Multiconsult delivered strong revenue growth in the fourth quarter and for the
year, mainly driven by acquisitions. EBIT for the fourth quarter was negative
NOK 2.7 million, impacted by challenging project execution. Improved results
from LINK arkitektur in the quarter impacted earnings positively. Full year 2017
EBIT was NOK 118.0 million. Comprehensive integration and onboarding of Hjellnes
group is on track. Profitability improvement program is launched to improve
margins.
Oslo, 28 February 2017 - Fourth quarter net operating revenues for the
Multiconsult group increased by 21.1 per cent to NOK 830.2 million, compared to
the same quarter last year. The increase in net operating revenues reflects
higher production due to acquisition of the Hjellnes group, Iterio AB and aarhus
arkitekterne A/S, in addition to net recruitment. However, challenging project
execution on many projects in Regions Norway and Greater Oslo Area resulted in
net write-downs of NOK 21.4 million, which together with the decrease in the
billing ratio to 68.4% (69.0%), impacted operating revenues negatively in the
quarter. Billing rates increased moderately compared to the fourth quarter 2016.
For the full year net operating revenues increased by 14.3 per cent to NOK 2
977.6 million, driven by acquisitions and net recruitment.
EBIT for the quarter was negative NOK 2.7 million (NOK 18.9 million), reflecting
higher net operating revenues, which were more than offset by higher operating
expenses in the quarter. For the year 2017 as a whole, EBIT was NOK 118.0
million (NOK 182.3 million), a decrease of 35.3% compared to the same period
previous year.
Multiconsult made several acquisitions throughout the year. The most significant
was the acquisition of the Norwegian multidisciplinary engineering consultant
company Hjellnes group, comprising of Hjellnes Consult AS and Johs Holt AS.
In the light of the weak results in 2017, the group is launching a comprehensive
profitability program with a target of improving the EBIT margin to a minimum of
6 per cent for 2018. The program focuses primarily on improving operations in
the Greater Oslo Area and Regions Norway by improving sales, billing ratio and
project execution.
The Board of Directors will propose to the annual general meeting a dividend of
NOK 1.50 per share for 2017, in line with the dividend policy.
- As we look at the full year 2017, I am pleased to see the strong growth in
revenues and successful completion of the M&A strategy in Norway, according to
our 3-2-1 growth objectives. Profitability has been challenging this year and in
response we have launched a comprehensive profitability improvement program that
will pave way for improved profitability towards 2020. I am excited about the
significant Fornebubanen award in addition to solid improvement in LINK
arkitektur that resulted in impressive order intake within hospitals across the
group, says CEO of Multiconsult ASA Christian Nørgaard Madsen.
The order backlog remains strong at the end of the year and was NOK 2 147.7
million (NOK 1 793.1 million), an increase of 19.8 per cent year on year.
Order intake during the fourth quarter increased by 8.4 per cent to NOK 1 026.9
million (NOK 947.1 million). There was solid order intake within Buildings &
Properties, Transportation and Renewable Energy in the quarter. New order intake
from the Hjellnes group and Iterio impacted the order intake positively compared
to last year. Among important new contracts this quarter were the Northern
Lights Carbon Capture and Storage project for Statoil and Drammen Hospital for
Helse Sør-Øst RHF as well as NTNU Faculty of Health and Social Sciences &
Student Union Athletics for Backe Trondheim AS. Order intake year to date as of
31 December 2017 was NOK 3 762.5 million (NOK 3 084.7 million).
The company successfully completed the employee share purchase programme in the
fourth quarter, in which approximately 23 per cent of employees across the
Multiconsult group signed up for shares. "It is very inspiring to see that the
employees across the Multiconsult group continue to participate in the employee
share purchase programme, now successful for the third year in a row", says CEO
of Multiconsult ASA Christian Nørgaard Madsen.
Group balance sheet remains solid as of 31 December 2017 with total assets of
NOK 1 662.6 million and total equity of NOK 582.1 million. The group had cash
and cash equivalents of NOK 154.3 million, while net interest bearing debt was
NOK 134.5 million.
The overall market outlook is fairly positive. Market rates have shown some
improvement, however the cost level for the Norwegian workforce is creating
challenges to profitability for the industry in general. Multiconsult's strong
market position, flexible business model and wide service offering provides a
sound base for further growth, both domestic and international.
A presentation of the fourth quarter 2017 results will be held today, 28
February, at 09:00 CET at Hotel Continental, Stortingsgaten 24/26, Oslo. CEO
Christian Nørgaard Madsen and CFO Anne Harris will host the presentation.
A live webcast from the presentation can be accessed at www.multiconsult-ir.com
and at http://webtv.hegnar.no/presentation.php?webcastId=77877108
For further information, please contact:
Investor relations:
Mirza Koristovic, Head of Investor Relations
Phone: +47 93 87 05 25
E-mail: ir@multiconsult.no
Media:
Gaute Christensen, VP Communications
Phone: +47 91 17 01 88
E-mail: gaute.christensen@multiconsult.no
ABOUT MULTICONSULT
Multiconsult is a leading Norwegian multidisciplinary engineering consulting
company, with more than 2 500 employees and 45 offices in Norway and abroad. The
Company focuses on six business areas: Buildings & Properties, Transport,
Renewable Energy, Oil & Gas, Industry and Water & Environment. The Company has
an operating history that spans more than a century, with the inception of Norsk
Vandbygningskontor in 1908.