Destia Group Plc
STOCK EXCHANGE RELEASE
26.10.2016 at 9.00 (CET+1)
This is a summary of the Destia’s interim report for January-September 2016. The
complete report with tables is attached to this release and available at
www.destia.fi/en.
Destia’s interim report for January−September 2016
DESTIA’S REVENUE AND OPERATING RESULT INCREASED, ORDER BOOK STRONG
· Revenue increased by 6.1 per cent, to MEUR 352.1 (331.8).
· Operating result increased by over 30 per cent, to MEUR 10.2 (7.9).
· The order book was MEUR 749.0 (753.0).
· Occupational safety remained at an excellent level: the accident frequency
was 7.5 (7.1).
· Destia’s revenue for 2016 is expected to grow, and operating profit is
expected to be on the same level as the previous year.
Market guidance for 2016 changed
· New market guidance: Destia’s revenue for 2016 is expected to grow, and
operating profit is expected to be on the same level as the previous year.
· Previous market guidance: Destia’s revenue for 2016 is expected to grow, and
operating profit is expected to fall short of the previous year, because other
operating income is expected to be less than the previous year.
Key figures (IFRS), MEUR 7-9/20 7-9/20 1-9/2016 1-9/2015 1-12/2015
16 15
Revenue 152.0 152.2 352.1 331.8 462.8
Operating result 11.4 11.5 10.2 7.9 12.9
% of revenue 7.5 7.6 2.9 2.4 2.8
Result for the period 8.4 8.3 6.7 3.6 6.7
% of revenue 5.5 5.5 1.9 1.1 1.5
Return on investment, % 10.7 8.2 9.4
Earnings per share, EUR 65.90 24.49 56.14
Equity ratio, % 30.6 29.2 31.2
Net gearing, % 48.6 83.5 32.6
Average personnel 1,485 1,505 1,505
Occupational accidents 7.5 7.1 7.6
resulting in absence from
work*)
Order book at the end of 749.0 753.0 717.4
review period
*) Occupational accidents
per one million working
hours
President & CEO Hannu Leinonen comments on the reporting period:
“Destia’s revenue and operating result increased in comparison with the same
period the previous year as a result of a recovering infrastructure market. I am
satisfied with the development of our order book despite intense competition. As
the number of large projects has declined, we have succeeded in increasing our
number of private customers as a result of investments we have made in customer
work. During the summer gone by, Destia employed a record number of trainees and
summer workers to support our professionals, which shows that there are future
experts interested in the sector.
Destia’s strategy extending until 2022 is divided into three three-year
operating periods. This year sees the end of the first three-year business
planning period. During this period, we have succeeded in increasing our share
in the growth spearheads of the period, track construction and maintenance, and
rock construction. With regard to energy construction, we are continuing to
prepare to achieve growth.
The results of the annual personnel survey carried out by an external
organisation during the reporting period are positive. The overall average of
the survey on a scale of 1 to 5 was 3.91, and it has been increasing for several
years now. The grades that Destia received as a company and as an employer were
also good. Overall, the results were also clearly better than those achieved by
similar companies. The results of the personnel survey show that the steps taken
to develop personnel are bearing fruit.
In the reporting period, we set the targets for the new three-year period and
determined the focus areas in order to reach them.”
Outlook for 2016
The Finnish economy is expected to grow slightly this year, particularly
supported by construction investments. Demand for infrastructure construction is
expected to remain approximately the same as in the early part of the year.
Regionally, construction is focused on the capital region, but the action
programme formulated in the government discussion on spending limits in the
spring will balance the situation by including projects from around Finland. As
the number of large infrastructure projects declines, a great number of smaller
projects will be put out to tender. This is expected to keep the situation in
the infrastructure market unchanged.
The prospects for the infrastructure sector and Destia’s order book, which
extends over several years, provide a good basis for the positive development of
revenue. The measures that have been taken towards improving customer work and
project management will help to keep business volumes and cash flow on a
moderate level, in spite of intense competition.
Market guidance for 2016
Destia’s revenue for 2016 is expected to grow, and operating profit is expected
to be on the same level as the previous year.
Market guidance for 2016 changed:
· New market guidance: Destia’s revenue for 2016 is expected to grow, and
operating profit is expected to be on the same level as the previous year.
· Previous market guidance: Destia’s revenue for 2016 is expected to grow, and
operating profit is expected to fall short of the previous year, because other
operating income is expected to be less than the previous year.
Vantaa, 25 October 2016
Destia Group Plc
Board of Directors
More information
President and CEO Hannu Leinonen, tel. +358 20 444 4000 and CFO Pirkko Salminen,
tel. +358 50 302 2485
Financial reporting
Destia will publish its 2016 financial statements on 10 February 2017.
DISTRIBUTION:
Nasdaq Helsinki Oy
Key media
www.destia.fi/en
Destia: Destia is a Finnish infrastructure and construction service company. We
build, maintain and design traffic routes, railways, industrial and traffic
environments as well as complete living environments. In 2015 the company’s
revenue was over MEUR 460. With 1 500 dedicated experts we build the bigger
picture, piece by piece. www.destia.fi/en
Destia interim report Q3
2016 (http://mbpublicbinaryproxy/Public/9573/2108816/bf6641ba09915375.pdf)
