MTH GROUP’s revenue growth continued in the second quarter, contributing to an improved operating profit before special items, whereas order intake was lower than in the comparison period, as expected.
In the second quarter of 2017, revenue was up 20% at DKK 1.9 billion from DKK 1.6 billion in the same period last year. Operating profit before special items increased to DKK 63 million in the second quarter from a loss of DKK 5 million in 2016, driven by the relatively high activity level and the transfer of the Group’s contract for interior works on a number of stations on Metro Cityringen to Copenhagen Metro Team (CMT).
Good market outlook despite lower order intake in the quarter
Order intake was down at DKK 1.8 billion in the second quarter from DKK 2.5 billion in the same period last year. The Group’s order book amounted to DKK 7.8 billion at the end of the quarter, compared with DKK 8.7 billion at the same time in 2016. The order book is still of good quality and includes a number of major projects for implementation in the coming years. In addition, the market outlook is positive and demand increasing within several of MTH GROUP’s areas of expertise.
-We are seeing growing demand in refurbishment and residential construction, infrastructure, data centres, shell construction and super-hospitals, where we are pursuing a number of exciting and good projects that will help us maintain the high activity level and boost profitability, says President and CEO Torben Biilmann.
Outlook for full-year revenue and operating profit before special items maintained
In view of trends in the first half coupled with the continued positive market outlook and the order book, MTH GROUP maintains its full-year outlook of revenue of around DKK 7.2 billion and operating profit before special items in the DKK 150-200 million range. Special items are expected to amount to an expense of around DKK 25 million.
By their nature, forward-looking statements involve risks and uncertainties that may cause actual performance to differ materially from that contained in the forward-looking statements.