The MT Højgaard Group continued winning attractive orders and strengthening the order book in the first quarter of 2016. Revenue and EBIT marked by postponed project start-ups.
The MT Højgaard Group won new orders worth DKK 1.8 billion in Q1 2016, a DKK 0.5 billion year-on-year improvement. The order inflow is consistent with the inflow of the past three quarters and has lifted the order book to DKK 7.7 billion on 31 March 2016 compared with DKK 6 million on 31 March 2015. The Group has conditional contracts at a value of DKK 2.1 billion that are not recognised in the order book.
- The healthy and stable order inflow underlines the competitive strength of the MT Højgaard Group in the markets in which we operate. Our targeted tendering strategy has given us better hit rates in terms of meeting customer needs and our own profitability requirements, said MT Højgaard CEO Torben Biilmann.
Liaising more closely with clients
The Q1 2016 revenue amounted to DKK 1.5 billion, against DKK 1.7 billion in Q1 2015. The drop in revenue had been expected and was due to mainly postponed start-ups on a number of projects, as well as a drop in Greenland Contractor's revenue caused by a new, temporary contract for the operation of Thule Air Base. The lower revenue was reflected in EBIT, which was a DKK 14 million loss.
- Part of the reason for the postponed start-ups is that clients increasingly want to liaise more closely with us on their projects. They approach us because of the digital capabilities we offer and together we can develop more precise project plans before construction starts, said Mr Biilmann.
Maintaining full-year guidance
Based on the current order book and the forecast for the general level of activity in the construction sector, management expects a sharp increase in activity levels in the second half of 2016. MT Højgaard maintains its forecast of revenue of around DKK 7 billion and EBIT of around DKK 300 million.
Forward-looking statements are inherently subject to risk and uncertainty which may cause actual developments to differ materially from the guidance provided.
The Q1 2016 interim report is available here