Destia’s financial statements 2019 published
Wed 04 Mar 2020 03:19:00 PM EET
In 2019, Destia’s revenue increased to MEUR 569.9 (550.3), but profitability decreased year-on-year, with operating profit amounting to MEUR 12.3 (16.7).
The result was improved by successful maintenance projects, but cost overruns in individual projects had a considerable negative effect on the result. We have initiated corrective actions, and we will particularly focus on improving project management in 2020.
In 2019, the Group had several major projects under way, including the Lahti southern ring road, upgrading of National Road 4 to the north of Äänekoski and upgrading of National Road 5 between Mikkeli and Nuutilanmäki. Important projects completed during the year include the upgrading of National Road 4 near Oulu and Laitaatsalmi bridge in Savonlinna.
Destia’s order backlog is spread over several years; it developed positively during the financial year and was higher than the year before at the end of December, amounting to MEUR 763.6 (732.7). A number of important new contracts were signed during the year, such as the implementation phase of the National road 4 Kirri–Tikkakoski design-build-develop project, the upgrading of the E18 Turku ring road between Kausela and Kirismäki, the alliance contract for infrastructure maintenance in the central Turku area and the new coal terminal in Pori. In addition, a number of new contracts were won towards the end of the year but were due for signing in 2020. Nine maintenance contracts for 2019–2024 pursuant to the new road maintenance contract model were won of the 17 contracts tendered for, which increased Destia’s market share in maintenance contracts.
The number of personnel at year-end decreased slightly year-on-year, being 1,651 (1,676). The number of summer workers and trainees rose to a new record, 259 (244). Destia aims to be the preferred and most appreciated employer in the infrastructure sector. Human resources management practices were systematically developed during the year. For instance, the personnel satisfaction measurement procedure was redesigned. Instead of a survey carried out once a year, personnel satisfaction was measured by three pulse surveys during the year, measuring the delivery of the leadership promise, operational compliance with values and the development of culture, among other things. The employer image also strengthened through an external survey during the year: in the Most Attractive Employers survey carried out by Universum, our ranking improved from 80 to 35 in the survey conducted among technical students and from 108 to 45 in the survey conducted among technology professionals.
The efforts to improve safety were reflected on the number of safety observations. In 2019, more than 5,000 safety observations were made, which is 2.5 times the number of observations made in the previous year. The number of accidents resulting in absence from work was at the same level as in the previous year. The cumulative accident frequency for the year is 5.6. Nevertheless, it was a bleak year for occupational safety at Destia sites, with two fatal accidents occurring among the subcontractors.
Strategy implementation started
Destia’s strategy was redesigned towards the end of 2018, and the implementation started in 2019. During the year, organisational reform was carried out, the renewal of corporate culture continued and division-specific plans were taken to a more detailed level. The achievement of strategic objectives is promoted through the must-win strategic battles at the company level: Productivity Pioneer, Nordic Facilitator, Innovative Urban Developer and Winning Team. The improvement of project management, related to the Productivity Pioneer battle, was a key focus area, and we are continuing this work in 2020 with determination.
Tero Kiviniemi, President and CEO:
‘Destia’s success is based on the work of our 1,700 professionals, the Winning Team. This is what we build on. The systematic work to promote the personnel’s well-being and revise the corporate culture was started in 2018. The work is divided into three sub-projects: balanced values, inspiring leadership and happy people.
Project management must always be in focus in Destia’s business. Due to cost overruns in individual projects, we have paid particular attention to this, and the work is ongoing in 2020.’
Destia’s Financial Statements, Corporate Governance Statement and Quality and Responsibility Report 2019 are published on the company’s website at https://www.destia.fi/en/annual-report-2019.html