Reasonable fourth quarter, but, as expected, 2016 affected by deferred projects

The MT Højgaard Group reported operating profit (EBIT) of DKK 73 million in 2016 which, as anticipated in the latest announcement, was a substantial decline compared with 2015, when the Group achieved the target of an operating margin of 5% with operating profit (EBIT) of DKK 352 million.

- We have had a reasonable fourth quarter but in terms of profit the year as a whole has been unsatisfactory. The year was affected by deferred projects. In addition, we had issues with a few individual projects, which we could well have done without, says the Group’s President and CEO, Torben Biilmann. He continues:

- We still believe that our focus on strategic development is both right and necessary if we are to continue to deliver better results in future. We are therefore still fully focused on pressing forward with our VDC programme, which at the end of 2016 was a year ahead of the original time schedule.

As expected, the Group delivered revenue of DKK 6.8 billion, which was higher than last year, despite an anticipated decline in revenue relating to Greenland Contractors of around DKK 300 million.

Highest order book since 2011

In 2016, the Group’s competitiveness was illustrated by an order book totalling DKK 8.6 billion at the end of the year. This was an increase of DKK 1.1 billion compared with 2015 and the highest level since 2011.

- We are entering 2017 with an order book that is both extensive and of good quality. It consists of projects that we have deliberately chosen to prioritise and are therefore looking forward to implementing in close collaboration with our customers, says Torben Biilmann.

Profitable growth in 2017

In the light of the improvement in the order book, the Group expects revenue to increase to around DKK 7.2 billion in 2017. Operating profit before special items in the range of DKK 150-200 million is expected, which is an increase compared to 2016, based mainly on general quality in the order book, including the completion of current, less profitable projects.

The Group sees good opportunities for progress in the coming years, so that the strategic framework target of an operating margin before special items of around 5% can be achieved again.

By their nature, projections of future financial performance involve risks and uncertainties that may cause actual performance to differ materially from that contained in the forward-looking statements.

The annual report is available here