction business research group Euroconstruct estimated in its December 2015 forecast that renovation construction will grow about 2 percent from the previous year during 2016. The boost in new building should have a positive impact on Consti's competitive environment and create new growth opportunities for Technical Building Services. New building growth has a delayed impact on technical building services. The Finnish Association of HPAC Technical Contractors estimated in their April review of business condition that the economic situation should improve for technical building services by autumn. The general economic conditions have a considerably smaller impact on renovation construction and technical building services than on new building. The company estimates that its total annual sales for 2016 will grow compared to 2015. Press conference A press conference for analysts, investors and media will be arranged on Thursday May 12th 2016 at 10:00 at Scandic Marski hotel's Neptun-cabinet at Mannerheimintie 10, Helsinki. The conference is hosted by CEO Marko Holopainen and CFO Esa Korkeela. Financial communication in 2016 Consti Group Plc shall publish two more interim reports during 2016: * Interim report 1-6/2016 published 17 August 2016 * Interim report 1-9/2016 published 10 November 2016 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 2015, Consti Group's net sales amounted to 256 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 [HUG#2011789]
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