MT Højgaard Holding A/S: Sustained improvement in earnings in the second quarter of 2019 for MT Højgaard Group

MT Højgaard Group (MT Højgaard A/S and subsidiaries)

As expected, earnings from the contracting activities improved still further in the second quarter, driven by higher gross margins, lower distribution costs and considerably lower write-downs on projects. However, as expected, earnings were still affected by the completion of legacy projects that contribute low or no earnings, especially in MT Højgaard A/S.

• Revenue was DKK 1,731 million compared with DKK 1,713 million in the second quarter of 2018.
• EBIT was DKK 16 million compared with a loss of DKK 34 million in the second quarter of 2018.
• Operating activities generated a cash inflow of DKK 36 million compared with an outflow of DKK 152 million in the second quarter of 2018.
• Order intake, at DKK 1.4 billion, was slightly lower than expected and below the level in the second quarter of 2018 adjusted for the cancelled order for a data centre near Aabenraa in June 2019.
• The Group has won new orders with a combined value of DKK 1.1 billion since the end of the quarter.

Our outlook for 2019 remains unchanged:

• Revenue is still expected to amount to around DKK 7.0 billion (2018: DKK 6.8 billion).
• EBIT is expected to be around DKK 75 million in 2019 (2018: loss of DKK 547 million)
• Operating cash flows in 2019 are still expected to be in line with 2018 (outflow of DKK 142 million), but with an upside potential.

– The results confirm that we are well on the way to improving earnings and cash flows quarter by quarter, so 2019 will be a turning point for the MT Højgaard Group in terms of earnings. Stabilisation of the operations in MT Højgaard A/S is well underway and the company’s loss has been significantly reduced, while the other companies in the Group overall are performing soundly. This supports our ongoing work on optimising the Group’s organisation, project portfolio, structures and costs, says President and CEO Anders Heine Jensen.

MT Højgaard Holding A/S (the whole Group incl. the parent company MT Højgaard Holding A/S)

Højgaard Holding A/S and Monberg & Thorsen A/S merged on 5 April 2019. The continuing company changed its name to MT Højgaard Holding A/S, which, on implementation of the merger, became the owner of 100% of the MT Højgaard Group (the contracting activities).

The financial figures and outlook for MT Højgaard Holding A/S differ from those of the MT Højgaard Group in the interim financial report because MT Højgaard Holding A/S did not consolidate the MT Højgaard Group for accounting purposes until with effect from 5 April. Furthermore, purchase price allocation was charged against profit in connection with the merger, and MT Højgaard Holding A/S incurred transaction costs and administrative expenses. For further details of the accounting effect of the merger, see pages 3-4 of the interim financial report.

For the first half of 2019, MT Højgaard Holding A/S consequently delivered revenue of DKK 1,731 million, while EBIT was a loss of DKK 11 million. Profit before tax was DKK 118 million following a write-up of the value of the shares in MT Højgaard A/S to estimated fair value. Operating activities generated a cash inflow of DKK 30 million.

For the period 5 April-31 December 2019, MT Højgaard Holding A/S expects to deliver revenue of DKK 5.3 billion, EBIT of around DKK 0 million and operating cash flows of around DKK 0 million.

Contact: Ann-Louise Elkjær, Vice President Communications and HR, +45 2033 8693, ale@mth.dk

Attachment

• MTHH_H1_2019_Interim financial report