Today, the Board of Directors of Per Aarsleff Holding A/S has discussed and approved the company’s annual report for 2016/17.
Profit for the year:
- Consolidated revenue increased by 7.4% to DKK 11,188 million (2015/16: DKK 10,420 million)
- Consolidated EBIT came to DKK 380 million (2015/16: DKK 416 million)
- Construction generated EBIT of DKK 264 million (2015/16: DKK 248 million)
- Pipe Technologies generated EBIT of DKK 60 million (2015/16: DKK 39 million)
- Ground Engineering generated EBIT of DKK 56 million (2015/16: DKK 129 million)
- Cash flows from operating activities with deduction of investments came to a positive liquidity flow of DKK 3 million
- Net interest-bearing debt came to DKK 207 million as at 30 September 2017
- Earnings per share came to DKK 13.16
- The Board of Directors proposes a dividend of DKK 4 per share of a nominal value of DKK 2 corresponding to a payment of DKK 82 million.
Consolidated profit for the financial year 2016/17 came to EBIT of DKK 380 million against DKK 416 million the year before. Earnings expectations were EBIT of DKK 430 million at the beginning of the financial year and were adjusted downwards to EBIT of DKK 375 million after the second quarter of the financial year.
Construction
EBIT results were slightly below expectations at the beginning of the financial year. Results are affected by losses on several single projects, involving total write-downs of approx. DKK 60 million in the first half of the financial year. In Per Aarsleff A/S, the largest company of the segment, the results of the Danish activities were satisfactory.
Pipe Technologies
EBIT results exceeded expectations. Overall, the results on the three main markets in Germany, Denmark and Sweden exceeded expectations, while the companies in Poland and Russia were loss-making.
Ground Engineering
EBIT results were below expectations. The company in Sweden developed positively, but in the UK, results were significantly below expectations. In Denmark, there was a low capacity utilisation.
Outlook for the financial year 2017/18:
- For the future financial year, EBIT of DKK 450 million is anticipated and a revenue level approx. 5% up on 2016/17.
Construction expects revenue in line with 2016/17 and an EBIT margin of 3.5% compared with 3.3% last financial year. The Danish civil engineering market remains stable with good opportunities as a result of harbour project tenders and establishment of data centres. In Denmark, there is a high level of activity within new construction as well as building renovation. Strengthening of the management and selective tendering for overseas projects are expected to result in improvements in the future financial year. The efforts of Wicotec Kirkebjerg A/S and Hansson & Knudsen A/S towards secure project execution and consolidation are expected to lead to results improvement in the future financial year. Ístak hf. is expected to continue the positive momentum with improved project execution in a positive market in Iceland.
Pipe Technologies expects revenue increase of approx. 15% compared to last financial year, and an EBIT margin of 4.5% compared to 3.9% last financial year. Results will be affected by amortisation of intangible assets of DKK 10 million, primarily involving the order backlog in connection with the acquisition of Olimb’s pipe renewal activities. Growth excluding the effect of the acquisition of Olimb AS amounts to approx. 5%. Pipe Technologies’ market potential in Denmark is closely connected to the utility companies’ investment level within sewer pipe renewal which is expected to be unchanged. The margins are influenced by keen competition. The future financial year will see an integration of activities between Olimb and the Group’s other activities with a view to creating synergy and exploiting the potential opportunities on the Norwegian market. The difficult market conditions in Poland and the Baltic countries are expected to improve due to an increasing number of EU supported projects. In Russia, the order intake is increasing but the political conditions remain unstable. In Germany, Sweden and Finland we expect stable market conditions.
Ground Engineering expects revenue increase of 5% compared to 2016/17, and an EBIT margin of 5% compared to 3.2% last financial year. In Denmark, we expect an increasing level of activity within establishment of construction pits and a continued high demand for piles as a result of the high number of building activities. Also, the opportunities on the segment’s markets in Sweden and Germany are expected to be positive. However, lately there is uncertainty about the German wind turbine market. The newly established pile factory in Southern Germany expects an increasing level of activity, e.g. due to the demand from Switzerland. There is a slowdown on the British market, and capacity adjustments have been made. In Poland the market conditions are improving, and the order intake is good.
The annual report is published via Nasdaq Copenhagen A/S and is attached to this announcement. It is also available on www.aarsleff.com.
Financial calendar 2017/18
31 January 2018 - Annual general meeting at the Group headquarters, Hasselager Allé 5, 8260 Viby J, at 15:00.
5 February 2018- Dividend paid to shareholders for the financial year 2016/17.
28 February 2018 - Interim financial report for the period 1 October 2017-31 December 2017.
28 May 2018 - Interim financial report for the period 1 October 2017-31 March 2018.
28 August 2018 - Interim financial report for the period 1 October 2017-30 June 2018.
20 December 2018 - Preliminary announcement of financial statements for the financial year 2017/18.