Consti Plc Half-Year Financial Report for January –
ADJUSTED EBIT IMPROVED, ORDER BACKLOG STRENGTHENED
4–6/2021 highlights (comparison figures in parenthesis 4–6/2020):
- Net sales
EUR 70.9 (69.3) million; growth 2.3% - EBITDA
EUR 0.3 (3.2) million and EBITDA margin 0.4% (4.6%) - Adjusted operating result (EBIT)
EUR 2.9 (2.7) million and Adjusted EBIT margin 4.1% (3.9%) - Operating result (EBIT)
EUR -0.5 (2.4) million and EBIT margin -0.7% (3.4%) - Order backlog
EUR 236.2 (211.8) million; growth 11.5 % - Order intake
EUR 98.5 (66.8) million; growth 47.4% - Free cash flow
EUR -1.4 (8.1) million - Earnings per share
EUR -0.09 (0.21)
1–6/2021 highlights (comparison figures in parenthesis 1–6/2020):
- Net sales
EUR 130.2 (128.3) million; growth 1.4% - EBITDA
EUR 1.2 (4.5) million and EBITDA margin 0.9% (3.5%) - Adjusted operating result (EBIT)
EUR 3.4 (3.3) million and Adjusted EBIT margin 2.6% (2.6%) - Operating result (EBIT)
EUR -0.4 (2.8) million and EBIT margin -0.3% (2.2%) - Order intake
EUR 168.3 (129.0) million; growth 30.5% - Free cash flow
EUR -4.3 (10.1) million - Earnings per share
EUR -0.11 (0.22)
Guidance on the Group outlook for 2021:
The Company estimates that its operating result for 2021 will be in the range of
4-6/ 2021 | 4-6/ 2020 | Change % | 1-6/ 2021 | 1-6/ 2020 | Change % | 1-12/ 2020 | |
Net sales | 70,902 | 69,306 | 2.3 % | 130,185 | 128,346 | 1,4 % | 274,646 |
EBITDA | 276 | 3,181 | -91.3 % | 1,154 | 4,462 | -74,1 % | 11,440 |
EBITDA margin, % | 0.4 % | 4.6 % | 0.9 % | 3.5 % | 4.2 % | ||
Adjusted operating result (EBIT) | 2,918 | 2,721 | 7.2 % | 3,400 | 3,324 | 2,3 % | 9,478 |
Adjusted EBIT margin, % | 4.1 % | 3.9 % | 2.6 % | 2.6 % | 3.5 % | ||
Operating result (EBIT) | -531 | 2,368 | -429 | 2,830 | 8,237 | ||
Operating result (EBIT) margin, % | -0.7 % | 3.4 % | -0.3 % | 2.2 % | 3.0 % | ||
Profit/loss for the period | -721 | 1,711 | -806 | 1,839 | 5,675 | ||
Order backlog | 236,191 | 211,838 | 11,5 % | 177,857 | |||
Free cash flow | -1,356 | 8,107 | -4,285 | 10,093 | 18,334 | ||
Cash conversion, % | n/a | 254.8 % | n/a | 226.2 % | 160.3 % | ||
Net interest-bearing debt | 20,404 | 11,272 | 81,0 % | 4,737 | |||
Gearing, % | 76.3 % | 37.9 % | 14.1 % | ||||
Return on investment, ROI % | 8.5 % | 13.7 % | 13.6 % | ||||
Number of personnel at period end | 1,003 | 999 | 0,4 % | 927 | |||
Earnings per share, undiluted (EUR) | -0.09 | 0.21 | -0.11 | 0.22 | 0.70 | ||
CEO Esa Korkeela’s comment
”During the second quarter of 2021, our net sales were 70.9
Our Adjusted operating result (EBIT) for April-June before items affecting comparability was 2.9
In April-June our order intake was 98.5
The negative impact that the coronavirus pandemic (COVID-19) had on our ability to advance projects according to plans was smaller than in the first quarter and it lessened toward the end of the reporting period. Despite the pandemic, demand for renovations remained at an adequate level. The housing company market has now returned near to normal levels regionally as well. However, demand for renovation and modification work in commercial premises has remained lower than normal especially in those industries that have suffered most from the coronavirus pandemic. Construction material price increases and material availability did not have a significant impact on our business during the second quarter.
During the second half or the year we will concentrate on ensuring our business performance and implementing our strategy. Our strengthened order backlog puts us in a good position to continue positive solid development in the second half of the year as well.”
Operating environment
Construction market 2021
European construction market research institution Euroconstruct estimates in its
Although renovation construction is expected to grow in 2021, the coronavirus pandemic continues to cause uncertainty to the short-term demand outlook of renovation. The pandemic is expected to return in some form during autumn, in which case restrictive actions may be unavoidable. So far, the impact of restrictive actions has, however, remained quite moderate, because construction sites have predominantly been able to continue work despite the pandemic.
In housing companies, the corona crisis delayed decision making and renovation project plans during 2020, but if the corona situation allows it, the pent-up renovation needs are expected to boost demand in apartment renovations. According to Euroconstruct, the corona crisis has had both positive and negative effects on the renovations of commercial and public properties, but the overall impact has remained negative. There have been delays in starting work at new renovation sites, but on the other hand activity levels have been even better than normal at work sites where customers or users of the buildings have not been present due to corona restrictions.
According to Statistics Finland’s most recent figures, construction material costs continued to rise rapidly in June. Building costs rose by 4.2 percent in
The renovation market in general
The value of professional renovations in total was nearly
Professional renovation has grown nearly continuously in
Public service construction, especially schools and hospitals, has grown rapidly in recent years. New construction of schools is estimated to continue active, but on the whole public construction is expected to decline in upcoming years. This will have a considerable impact on the volume development of construction.
The need for facade renovations is growing, mainly due to the age of the building stock in
Building technology renovations are the fastest growing area of renovations, including for example pipeline renovations, heating, ventilation, cooling and electrical renovations. They have made up nearly half of all housing company renovations in recent years. About 70 percent of building technology renovations are pipeline renovations.
Structures and facades are the second largest group, making up nearly 40 percent of all renovations. For financial reasons, facade renovations have had to be postponed in many housing companies to make room for pipeline renovations. According to the Finnish Real Estate Federation’s renovation barometer, there is currently almost the same number of facade and pipeline renovations ongoing in housing companies. The barometer estimates that in upcoming years renovation needs will focus increasingly on facades.
Approximately one fifth of renovations are repair and maintenance renovations.
The demand for renovation is maintained by the large building stock of residential buildings from the 1970s and also renovation needs in commercial and office buildings. In the 1980s commercial and office building construction was especially large-scale in
Megatrends such as aging population, urbanisation and climate change also add to renovation needs. Like new construction, renovation is also estimated to continue concentrating to growth centres.
Climate change mitigation requires for instance improved energy efficiency in buildings, as stipulated in the EU’s energy efficiency directive. This is fostered for example with building technology and facade renovations. Adaption to weather variations caused by climate change necessitates meticulous maintenance of facades in particular.
Outlook for 2021
The coronavirus pandemic continues to cause uncertainty to Consti’s operating environment. Although market research institutes expect the renovation market to grow in 2021, new waves of the pandemic and lockdowns remain possible. The operating environment for the rest of the year is also affected by the rapid increase in the cost of building materials and possible problems related to availability of the materials. The increase in the price level and availability of building materials did not have a significant impact on
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Financial communication in 2021
- Interim report 1-9/2021 published
27 October 2021
Further information:
Esa Korkeela, CEO,
Joni Sorsanen, CFO,
Distribution:
Major media
www.consti.fi
Attachment
- Consti Half-Year Financial Report 1-6 2021
© OMX, source