The Group’s revenue fell as expected, while continued write-downs on a major civil works project and some other projects led to an unsatisfactory loss in the second quarter. MTH GROUP increased order intake and reaped the first rewards from the Focus 2018 programme in MT Højgaard.
In the second quarter, MTH GROUP’s revenue was DKK 1.7 billion, compared with DKK 1.9 billion in the same period last year, following the trend of low order intake in 2017. The Group’s operating result before special items was unsatisfactory, with a loss of DKK 34 million, compared with a profit of DKK 38 million in the second quarter of 2017.
Increasing order intake and order book
MTH GROUP achieved order intake of DKK 4.0 billion in the second quarter, compared with DKK 1.8 billion in the same period last year, and the order book grew to DKK 9.2 billion by the end of the quarter, compared with DKK 7.8 billion at the same time last year. This improvement was partly the result of initiatives in the Focus 2018 programme, which helped increase the proportion of tenders won and good-quality orders with planned start-up in 2018 and 2019.
– The second-quarter results were clearly unsatisfactory, as we had to recognise a major writedown on a civil works project, as well as having too low capacity utilisation in the wake of low order intake in 2017. In the last half year, we have made intensive efforts to create the necessary progress in MT Højgaard under the banner of “Focus 2018”, and we are delighted to have secured new orders totalling DKK 4 billion in the second quarter alone and laid the foundation for an improvement in future earnings. In that connection we are pleased about the announcement concerning the expected cash injection from Knud Højgaards Fond, which will give us the necessary breathing space in the period ahead, says CFO Egil Mølsted Madsen.
The Focus 2018 programme is still expected to reduce MT Højgaard’s total costs by around DKK 100 million, with full effect from 2019.
Outlook for 2018
On Wednesday 15 August, MTH GROUP announced that it now expects EBIT in the range of DKK 0-50 million compared with the previously announced figure of DKK 140-180 million. Revenue is expected to remain unchanged at around DKK 6.8 billion.
Earnings are expected to improve in the second half year as a result of increasing revenue, the effect of the capacity adjustment in MT Højgaard that has already been implemented and intensified effort relating to the Focus 2018 programme, which aims to improve competitiveness in MT Højgaard’s Danish business.
The interim financial report is available at mthgroup.eu/finance.
Contact: Please direct any questions to Ann-Louise Elkjær, VP Communications , tel. +45 2033 8693.