DESTIA’S OPERATING RESULT CONTINUES TO DEVELOP FAVOURABLY
This is a summary of the Destia’s Half year financial report for January-June 2017. The complete report with tables is attached to this release and available at www.destia.fi/en
Destia’s Half year financial report January−June 2017
DESTIA’S OPERATING RESULT CONTINUES TO DEVELOP FAVOURABLY
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Revenue was MEUR 191.9 (200.1).
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The operating result improved year-on-year, to MEUR 0.3 (-1.2).
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Net financial costs were significantly lower than in the previous year and amounted to MEUR 0.6 (1.9).
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The order book was MEUR 773.5 (800.2).
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Occupational safety remained at a good level: the accident frequency was 8.0 (5.3).
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Destia maintains its guidance published on 10 February 2017: Destia’s revenue and operating profit for 2017 are expected to grow slightly from the previous year.
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Destia’s President and CEO Hannu Leinonen left his position on 7 August 2017 by the mutual agreement with the Board of Directors. The Board of Directors has appointed Arto Pohjonen, member of the company’s Boad of Directors, as the interim President and CEO of Destia effective 7 August 2017.
| Group | |||||
| Key figures (IFRS), MEUR | 4-6/2017 | 4-6/2016 | 1-6/2017 | 1-6/2016 | 1-12/2016 |
| Revenue | 114.6 | 116.8 | 191.9 | 200.1 | 493.2 |
| Operating result | 3.7 | 4.4 | 0.3 | -1.2 | 14.1 |
| % of revenue | 3.2 | 3.8 | 0.2 | -0.6 | 2.9 |
| Result for the period | 4.9 | 3.0 | 2.4 | -1.7 | 5.7 |
| % of revenue | 4.2 | 2.6 | 1.2 | -0.8 | 1.2 |
| Return on investment, % | 12.4 | 10.9 | 11.1 | ||
| Earnings per share, EUR | 35.30 | -34.51 | 50.13 | ||
| Equity ratio, % | 33.7 | 31.3 | 33.5 | ||
| Net gearing, % | 48.6 | 75.9 | 35.3 | ||
| Average personnel | 1,550 | 1,455 | 1,492 | ||
| Occupational accidents resulting in absence from work*) | 8.0 | 5.3 | 5.9 | ||
| Order book at the end of review period | 773.5 | 800.2 | 708.0 | ||
| *) Occupational accidents per one million working hours. Since the beginning of the year 2017 the number also covers Destia Engineering. | |||||
CFO Pirkko Salminen comments on the reporting period:
“Destia’s performance in the first half of the year was reasonably good in a competitive market. We were able to increase our operating result year-on-year, but our revenue decreased slightly. Our order book is at a fairly good level due to contracts signed during the reporting period in our core businesses, such as the contract for the upgrading of National Road 4 near Oulu in the road construction business and the renovation contract for the Oulu–Kontiomäki section in railway construction. Another addition to the order book during the reporting period was the third phase of the alliance contract for the expansion of Helsinki Airport. The tendering stages of certain large projects were postponed from spring to autumn, pushing the revenue associated with them to the next year. In line with our previously published outlook, we expect Destia’s revenue and operating profit for 2017 to grow slightly from the previous year.
Our improved profitability is supported by our motivated and highly competent employees. This summer, they are assisted by more than 200 summer workers and trainees, and a growing proportion of Destia’s trainees are staying on as permanent employees after graduation. personnel development is a central theme in our operations and the digital transformation has provided opportunities for further developing our capacity for efficient production. Occupational safety continues to play a key role in everything we do. While our accident frequency of 8.0 is a good figure for a company in our industry, there is still much room for improvement.”
Outlook for 2017
The outlook for the eurozone economy has improved compared to last year. The rate of growth has increased in the eurozone, which also creates opportunities for Finland. The Finnish economy is likely to see continued growth with exports as the engine, but private consumption and investments remain key factors for the Finnish economy. Construction activity is focused on growth centres. Measures to reduce the repair backlog are bringing work to other parts of Finland. In addition to the projects that are already underway, there are several large infrastructure projects about to begin, which keeps the industry outlook favourable for the most part. The tendering stages of certain large projects being postponed from spring to autumn will push the revenue associated with them to the next year.
The measures implemented by Destia to improve profitability through personnel development and stronger project management, along with the Group’s order book extending several years ahead, create a solid foundation for the positive development of business.
Destia maintains its guidance for 2017, as published on 10 February 2017:
Destia’s revenue and operating profit for 2017 are expected to grow slightly from the previous year.
Vantaa, 10 August 2017
Destia Group Plc
Board of Directors
More information
CFO Pirkko Salminen, tel. +358 50 302 2485
Financial reporting in 2017
24 October 2017 Business Review 1-9/2017
