News / annual-report-for-2017-18

20.12.2018 - Company announcement

Annual report for 2017/18

Today, the Board of Directors of Per Aarsleff Holding A/S has discussed and approved the annual report for 2017/18.

Profit for the year:

  • Consolidated revenue increased by 8.2% to DKK 12,108 million (2016/17: DKK 11,188 million)
  • Consolidated EBIT came to DKK 475 million (2016/17: DKK 380 million)
  • Construction generated EBIT of DKK 315 million (2016/17: DKK 264 million)
  • Pipe Technologies generated EBIT of DKK 85 million (2016/17: DKK 60 million)
  • Ground Engineering generated EBIT of DKK 75 million (2016/17: DKK 56 million)
  • Cash flows from operating activities with deduction of investments came to a positive liquidity flow of DKK 372 million
  • Net interest-bearing deposit was DKK 31 million at 30 September 2018
  • Earnings per share came to DKK 16.68
  • The Board of Directors proposes a dividend of DKK 5 per share of a nominal value of DKK 2 corresponding to a payment of DKK 101 million.

Consolidated profit for the financial year 2017/18 came to an EBIT of DKK 475 million compared to DKK 380 million the year before. Earnings expectations were an EBIT of DKK 450 million at the beginning of the financial year and were adjusted upwards to an EBIT of DKK 470 million after the third quarter of the financial year.

EBIT results exceeded expectations. Results are positively influenced by the high level of activity and the good progress of the three large harbour expansion projects in Hanstholm, Rønne and Frederikshavn.

Pipe Technologies
EBIT results are in line with expectations. Norway and Germany delivered results above expectations. Denmark and Sweden performed below expectations as the indexation of concluded long-term framework agreements did not compensate for the increasing raw material prices to a sufficient degree.

Ground Engineering
EBIT results were below expectations. The results of the Danish operations were lower than expected due to a bad capacity utilisation within the ground engineering business in the first half of the financial year. Sweden and Poland developed positively, while the performance of the German company was unsatisfactory, and the company was loss-making.

Order backlog
The company’s order backlog amounted to DKK 16,601 million (30 September 2017: DKK 9,466 million) of which DKK 7,775 million is expected to be carried out in the financial year 2018/19. The order intake of the financial year amounted to DKK 19,243 million.

Outlook for the financial year 2018/19

  • For the future financial year, EBIT of DKK 530 million is anticipated and a revenue level approx. 5% up on 2017/18. Investments in property, plant and equipment are expected to amount to DKK 440 million compared to DKK 388 million last financial year.

Construction expects a 5% revenue increase compared to last financial year, and an EBIT margin of 4% compared to 3.8% last financial year. There are numerous tendering opportunities in Denmark, mainly within building activities in the big cities, and the Danish civil engineering market remains stable with good opportunities within harbour projects and establishment of data centres. Wicotec Kirkebjerg A/S will commence the 25-year-long contract as operator of the facility management contract at the New Psychiatric Center in Aarhus. Wicotec Kirkebjerg continues to focus on secure project execution of large building projects, primarily carried out in One Company collaboration. At Aarsleff Rail A/S, the level of activity will be influenced by lack of large track renewal tenders from Banedanmark. Hansson & Knudsen A/S continues the strong focus on secure project execution with a view to improving earnings, but the market on Funen is still characterised by keen price competition. At Ístak hf. a continued high level of activity is expected, primarily driven by building activities in Iceland.

Pipe Technologies expects a 5% revenue increase compared to last financial year, and an EBIT margin of 4.5% in line with last financial year. On the main markets in Denmark, Germany, Sweden and Norway an increase in the level of activity is expected. In Norway, investments in new equipment are made with a view to increasing efficiency and covering a larger geographical area. In Germany, the market conditions are good, and the level of activity deriving from the sale of LED equipment and materials is increasing. There will still be pressure on the earnings level in Denmark and Sweden as the indexation of the existing framework agreements will not adequately compensate for the increasing raw material prices. The market in Russia has stabilised at an acceptable level but is still characterised by political uncertainty. In Poland, the focus will be on integrating the activities in terms of joint management and administration for Pipe Technologies and Ground Engineering.

Ground Engineering expects a 5% revenue increase compared to last financial year, and an EBIT margin of 4.5% compared to 4.0% last financial year. In Denmark, an increasing level of activity within establishment of construction pits is expected and a continued high demand for piles as the level of activity within building activities in general is high. In Sweden, a reduction in revenue is expected as a result of the completion of the ground engineering work for the Karla Tower and an expected slowdown in building activities. In Poland, the high level of activity is expected to continue in the future financial year. In Germany, a continued low level of activity is expected due to lack of onshore wind turbine projects, and even though the initiated capacity adjustments will have a positive effect, earnings will still be unsatisfactory. In the UK, an unchanged level of activity is expected, and the focus will remain on selective order acquisition as well as shutdown of non-profitable activities.

The annual report is published via Nasdaq Copenhagen A/S and attached to this announcement. It is also available on


Financial calendar 2018/19

31 January 2019 Annual general meeting at the Group headquarters, Hasselager Allé 5, 8260 Viby J, at 15:00

5 February 2019 Dividend paid to shareholders for the financial year 2017/18

26 February 2019 Interim financial report for the period 1 October-31 December 2018

27 May 2019 Interim financial report for the period 1 October 2018-31 March 2019

27 August 2019 Interim financial report for the period 1 October 2018-30 June 2019

18 December 2019 Preliminary announcement of financial statements for the financial year 2018/19.