7–9/2021 highlights (comparison figures in parenthesis 7–9/2020):
- Net sales
EUR 76.0 (68.2) million; growth 11.4% - EBITDA
EUR 4.0 (3.2) million and EBITDA margin 5.3% (4.8%) - Adjusted operating result (EBIT)
EUR 3.1 (2.6) million and Adjusted EBIT margin 4.1% (3.9%) - Operating result (EBIT)
EUR 3.1 (2.5) million and EBIT margin 4.1% (3.6%) - Order backlog
EUR 217.9 (189.4) million; growth 15.0 % - Order intake
EUR 40.0 (31.0) million; growth 28.9% - Free cash flow
EUR 3.6 (4.6) million - Earnings per share
EUR 0.29 (0.21)
1–9/2021 highlights (comparison figures in parenthesis 1–9/2020):
- Net sales
EUR 206.2 (196.5) million; growth 4.9% - EBITDA
EUR 5.2 (7.7) million and EBITDA margin 2.5% (3.9%) - Adjusted operating result (EBIT)
EUR 6.5 (6.0) million and Adjusted EBIT margin 3.2% (3.0%) - Operating result (EBIT)
EUR 2.7 (5.3) million and EBIT margin 1.3% (2.7%) - Order intake
EUR 208.3 (160.0) million; growth 30.2% - Free cash flow
EUR -0.7 (14.7) million - Earnings per share
EUR 0.18 (0.43)
Guidance on the Group outlook for 2021:
The Company estimates that its operating result for 2021 will be in the range of
7-9/ 2021 | 7-9/ 2020 | Change % | 1-9/ 2021 | 1-9/ 2020 | Change % | 1-12/ 2020 | |
Net sales | 75,984 | 68,202 | 11.4 % | 206,168 | 196,548 | 4.9 % | 274,646 |
EBITDA | 4,033 | 3,249 | 24.1 % | 5,188 | 7,711 | -32.7 % | 11,440 |
EBITDA margin, % | 5.3 % | 4.8 % | 2.5 % | 3.9 % | 4.2 % | ||
Adjusted operating result (EBIT) | 3,124 | 2,631 | 18.7 % | 6,524 | 5,955 | 9.5 % | 9,478 |
Adjusted EBIT margin, % | 4.1 % | 3.9 % | 3.2 % | 3.0 % | 3.5 % | ||
Operating result (EBIT) | 3,124 | 2,454 | 27.3 % | 2,694 | 5,283 | -49.0 % | 8,237 |
Operating result (EBIT) margin, % | 4.1 % | 3.6 % | 1.3 % | 2.7 % | 3.0 % | ||
Profit/loss for the period | 2,233 | 1,694 | 31.8 % | 1,427 | 3,533 | -59.6 % | 5,675 |
Order backlog | 217,895 | 189,402 | 15.0 % | 177,857 | |||
Free cash flow | 3,608 | 4,599 | -21.6 % | -678 | 14,692 | 18,334 | |
Cash conversion, % | 89.4 % | 141.5 % | n/a | 190.5 % | 160.3% | ||
Net interest-bearing debt | 18,635 | 7,383 | 152.4 % | 4,737 | |||
Gearing, % | 62.6 % | 23.6 % | 14.1 % | ||||
Return on investment, ROI % | 9.3 % | 14.1 % | 13.6 % | ||||
Number of personnel at period end | 998 | 959 | 4.1 % | 927 | |||
Earnings per share, undiluted (EUR) | 0.29 | 0.21 | 38.1 % | 0.18 | 0.43 | -58.1 % | 0.70 |
CEO Esa Korkeela’s comment
“During the third quarter of 2021, our net sales were 76.0
Our adjusted operating result (EBIT) for July-September before items affecting comparability was 3.1
During July-September, our order intake was 40.0
During the reporting period, we completed our first acquisition in accordance with our new strategy by acquiring the share capital of
One of our strategic goals is controlled and profitable growth in attractive building technology segments. To accelerate the implementation of the strategy and increase our efforts, especially in the growth of our service business in building technology, we appointed
The market environment for construction and building technology services remained at an adequate level during the third quarter. The coronavirus pandemic (COVID-19) did not have a significant impact on our ability to carry out our projects during the reporting period. The pandemic continues to have a negative effect on the demand for renovation and modification work in commercial premises, but the market is gradually recovering. On the other hand, the rapid rise in construction costs and problems with the availability of construction materials have increased uncertainty in the market environment. Although the rise in input prices is expected to slow down towards the end of the year, construction cost development and availability problems may have a negative impact on the ability to advance ongoing projects according to plans and on the demand situation.
Our strong order backlog puts us in a good position to continue positive solid development in the last quarter of the year as well.”
Operating environment
Construction market 2021-22
In its October report, the
A construction trends group led by the Ministry of Finance assessed the development of construction trends in its Construction 2021–2022 report, which was published in September. The group estimates that construction will grow by 0–2% this year. The report predicts that the busiest phase of construction will take place in the second half of 2021 and the first half of 2022. According to the construction trends group’s forecast, construction output will grow by 2–4 percent in 2022.
The group estimates that renovation will grow approximately 1.5% in 2021 and the growth is expected to pick up to two percent in 2022. In 2021 and 2022 renovation growth is expected in both residential and commercial buildings, due to improved health safety brought about by vaccination coverage, the positive development of the economy, low interest rates, the repair needs generated by the lively housing and leisure housing trade, and pent-up repair needs.
According to the
The renovation market in general
The value of professional renovations in total was nearly
Professional renovation has grown nearly continuously in
According to a renovation market analysis, which was conducted for
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. Forecon estimates that in the 21st century, the growth of building technology renovations has been about 4–5 percent per year, while renovation growth has been about 1–2 percent per year on average. In recent years, building technology has accounted for almost half of all renovations in housing companies and about 40 percent of the total renovation of the housing stock.
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 and regional differences in growth are expected to strengthen even more in future.
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 the 2021
The volume of construction is estimated to grow in 2021 by about 1.5 percent from the previous year. The busiest phase of construction is estimated to take place in the second half of 2021 and the first half of 2022. The renovation market is estimated to grow by about one percent in 2021 and the growth is expected to rise to 2.0 percent in 2022.
Uncertainty in the operating environment towards the end of the year is intensified in particular by the rising costs of construction materials and possible availability problems. The increase in the price level and availability of construction materials did not have a significant impact on
The Company estimates that its operating result for 2021 will be in the range of
Press conference
Microsoft Teams meeting for analysts, portfolio managers and media representatives, will take place
Financial communication in 2022
Consti Plc’s Financial Statements for 2021 will be published
The electronic version of the annual report, which includes the full financial statements for 2021, will be published in week 11/2022.
Consti Plc’s Annual General Meeting for 2022 is scheduled to take place on Tuesday,
- Interim report 1-3/2022 published
29 April 2022 - Half-year financial report 1-6/2022 published
22 July 2022 - Interim report 1-9/2022 published
27 October 2022
Further information:
Esa Korkeela, CEO,
Joni Sorsanen, CFO,
Distribution:
Major media
www.consti.fi
Attachment
Consti Interim Report 1-9 2021
© OMX, source