This release is a summary of Kreate Group’s Financial Statement Bulletin 2021.The complete Financial Statement Bulletin is attached, and also available on the company’s website at https://kreate.fi/en/investor/.
Kreate's Financial Statement Bulletin: high order backlog – with strong revenue and operating profit
October–December in brief
- Order backlog amounted to EUR 202.8 (134.9) million
- Revenue grew compared to the reference period, amounting to EUR 75.8 (62.0) million
- EBITDA was EUR 4.1 (3.1) million, amounting to 5.4 (5.0) per cent of revenue
- EBITA was EUR 3.1 (2.3) million, amounting to 4.1 (3.8) per cent of revenue
-
Earnings per share were
EUR 0.28 (0.07) -
Free cash flow from operating activities was
EUR 7.7 (7.2) million - Interest-bearing net debt was EUR 20.9 (27.9) million
January–December in brief
- Kreate Group Plc’s shares were listed on Nasdaq Helsinki, and the company gained more than 18,600 new shareholders. Trading in Kreate’s shares started on the pre-list of
Nasdaq Helsinki Ltd on19 February 2021 and on the stock exchange list on23 February 2021 . - Revenue grew slightly compared to the reference period, amounting to EUR 237.6 (235.3) million
- EBITDA was EUR 14.2 (14.0) million, amounting to 6.0 (6.0) per cent of revenue
- EBITA was EUR 10.5 (10.5) million, amounting to 4.4 (4.5) per cent of revenue
-
The company’s IPO expenses were
EUR 2.3 million . Of this sum,EUR 0.9 million encumber the result before tax for the reporting period. -
Earnings per share adjusted with IPO expenses were
EUR 0.90 . -
Earnings per share were
EUR 0.80 (0.88) -
Free cash flow from operating activities was
EUR 4.0 (9.7) million -
The Board of Directors proposes to the general meeting on
29 March 2022 that, based on the balance sheet verified for 2021, a dividend ofEUR 0.45 (0.44) be issued per share for shares held outside the company at the time of dividend distribution.
Operating environment in 2022
In 2021, the growth in construction was higher than expected. In its economic assessment issued in October, the
Historically, the Finnish infrastructure construction market has grown steadily. In 2020, the total size of the market was approximately
Between the different infrastructure construction segments, the development varies from normal to positive. Particularly housing construction, which has reached record levels due to the low supply of new apartments, and the construction of business premises starting to grow boost the foundation construction market in 2022. Repair construction and the repurposing of old buildings have also started to grow, which will be reflected in the special foundation construction market in the infrastructure segment. Furthermore, industrial investments important to infrastructure construction are estimated to grow. The bridge construction market continues to strengthen. In the railway construction segment, the number of smaller projects continues to grow, even though large rail investments cannot yet be seen in the railway construction volume. Overall, there is a very strong long-term trend of infrastructure construction experiencing stable growth and low volatility.
The National Transport System Plan is expected to bring long-term developments exceeding individual governments’ terms in office to the development of the transport network, which will also have positive impacts on the infrastructure construction market. The Plan involves a 12-year action programme, which includes actions by the government and municipalities and a government funding programme for the transport system. However, one problem with the plan is the municipalities’ growing share of construction costs, which may mean, at worst, that projects are not executed and the condition of the road and street network and railways deteriorates, for example. Furthermore, the budget cuts affecting the development of the transport system and basic transport infrastructure maintenance planned by the government would reduce the funding for 2023 and 2024. The current forecasts indicate that the company could get on a growth track after this.
The October economic assessment by the
Result guidance for 2022
Kreate estimates that the company revenue (2021:
Justifications:
Kreate’s strong order backlog and specialisation in demanding construction as well as the stable infrastructure construction market support the company’s strategic growth forecast.
President & CEO Timo Vikström:
“Due to the project contracts acquired in Q4, our order backlog remained at a high level at
Overall, 2021 was a very successful year for Kreate. We acquired the strategically important projects that, according to our estimates, would strengthen our competitiveness either due to their technical demands or purchasing model. Significant megaprojects executed in joint project ventures – the Crown Bridges project, the technical construction for the Sulkavuori central wastewater treatment plant and the renovation of the Kirjalanlansalmi and Hessundinsalmi bridges – provide continuity across operating periods and offer interesting development opportunities for our professionals. In addition to these extensive projects, we have countless other ongoing projects that require special expertise and strengthen our position as an expert in infrastructure construction. Our success in project tendering was supported by the high professional skills of our personnel, our good visibility of the upcoming projects and the clear goals set based on plans.
In Q4, the contract for the technical construction for the Sulkavuori central wastewater treatment plant entered the execution stage and, thereby, our order backlog. In the second half of the year, we also won several smaller foundation, circular economy and bridge projects that grew our order backlog by more than
In October, we opened the section on
The cost level in construction grew during the year, but this had a very limited impact on Kreate’s business results. Successful tender calculation, project management and contractual measures that reduce the impact of cost changes allowed the execution of projects according to plan.
We continued our work in improving our personnel well-being and strategic reinforcement of our organisation. Over the course of the year, we developed Kreate’s working ability management measures through well-being coaching, supervisor training and personnel surveys. In Q4, we strengthened our organisation particularly by supplementing our expertise in special foundation, railway and bridge construction. Furthermore, we succeeded well in process improvement, utilising digitalisation and the related hiring.
During 2021, we further strengthened our competitiveness as a company delivering strategically demanding and technically challenging projects. We have an excellent outset for the coming year: we have a strong order backlog and good visibility into the 2022 projects, and our competent organisation is in great shape. From here, we are aiming for profitable growth in line with our strategy also in 2022.”
Key figures
EUR million | 10–12/2021 | 10–12/2020 | 1–12/2021 | 1–12/2020 |
Order backlog |
|
| 202.8 | 134.9 |
Revenue | 75.8 | 62.0 | 237.6 | 235.3 |
Year-on-year change in revenue, % | 22.3 | -14.0 | 1.0 | 6.4 |
EBITDA | 4.1 | 3.1 | 14.2 | 14.0 |
EBITDA, % | 5.4 | 5.0 | 6.0 | 6.0 |
EBITA | 3.1 | 2.3 | 10.5 | 10.5 |
EBITA, % | 4.1 | 3.8 | 4.4 | 4.5 |
Operating profit | 3.0 | 2.3 | 10.4 | 10.4 |
Operating profit, % | 4.0 | 3.7 | 4.4 | 4.4 |
Result for the period | 2.4 | 1.8 | 6.9 | 7.8 |
|
|
|
|
|
Capital employed |
|
| 62.0 | 54.5 |
Return on capital employed, % |
|
| 17.8 | 19.2 |
Return on equity, % |
|
| 20.4 | 24.7 |
Net investments in operating activities | -1.5 | -1.7 | -4.9 | -4.6 |
Free cash flow from operating activities | 7.7 | 7.2 | 4.0 | 9.7 |
Net working capital |
|
| -0.0 | -5.4 |
Net debt |
|
| 20.9 | 27.9 |
Net debt/EBITDA, rolling 12 months |
|
| 1.5 | 2.0 |
Equity ratio, % |
|
| 38.6 | 26.3 |
|
|
|
|
|
Earnings per share, € | 0.28 | 0.07 | 0.80 | 0.88 |
Earnings per share adjusted with IPO expenses, € |
|
| 0.90 |
|
Dividend per share, € |
|
| 0.45* | 0.44 |
|
|
|
|
|
Personnel at the end of the period |
|
| 385 | 383 |
Personnel on average | 389 | 390 | 392 | 407 |
*) Board of Directors’ proposal to the Annual General Meeting
Webcast event for analysts and media
A live webcast for analysts and media will be held today,
Kreate Group’s financial reporting
Kreate Group Oyj will publish the financial reports for 2022 as follows:
- Interim report for January–March 2022: 27 April 2022
- Half-year report for January–June 2022: 27 July 2022
- Interim report for January–September 2022: 26 Oct 2022
Board of Directors’ proposal on the use of distributable funds
The parent company Kreate Group Plc’s distributable funds amounted to
Kreate Group Plc
Kirsi-Marjut Dickman
Communications Manager
Distribution: Nasdaq Helsinki, media and kreate.fi/en
Contacts
Mikko Laine , CFO, Kreate Group Oyj, +358 599 9201, mikko.laine@kreate.fi- Timo Vikström, President & CEO, Kreate Group Oyj, +358 400 740 057, timo.vikstrom@kreate.fi
About Kreate Group Oyj
Attachments
- Download announcement as PDF.pdf
- Kreate_Group_Financial_Statement_Bulletin_2021.pdf
© STT Info Finland, source