Good activity in MTH GROUP in the third quarter

9. November 2017

The high activity level and the improvement in earnings continued in the third quarter and MTH GROUP’s outlook for revenue and operating profit before special items is unchanged. Special items are expected to amount to a loss of DKK 125 million in 2017.

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MTH GROUP’s revenue was DKK 2.0 billion in the third quarter of 2017, up 22% from DKK 1.6 billion in the same period last year. Operating profit before special items increased to DKK 65 million, compared with a DKK 4 million loss in the comparison period, corresponding to an operating margin before special items of 3.3% versus -0.3%.

The positive trend was driven by project development sales and a higher level of activity. The improved earnings were achieved despite a continued high level of activity on major tenders and costs for implementation of a new IT platform.

Stable order intake and new contract awards

Third-quarter order intake was on a par with the same period last year and amounted to DKK 1.2 billion, while the order book was DKK 7.0 billion compared with DKK 8.3 billion in the same quarter last year. Several awarded but not contracted projects are expected to be recorded as orders in the fourth quarter of 2017. The Group is also working on a number of collaboration agreements and project clarification phases, including a new IKEA store in Copenhagen, which are to result in the conclusion of final, unconditional agreements.

In the third quarter, MTH GROUP was awarded conditional contracts relating to projects including the Vinge urban development project in Frederikssund (DKK 0.6 billion) and refurbishment of Lundevænget in Copenhagen (DKK 0.4 billion). Awarded but not contracted work totalled DKK 1.6 billion, compared with DKK 0.7 billion last year.

- The Group maintained the high level of activity in the third quarter, raising earnings after a good trend in project development sales. At the same time, we were awarded contracts on a number of exciting projects while continuing our intensive work on major tenders that will help to strengthen our order book and profitability in the period ahead, says President and CEO Torben Biilmann.

Outlook for full-year revenue and operating profit before special items are unchanged

In view of trends YTD coupled with the continued positive market outlook and the order book, MTH GROUP maintains its full-year forecast of revenue of around DKK 7.2 billion and operating profit before special items in the DKK 150-200 million range.

In view of the ruling in the legal proceedings relating to Robin Rigg and the assessment of ongoing guarantee liabilities on legacy offshore projects, the provision for offshore guarantee liabilities between the end of the third quarter of 2017 and 2021 has been increased by DKK 100 million. Special items are consequently expected to amount to a loss of DKK 125 million in 2017. 

By their nature, forward-looking statements involve risks and uncertainties that may cause actual performance to differ from expectations.

The interim financial report is available on the MTH GROUP website

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