Press releases

DESTIA GROUP FINANCIAL STATEMENTS 1 Jan–31 Dec 2013: The best result in Destia's history

13.02.2014 09:00:00

January−December 2013

  • Revenue for the fourth quarter was 6.5% better than in the previous year, with revenue for the accounting period decreasing 3.5%, amounting to EUR 489.7 million.
  • Operating profit far exceeded the previous year's level, totalling EUR 18.9 million, with relative profitability improving to 3.9%, clearly above the previous year.
  • Group liquidity is extremely good and the company is free of net liabilities.
  • Equity ratio showed a positive improvement and was 44.0%
  • The order book is a par with the previous year.
  • Improvements to occupational safety were effective: the accident frequency rate dropped to 10.8.
  • The financial targets set for the 2010−2013 strategy period were met in return on investment and equity ratio. The operating profit percentage also nearly reached its target, despite the challenging market trends. The growth target set for revenue was not met.
  • Destia Group’s 2014 revenue and operating profit are expected to remain slightly below the previous year's level.

 

Group´s key figures
(IFRS) MEUR
10-12/2013 10-12/2012 1-12/2013 1-12/2012
Revenue, continuing operations 143,3 134,6 489,7 507,3
Operating result,
continuing operations
5,5 -0,4 18,9 14,0
% of revenue 3,9 -0,3 3,9 2,8
Result for the period,
continuing operations
3,3 -1,8 12,5 11,1
% of revenue 2,3 -1,4 2,6 2,2
Result for the period 3,4 -2,4 14,9 10,8
Return on investment, % 22,1 12,5
Equity ratio, % 44,0 35,2
Net gearing, % -51,6 -40,5
Average personnel 1 515 1 591
Occupational accidents
resulting in absence from work *)
10,8 15,6
Order book at the end of period 593,0 600,8

 *) Occupational accidents of Destia's own personnel per one million working hours

President & CEO Hannu Leinonen comments on the accounting period:

”Uncertainty in the economy continued during 2013, which had a negative effect on the economic operating environment in infrastructure construction and on the availability of financing for projects. A slight decline in the infrastructure construction market during the year ended was due to a slowdown in house-building construction. Volume stayed at a moderate level, with public infrastructure investments remaining stable. The municipal market was lacklustre for the year ended, even though there was a great deal of infrastructure construction in growth municipalities, particularly in the Greater Helsinki area. Last year, competition for projects became considerably tougher.

We improved our profitability for the third year in a row, despite the challenging market situation. We recorded Group’s best ever operating profit in the year ended. Both our absolute and relative profitability are significantly better than in previous years. Even though we did not win major road contracts as expected, we were able to make up for these losses with smaller projects. Our investment in personnel training is evident in better project management and profitability.

What is especially notable is that the financial targets we set for the 2010−2013 strategy period were met in return on investment and equity ratio. The operating profit percentage also nearly reached its target, despite the challenging market trends. We did not meet the target to increase our core business areas faster than the rate of market growth. Our operating profit is 3.9 per cent, return on investment 22.1 per cent and equity ratio 44.0 per cent.

Our order book is on a par with the end of the previous year, with a large percentage of it extending into the current year and the following year. 2014 marks the beginning of Destia's new strategy period. The core of our new strategy is to grow profitably on the infrastructure construction market by providing excellent customer work and putting our own expertise to good use. Our aim is to proceed strongly invests in the improvement of occupational safety. Our strong order book coupled with the measures we have taken toward improving customer work and project management provides a solid foundation for maintaining good profitability and cash flow also in the future. Due to the difficult market Destia Group’s 2014 revenue and operating profit are expected to remain slightly below the previous year's level.”

Further information:
President & CEO Hannu Leinonen, tel. +358 (0)20 444 4000 and CFO Pirkko Salminen, tel. +358 (0)50 3022 485


The Destia Group interim report for the first quarter of 2014 will be published on 6 May 2014.

Read Destia Groups's Financial Statements Bulletin 2013 (PDF)


Return back