Annual Report • Feb 8, 2023
Annual Report
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Illustrasjon: Statens vegvesen/Multiconsult
"We can look back at a solid quarter with good profitability, revenue growth, record high sales and a record high order backlog. I am satisfied that we have stabilised at a good and sustainable profitability level over time. Strong sales in the quarter indicates that our employees' expertise is in demand and that our services are attractive for our clients. Our solid and diversified portfolio of ongoing projects gives a good foundation for further business and growth, in a somewhat more challenging market. I am grateful to our skilled and dedicated employees for their contribution to this result."
Grethe Bergly CEO of Multiconsult
| Amounts in NOK million (except EPS and percentage) | Q4 2022 | Q4 2021 | FY 2022 | FY 2021 |
|---|---|---|---|---|
| Financial | ||||
| Net operating revenues | 1 126.7 | 1 068.3 | 4 189.2 | 3 803.7 |
| Employee benefit expenses | 833.1 | 789.5 | 3 051.0 | 2 811.4 |
| Other operating expenses | 147.2 | 139.1 | 528.1 | 449.5 |
| EBITDA | 146.4 | 139.8 | 610.2 | 542.8 |
| EBITDA margin | 13.0% | 13.1% | 14.6% | 14.3% |
| EBITA | 96.8 | 91.0 | 408.5 | 350.5 |
| EBITA margin | 8.6% | 8.5% | 9.8% | 9.2% |
| Reported profit for the period | 75.6 | 62.5 | 303.0 | 234.7 |
| Earnings per share (EPS) | 2.77 | 2.29 | 11.06 | 8.67 |
| Operational | ||||
| Other opex ratio (ex. IFRS 16) | 17.2% | 17.1% | 17.0% | 16.4% |
| Billing ratio | 70.3% | 70.5% | 70.6% | 70.4% |
| Number of employees | 3 353 | 3 200 | 3 353 | 3 200 |
| Order intake | 1 559 | 1 142 | 5 195 | 4 352 |
| Order backlog | 3 608 | 3 260 | 3 608 | 3 260 |
Note to comparable figure: Q3 2020: EBIT of NOK 68.1 million, 9.1% margin. (EBIT of NOK 98.1 million (ex nextLEVEL restructuring cost of NOK 30.0 million) reflecting an EBIT margin of 13.1%)
The positive trend and strong market development continued in the last quarter of 2022. Multiconsult ended the year with a solid quarter with an EBITA of NOK 96.8 million, a margin of 8.6 per cent. EBITA for the year came in at NOK 408.5 million, a margin of 9.8 per cent. Net operating revenues grew by 5.5 per cent year-on-year to NOK 1 126.7 in the quarter, and by 10.1 per cent to NOK 4 189.2 for the year. The organic revenue growth for the quarter was 5.5 per cent. The result is impacted by a weak result in LINK Arkitektur.
An all-time high order intake of NOK 1 559 million in the fourth quarter provides a strong and diversified order backlog going into 2023. Higher operating expenses compared to last year is driven by an increase in employees from acquisitions and other operating expenses as business activities return to a normal post Covid-19 situation. The acquisition of Roar Jørgensen AS was successfully completed in the quarter and strengthens Multiconsult's competence and market position in a new geographical area.
The board of directors proposes a dividend of NOK 9.00 per share to be paid as ordinary dividend for 2022.
Multiconsult group ("Multiconsult" or "the group") comprises Multiconsult ASA ("parent company" or "company") and all subsidiaries and associated companies. Figures in brackets = same period prior year or relevant balance sheet date 2021..
Net operating revenues came in at NOK 1 126.7 million (1 068.3), an increase of 5.5 per cent compared to the same quarter last year. The increase in net operating revenues is driven by an increase in the number of employees and higher billing rates. The growth in net operating revenues was offset by a slightly lower billing ratio of 0.2pp, which came in at 70.3 per cent (70.5).
Operating expenses consist of employee benefit expenses and other operating expenses. Operating expenses increased by 5.6 per cent to NOK 980.3 million (928.5) compared to the same quarter in 2021. Employee benefit expenses increased by 5.5 per cent due to ordinary salary adjustment, increased manning level from acquisitions and net recruitment. Other operating expenses increased to NOK 147.2 million (139.1) an increase of 5.8 per cent compared to fourth quarter 2021. Business activities were somewhat influenced with the Covid-19 situation in the comparable quarter 2021.
EBITDA was NOK 146.4 million (139.8), an increase of 4.7 per cent compared to the same period last year, reflecting an EBITDA margin of 13.0 per cent (13.1) in the quarter.
EBITA was NOK 96.8 million (91.0), reflecting an EBITA margin of 8.6 per cent (8.5) in the quarter.
Net financial items were an expense of NOK 9.9 million (6.7).
Group tax rate was 19.1 per cent (25.5).
Reported profit for the period was NOK 75.6 million (62.5). Profit for the period is positively impacted by share of profit from the associated company Norplan Tanzania Ltd. Earnings per share for the quarter were NOK 2.77 (2.29).
Net operating revenues increased by 10.1 per cent to NOK 4 189.2 million (3 803.7). The growth in net operating revenues is driven by increase in billing rates, revenue from acquired companies and increase in manning level. Organic growth in net operating revenues is estimated to 4.4 per cent after adjusting for the calendar effect and acquisitions.
Operating expenses came in at NOK 3 579.1 million (3 260.9), an increase of 9.8 per cent compared to last year. Employee benefit expenses increased by 8.5 per cent. The increase is mainly due to increased manning level from acquisitions, net recruitment, and regular salary adjustment. Other operating expenses increased by 17.5 per cent to NOK 528.1 million (449.5), mainly an effect of added operating expenses from prior acquisitions such as office expenses. In addition, other operating expenses including sales, marketing and travel expenses increased as business activities return to a normal post Covid-19 situation.
EBITDA was NOK 610.2 million (542.8), reflecting an EBITDA margin of 14.6 per cent (14.3).
EBITA was NOK 408.5 million (350.5), an increase of 16.5 per cent y-o-y, reflecting an EBITA margin of 9.8 per cent (9.2).
Net financial items were an expense of NOK 31.3 million (37.9). The net reduction in net financial items is driven by increased currency gains and higher interest income when compared to last year.
Group tax rate was 21.7 per cent (24.6), the decrease mainly relates to a lower effect of valuation allowance on deferred tax asset when compared to last year.
Reported profit for the period was NOK 303.0 million (234.7). Profit for the period is positively impacted by share of profit from the associated company Norplan Tanzania Ltd. Earnings per share for the period were NOK 11.06 (8.67).
Calendar effect: In 2022 there is, on average, one more working day compared to 2021. This has an estimated positive impact of NOK 14.4 million on net operating revenues and EBITA for the group when comparing the two periods.
Reporting EBITA from 2022: Multiconsult has changed the main operational profitability figure from EBIT to EBITA from 2022. This is in line with industry sector practice and is a relevant measure for operational performance.
Fourth quarter 2022 Multiconsult group
Total assets amounted to NOK 3 010.1 million (3 113.0, Sep 2022), and total equity amounted to NOK 992.4 million (914.1, Sep 2022). The group held cash and cash equivalents of NOK 114.6 million (66.4, Sep 2022).
Net interest-bearing liabilities amounted to NOK 628.2 million (1 036.8, Sep 2022). Adjusted for IFRS 16 lease obligations, net interest-bearing debt is negative NOK 105.7 million, cash positive (250.3, Sep 2022).
Net cash flow from operating activities was NOK 457.3 million (373.4). Net cash flow from operating activities is affected by change in working capital. The changes in working capital in the quarter is within normal fluctuations.
Net cash flow used in investment activities was negative NOK 54.5 million (negative NOK 20.8 million). Ordinary asset replacement amounts to NOK 9.7 million. Net cash paid for the acquisition of Roar Jørgensen AS was NOK 37.3 million.
Net cash flow from financing activities amounted to negative NOK 244.4 million (negative NOK 52.3 million) which is mainly affected by paid instalments of NOK 220.0 million on the company's revolving credit facility and instalments on lease liabilities.
Net cash flow from operating activities was NOK 561.6 million (458.6). Net cash flow from operating activities is affected by change in working capital.
Net cash flow used in investment activities was negative NOK 94.0 million (negative NOK 364.0 million). Ordinary asset replacement amounted to NOK 41.9 million and NOK 47.3 million is related to acquisitions in 2022. The reduction compared to last year is mainly related to the acquisition of Erichsen & Horgen group.
Net cash flow from financing activities amounted to negative NOK 511.2 million (negative NOK 212.1 million) which is mainly affected by paid dividend, net paid instalments on the revolving credit facility of NOK 180.0 million and instalments on lease liabilities.
The order backlog from acquired companies during 2021 and 2022 is included in the reported figures throughout 2022. Historic figures are not adjusted for acquired companies historical order intake and order backlog. The size and timing of execution of the order backlog varies significantly between the business areas and locations. The order backlog does not reflect the total expected volume related to frame agreements and includes only call-offs that have been signed under these agreements.
As of 2022 Multiconsult group consist of four business areas Buildings & Properties, Mobility & Transportation, Water & Environment and Energy & Industry. The order backlog at the end of 2022 remains strong and diversified at NOK 3 608 million (3 260), an increase of 10.7 per cent compared to the end of 2021.
Order intake during the quarter came in at NOK 1 559 million, an increase of 36.5 per cent compared to the same quarter last year. Noticeable projects included in the order intake during the quarter were:
\ Auka institusjonskapasitet Florø, Kinn kommune (ENG: Increase institutional capacity, healthcare facilities – municipality Kinn
\ Rural Electrification Densification Project in Tanzania
New frame agreements were awarded during the quarter together with contracts to several public and private clients. In addition, two new significant contracts awarded in Africa as Rural Energy Agency (Tanzania) selected Multiconsult Norge AS with Norplan Tanzania Ltd (49% owned by Multiconsult ASA) to provide consultancy services for the Rural Electrification Densification Project, and ZESCO, the national power utility in Zambia, awarded Multiconsult Norge AS and local partner, contract for the Chishimba Hydropower Plant in Zambia.
Multiconsult's reporting segments has been presented as five segments, Region Oslo, Region Norway, Energy, LINK Arkitektur and International.
As from the fourth quarter 2022, segment Energy has been incorporated in Region Oslo and Region Norway to streamline our organisation and optimise utilisation of our total capability within energy and industry. Going forward Multiconsult will be reporting on four segments:
When presenting the financial reports from fourth quarter 2022, the comparison to previous periods will be made on the new structure. To ensure comparability between periods, the previously reported figures, in 2021 and 2022, for the segment Energy is now transferred to the segments Region Oslo and Region Norway in line with the new organisational structure. Also see note 3 – Accounting Policies.
This segment offers services in four business areas and comprises the Oslo region, including the Lillehammer office and Large Projects in Norway and the subsidiary Multiconsult UK.
| Amounts in NOK million | Q4 2022 |
Q4 2021 |
FY 2022 |
FY 2021 |
|---|---|---|---|---|
| Net operating revenues | 430.0 | 435.5 1 649.2 | 1 433.2 | |
| EBITA | 55.7 | 53.1 | 224.0 | 148.2 |
| EBITA% | 13.0% | 12.2% | 13.6% | 10.3% |
| Order intake | 805.9 | 477.0 2 079.5 | 1 530.0 | |
| Order backlog | 1 631.3 | 1 373.4 1 631.3 | 1 373.4 | |
| Billing ratio | 71.9% | 70.4% | 71.9% | 70.4% |
| Number of employees | 1 060 | 1 081 | 1 060 | 1 081 |
Net operating revenues in the quarter was NOK 430.0 million (435.5), a decrease of 1.3 per cent driven by a net reduction in manning level of 21 employees when compared to the same quarter last year. Higher billing ratio of 71.9 per cent (70.4) and higher billing rates contributed positively on net operating revenues.
Operating expenses came in at NOK 371.6 million (379.8), a decrease of 2.2 per cent. Employee benefit was NOK 288.7 million (299.1), a decrease of 3.5 per cent in line with reduction in the manning level partly offset by regular salary adjustment. Other operating expenses came in at NOK 82.9 million (80.7), an increase of 2.7 per cent.
Order intake in the fourth quarter increased by 68.9 per cent, to NOK 805.9 million (477.0) compared to the same period in 2021. The growth is supported by increase in all four business areas.
Order backlog for the segment at the end of the year is NOK 1 631 million, an increase of 18.8 per cent y-o-y. The order backlog for this segment is well diversified among all four business areas.
Net operating revenues came in at NOK 1 649.2 million (1 433.2) an increase of 15.1 per cent compared to last year. The increase was driven by contribution from acquired companies, higher billing ratio at 71.9 per cent (70.4), and higher on average billing rates.
Operating expenses came in at NOK 1 414.3 million (1 268.3), an increase of 11.5 per compared to the same period last year. Employee benefit expenses increased by 9.7 per cent driven by the inclusion of employees from acquired companies to this segment, and regular salary adjustment. Number of employees is measured at the end of the period. Other operating expenses increased by 18.2 per cent mainly due to the inclusion of expenditures from acquisitions and increased expenditure in general as business activities return to a normal post Covid-19 situation.
Order intake in the period was NOK 2 079.5 million (1 530.0), an increase of 35.9 per cent y-o-y.
This segment offers services in four business areas and comprises all offices outside the Region Oslo, with presence in all larger cities and several other locations in Norway.
| Amounts in NOK million | Q4 2022 |
Q4 2021 |
FY 2022 |
FY 2021 |
|---|---|---|---|---|
| Net operating revenues | 477.3 | 424.3 1 742.9 | 1 563.4 | |
| EBITA | 50.6 | 42.1 | 194.0 | 182.1 |
| EBITA% | 10.6% | 9.9% | 11.1% | 11.6% |
| Order intake | 486.6 | 428.9 2 034.2 | 1 697.6 | |
| Order Backlog | 800.2 | 677.9 | 800.2 | 677.9 |
| Billing ratio | 70.3% | 69.0% | 70.0% | 69.2% |
| Number of employees | 1 218 | 1 144 | 1 218 | 1 144 |
Net operating revenues came in at NOK 477.3 million (424.3) an increase of 12.5 per cent compared to the same quarter last year. The growth in net operating revenues is mainly driven by higher on average billing rates. Billing ratio increased to 70.3 per cent (69.0) and together with higher manning level contributed positively on net operating revenues when compared to the same quarter last year.
Operating expenses came in 16.5 per cent higher than in the same period of 2021. Employee benefit expenses was NOK 320.2 million (285.1), an increase of 12.3 per cent mainly driven by the inclusion of employees from acquired companies, and regular salary adjustment. Other operating expenses came in at NOK 99.6 million (75.2), an increase of 32.4 per cent. The increase in other operating expenses is mainly driven by the inclusion of expenditures from acquisitions and increased expenditure in general.
Order intake in the quarter came in at NOK 486.6 million (428.9), an increase of 13.5 per cent to compared to same quarter last year.
Order backlog for the segment at the end of the period was at NOK 800.2 million. The order backlog increased by 18.0 per cent compared to end of year 2021.
Net operating revenues came in at NOK 1 742.9 million (1 563.4), an increase of 11.5 per cent compared to the same period last year. The growth in net operating revenues is mainly driven by increase in manning level. Higher billing ratio at 70.0 per cent (69.2) and higher billing rates contributed positively on net operating revenues.
Operating expenses came in at NOK 1 521.4 million (1 292.2) an increase of 17.7 per cent in the period. Employee benefit expenses increased by 10.9 per cent driven by the inclusion of employees from acquired companies to this segment, and regular salary adjustment. Number of employees is measured at the end of the period. Other operating expenses increased by 44.3 per cent mainly due to the inclusion of expenditures from acquisitions and increased expenditure in general as business activities return to a normal post Covid-19 situation.
Order intake during the period was NOK 2 034.2 million (1 697.6), an increase of 19.8 per cent compared to same period last year. The increase was driven by a higher order intake in the largest business area Buildings & Properties.
This segment comprises LINK Arkitektur with offices in Norway, Sweden and Denmark and offers services in the business area Buildings & Properties and Energy & Industry.
| Amounts in NOK million | Q4 2022 |
Q4 2021 |
FY 2022 |
FY 2021 |
|---|---|---|---|---|
| Net operating revenues | 153.1 | 144.1 | 556.7 | 564.5 |
| EBITA | 2.6 | 4.7 | 1.4 | 18.8 |
| EBITA% | 1.7% | 3.3% | 0.2% | 3.3% |
| Order intake | 139.7 | 195.0 | 675.1 | 631.3 |
| Order Backlog | 589.2 | 595.1 | 589.2 | 595.1 |
| Billing ratio | 68.3% | 72.8% | 70.2% | 73.9% |
| Number of employees | 484 | 469 | 484 | 469 |
Net operating revenues came in at NOK 153.1 million (144.1) an increase of 6.3 per cent compared to the same quarter last year. The increase in net operating revenues is driven by a higher manning level and higher on average billing rates compared to the same period last year, partly offset by a lower billing ratio.
Operating expenses increased by 8.2 per cent to NOK 144.9 million (133.9) for the quarter. Employee benefit expenses increased by 6.4 per cent in line with ordinary salary adjustment and net recruitment in the segment. Other operating expenses came in at NOK 25.6 million (21.8), an increase of 17.2 per cent compared to the same quarter last year.
LINK Arkitektur Norway, Sweden and Denmark: The financial performance in LINK in Norway was weak in the quarter. Denmark had an improvement in the quarter and Sweden had a significant improvement in the quarter, compared to the same quarter last year.
Order intake during the fourth quarter was NOK 139.7 million (195.0), a decrease of 28.4 per cent compared to the same quarter last year.
Order backlog came in at NOK 589.2 million at the end of the year. The order backlog decreased by 1.0 per cent compared to end of year 2021.
Net operating revenues for the period came in at NOK 556.7 million (564.5) a decrease of 1.4 per cent compared to the same period last year. The reduction in net operating revenue was driven by lower billing ratio at 70.2 per cent (73.9), a decrease of 3.7pp compared to 2021. Higher manning level and higher on average billing rates contributed positively on net operating revenues.
Operating expenses came in at NOK 532.6 million (524.0), an increase of 1.6 per cent when compared to last year. Employee benefit expenses came in at NOK 438.8 million (444.3), a decrease of 1.2 per cent. Other operating expenses increased by 17.7 per cent driven by increased use of consultants in Sweden and higher expenditure as general business activities return to a normal post Covid-19 situation.
LINK Arkitektur Norway, Sweden and Denmark: The financial performance in LINK Norway was weak. In LINK Denmark the financial performance was in line with the 2021 results. In LINK Sweden the results of the ongoing turnaround have improved EBITA from 2021 but LINK Sweden was still lossmaking in 2022.
Order intake in came in at NOK 675.1 million, an increase of 6.9 per cent compared to last year.
This segment comprises the subsidiaries Multiconsult Polska in Poland and Iterio AB in Sweden and offers services mainly in the business area Mobility & Transportation.
| Amounts in NOK million | Q4 2022 |
Q4 2021 |
FY 2022 |
FY 2021 |
|---|---|---|---|---|
| Net operating revenues | 70.4 | 65.8 | 257.1 | 243.3 |
| EBITA | 7.4 | 6.5 | 23.3 | 23.7 |
| EBITA% | 10.5% | 9.9% | 9.1% | 9.8% |
| Order intake | 126.9 | 40.9 | 406.6 | 493.1 |
| Order Backlog | 694.5 | 699.5 | 694.5 | 699.5 |
| Billing ratio | 71.0% | 75.7% | 72.4% | 73.3% |
| Number of employees | 444 | 374 | 444 | 374 |
Net operating revenues came in at NOK 70.4 million (65.8), an increase of 6.9 per cent compared to the same quarter last year. Net recruitment and higher billing rates are the main drivers for the growth in net operating revenues, offset by a lower billing ratio. The segment reports an increase in manning level of 70 y-o-y, however an adjustment in number of employees of 54 employees has been made at the start of 2022 to align the definition of employees in Multiconsult Polska with the rest of the group.
Operating expenses came in at NOK 58.9 million (55.6), 5.9 per cent higher than in the same period last year. Employee benefit expenses increased by 9.6 per cent in line with ordinary salary adjustment and net recruitment in the segment. Other operating expenses came in at NOK 9.2 million, a decrease of 10.2 per cent compared to the same quarter last year.
Order intake for the quarter came in at NOK 126.9 million, an increase of 210.3 per cent compared to same quarter last year.
Order backlog came in at NOK 694.5 million at the end of the period, a decrease of 0.7 per cent y-o-y.
Net operating revenues came in at NOK 257.1 million (243.3) an increase of 5.7 per cent compared to the same period last year. The growth in net operating revenue was driven by a higher manning level and higher on average billing rates. The growth was offset by a lower billing ratio of 0.9pp.
Operating expenses increased by 7.0 per cent to NOK 218.2 million (203.9). Employee benefit expenses increased in line with ordinary salary adjustment and net recruitment. Other operating expenses increased by 7.9 per cent on higher manning level and increased expenditure in general.
Order intake in the period came in at NOK 406.6 million, a decrease of 17.5 per cent compared to same period in 2021.
As of 31 December 2022, the group had 3 353 (3 200) employees, a net increase in manning level of 153 employees y-o-y. In the segment International the definition of "number of employees" has been changed in 2022 to be aligned with the rest of the group, the adjustment resulted in an increase of 54 employees to the segment.
The employee turnover ratio in 2022 was 12.2 per cent, compared to 11.4 per cent last year.
During the fourth quarter short-term sick leave in Multiconsult Norge AS and LINK Arkitektur AS was higher than the same quarter last year.
On 30 November 2022, Multiconsult announced that it had entered into an agreement to purchase 100 per cent of the
On 4 January 2023, Multiconsult ASA initiated a nondiscretionary share buy-back programme in connection with the share loan agreement with its largest shareholder Stiftelsen Multiconsult and expected annual management bonus compensation programme.
shares of Roar Jørgensen AS. The purchase price was settled in a combination of cash and Multiconsult shares (20 per cent of the enterprise value (EV)). As part of the settlement in shares, Multiconsult, pursuant to an authority given to the board of directors by the annual general meeting on 7 April 2022, issued to the shareholders of Roar Jørgensen AS a total of 103 936 shares, at a share price of NOK 134.6971. The increase of the share capital was NOK 51 968.00, as each share holds a nominal value of NOK 0.50. The share capital increase relating to issuance of the consideration shares was registered with the Norwegian Register of Business Enterprises together with amended Company Articles of Association on the 14 December 2022. Following this, the Multiconsult's registered share capital is NOK 13 767 229.50 divided into 27 534 459 shares, each with
These forward-looking statements reflect current views about future events and are, by their nature, subject to significant risks and uncertainties because they relate to events and depend on circumstances in the future.
Opportunities in the pipeline are at a high level and the overall market outlook in Multiconsult's four business areas remains generally strong.
Multiconsult has not been negatively affected by the revised Norwegian National Budget for 2022 and Multiconsult is well positioned in several of the large projects granted in the National Budget for 2023.
Multiconsult expects to benefit from the growing market for long-term sustainable transformation within all business areas. This is driven by ongoing initiatives led by the industry and political initiatives both in Norway and abroad.
The recent acquisitions, strong portfolio of ongoing projects and a solid order backlog provides Multiconsult with an overall good foundation going into 2023. Multiconsult have experienced good sales in the beginning of 2023.
Multiconsult does not provide forecast.
a nominal value of NOK 0.50.
Multiconsult register continued high activity going into 2023 for the business area Buildings & Properties, and the market outlook is generally strong. The market related to housing and real-estate is expected to be lower, especially related to architectural services.
The market is expected to continue at a high level. The Norwegian National Budget 2023 shows a direction towards a lower infrastructure investment level in a long-term perspective. The infrastructure market in Sweden remains stable and good, especially in the cities. The infrastructure market in Poland is affected by lower investment levels as a result of negotiations related to release of EU funding.
The market shows a positive trend, with several large energy and industry projects in the pipeline. The market is expected to increase due to the rise of energy demand. The international hydropower market continues its positive path, projects are starting up and new opportunities are recorded in the pipeline. The hydropower market in Norway is mainly related to rehabilitation and energy optimalisation. The announced tax increase related to hydropower and wind-power in the National Budget 2023 has increased the uncertainty for
new investments. The offshore wind market is mainly related to early phase studies and generates opportunities for Multiconsult.
With a high maintenance lag there is a stable demand for water and sewage infrastructure projects, as well as climate change adaptions and environmental remediation. Emphasis on sustainability across different sectors opens new markets and need for consulting engineering services within new areas.
Through its business activities, Multiconsult manages a considerable contract portfolio of engineering, architectural and advisory services that are exposed to a wide variety of risk factors. The risk of disagreements and legal disputes related to the possible cost of delays and project errors is always present in the business. The Risk and risk management section of the Directors report in the 2021 Annual Report contains detailed description and mitigating actions related to several risk factors, including: project risk, credit risk, currency risk, interest rate risk, liquidity risk, accounting estimates risk, employees and expertise risk, environmental and climate risk and Covid-19 risk.
Multiconsult has not identified any significant additional risk exposures beyond the ones described in the 2021 Annual
Report, except an increased uncertainty related to the ongoing war in Ukraine, the unstable macro environment with general inflationary pressure and increased energy cost.
Multiconsult will in 2023 be exposed to higher cost by the increased employer contribution tax of 5 per cent (for salaries/ compensation above NOK 750k) in Norway.
Multiconsult is exposed to the general uncertainty caused by a more unstable macro- and geopolitical environment.
The continued support and funding of both public and private projects, as well as the timing of investment decisions, is of key importance to our business as potential delays or cancellations will impact our business negatively.
Net operating revenues: Operating revenues less sub consultants, direct external project costs and disbursements.
EBITDA: EBIT before depreciation, amortisation and impairment.
EBITDA margin (%): EBITDA as a percentage of net operating revenues.
EBITA: EBIT before amortisation and impairment of goodwill and acquisition-related intangible assets.
EBITA margin (%): EBITA as a percentage of net operating revenues.
EBIT: Earnings before net financial items, results from associates and joint ventures and income tax.
EBIT margin (%): EBIT as a percentage of net operating revenues.
Other opex ratio (APM): Other operating expenses adjusted for IFRS 16 effects as a percentage of net operating revenue.
Billing ratio (%): Total billable hours in a period as a percentage of total hours reported in the period (including administrative staff) and employer-paid absence. Billing ratio per segment includes allocated administrative staff.
Employees: Number of employees comprise all staff on payroll including staff on temporarily leave (paid and unpaid), excluding temporary personnel. Number of employees measured at the end of the period.
Order intake: Expected operating revenues on new contracts and confirmed changes to existing contracts. Only group external contracts are included.
Order backlog: Expected remaining operating revenues on new and existing contracts. Only group external contracts are included. Call-offs on frame agreements are included in the order backlog when signed.
Net interest-bearing debt: Non-current and current interestbearing liabilities deducted cash and cash equivalents.
This report includes forward-looking statements, which are based on our current expectations and projections about future events. All statements other than statements of historical facts included in this notice, including statements regarding our future financial position, risks and uncertainties related to our business, strategy, capital expenditures, projected costs and our plans and objectives for future operations, including our plans for future costs savings and synergies may be deemed to be forward-looking statements. Words such as "believe," "expect," "anticipate," "may," "assume," "plan," "intend," "will," "should," "estimate," "risk"
and similar expressions or the negatives of these expressions are intended to identify forward-looking statements. By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. You should not place undue reliance on these forward-looking statements. In addition, any forwardlooking statements are made only as of the date of this notice, and we do not intend and do not assume any obligation to update any statements set forth in this report.
Unaudited for the period ended 31 December 2022
| Amounts in NOK thousand, except EPS | Q4 2022 | Q4 2021 | FY 2022 | FY 2021 |
|---|---|---|---|---|
| Operating revenues | 1 346 029 | 1 204 137 | 4 868 160 | 4 284 666 |
| Expenses for sub consultants and disbursements | 219 377 | 135 844 | 678 934 | 480 930 |
| Net operating revenues | 1 126 652 | 1 068 294 | 4 189 226 | 3 803 736 |
| Employee benefit expenses | 833 111 | 789 474 | 3 050 982 | 2 811 409 |
| Other operating expenses | 147 156 | 139 059 | 528 090 | 449 482 |
| Operating expenses excl. depreciation and amortisation | 980 267 | 928 533 | 3 579 072 | 3 260 892 |
| Operating profit before depreciation and amortisation (EBITDA) | 146 385 | 139 760 | 610 154 | 542 845 |
| Depreciation and amortisation | 50 974 | 49 990 | 207 029 | 193 981 |
| Operating profit (EBIT) | 95 410 | 89 771 | 403 125 | 348 864 |
| Share of profit from associated companies and joint ventures | 7 958 | 824 | 15 260 | 204 |
| Financial income and expenses | ||||
| Financial income | 4 414 | 8 807 | 33 308 | 20 432 |
| Financial expenses | 14 351 | 15 471 | 64 650 | 58 335 |
| Net financial items | (9 937) | (6 664) | (31 342) | (37 903) |
| Profit before income taxes | 93 431 | 83 931 | 387 043 | 311 166 |
| Income tax expense | 17 807 | 21 429 | 84 028 | 76 500 |
| Profit for the period | 75 624 | 62 501 | 303 015 | 234 666 |
| Attributable to: | ||||
| Owners of Multiconsult ASA | 75 624 | 62 501 | 303 015 | 234 666 |
| Earnings per share | ||||
| Basic and diluted (NOK) | 2.77 | 2.29 | 11.06 | 8.67 |
| Amounts in NOK thousand | Q4 2022 | Q4 2021 | FY 2022 | FY 2021 |
|---|---|---|---|---|
| Profit for the period | 75 624 | 62 501 | 303 015 | 234 666 |
| Other comprehensive income | ||||
| Remeasurement of defined benefit obligations | 32 | 147 | 32 | 147 |
| Income taxes | (7) | (32) | (7) | (32) |
| Total items that will not be reclassified to profit or loss | 25 | 114 | 25 | 114 |
| Currency translation differences | (1 391) | (4 469) | (1 186) | (13 730) |
| Total items that may be reclassified subsequently to profit or loss | (1 391) | (4 469) | (1 186) | (13 730) |
| Total other comprehensive income for the period | (1 366) | (4 355) | (1 161) | (13 616) |
| Total comprehensive income for the period | 74 258 | 58 146 | 301 855 | 221 050 |
| Attributable to: | ||||
| Owners of Multiconsult ASA | 74 258 | 58 146 | 301 855 | 221 050 |
| Amounts in NOK thousand | 31 December 2022 | 30 September 2022 | 31 December 2021 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Deferred tax assets | 38 441 | 29 605 | 33 351 |
| Intangible assets | 24 247 | 19 574 | 25 187 |
| Goodwill | 923 835 | 859 646 | 846 659 |
| Property, plant and equipment | 104 737 | 107 349 | 110 303 |
| Right-of-use assets | 673 371 | 723 834 | 766 870 |
| Investments in associated companies and joint ventures | 25 722 | 19 102 | 10 302 |
| Assets for reimbursement of provisions | 56 845 | 41 300 | 18 302 |
| Other non-current financial assets and shares | 30 298 | 22 133 | 23 452 |
| Total non-current assets | 1 877 496 | 1 822 543 | 1 834 425 |
| Current assets | |||
| Trade receivables | 596 291 | 717 803 | 730 881 |
| Work in progress | 304 328 | 374 508 | 225 021 |
| Other current receivables and prepaid expenses | 117 381 | 131 683 | 86 439 |
| Cash and cash equivalents | 114 559 | 66 419 | 156 165 |
| Total current assets | 1 132 558 | 1 290 413 | 1 198 506 |
| Total assets | 3 010 054 | 3 112 956 | 3 032 931 |
| EQUITY AND LIABILITIES | |||
| Shareholders' equity Total paid in capital |
185 543 | 170 761 | 170 343 |
| Other equity | 806 905 | 743 354 | 679 779 |
| Total shareholders' equity | 992 448 | 914 115 | 850 123 |
| Non-current liabilities | |||
| Pension obligations | 5 570 | 5 403 | 5 403 |
| Deferred tax | 12 158 | 15 743 | 12 571 |
| Provisions | 64 895 | 47 500 | 24 712 |
| Non-current interest-bearing liabilities | - | - | 180 000 |
| Non-current lease liabilities | 570 911 | 646 591 | 690 771 |
| Total non-current liabilities | 653 533 | 715 238 | 913 457 |
| Current liabilities | |||
| Trade payables | 132 677 | 109 372 | 134 725 |
| Prepaid revenues | 146 860 | 153 221 | 141 749 |
| Current tax liabilities | 89 028 | 81 656 | 71 699 |
| Public duties payable | 410 403 | 301 395 | 406 049 |
| Current interest-bearing liabilities | 31 510 | 331 930 | - |
| Current lease liabilities | 163 018 | 139 971 | 139 037 |
| Other current liabilities | 390 576 | 366 059 | 376 093 |
| Total current liabilities | 1 364 072 | 1 483 604 | 1 269 352 |
| Total liabilities | 2 017 606 | 2 198 842 | 2 182 808 |
| Total equity and liabilities | 3 010 054 | 3 112 956 | 3 032 931 |
| Employee | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Total | share | ||||||||
| Share | Own | Share | paid in | Retained | purchase | Total | |||
| Amounts in NOK thousand | capital | shares | premium | capital | earnings | programme | Pension | Currency | equity |
| 31 December 2020 | 13 486 | (5 256) | 77 758 | 85 988 | 905 619 | (35 509) | (203 005) | 20 522 | 773 615 |
| Share issue | 230 | - | 83 995 | 84 226 | - | - | - | - | 84 226 |
| Dividend | - | - | - | - | (215 437) | - | - | - | (215 437) |
| Treasury shares | - | 129 | - | 129 | - | (3 106) | - | - | (2 976) |
| Employee share purchase | |||||||||
| programme | - | - | - | - | - | (10 354) | - | - | (10 354) |
| Comprehensive income | - | - | - | - | 234 666 | - | 114 | (13 730) | 221 050 |
| 31 December 2021 | 13 715 | (5 126) 161 754 | 170 343 | 924 848 | (48 969) | (202 891) | 6 791 | 850 123 | |
| 31 December 2021 | 13 715 | (5 126) 161 754 | 170 343 | 924 848 | (48 969) | (202 891) | 6 791 | 850 123 | |
| Share issue | 52 | - | 13 876 | 13 928 | - | - | - | - | 13 928 |
| Dividend | - | - | - | - | (164 383) | - | - | - | (164 383) |
| Treasury shares | - | 1 272 | - | 1 272 | - | (3 019) | - | - | (1 747) |
| Employee share purchase | |||||||||
| programme | - | - | - | - | - | (7 327) | - | - | (7 327) |
| Comprehensive income | - | - | - | - | 303 015 | - | 25 | (1 186) | 301 855 |
| 31 December 2022 | 13 767 | (3 855) 175 630 | 185 543 | 1 063 480 | (59 315) | (202 866) | 5 606 | 992 448 |
| Q4 | Q4 | FY | FY | |
|---|---|---|---|---|
| Amounts in NOK thousand | 2022 | 2021 | 2022 | 2021 |
| Cash flow from operating activities | ||||
| Profit before income taxes | 93 431 | 83 931 | 387 043 | 311 166 |
| Interest lease liability | 7 105 | 7 716 | 30 608 | 32 062 |
| Interest expense interest-bearing liability | 4 280 | 927 | 11 890 | 927 |
| Income taxes paid | (20 459) | (11 070) | (76 131) | (86 902) |
| Depreciation, amortisation and impairment | 13 874 | 13 249 | 56 461 | 49 134 |
| Depreciation right-of-use assets | 37 078 | 36 740 | 150 545 | 144 846 |
| Results from associated companies and joint ventures | (7 958) | (824) | (15 260) | (204) |
| Other non-cash profit and loss items | (9 840) | (11 895) | (11 935) | (12 834) |
| Subtotal operating activities | 117 510 | 118 776 | 533 220 | 438 195 |
| Trade payables | 21 966 | 37 069 | (3 303) | 21 217 |
| Trade receivables | 130 750 | (76 618) | 146 456 | (58 530) |
| Work in progress | 70 180 | 113 467 | (79 307) | 31 348 |
| Public duties payable | 103 594 | 135 441 | (2 903) | 27 374 |
| Other | 13 313 | 45 238 | (32 557) | (976) |
| Total changes in working capital | 339 804 | 254 596 | 28 386 | 20 434 |
| Net cash flow from operating activities | 457 314 | 373 372 | 561 606 | 458 629 |
| Cash flows used in investment activities | ||||
| Net purchase and sale of fixed assets and financial non-current assets | (9 717) | (12 009) | (41 868) | (40 681) |
| Proceeds/payments related to joint ventures and jointly controlled entities | - | - | 2 584 | (6 999) |
| Change in non-current financial assets, restricted funds | (7 429) | (2 792) | (7 346) | (2 144) |
| Net cash effect of business combinations | (37 315) | (5 982) | (47 375) | (314 190) |
| Net cash flow used in investment activities | (54 461) | (20 784) | (94 005) | (364 015) |
| Cash flow from financing activities | ||||
| Proceeds on interest-bearing liabilities | - | - | 100 000 | 180 000 |
| Instalments on interest-bearing liabilities | (220 000) | - | (280 000) | - |
| Paid interest on interest-bearing liability | (4 280) | (927) | (11 890) | (927) |
| Instalments on lease liabilities | (38 211) | (36 227) | (149 750) | (140 523) |
| Paid interest on lease liability | (7 105) | (7 716) | (30 608) | (32 062) |
| Paid dividends | - | - | (164 383) | (215 437) |
| Cost of share issuance | (72) | - | (72) | (140) |
| Sale treasury shares | 53 453 | 57 428 | 57 599 | 61 897 |
| Purchase treasury shares | (28 171) | (64 874) | (32 067) | (64 874) |
| Net cash flow from financing activities | (244 386) | (52 317) | (511 171) | (212 066) |
| Foreign currency effects on cash and cash equivalents | 1 602 | (1 307) | 1 963 | (3 818) |
| Net increase/decrease in cash and cash equivalents | 160 069 | 298 965 | (41 606) | (121 270) |
| Cash and cash equivalents at the beginning of the period | (45 511) | (142 800) | 156 165 | 277 435 |
| Cash and cash equivalents at the end of the period | 114 558 | 156 165 | 114 558 | 156 165 |
Multiconsult ASA (the company) is a Norwegian public limited liability company listed on Oslo Stock Exchange. The company and its subsidiaries (together the Multiconsult group/the group) are among the leading suppliers of consultancy and
The financial statements are presented in NOK, rounded to the nearest thousand, unless otherwise stated. As a result of rounding adjustments, the figures in one or more rows or columns included in the financial statements and notes may not add up to the total of that row or column.
These interim condensed consolidated financial statements for the fourth quarter 2022 have been prepared in accordance with IAS 34 as approved by the EU. They have not been audited. They do not include all of the information required for full
design services in Norway and the Nordic region. The group has subsidiaries outside the Nordic region - in Poland, United Kingdom and Singapore.
annual financial statements of the group and should be read in conjunction with the consolidated financial statements for 2021. The accounting policies applied are consistent with those applied and described in the consolidated annual financial statements for 2021, which are available upon request from the company's registered office at Nedre Skøyen vei 2, 0276 Oslo and at www. multiconsult-ir.com.
These interim condensed consolidated financial statements for the fourth quarter 2022 were approved by the board of directors and the CEO on 7 February 2023.
The group prepares its consolidated annual financial statements in accordance with IFRS as adopted by the EU (International Financial Reporting Standards - IFRS). References to IFRS in
these financial statements refer to IFRS as approved by the EU. The accounting policies adopted are consistent with those of the previous financial year, with the exemptions presented below.
The preparation of interim condensed consolidated financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing these interim condensed consolidated financial statements, significant judgements made by management in applying the group's accounting policies. The key sources of estimation uncertainty were the same as those applied to the annual consolidated financial statements for 2021, and described in note 2 in the annual consolidated financial statements.
The group performs an assessment for impairment of goodwill at year end according to IAS 36. The impairment test is performed on the identified cash-generating units (CGU) in the group. The recoverable amounts are estimated value in use, based on discounted future cash flows. As part of the impairment test the group consider the relationship between its market value and its book value. The impairment tests have not resulted in any impairment for goodwill, property, plant and equipment or intangible assets related to any of the cash generating units.
As from the fourth quarter 2022, segment Energy has been incorporated in Region Oslo and Region Norway to streamline our organisation and optimise utilisation of our total capability within energy and industry. Going forward Multiconsult will be reporting on four segments, Region Oslo, Region Norway, International and LINK Arkitektur. When presenting the
financial reports from fourth quarter 2022, the comparison to previous periods will be made on the new structure. To ensure comparability between periods, the previously reported figures, in 2021 and 2022, for Energy segment transferred to the segments Region Oslo and Region Norway in line with organisational structure.
| Q4 2022 | Region | Region | LINK | Inter | Not | ||
|---|---|---|---|---|---|---|---|
| Amounts in NOK thousand | Oslo | Norway | arkitektur | national | allocated | Eliminations | Total |
| Net operating revenues | 429 995 | 477 288 | 153 128 | 70 364 | (1 728) | (2 394) | 1 126 652 |
| Operating expenses | 371 606 | 419 847 | 144 922 | 58 853 | (12 567) | (2 394) | 980 267 |
| EBITDA | 58 389 | 57 440 | 8 206 | 11 511 | 10 839 | (0) | 146 385 |
| Depreciation | 2 666 | 6 888 | 5 602 | 4 122 | 30 368 | (21) | 49 625 |
| EBITA | 55 722 | 50 553 | 2 605 | 7 389 | (19 529) | 21 | 96 760 |
| Number of employees | 1 060 | 1 218 | 484 | 444 | 147 | - | 3 353 |
| Q4 2021 | Region | Region | LINK | Inter | Not | ||
| Amounts in NOK thousand | Oslo | Norway | arkitektur | national | allocated | Eliminations | Total |
| Net operating revenues | 435 494 | 424 313 | 144 080 | 65 843 | (246) | (1 189) | 1 068 294 |
| Operating expenses | 379 801 | 360 309 | 133 945 | 55 568 | 7 067 | (8 158) | 928 533 |
| EBITDA | 55 692 | 64 003 | 10 135 | 10 275 | (7 313) | 6 968 | 139 760 |
| Depreciation | 2 615 | 21 906 | 5 415 | 3 738 | 9 718 | 5 356 | 48 748 |
| EBITA | 53 077 | 42 098 | 4 720 | 6 537 | (17 030) | 1 613 | 91 013 |
| Number of employees | 1 081 | 1 144 | 469 | 374 | 133 | - | 3 200 |
| FY 2022 | Region | Region | LINK | Inter | Not | ||
| Amounts in NOK thousand | Oslo | Norway | arkitektur | national | allocated | Eliminations | Total |
| Net operating revenues | 1 649 238 | 1 742 921 | 556 695 | 257 121 | (8 410) | (8 339) | 4 189 226 |
| Operating expenses | 1 414 283 | 1 521 372 | 532 644 | 218 201 | (99 090) | (8 339) | 3 579 072 |
| EBITDA | 234 954 | 221 549 | 24 051 | 38 920 | 90 680 | (0) | 610 154 |
| Depreciation | 10 999 | 27 556 | 22 670 | 15 584 | 124 876 | (21) | 201 663 |
| EBITA | 223 956 | 193 993 | 1 381 | 23 336 | (34 196) | 21 | 408 491 |
| Number of employees | 1 060 | 1 218 | 484 | 444 | 147 | - | 3 353 |
| FY 2021 | Region | Region | LINK | Inter | Not | ||
| Amounts in NOK thousand | Oslo | Norway | arkitektur | national | allocated | Eliminations | Total |
| Net operating revenues | 1 433 211 | 1 563 439 | 564 454 | 243 261 | 6 979 | (7 608) | 3 803 736 |
|---|---|---|---|---|---|---|---|
| Operating expenses | 1 268 305 | 1 292 215 | 524 044 | 203 929 | (12 999) | (14 602) | 3 260 892 |
| EBITDA | 164 906 | 271 225 | 40 410 | 39 333 | 19 977 | 6 994 | 542 845 |
| Depreciation | 16 676 | 89 105 | 21 657 | 15 589 | 43 755 | 5 552 | 192 334 |
| EBITA | 148 230 | 182 120 | 18 753 | 23 743 | (23 777) | 1 442 | 350 511 |
| Number of employees | 1 081 | 1 144 | 469 | 374 | 133 | - | 3 200 |
The group's net operating revenues are affected by the number of working days within each reporting period while employee expenses are recognised for full calendar days. The number of working days in a month is affected by public holidays and vacations. The timing of public holidays (e.g. Easter) during
quarters and whether they fall on weekends or weekdays impacts revenues, earnings, cash flows and working capital balances. Generally, the company's employees are granted leave during Easter and Christmas. The summer holidays primarily impact the month of July and the third quarter.
On 14 December 2022, Multiconsult completed the purchase of Roar Jørgensen AS, see note 12 - Business combinations.
There were no other significant events or transactions in the period.
The company has 28 013 treasury shares on 31 December 2022. For a description of the share purchase programme for all the employees and the performance-based bonus scheme for the
group management see note 9 in the consolidated financial statements for 2021.
For the periods presented there are no dilutive effects on profits or number of shares. Basic and diluted earnings per share are therefore the same.
| Q4 2022 | Q4 2021 | FY 2022 | FY 2021 | |
|---|---|---|---|---|
| Profit for the period (in NOK thousand) | 75 624 | 62 501 | 303 015 | 234 666 |
| Average no of shares (excl own shares) | 27 330 587 | 27 268 233 | 27 390 212 | 27 080 810 |
| Earnings per share (NOK) | 2.77 | 2.29 | 11.06 | 8.67 |
The group's financial instruments are interest-bearing debt, accounts receivables and other receivables, cash and cash equivalents and accounts payables. It is assumed that the
book value is a good approximation of fair value for the group's financial instruments.
| Amounts in NOK thousand | 31 December 2022 | 30 September 2022 | 31 December 2021 |
|---|---|---|---|
| Multiconsult ASA | 31 510 | 331 930 | 180 000 |
| Total | 31 510 | 331 930 | 180 000 |
At the end fourth quarter 2022 Multiconsult ASA renewed its loan portfolio and guarantee facility with Nordea bank. The loan portfolio consists of an overdraft loan facility and revolving credit facility. The overdraft loan facility of NOK 320.0 million is part of a cash pool. The cash pool is a multi-currency and multiaccount system for the legal entities Multiconsult Norge AS, LINK Arkitektur AS, LINK Arkitektur AB, LINK Arkitektur A/S, Iterio AB and Multiconsult UK Limited, where Multiconsult ASA is the owner of the cash pool's top account and the debtor of the facility. In addition, Multiconsult ASA renewed the revolving credit facility of NOK 300 million. The revolving credit facility includes an
accordion option of NOK 500 million. Loan portfolio with Nordea bank is a 3-year (+ 3 month) facility until March 2026, with a common interest to renegotiate this loan portfolio with new loan terms, to a sustainability-linked loan during the first half of 2023. Multiconsult ASA is in compliance with its financial covenants on 31 December 2022. The guarantee facility of NOK 120.0 million is renewed annually however individual guarantees under the guarantee facility can run for up to 5 years.
As part of completing the 2022 share buyback programme Multiconsult ASA entered into a share loan agreement with its largest shareholder Stiftelsen Multiconsult. The deal was entered into on 5 December 2022 for a loan of 230 000 Multiconsult shares in connection with the implementation of the 2022 employee share purchase programme. Multiconsult will deliver the full amount of shares back to Stiftelsen Multiconsult no later than six months from the date of agreement. In consideration for
the share loan, Multiconsult shall pay to Stiftelsen Multiconsult an amount corresponding to 2.76 per cent p.a. based on 230 000 shares at a value of NOK 137.0 per share. The loan of NOK 31.5 million is presented as current interest-bearing liability in the balance sheet statement.
No events have been identified that require disclosure.
Multiconsult completes the acquisition of Roar Jørgensen AS On 30 November 2022, Multiconsult announced that it had entered into an agreement to purchase 100 per cent of the shares of Roar Jørgensen AS. The purchase price was settled in a combination of cash and Multiconsult shares (20 per cent of the enterprise value (EV)). An additional consideration may be paid to the seller by way of an earn-out payment based on the annual accounts of 2023.
Roar Jørgensen AS is a consulting engineering company established in 1985. The company has 38 employees and based in city of Hønefoss, Norway.
In connection with the closing of the transaction, Multiconsult ASA issued 103 936 new shares to the shareholders of Roar Jørgensen AS at a share price of NOK 134.6971. The share price was based on the volume weighted average share price of Multiconsult during the five consecutive trading days prior to closing. The new shares are issued pursuant to an authority given to the board of directors by the annual general meeting on 7 April 2022. The cash portion of the purchase price was settled by using existing cash balances. The transaction is based on a completion accounts model where the closing accounts date (reference date) is set to 31 December 2022. Consequently, the purchase price will be adjusted accordingly with the net cash and net working capital position on the reference date. The purchase price adjustment will be settled during second quarter of 2023.
The share capital increase of NOK 51 968.00 was filed and amendments to the articles of association of Multiconsult ASA was registered with the Norwegian Register of Business on the 14 December 2022. Following registration, the share capital of Multiconsult is NOK 13 767 229.50 divided into 27 534 459 shares, each with a nominal value of NOK 0.50. The newly issued shares represent approximately 0.38 per cent of the share capital of Multiconsult.
The initial, preliminary purchase price allocation identified the following assets and liabilities at the acquisition date:
Amounts in NOK thousand
| Software | 221 |
|---|---|
| Deferred tax asset | 81 |
| Intangible assets | 1 770 |
| Property, plant and equipment | 186 |
| Right-of-use assets | 10 439 |
| Trade receivables | 8 937 |
| Work in progress | 300 |
| Other current receivables and prepaid cost | 789 |
| Cash and cash equivalents | 19 822 |
| Total identifiable assets | 42 546 |
| Deferred tax liability | 389 |
|---|---|
| Non-current lease liabilities | 8 909 |
| Trade payables | 1 151 |
| Provision | 200 |
| Current lease liabilities | 1 530 |
| Other current liabilities | 12 443 |
| Total identifiable liabilities | 24 623 |
| Net identifiable assets | 17 923 |
Amounts in NOK thousand
| Total consideration | 83 500 |
|---|---|
| Net identified assets | (17 923) |
| Goodwill | 65 577 |
| Total net assets and liabilities | 83 500 |
Amounts in NOK thousand
| Settled with Multiconsult shares | 14 000 |
|---|---|
| Settled with cash | 55 500 |
| Earn-out settlement | 14 000 |
| Total consideration | 83 500 |
Amounts in NOK thousand
| Cash in purchased entities | (18 185) |
|---|---|
| Net adjustments | (18 185) |
| Net cash paid | (37 315) |
| Earn-out settlement | 14 000 |
This purchase price allocation is based on company accounts adjusted for calculated IFRS 16 right-of-use assets and lease liabilities. As part of the purchase price allocation an intangible asset related to the order backlog of NOK 1.8 million was identified. The acquisition generated an excess value of NOK 65.6 million allocated to goodwill. The goodwill is related to the competence of the staff.
Incremental external transaction related cost of NOK 1.3 million was expensed as part of other operating expenses.
If the business combination of Roar Jørgensen AS had been effective on 1 January 2022, the net operating revenue for the group would have been NOK 4 249 million for 2022 (NOK 3 862 million for 2021). EBIT would have been NOK 416 million for 2022 (NOK 362 million for 2021). The group considers these proforma numbers to represent a measure of the performance of the combined group and to provide a reference point for comparison in future periods.
Multiconsult uses alternative performance measures for periodic and annual financial reporting in order to provide a better understanding of the group's underlying financial performance.
| Amounts in NOK million (except percentage) | Q4 2022 | Q4 2021 | FY 2022 | FY 2021 |
|---|---|---|---|---|
| EBIT | 95 410 | 89 771 | 403 125 | 348 864 |
| Amortisation on acquisition related items | 1 349 | 1 244 | 5 366 | 1 647 |
| EBITA | 96 760 | 91 014 | 408 491 | 350 511 |
| Net operating revenue | 1 126 652 | 1 068 294 | 4 189 226 | 3 803 736 |
| EBITA margin | 8.6% | 8.5% | 9.8% | 9.2% |
Reported figures adjusted for restructuring cost and other items affecting comparability. There was no calendar effect in the fourth quarter compared to 2021. Year to date 2022 there was a calendar effect of one more working day which has a positive effect on net operating revenue and EBITA of approximately NOK 14.4 million compared to 2021.
| Amounts in NOK thousand (except percentage) | Q4 2022 | Q4 2021 | FY 2022 | FY 2021 |
|---|---|---|---|---|
| Net operating revenues | 1 126 652 | 1 068 294 | 4 189 226 | 3 803 736 |
| Calendar effect | - | - | (14 372) | - |
| Adjusted net operating revenues | 1 126 652 | 1 068 294 | 4 174 854 | 3 803 736 |
| Adjusted EBITA including calendar effect | 96 737 | 91 014 | 394 096 | 350 511 |
| Adjusted EBITA margin including calendar effect | 8.6% | 8.5% | 9.4% | 9.2% |
| Amounts in NOK thousand (except percentage) | Q4 2022 | Q4 2021 | FY 2022 | FY 2021 |
|---|---|---|---|---|
| Other operating expenses | 147 156 | 139 059 | 528 090 | 449 482 |
| Other operating expenses IFRS 16 effect | 46 571 | 43 946 | 182 899 | 172 596 |
| Other operating expenses excluding IFRS 16 | 193 727 | 183 005 | 710 989 | 622 078 |
| Net operating revenue | 1 126 652 | 1 068 294 | 4 189 226 | 3 803 736 |
| Other opex ratio | 17.2% | 17.1% | 17.0% | 16.4% |
| Amounts in NOK thousand (except percentage) | 31 December 2022 |
30 September 2022 |
31 December 2021 |
|---|---|---|---|
| Total shareholders' equity | 992 448 | 914 115 | 850 123 |
| Total assets | 3 010 054 | 3 112 956 | 3 032 931 |
| Equity ratio | 33.0% | 29.4% | 28.0% |
| Total shareholders' equity (excl. IFRS 16) | 1 053 006 | 976 842 | 913 060 |
| Total assets (excl. IFRS 16) | 2 336 683 | 2 389 122 | 2 266 061 |
| Equity ratio | 45.1% | 40.9% | 40.3% |
| Amounts in NOK thousand | 31 December 2022 |
30 September 2022 |
31 December 2021 |
|---|---|---|---|
| Cash and cash equivalents, excluding restricted cash | 114 559 | 66 419 | 156 165 |
| Cash and cash equivalents, restricted cash | - | - | - |
| Non-current financial assets, restricted funds | 22 661 | 15 232 | 15 316 |
| Interest-bearing liabilities | 765 439 | 1 118 491 | 1 009 808 |
| Net interest-bearing liabilities including IFRS 16 lease liabilities | 628 219 | 1 036 840 | 838 327 |
| Non-current and current IFRS 16 lease liabilities | 733 929 | 786 562 | 829 808 |
| Net interest-bearing liabilities excluding IFRS 16 lease liabilities | (105 710) | 250 279 | 8 519 |
Visiting address: Nedre Skøyen vei 2 0276 Oslo
Postal address: P O Box 265 Skøyen NO-0213 Oslo
T: (+47) 21 58 50 00 E: [email protected]
Investor relations: E: [email protected]
Org no 910 253 158
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