MTH GROUP increased revenue by 14% to DKK 1.7 billion in Q1 based on the Group’s large order book, whereas the order intake and earnings before interest and tax (EBIT) were lower than in the comparison period. Outlook for 2017 is maintained.
The activity level was relatively high in the first quarter of 2017 where MTH GROUP increased revenue to DKK 1.7 billion compared with DKK 1.5 billion in the same period last year. EBIT decreased to a loss of DKK 22 million as a result of lower capacity utilization after the standstill on the contract for interior works with Copenhagen Metro Team (CMT) for the Cityringen metro stations and continued work on projects written down in 2016. Finally, MTH GROUP’s tender costs increased as a result of high tendering activity on some large future projects.
- We saw a good activity progress across all our companies in the first quarter of the year which was, however, also characterized by the unfortunate standstill in the Cityringen project that adversely affected our productivity and earnings. At the same time, we worked determinedly to prepare extensive tenders for some large projects and also to meet an increasing demand within infrastructure, data centers, shell contracts and super-hospitals, says President & CEO Torben Biilmann.
Satisfactory order book creates a basis for profitable growth
At the end of the first quarter, the order book totaled DKK 7.9 billion compared with DKK 7.7 billion in the same period last year, and the level continues to provide a basis for good activity in 2017 despite the lower order intake of DKK 1.0 billion compared with DKK 1.8 billion in the comparison period.
- The activity level and the satisfactory order book at the end of the first quarter provide MTH GROUP a strong basis for profitable growth in the time to come. We recently took the first steps in the comprehensive replacement and renovation of 56 bridges between Ringsted and Rødby for Banedanmark with the construction of a new railway bridge in just ten days. The overall contract runs until 2020 and provides a good example of MTH GROUP’s ability to implement complex projects, focus on productivity and use state-of-the-art digital tools, says Torben Biilmann.
Outlook for 2017 maintained
In view of the development in the first quarter, the order book at the end of the quarter and continued positive market outlook, MTH GROUP maintains its expectations for revenue around DKK 7.2 billion and earnings before interest and tax in the range of DKK 150-200 million in 2017.
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 interim financial report is available at mth.com/finance.