The MT Højgaard Group got off to a satisfactory start in the first quarter with a good level of activity, increasing order intake and a sound order book. Results matched expectations, despite a small impact from Covid-19. The outlook for 2020 is reaffirmed.
Summary of the first quarter of 2020 – MT Højgaard Group
- Revenue was down 4%, at DKK 1,480 million, compared with the same period last year. The decrease was expected and mainly reflected lower revenue in Enemærke & Petersen due to low order intake in the first half of 2019.
- EBIT was DKK 3 million from continuing operations. The operating margin decreased from 1.2% in the first quarter of last year to 0.2%, especially as a result of the temporarily lower level of activity in Enemærke & Petersen. MT Højgaard Denmark improved its earnings.
- Small impact from Covid-19 in the quarter: Operations at construction sites were impacted to some extent, and the start-up of a few projects was delayed or postponed.
- Net profit for the period was DKK 80 million. This included profit of DKK 88 million from discontinued operations (Lindpro A/S).
- First-quarter order intake increased by 11% to more than DKK 1.3 billion compared with the same period last year, with a good mix of large, medium-sized and a number of relatively small orders in all business units. Order intake was particularly strong at Enemærke & Petersen.
- Total order intake was up 4%, at approx. DKK 6.5 billion, at the end of the quarter compared with the same period last year.
- Cash flows from operating activities improved to an inflow of DKK 23 million compared with an outflow of DKK 112 million in the same period in 2019.
- Implementation of the new strategy and organisation is going to plan: this interim financial report will be the first to give reports on the six equally-ranked business units.
All figures above exclude Lindpro A/S, which was sold in March 2020. Lindpro A/S has been accounted for as a discontinued operation.
Summary of the first quarter of 2020 – MT Højgaard Holding A/S
Net profit for the period was DKK 58 million, including a DKK 79 million contribution from discontinued operations (Lindpro A/S).
Outlook for 2020 reaffirmed
The outlook for the year is unchanged, but Covid-19 means that there is greater uncertainty in the market:
- The MT Højgaard Group reaffirms the outlook of revenue of around DKK 5.9 billion and EBIT before special items of around DKK 125 million.
- MT Højgaard Holding A/S still expects revenue of around DKK 5.9 billion and EBIT before special items of around DKK 85 million.
- The majority of the expected revenue for this year has currently been contracted but the start-up of new projects may be delayed because of Covid-19.
- Despite growing uncertainty due to Covid-19, in the first quarter the MT Højgaard Group met expectations for revenue and earnings. The roll-out of the new strategy is proceeding according to plan. We are also maintaining focus on improving the execution of the individual projects and working even more closely with customers and partners in order to be as competitive as possible, says President and CEO Morten Hansen, MT Højgaard Holding A/S.
- There are clearly challenges facing the market, but we expect that government measures to prop up the Danish economy will have a positive effect and, in particular, that measures such as the removal of the state cap on civil works and the possible release of funds from the National Building Fund, Landsbyggefonden, could have a stabilising effect. Provided that there is no introduction of greater restrictions on our activities and that we do not experience long postponements of contracted projects, we still expect that the MT Højgaard Group will be able to continue its positive development in 2020, says Morten Hansen.
The Executive Board can be contacted on telephone +45 2270 9365
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