Operating profit before special items doubled to DKK 207 million. After two years of extensive restructuring of the Group's internal and external activities, the results are beginning to show. Management expects a further improvement in operating profit in 2015 and retains the target of bringing the EBIT margin to 5% by the end of the year.
The MT Højgaard Group doubled its operating profit before special items to DKK 207 million for 2014 (2013: DKK 105 million) on revenue of DKK 7 billion. The operating margin was 3%, up from 1.4% last year. Revenue and operating profit were consistent with the guidance provided at the beginning of the financial year. Operating profit for the fourth quarter was DKK 118 million for an operating margin of 5.8%. Cash flows from operating activities improved in 2014 to DKK 428 million from DKK 113 million in 2013.
- We're pleased with our operating results for 2014. We haven't yet completed our turnaround, but this performance clearly shows that we're on the right track, said MT Højgaard CEO Torben Biilmann.
After restructuring its processes during the last couple of years, the Group is now much more focused on risk management and customer orientation.
The settlements reached in the old litigations cases relating to the offshore business area reduced the financial results by DKK 408 million, for an EBIT loss of DKK 201 million and a net loss for the year of DKK 186 million.
Profitable order book
MT Højgaard won new orders of DKK 1.8 billion in the fourth quarter, bringing the total order book at 31 December to DKK 6.5 billion. Almost all older projects with low or negative profitability have now been completed and the Group's order book has good profitability and a sound risk profile.
Further progress expected this year
Management expects full-year 2015 EBIT of DKK 300-375 million for an EBIT margin of 4-5% on consolidated revenue of DKK 7.0-7.5 billion. The Group retains the turnaround target of bringing the EBIT margin to 5% by the end of the year.
Forward-looking statements are inherently subject to risk and uncertainty which may cause actual developments to differ materially from the expectations expressed.