Destia Group s interim report for January–June 2014: THE RESULT IMPROVED DESPITE A DECREASE IN REVENUE, THE ORDER BOOK WAS MODERATE, AND THE CASH POSITION REMAINED STRONG
- Revenue decreased by 10.9 per cent and was MEUR 169.7.
- The operating profit was at the level of the previous year at MEUR 0.0.
- The cash position remained strong, and the company was free of net liabilities at the end of the reporting period.
- The order book improved during the early part of the year reaching MEUR 717.6, at a lower level however than in the corresponding period of the previous year.
- The return on investment was over 21% while the equity ratio stood at over 47%.
- On 26 May 2014, Ahlström Capital entered into a trade agreement with the State of Finland for the acquisition of Destia’s entire share capital. The transaction was concluded on 1 July.
- The number of accidents resulting in absence from work was at a record low.
- Destia Group’s 2014 revenue and operating profit are expected to remain below the level of the previous year.
|Key figures (IFRS), MEUR||4-6/14||4-6/13||1-6/14||1-6/13||1-12/13|
|% of revenue||3.9||2.2||0.0||0.1||3.9|
Profit for the report
|% of revenue||2.8||1.1||-0.2||-0.4||2.6|
|Profit for the report
|Return on investment, %||21.1||13.4||22.1|
|Equity ratio, %||47.8||40.6||44.0|
|Net gearing, %||-51.3||-18.6||-51.6|
|Number of personnel,
|1 501||1 510||1 515|
resulting in absence
|Comparable order book
at end of report period
|*) Occupational accidents
per one million working hours
President and CEO Hannu Leinonen comments on the report period:
“Our result improved in the second quarter of the year despite the challenging market situation and the decrease in revenue compared to the previous year. The order book level, which was lower than last year, and especially the poor success in competitive tendering for major projects last year both create challenges with regard to this year’s revenue.
We secured more contracts during the second quarter of this year than in the previous year but the competition remained fierce. Our order book developed in a rather positive fashion. Destia signed several new contracts in the core business areas of infrastructure construction and maintenance as well as the leading growth areas of railway and energy construction. During the reporting period, we also agreed upon the establishment of a tendering consortium with Lemminkäinen for the life-cycle project concerning the section of road E18 between Hamina and Vaalimaa.
Human resource development remains a strategic focus area of Destia. Our strong investments in the development of our expertise, customer work and occupational safety are already beginning to yield visible results in our operations. I am particularly pleased with the record low frequency of accidents.
The state relinquishing its ownership of Destia clarified our role as a provider of infrastructure services. The systematic strengthening of our business operations has, in recent years, created a solid foundation on which we can now build sustainable growth in private ownership.
Due to poor success in competitive tendering for major projects in 2013 and early 2014, we estimate that Destia Group’s 2014 revenue and operating result will be lower than in the previous year.”
President & CEO Hannu Leinonen, tel. +358 20 444 4000 and CFO Pirkko Salminen, tel. +358 50 302 2485
Financial reporting 2014
Destia Group will publish the interim report for January–September on 31 October 2014.