Destia Group's and Destia's interim report for January–September 2014: DESTIA'S RELATIVE OPERATING PROFIT ON THE LEVEL OF THE PREVIOUS YEAR IN SPITE OF A REDUCTION IN REVENUE, ORDER BOOK MODERATE
Destia Ltd’s parent company is Destia Group Oyj, which was established in connection with the ownership arrangement of Destia and which owns 100% of Destia’s shares.
This is the interim report on the financial development of Destia Group in the third quarter and, with regard to the Destia subgroup, from the beginning of the year with comparative data from the previous year. Business-related matters concern the Destia subgroup. Comparative figures do not exist for Destia Group Oyj.
The Destia Group = Destia Group
The Destia subgroup = Destia
Destia Group’s and Destia’s interim report for January–September 2014
DESTIA GROUP OYJ STARTED OPERATIONS AS THE PARENT COMPANY
DESTIA’S RELATIVE OPERATING PROFIT ON THE LEVEL OF THE PREVIOUS YEAR IN SPITE OF A REDUCTION IN REVENUE, ORDER BOOK MODERATE
- Destia’s revenue decreased by 11.6 per cent to MEUR 306.0.
- Destia’s operating profit weakened in comparison with the previous year and was MEUR 11.4. Relative profitability remained at the same level.
- The order book increased compared to the previous year and stood at MEUR 658.7.
- Destia Group’s return on investment was 6.5 per cent and equity ratio some 29 per cent.
- Destia’s return on investment was over 22 per cent and equity ratio 33 per cent.
- On 1 July 2014, Destia paid the State of Finland MEUR 42.0 as repayment of capital.
- The commercial agreement between Ahlström Capital and the State of Finland regarding the purchase of the entire shareholding of Destia was implemented on 1 July 2014.
- In the third quarter, the number of accidents resulting in absence from work was at an all-time low of 9.8.
- Destia Group Oyj issued a MEUR 65 five-year bond.
- Destia’s 2014 revenue and operating profit are expected to fall short of the level of the previous year.
Destia’s President and CEO Hannu Leinonen comments on the reporting period:
"Our result developed moderately during the reporting period, in spite of the challenging market situation and a decline in revenue compared with last year. Competition for projects remained fierce. Our order book developed quite positively, and we acquired more contracts than last year. In addition to our core businesses of infrastructure construction and maintenance, Destia concluded several new contracts in our growth spearheads, track construction and energy construction. During the reporting period, we also won a significant large contract, the construction of the Mikkeli section of National Road 5. Our order book is spread over more years than previously.
In order to achieve Destia’s strategic objectives, we are investing strongly in personnel development. Our strong investment in the development of personnel expertise, customer work and occupational safety is already evident in our operations. I am especially happy with the record low level of our accident frequency in the third quarter and in the positive development in the results of the personnel survey carried out during the reporting period.
The transfer of Destia’s entire share capital to private ownership as a result of the corporate acquisition was ratified in the reporting period. The strengthening of business that we have done in recent years has created a solid foundation on which we can now build profitable growth under private ownership.
The poor success last year and early this year in tendering for major projects caused a revenue challenge to which we have been unable to respond in the third quarter. We expect that our revenue and operating profit in 2014 will fall short of the level of the previous year."
President & CEO Hannu Leinonen, tel. +358 20 444 4000, hannu.leinonen(a)destia.fi and CFO Pirkko Salminen, tel. +358 50 302 2485, pirkko.salminen(a)destia.fi
Financial reporting 2014
Destia will publish its financial statements for 2014 on 13 February 2015.