MTH GROUP saw an increase in both revenue and earnings in 2017. Operating profit before special items rose by DKK 100 million.
Group revenue increased by 13% to DKK 7.6 billion after double-digit growth in the of construction and civil works businesses, which were characterised by high activity, handover of projects to private and public sector customers, and the completion of a number of construction projects developed in-house.
Operating profit before special items was DKK 176 million and was thus in line with the most recent profit outlook. The improvement in relation to 2016 – when profit was DKK 73 million – is due to higher revenue and income from project sales.
-We delivered the increase in earnings we had promised. A positive feature was that we succeeded in improving the operating margin from 1.1% to 2.3% in a year in which we had increasing expenditure on a new IT platform and a high level of tendering activity. This shows that we are on the right track, says President and CEO Torben Biilmann.
In 2017, MTH GROUP had negative special items of DKK -125 million relating to legacy offshore guarantee obligations.
Outlook 2018MTH GROUP has begun 2018 with an order book of DKK 7.0 billion. In addition, the Group has projects to a value of DKK 0.7 billion that have been awarded but not contracted and a good pipeline where the companies in the Group are working on the clarification phase of a number of collaboration agreements and projects.
-The order book provides a basis for good activity during the coming period but we would have liked to see higher order intake last year, continues Torben Biilmann, with reference to the fact that in January 2018 the Group reduced capacity by giving notice to 100 salaried employees and cutting a further 60 salaried positions in the Danish part of the parent company MT Højgaard.
-It will be a top priority in 2018 to exploit our skills and competitive power to win new, attractive orders of the right quality. We believe that our focus on strategic development is both correct and necessary in order to deliver good results and contribute to higher productivity in the industry, and we are continuing to invest in digitisation and developing new forms of collaboration, says Torben Biilmann.
MTH GROUP expects revenue of around DKK 6.8 billion and EBIT in the DKK 140-180 million range in 2018.
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.
The annual report is available at mthgroup.eu/finance