Destia’s financial statements bulletin 2016: DESTIA’S REVENUE AND OPERATING PROFIT INCREASED
- Revenue was MEUR 493.2 (462.8), showing an increase of 6.6%.
- The operating profit was MEUR 14.1 (12.9).
- The order book at the end of the year was MEUR 708.0 (717.4).
- The return on investment was 11.1% (9.4%) while the equity ratio stood at 33.5% (31.2%).
- Occupational safety continued to improve: the accident frequency reached a new year-level record low, 5.9 (7.6).
- The company made the redemption of the Bond prematurely for the full outstanding amount in accordance with the terms and conditions of the bond, and Destia’s bond was delisted from Nasdaq Helsinki on 21 December 2016.
- Destia’s revenue and operating profit for 2017 is expected to grow slightly from the previous year.
|Key figures (IFRS), MEUR||10-12/2016||10-12/2015||1-12/2016||1-12/2015|
|% of revenue||2.7||3.8||2.9||2.8|
|Result for the period||-1.0||3.1||5.7||6.7|
|% of revenue||-0.7||2.4||1.2||1.5|
|Return on investment, %||11.1||9.4|
|Earnings per share, EUR||50.13||56.14|
|Equity ratio, %||33.5||31.2|
|Net gearing, %||35.3||32.6|
|Occupational accidents resulting in absence from work*)||5.9||7.6|
|Order book at the end of review period||708.0||717.4|
|*) Occupational accidents per one million working hours|
The financial statements bulletin is based on the audited financial statements for 2016.
President & CEO Hannu Leinonen comments on the financial year:
“For Destia, 2016 was better than the previous year. The construction industry boosted the entire Finnish economy. In late 2015, the infrastructure market showed slight signs of recovery after a period of long economic downturn, and this positive trend strengthened in 2016. This had a favourable impact on Destia’s revenue development. Market recovery also contributed to securing our order book, and we managed to keep the order book at a good level. Despite the increasing overall demand, the competitive situation remained challenging due to intense competition for tenders.
Our strong investments in the development of personnel expertise, customer work and occupational safety have yielded results. Our investments in customer work are evident, first and foremost, in the improvement of customer satisfaction. We have developed occupational safety determinedly, and last year, we reached an excellent level: 5.9 occupational accidents per million working hours. We also intensively continued the digitalisation of our operations and the development of model-based production and work machine automation.
Destia’s strategy extending until 2022 is divided into three three-year operating periods. The year 2016 saw the end of the first three-year business planning period. Of the focus areas for the past period, railway construction and maintenance as well as rock construction strengthened their market positions as planned. We are especially satisfied with our success in railway maintenance. The goal is to consolidate our position in these focus areas. In energy infrastructure, we are continuing the efforts to strengthen our market position.”
Outlook for 2017
The positive development of the Finnish economy will continue and the positive ripple can also be seen in the operating environment in the construction industry. The demand for infrastructure construction will probably increase slightly from the previous year due to some large private and public sector projects as well as additional funding, announced by the state, for fundamental road infrastructure maintenance and the reduction of the repair backlog.
Destia’s order book coupled with the measures that have been taken towards improving customer work and project management provide a solid foundation for maintaining good profitability and cash flow in the future.
Destia’s revenue and operating profit for 2017 is expected to grow slightly from the previous year.
Proposal by the Board on the use of distributable assets
Destia Group Plc’s FAS-compliant loss for the financial year was EUR 364,899.80, which is proposed to be recorded on the retained earnings account. Destia Group Plc’s distributable assets total EUR 50,519,903.30 including the EUR 53,000,000 in the invested unrestricted equity fund.
Destia Group Plc’s Board of Directors proposes to the Annual General Meeting that no dividend or repayment of capital be paid for the financial period that ended on 31 December 2016.
Vantaa, 9 February 2017
Destia Group Plc
Board of Directors
Destia’s President and CEO Hannu Leinonen, tel. +358 20 444 4000, and CFO Pirkko Salminen, tel. +358 50 302 2485
Financial reporting in 2017
2 March 2017 Annual report 2016, including the financial statements and the Corporate Governance Statement
27 April 2017 Business Review 1–3/2017
11 August 2017 Half year financial report 1–6/2017
24 October 2017 Business Review 1–9/2017
Destia: Destia is a Finnish infrastructure and construction service company. We build, maintain and design traffic routes, railways, industrial and traffic environments as well as complete living environments. In 2016 the company’s revenue was over MEUR 490. With 1 500 dedicated experts we build the bigger picture, piece by piece. www.destia.fi/en