Press releases

DESTIA GROUP'S FINANCIAL STATEMENTS 1 JANUARY−31 DECEMBER 2011: Cash flow good and order book at a high level

29.02.2012 09:00:00

  • Turnover stood at MEUR 495.9 and decreased 7.9 per cent on the previous year as was expected.
  • The Group’s cash flow was good throughout the year.
  • Destia won the E18 Koskenkylä–Kotka PPP project and the Kalasatama project.
  • The order book grew 24.5 per cent and was MEUR 805.1 on 31 December.
  • The surfacing business was sold to NCC.
  • The Group adopted IFRS reporting in its financial statements on 31 December 2011.

Key figures (IFRS), MEUR

1-12/2011

1-12/2010

 

 

 

Turnover

495.9

538.6

Operating result

-8.1

11.6

% of turnover

-1.6

2.2

Result in review period

-13.0

9.5

% of turnover

-2.6

1.8

Average personnel

1,813

2,096

Order book at end of review period

805.1

646.5

Hannu Leinonen, President & CEO, comments on the financial year:
“Our forecast on the 2011 market situation of the infrastructure sector where Destia operates was moderate. The year was stronger than expected, however, especially in terms of orders from cities and towns.

In 2011, Destia’s turnover decreased 7.9 per cent on the previous year to MEUR 495.9. The Group’s comparable order book grew 24.5 per cent and was MEUR 805.1 at the end of December 2011. In the 2011 key financials, however, successes and progress achieved were overshadowed by losses from old projects. The result, which was markedly poorer than the previous year, was due to a number of major issues: the significant project impairment in Norwegian operations, error in the pricing of a track maintenance contract, error in the scheduling of ongoing projects and the failure of a rock construction project. The losses recorded as a result of projects totalled MEUR 19.2. The development of the Group’s cash flow was strongly positive.

2011 was a year of company reorganisation in the infrastructure sector. Despite reorganisations and mergers, the market remains very fragmented. The opening-up of the municipal and railway markets is linked to changes in the social structure and, as these changes are implemented, the size of the open market will increase. The greatest threat that the sector faces in 2012 is the development of the European financial markets.

For Destia, this year looks better than the previous year due to large, ongoing projects, such as the PPP and alliance projects. It is estimated that the revival in demand in the infrastructure sector will occur in 2012–2013. Destia’s existing strong order book and the measures for improving profitability initiated shall exert a positive impact on the prospects for 2012. It is estimated that Destia Group’s 2012 turnover will grow slightly, with the operating result of the financial year being clearly positive.”

Additional information: President & CEO Hannu Leinonen, tel. 020 444 4000, and Head of Economics and Financing Pirkko Salminen, tel.050 3022 485

DESTIA GROUP: FINANCIAL STATEMENTS, 1 JANUARY – 31 DECEMBER 2011 (PDF)

 Destia Group’s Interim Report for the first quarter of 2012 will be published on 3 May 2012.

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