Quarterly Report • Nov 4, 2020
Quarterly Report
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"Multiconsult delivered a strong third quarter EBIT. I am very satisfied with the strong improvements and continued profitability this year. We are ahead of the plan for this turnaround thanks to solid dedication and efforts across our organisation and strong customer relations. Focus on core business, sales and project execution, and significantly reduced operating expenses partially resulting from the nextLEVEL improvement programme have been key factors for our recent improvements. I am very grateful to our employees for joining in on this important and necessary improvement journey."
Grethe Bergly CEO of Multiconsult ASA
| Amounts in NOK million | Q3 2020 | Q3 2019 | YTD 2020 | YTD 2019 |
|---|---|---|---|---|
| FINANCIAL | ||||
| Net operating revenues | 748.5 | 720.4 | 2 693.8 | 2 531.4 |
| Employee benefit expenses | 521.0 | 542.9 | 1 927.9 | 1 933.9 |
| Other operating expenses | 79.4 | 105.5 | 297.8 | 355.8 |
| EBITDA | 148.1 | 72.1 | 468.2 | 241.8 |
| EBITDA margin | 19.8% | 10.0% | 17.4% | 9.6% |
| EBIT | 68.1 | 21.0 | 288.1 | 97.6 |
| EBIT margin | 9.1% | 2.9% | 10.7% | 3.9% |
| EBIT ex. restructuring cost 1 | 98.1 | 21.0 | 318.1 | 127.8 |
| EBIT margin ex. restructuring cost 1 | 13.1% | 2.9% | 11.8% | 5.1% |
| Reported profit for the period | 36.5 | 7.7 | 186.5 | 44.9 |
| OPERATIONAL | ||||
| Other opex ratio margin (ex. IFRS 16) | 16.3% | 20.2% | 15.8% | 18.8% |
| Billing ratio | 69.2% | 67.1% | 70.8% | 69.6% |
| Number of employees | 2 938 | 3 005 | 2 938 | 3 005 |
| Order intake | 919 | 945 | 3 261 | 3 019 |
| Order backlog | 3 040 | 2 732 | 3 040 | 2 732 |
1) EBIT ex. restructuring cost is calculated by (i) excluding one-off nextLEVEL restructuring cost of NOK 30.0 million in Q3 and YTD 2020, and (ii) excluding one-off charges of NOK 30.2 million in Q1 and Q2 2019.
Multiconsult had a strong third quarter with an EBIT ex. restructuring cost of NOK 98.1 million, reflecting a 13.1% margin. EBIT ex. restructuring cost year to date came in at NOK 318.1 million, equal to a 11.8% margin. Restructuring cost amounts to NOK 30 million. Compared with the third quarter 2019, the result is impacted by higher billing ratio, improved project execution and reduction in operating expenses. Net operating revenues grew by 3.9% y-o-y to NOK 748.5 million in the quarter, and by 6.4% to NOK 2 694 million year to date. The nextLEVEL improvement programme is ahead of schedule, partly reflected in a reduction of other operating expenses of 24.7% to NOK 79.4 million in the quarter. Order intake in the quarter of NOK 919 million gives a stabile order backlog of NOK 3 040 million. The board of directors proposes a dividend of NOK 2.00 per share to be paid in the fourth quarter.
(Figures in brackets = same period prior year or relevant balance sheet date 2020).
Net operating revenues increased by 3.9% to NOK 748.5 million (NOK 720.4 million). The increase in net operating revenues is exclusively organic and driven by higher billing ratio of 2.1 pp and improved project execution compared to the same quarter in 2019.
Operating expenses consist mainly of employee benefit expenses and other operating expenses. Operating expenses decreased by 7.4% to NOK 600.4 million (NOK 648.3 million). Employee benefit expenses decreased in line with manning level, offset by regular salary adjustment for the workforce. Other operating expenses decreased by 24.7% to NOK 79.4 million (NOK 105.5 million), partly an effect from the nextLEVEL improvement programme, together with the impact of reduced costs on general expenditures such as travel and certain other expenses due to Covid-19.
EBITDA was NOK 148.1 million (NOK 72.1 million), an increase of 105.5% compared to the same period last year.
EBIT reported was NOK 68.1 million and includes a one-off restructuring cost of NOK 30.0.
The EBIT ex. restructuring cost was NOK 98.1 million (NOK 21.0 million), reflecting an EBIT margin of 13.1% (2.9%). The restructuring of NOK 30 million is a right-of-use assets impairment loss. The impairment relates to a review of Multiconsult's office rental portfolio and is part of the previously announced restructuring costs in the nextLEVEL improvement programme.
Net financial items were an expense of NOK 9.5 million (NOK 10.1 million).
Group tax rate was 37.6% (29.8%). The group tax rate is affected by non-deductible impairment loss of right-of-use assets.
Reported profit for the period was NOK 36.5 million (NOK 7.7 million).
Net operating revenues increased by 6.4% to NOK 2 694 million (NOK 2 531 million) and is exclusively organic driven. The increase in net operating revenues was driven by improved billing ratio, higher billing rates and improved project performance compared to the same period in 2019. There was a calendar effect of two more working days increasing net operating revenues by approximately NOK 28.3 million compared to the same period last year.
Operating expenses decreased by 2.8% to NOK 2 226 million (NOK 2 290 million). Operating expenses consist mainly of employee benefit expenses and other operating expenses. Other operating expenses decreased by 16.3%, a reduction of NOK 58.0 million due to lower travel, office and general cost reductions in most areas. The cost reduction on other operating expenses is partly a nextLEVEL effect as well as cost reduction related to Covid-19. Employee benefit expenses decreased with 0.3% compared to the same period last year, as a result of regular salary adjustment for the workforce, offset by reduced manning level. In addition, the temporary Covid-19 tax reliefs from governments reduced the employee benefit expense by approximately NOK 14.3 million.
EBITDA was NOK 468.2 million (NOK 241.8 million), an increase of 93.7% compared to the same period last year.
EBIT reported was NOK 288.1 million and includes a one-off restructuring cost of NOK 30.0 million. The comparable 2019 EBIT figure includes one-off charges of NOK 30.2 million.
The EBIT ex. restructuring cost was NOK 318.1 million (NOK 127.8 million), reflecting an EBIT margin of 11.8% (5.1%). The restructuring of NOK 30 million is as a right-of-use assets impairment loss. The impairment relates to a review of Multiconsult's office portfolio and is part of the previously announced restructuring costs in the nextLEVEL improvement programme. The comparable 2019 EBIT figure includes one-off charges of NOK 30.2 million.
Net financial items were an expense of NOK 31.1 million (expense of NOK 38.1 million).
Group tax rate was 26.8% (24.1%). The group tax rate is affected by non-deductible impairment loss of right-of-use assets.
Reported profit for the period was NOK 186.5 million (NOK 44.9 million).
Total assets amounted to NOK 2 661 million (NOK 2 863 million, 30 June 2020), and total equity amounted to NOK 782.4 million (NOK 748.0 million 30 June 2020). The group held cash and cash equivalents of NOK 118.4 million (NOK 237.4 million, 30 June 2020).
Net interest-bearing liabilities amounted to NOK 738.2 million (NOK 748.0 million, 30 June 2020). Adjusted for IFRS 16 lease obligations, net interest-bearing debt is negative NOK 136.7 million (negative NOK 156.2 million, 30 June 2020).
Net cash flow from operating activities was positive NOK 34.0 million (negative NOK 58.6 million). Net cash flow from operating activities is affected by increase in revenues and increase in working capital mainly due to a reduction in other current liabilities.
Net cash flow used in investment activities was NOK 5.2 million this quarter (NOK 16.3 million), related to ordinary asset replacement.
Net cash flow from financing activities amounted to negative NOK 147.5 million (positive NOK 69.0 million) which is mainly affected by instalments of NOK 100 million on interestbearing liabilities, and instalments on lease liabilities.
In March 2020 Multiconsult refinanced its loan portfolio with Nordea. This included an overdraft loan facility of NOK 320.0 million, and a new 3-year revolving credit facility (RCF) of NOK 200.0 million until March 2023. Both credit facilities have improved margins and covenants. Available undrawn amount under the facilities is NOK 520.0 million as of 30 September 2020.
Net cash flow from operating activities was positive NOK 375.6 million (negative NOK 5.4 million). Net cash flow from operating activities is mainly affected by increase in revenues.
Net cash flow used in investment activities was NOK 19.1 million (NOK 51.8 million), mainly related to ordinary asset replacement.
Net cash flow from financing activities amounted to negative NOK 314.4 million (negative NOK 51.4 million) which is mainly affected by reduction of interest-bearing liabilities and lease liabilities. In the first quarter the company refinanced and re-paid the previous NOK 172.0 million term loan and made a drawdown of NOK 172.0 million on the NOK 200.0 million revolving credit facility. In second quarter the company reduced drawn amount under the RCF by NOK 72 million, and in the third quarter by NOK 100 million.
The order backlog at the end of the third quarter 2020 remains solid at NOK 3 040 million (NOK 2 732 million), an increase of 11.3%. Business areas Buildings & Properties and Transportation holds the largest proportion of the order backlog. All business areas except Transportation and Cities & Society have seen an increase in the order backlog. The size and timing of execution of the order backlog varies significantly between the business areas and locations.
The overall order intake during the quarter decreased by 2.7% compared to the third quarter 2019, but the order intake in the third quarter is still at a satisfactory level. Significant sales in the quarter was Skarnes & Jaren railway station and Fv44 Bussvei Gauselstasjon under the business area Transportation. Under the business area Building & Properties LINK arkitektur had sales on Kvartal 8 Lillestøm, and Multiconsult on Nye Askøy high school and Bergen verksted. Business area Renewable Energy had sales on Rumakali & Ruhudji HPP and TL. Business
area Oil & Gas in Multiconsult Poland had sales on the LNG terminal in Świnoujście.
Significant contracts awarded this quarter were:
Among significant call-offs on existing contracts were Fornebubanen, Forsvarsbygg and Sykehusinnkjøp HF.
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. Large frame
agreements not mentioned under significant call-offs includes Forsvarsbygg (Østlandet) and safety and RAMS with Bane NOR.
Multiconsult's profitability improvement programme nextLEVEL was introduced at the end of 2019 and is one of our key measures to improve performance and profitability. The profitability improvement programme has continued through the third quarter.
In total, nextLEVEL has a target of 150 million in annual profitability improvement to be realised over a period of 18 months. By mid-October Multiconsult has committed to 92% (NOK 138 million) of the target amount, up from 76% mid-August. Improvements have been made in the quarter, both in Cost Out and Operations. nextLEVEL is ahead of the suggested schedule and is expected to reach target before the estimated 18 months. The focus is still on reaching our committed ambition but nextLEVEL now intend to find room for improvement outside the initial scope.
The one-off restructuring costs related to nextLEVEL is now estimated to be NOK 45-50 million, a reduction from NOK 60-70 million previously estimated. The one-off nextLEVEL restructuring costs in the third quarter were NOK 30.0 million, and accumulated NOK 34.0 million.
As from 2020, Multiconsult's reporting segments are presented as five segments, Region Oslo, Region Norway, Energy, LINK arkitektur and International.
Comparison to same period last year has been re-stated using the new principles and is made on the new structure. Also see note 3 – Accounting Policies.
This segment offers services in seven business areas and comprises the Oslo region, in addition the segment includes Multiconsult's internal segment Large Projects in Norway.
| Amounts in NOK million | Q3 2020 |
Q3 2019 |
YTD 2020 |
YTD 2019 |
|---|---|---|---|---|
| Net operating revenues | 231.8 | 245.6 | 863.2 | 801.6 |
| EBIT | 36.5 | 27.0 | 135.5 | 45.8 |
| EBIT% | 15.7% | 11.0% | 15.7% | 5.7% |
| Order intake | 252.1 | 214.5 | 847.7 | 898.4 |
| Order backlog | 889.0 | 854.2 | 889.8 | 854.2 |
| Billing ratio | 70.5% | 67.5% | 73.4% | 70.2% |
| Number of employees | 780 | 824 | 780 | 824 |
The decrease in net operating revenues of 5.6% in the quarter was mainly driven by lower activity, as a result of a decrease in the number of employees. The reduction was offset by higher billing ratio that impacted net operating revenues positively.
Operating expenses came in 10.4% lower than in the same period 2019. Employee benefit expenses was reduced in
line with the reduction in manning level, offset by regular salary adjustment. Other operating expenses decreased significantly, due to reduced office- and travel expenses. The operating expenses in the quarter is positively impacted by an adjustment of NOK 9.4 million related to the first half 2020. This adjusment is caused by significantly reduced expenses related to overhead and shared services (Note 5).
Order intake in the third quarter increased by 17.5% compared to the third quarter in 2019. The growth is supported by an increase in the business areas Water & Environment together with Transportation, other business areas decreased. The largest reduction was in Buildings & Properties.
Order backlog for the segment at the end of the third quarter is NOK 889.0 million. The largest share of the order backlog is held by the business areas Buildings & Properties and Water & Environment. The order backlog increased by 4.1% compared to the third quarter in 2019, and is at approximately the same level as secound quarter 2020.
The increase in net operating revenues of 7.7% in the period was driven by higher billing ratio of 3.3 pp compared to the same period last year. Billing rates were at a higher level and impacted net operating revenues positively.
Operating expenses came in 3.4% lower than in the same period in 2019. Employee benefit expenses was reduced in line with reduction in the manning level partly offset by regular salary adjustment. In addition, the temporary Covid-19 tax reliefs from governments reduced the employee benefit expense. Other operating expenses decreased due to a lower general cost level compared to the same period last year. Reduced costs from administrative staff and shared services contributed positively compared to same period 2019.
Order intake decreased 5.6% in the period, mainly resulting from lower sales in business areas Transportation and Industry.
This segment offers services in seven business areas and comprises all offices outside Oslo with presence in all larger cities in Norway and several other locations, a total of 23 offices.
| Amounts in NOK million | Q3 2020 |
Q3 2019 |
YTD 2020 |
YTD 2019 |
|---|---|---|---|---|
| Net operating revenues | 311.9 | 285.0 | 1 069.9 1 018.5 | |
| EBIT | 56.2 | (5.6) | 137.4 | 44.8 |
| EBIT% | 18.0% | (2.0%) | 12.8% | 4.4% |
| Order intake | 295.8 | 276.8 | 1 207 | 1 058 |
| Order backlog | 654.4 | 586.8 | 654.4 | 586.8 |
| Billing ratio | 70.9% | 66.8% | 69.7% | 68.3% |
| Number of employees | 1 042 | 1 074 | 1 042 | 1 074 |
The increase in net operating revenues of 9.4% in the quarter was driven by increased activity level and a higher billing ratio of 4.1 pp compared to the same period in 2019. The increase in net operating revenue is offset by a reduced manning level.
Operating expenses decreased by 12.0% in the quarter. Employee benefit expenses decreased more than the reduction in the manning level including regular salary adjustment. Other operating expenses decreased significantly, due to lower spending in general. The operating expenses in the quarter is positively impacted by an adjustment of NOK 12.9 million related to the first half 2020. This adjusment is caused by significantly reduced expenses related to overhead and shared services (Note 5).
Order intake in the third quarter increased by 6.9% compared to a modest quarter last year, and mainly as a result of increased sales in Transportation and Industry. Business area Buildings & Properties which accounted for the largest part of the order intake in the period had a modest reduction in sales of 3.9% compared to the same period 2019.
Order backlog for the segment at the end of the third quarter was at NOK 654.4 million. The order backlog increased by 11.5% compared to the same period in 2019, and a modest reduction of 0.1% from second quarter 2020. Most business areas increased their order backlog compared to the same period last year.
Net operating revenues increased by 5.1% compared to the same period 2019, driven by higher billing ratio and billing rate, partly offset by reduction in number of employees.
Operating expenses came in 4.5% lower than in the same period in 2019. Employee benefit expenses decreased slightly due to a reduction in the workforce, partly offset by regular
salary adjustment. In addition, the temporary Covid-19 tax reliefs from governments reduced the employee benefit expense. Other operating expenses decreased significantly, due to reduced office- and travel expenses, moreover reduced costs from administrative staff and shared services contributed positively compared to same period 2019.
Order intake in the period increased by 14.0% compared to 2019. Region Norway had a solid increase in all major business areas compared to the same period last year.
The segment offers national and international services in the business area Renewable Energy with some activity in Water & Environment and include the subsidiary Multiconsult UK.
| Q3 | Q3 | YTD | YTD | |
|---|---|---|---|---|
| Amounts in NOK million | 2020 | 2019 | 2020 | 2019 |
| Net operating revenues | 50.3 | 51.0 | 185.1 | 183.8 |
| EBIT | 1.1 | (5.0) | 3.4 | (8.4) |
| EBIT% | 2.2% | (9.8%) | 1.9% | (4.5%) |
| Order intake | 103.5 | 115.2 | 271.1 | 307.7 |
| Order backlog | 306.0 | 277.7 | 306.0 | 277.7 |
| Billing ratio | 59.9% | 62.0% | 61.4% | 62.4% |
| Number of employees | 189 | 203 | 189 | 203 |
Compared to third quarter 2019 net operating revenues decreased by 1.3%. There was lower activity, as a result of a decrease in the number of employees. The billing ratio was 2.1 pp lower than same period last year and impacted net operating revenues negatively.
Operating expenses decreased by 12.1% in the quarter. Employee benefit expenses decreased more than the reduction in manning level. Other operating expenses decreased, due to lower spending in general. The operating expenses in the quarter is positively impacted by an adjustment of NOK 2.1 million related to the first half 2020. This adjusment is caused by significantly reduced expenses related to overhead and shared services (Note 5).
Order intake in the third quarter decreased by 10.1% compared to a strong quarter last year.
Order backlog was at a high level of NOK 306.0 million at the end of the quarter. The order backlog increased by 10.2% compared to the third quarter 2019 and increased by 16.1% from second quarter 2020. In the order backlog there are projects with start-up issues due to local political- and Covid-19 constraints.
The increase in net operating revenues by 0.7% was driven by higher billing rate compared to the same period last year,
partly offset by a reduction in the billing ratio of 1.0 pp and a reduction in number of employees.
Operating expenses came in 5.5% lower than in the same period last year, mainly due to reduction in employee benefit expenses as a result of reduction in manning level. In addition, the temporary Covid-19 tax reliefs from governments reduced the employee benefit expense. Other operating expenditure was in line with the expenditure in the same period last year.
The performance from Energy in Norway has improved compared to the same period 2019 and is at a satisfying level year to date of 2020, however, Multiconsult UK is facing a more challenging market and are loss-making year to date 2020.
Order intake in the period decreased by 11.9% compared to same period 2019.
This segment comprises LINK arkitektur with its 15 offices in Norway, Sweden and Denmark.
| Amounts in NOK million | Q3 2020 |
Q3 2019 |
YTD 2020 |
YTD 2019 |
|---|---|---|---|---|
| Net operating revenues | 106.5 | 107.1 | 409.9 | 400.7 |
| EBIT | (5.8) | (2.8) | 11.8 | 18.6 |
| EBIT% | (5.5%) | (2.6%) | 2.9% | 4.6% |
| Order intake | 163.4 | 194.6 | 566.8 | 491.8 |
| Order backlog | 645.3 | 551.4 | 645.3 | 551.4 |
| Billing ratio | 71.0% | 71.4% | 73.3% | 74.4% |
| Number of employees | 489 | 494 | 489 | 494 |
Net operating revenues came in at approximately the same level, with a modest decrease of 0.5% compared to the same period 2019. Lower billing ratio of 0.4 pp had a negative effect on net operating revenues, partly offset by a higher billing rate in the period.
Operating expenses increased by 0.4% in the quarter. Employee benefit expenses increased slightly and in line with manning level and ordinary salary adjustment. Other operating expenses decreased marginally in the period.
Order intake in the third quarter was NOK 163.4 million, a reduction of 16.0% compared to the same period last year.
Order backlog for the segment at the end of third quarter increased by 17.0%, to NOK 645.3 million, compared to the same period in 2019, and increased by 2.9% from second quarter 2020.
The increase in net operating revenues of 2.3% was mainly driven by a higher billing rate, partly offset by a reduction
in the billing ratio by 1.1 pp and a reduction in the number of employees compared to the same period last year for the segment in total, but with regional differences.
Operating expenses increased by 3.8% compared to the same quarter 2019. Higher employee expenditure increased partly due to ordinary salary adjustment compared to the same period last year. Other operating expenses decreased, due to lower overall spending.
The performance from LINK arkitektur AS in Norway is at a good level, while both the businesses in Sweden and, in particular Denmark, are facing more challenging markets and are loss-making. Process to improve performance in Sweden and Denmark has been be initiated.
Order intake in the period increased by 15.2% compared to the same period last year.
This segment comprises the subsidiaries Multiconsult Polska and Iterio AB.
| Q3 2020 |
Q3 2019 |
YTD 2020 |
YTD 2019 |
|---|---|---|---|
| 51.1 | 47.3 | 177.9 | 150.4 |
| 4.3 | 4.3 | 19.1 | 14.2 |
| 8.4% | 9.1% | 10.7% | 9.5% |
| 104.4 | 144.0 | 368.7 | 262.1 |
| 588.9 | 478.5 | 588.9 | 478.5 |
| 69.2% | 68.7% | 75.8% | 75.4% |
| 312 | 298 | 312 | 298 |
Net operating revenues increased by 8.0% in the third quarter, mainly driven by higher activity level, which resulted in net recruitment and a higher manning level in both Iterio AB and Multiconsult Polska. Higher billing ratio 0.5 pp and higher billing rates compared to the same period contributed positivly to the net operating revenues.
Operating expenses increased by 7.3% compared to the same quarter in 2019. The increase is mainly due to higher employee benefit expenses driven by the high activity level and the corresponding increase in manning level. Other operating expenses decreased in the period, due to overall lower spending level.
Order intake in the third quarter decreased by 27.5% compared to a strong quarter last year when the business area Transportation, in Multiconsult Polska, had a high order intake.
Order backlog for the segment at the end of the third quarter increased by 23.1% to NOK 588.9 million and a growth of 4.2% from second quarter 2020.
Net operating revenues increased by 18.3% in the period mainly driven by higher activity level, which resulted in net recruitment and a higher manning level in both Iterio AB and Multiconsult Polska. Billing ratio, and billing rates were on a higher level compared to the same period last year and contributed positively to the growth in net operating revenues.
Operating expenses came in 16.1% higher than same period 2019, driven by higher employee benefit expenses, from increased manning level in both Multiconsult Polska and Iterio AB. Other operating expenses decreased marginally due to lower overall spending despite the increase in manning level.
Order intake year to date 2020 increased by 40.7% mainly due to higher order intake in the business area Transportation and Oil & Gas.
As of 30 September 2020, the group had 2 938 (3 005) employees. The employee turnover ratio for the group for the period September 2019 to September 2020 was 11.7% (9.2%).
On 25 March 2020, the board of directors cancelled the proposed ordinary dividend of NOK 1.00 per share for 2019 as a consequence of the Covid-19 situation. The board has again considered the situation for Multiconsult, and has on 3 November 2020 decided to propose a dividend of NOK 2.00 per share to be paid following an extraordinary general meeting that will be summoned later this year.
On 3 November 2020, the company decided an extraordinary bonus to employees for their strong commitment and contribution to the turnaround process. Estimated total cost of NOK 25 million will be charged in the fourth quarter 2020.
On 10 October, Multiconsult announced call-offs under the Fornebubanen frame agreement. The value of the call-off is Since the end of August 2020, no employees have been on temporary leave due to the Covid-19 pandemic.
approximately NOK 50 million for Multiconsult, and work has already started and will last until December 2020.
Multiconsult, with 50% in a joint venture with Cowi, provides engineering services from pre-design until the completion of infrastructure, as well as any subsequent work.
On 21 October, Multiconsult announced that Statnett SF, the system operator in the Norwegian energy system, has awarded Multiconsult the "Framework agreement for external technical engineering substations". Estimated annual value for the agreement is more than NOK 100 million. The framework agreement, with an effective start date in November 2020, has a duration of two years with option of extensions periods for 1+1+1+1 years. The agreement is granted to Multiconsult as one of two consultancy engineering companies.
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.
Multiconsult is still in the turnaround process that started in the first half of 2019, where the focus has been on the core business, sales and project execution. The nextLEVEL programme is on track, and the order backlog provides a good foundation, supported by frame agreements generated from a broad customer base.
Multiconsult has been, and will be, taking prudent, responsible and necessary actions in relation to the Covid-19 pandemic to secure our employees, our business, our customers, and the society as a whole.
While Multiconsult has so far registered limited negative impact of the Covid-19 situation, the pandemic continues to create
uncertainty for our industry going forwards. There may be signs of a possible slow-down in, particularly, small- and medium size new projects/sales, that may be linked to the recent worsening/ tightening connected to the Covid-19 pandemic.
Subject to the above mentioned Covid-19 uncertainties, the market outlook for Multiconsult's services remains good across most business areas. There are however more uncertainties within Buildings & Properties (including architecture) and in our international Energy business. The ongoing public reforms in Norway is also creating some short-term uncertainties and potential delays. Political uncertainty, macroeconomic events and competition from foreign players comprise some key risk factors to Multiconsult's market outlook.
With a solid market position, high competence and technology, as well as leading solutions for our customers, Multiconsult believes it is well placed to handle the challenges of the current uncertainties facing the economy and our industry.
The risk of disagreements and legal disputes related to the possible cost of delays and project errors is always present in the consultancy business. Multiconsult has developed internal procedures and competences to reduce risk exposure for legal disputes. Multiconsult has also normal and relevant insurance policies and routines for protection of normal and most potential consequences of such matters. Further details regarding the insurance coverage are provided in note 20 to the consolidated financial statements for 2019.
The extraordinary risk factor due to the ongoing pandemic of coronavirus disease 2019 (Covid-19), is described under Risk and Risk Management in the 2019 Annual Report and in the Outlook section above. Multiconsult has not identified significant additional risk factors related to Covid-19 beyond those described therein.
Multiconsult has not identified significant additional risk exposures beyond the ones described in the 2019 Annual Report. More generally, Multiconsult has experienced an increase in the number of and size of potential legal disputes, which potentially may, in adverse circumstances, have negative financial impact.
Multiconsult is exposed to a number of risk factors: legal liability, credit risk, currency risk, interest rate risk, liquidity risk, and accounting estimates risk. The Risk and Risk Management section in the 2019 Annual Report contains detailed description and mitigating actions.
Net operating revenues: Operating revenues less sub consultants and disbursements.
EBITDA: EBIT before depreciation, amortisation and impairment.
EBITDA margin (%): EBITDA 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 (%): Hours recorded on chargeable projects as a percentage of total hours worked (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.
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 interest-bearing 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 30 september 2020
| Amounts in NOK thousand, except EPS | Q3 2020 | Q3 2019 | YTD 2020 | YTD 2019 | FY 2019 |
|---|---|---|---|---|---|
| Operating revenues | 833 266 | 859 276 | 3 083 150 | 3 011 765 | 4 068 683 |
| Expenses for sub consultants and disbursements | 84 720 | 138 845 | 389 305 | 480 388 | 632 848 |
| Net operating revenues | 748 546 | 720 431 | 2 693 845 | 2 531 377 | 3 435 835 |
| Employee benefit expenses | 520 999 | 542 851 | 1 927 860 | 1 933 863 | 2 654 431 |
| Other operating expenses | 79 412 | 105 495 | 297 807 | 355 762 | 482 271 |
| Operating expenses excluding depreciation and amortisation | 600 411 | 648 346 | 2 225 666 | 2 289 626 | 3 136 702 |
| Operating profit before depreciation and amortisation (EBITDA) | 148 135 | 72 086 | 468 178 | 241 752 | 299 133 |
| Depreciation and amortisation | 50 004 | 51 044 | 150 112 | 144 170 | 192 804 |
| Impairment | 30 000 | - | 30 000 | - | - |
| Operating profit (EBIT) | 68 131 | 21 042 | 288 066 | 97 582 | 106 329 |
| Share of profit from associated companies and joint ventures | (52) | 32 | (2 079) | (368) | (169) |
| Financial income and expenses | |||||
| Financial income | 4 411 | 2 157 | 15 897 | 2 940 | 3 954 |
| Financial expenses | 13 910 | 12 215 | 47 038 | 41 056 | 56 683 |
| Net financial items | (9 499) | (10 058) | (31 141) | (38 116) | (52 729) |
| Profit before income tax | 58 580 | 11 016 | 254 847 | 59 098 | 53 431 |
| Income tax expense | 22 035 | 3 280 | 68 330 | 14 228 | 18 320 |
| Profit for the period | 36 545 | 7 735 | 186 517 | 44 870 | 35 110 |
| Attributable to: | |||||
| Owners of Multiconsult ASA | 36 545 | 7 735 | 186 517 | 44 870 | 35 110 |
| Earnings per share | |||||
| Basic and diluted | 1.36 | 0.29 | 6.92 | 1.66 | 1.30 |
| Amounts in NOK thousand | Q3 2020 | Q3 2019 | YTD 2020 | YTD 2019 | FY 2019 |
|---|---|---|---|---|---|
| Profit for the period | 36 545 | 7 735 | 186 517 | 44 870 | 35 110 |
| Other comprehensive income | |||||
| Remeasurement of defined benefit obligations | - | - | - | - | (1 884) |
| Income taxes | - | - | - | - | 414 |
| Total items that will not be reclassified subsequently to profit or loss | - | - | - | - | (1 470) |
| Currency translation differences | 1 693 | 1 407 | 18 240 | (5 930) | (2 450) |
| Total items that may be reclassified subsequently to profit or loss | 1 693 | 1 407 | 18 240 | (5 930) | (2 450) |
| Total other comprehensive income for the period | 1 693 | 1 407 | 18 240 | (5 930) | (3 920) |
| Total comprehensive income for the period | 38 238 | 9 142 | 204 757 | 38 940 | 31 190 |
| Attributable to: | |||||
| Owners of Multiconsult ASA | 38 238 | 9 142 | 204 757 | 38 940 | 31 190 |
| Amounts in NOK thousand | 30 September 2020 | 30 June 2020 | 31 December 2019 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Deferred tax assets | 24 341 | 22 350 | 40 322 |
| Intangible assets | 22 512 | 23 665 | 24 919 |
| Goodwill | 457 838 | 456 418 | 447 554 |
| Property, plant and equipment | 101 696 | 107 359 | 112 494 |
| Right-of-use assets | 818 337 | 880 645 | 898 208 |
| Investments in associated companies and joint ventures | 10 842 | 10 830 | 12 509 |
| Assets for reimbursement of provisions | 15 250 | 16 700 | 28 850 |
| Other non-current financial assets and shares | 22 633 | 23 057 | 17 785 |
| Total non-current assets | 1 473 449 | 1 541 025 | 1 582 643 |
| Current assets Trade receivables |
642 796 | 654 202 | 638 476 |
| Work in progress | 311 769 | 311 076 | 309 034 |
| Other current receivables and prepaid expenses | 114 465 | 118 889 | 70 573 |
| Cash and cash equivalents | 118 427 | 237 405 | 73 558 |
| Total current assets | 1 187 456 | 1 321 572 | 1 091 642 |
| Total assets | 2 660 905 | 2 862 597 | 2 674 284 |
| EQUITY AND LIABILITIES | |||
| Shareholders' equity | |||
| Total paid in equity | 87 406 | 91 241 | 91 241 |
| Other equity | 694 960 | 656 725 | 490 171 |
| Total shareholders' equity | 782 366 | 747 966 | 581 413 |
| Non-current liabilities | |||
| Pension obligations | 6 546 | 6 546 | 6 542 |
| Deferred tax | 17 164 | 14 694 | 13 074 |
| Provisions | 21 250 | 22 100 | 36 000 |
| Non-current interest-bearing liabilities | - | 100 000 | - |
| Non-current lease liabilities | 743 174 | 770 921 | 789 618 |
| Total non-current liabilities | 788 134 | 914 261 | 845 234 |
| Current liabilities | |||
| Trade payables | 152 364 | 140 279 | 160 663 |
| Prepaid revenues | 127 218 | 127 561 | 133 368 |
| Current tax liabilities | 52 520 | 42 795 | 17 979 |
| Public duties payable | 329 788 | 352 236 | 333 626 |
| Current interest-bearing liabilities | - | - | 178 400 |
| Current lease liabilities | 131 721 | 133 205 | 124 940 |
| Other current liabilities | 296 795 | 404 293 | 298 660 |
| Total current liabilities | 1 090 405 | 1 200 370 | 1 247 637 |
| Total liabilities | 1 878 539 | 2 114 631 | 2 092 871 |
| Total equity and liabilities | 2 660 905 | 2 862 597 | 2 674 284 |
| Amounts in NOK thousand | Share capital |
Own shares |
Share premium |
Total paid-in capital |
Retained earnings |
Employee share purchase programme |
Pension | Currency | Total equity |
|---|---|---|---|---|---|---|---|---|---|
| 31 December 2018 | 13 486 | - | 77 758 | 91 242 | 715 381 | (22 033) (201 713) | 10 332 | 593 211 | |
| Dividend | - | - | - | - | (40 456) | - | - | - | (40 456) |
| Share Issue | - | - | - | - | - | - | - | - | - |
| Treasury shares | - | - | - | - | - | - | - | - | - |
| Employee share purchase programme |
- | - | - | - | - | (18) | - | - | (18) |
| Comprehensive income | - | - | - | - | 44 870 | - | - | (5 930) | 38 940 |
| 30 September 2019 | 13 486 | - | 77 758 | 91 242 | 719 795 | (22 051) (201 713) | 4 401 | 591 678 | |
| 31 December 2018 | 13 486 | - | 77 758 | 91 242 | 715 381 | (22 033) (201 713) | 10 332 | 593 211 | |
| Dividend | - | - | - | - | (40 456) | - | - | - | (40 456) |
| Treasury shares | - | (1) | - | (1) | - | - | - | - | (1) |
| Employee share purchase | |||||||||
| programme | - | - | - | - | - | (2 532) | - | - | (2 532) |
| Comprehensive income | - | - | - | - | 35 110 | - | (1 470) | (2 450) | 31 190 |
| 31 December 2019 | 13 486 | (1) | 77 758 | 91 241 | 710 035 | (24 565) (203 183) | 7 882 | 581 413 | |
| Dividend | - | - | - | - | - | - | - | - | - |
| Treasury shares | - (3 837) | - | (3 837) | - | 34 | - | - | (3 804) | |
| Employee share purchase | |||||||||
| programme | - | - | - | - | - | - | - | - | - |
| Comprehensive income | - | - | - | - | 186 517 | - | - | 18 240 | 204 757 |
| 30 September 2020 | 13 486 (3 838) | 77 758 | 87 406 896 552 | (24 531) (203 183) | 26 122 | 782 366 |
| Amounts in NOK thousand | Q3 2020 | Q3 2019 | YTD 2020 | YTD 2019 | FY 2019 |
|---|---|---|---|---|---|
| Cash flows from operating activities | |||||
| Profit before tax | 58 580 | 11 016 | 254 847 | 59 098 | 53 431 |
| Interest lease liability | 8 542 | 9 182 | 26 373 | 28 209 | 37 134 |
| Interest expense interest-bearing liability | 1 021 | 2 292 | 5 102 | 6 474 | 11 472 |
| Income taxes paid | (12 189) | (4 548) | (17 248) | (26 890) | (27 952) |
| Depreciation, amortisation and impairment | 12 873 | 16 488 | 39 428 | 41 136 | 54 802 |
| Depreciation right-of-use asset | 37 131 | 34 556 | 110 684 | 103 033 | 138 003 |
| Impairment right-of-use asset | 30 000 | - | 30 000 | - | - |
| Results from associated companies and joint ventures | 52 | (32) | 2 079 | 368 | 169 |
| Other non-cash profit and loss items | - | - | - | (7) | 860 |
| Sub total operating activities | 136 010 | 68 954 | 451 265 | 211 421 | 267 918 |
| Trade Payables | 12 086 | (33 412) | (8 299) | (116 910) | (75 829) |
| Trade receivables | 11 406 | 98 739 | (4 320) | 155 547 | 28 280 |
| Work in progress | (694) | (25 447) | (2 735) | (126 959) | 34 828 |
| Other | (124 797) | (167 417) | (60 267) | (128 548) | (6 951) |
| Total changes in working capital | (101 998) | (127 537) | (75 620) | (216 870) | (19 671) |
| Net cash flow from operating activities | 34 011 | (58 583) | 375 644 | (5 449) | 248 246 |
| Cash flows used in investment activities | |||||
| Net purchase and sale of fixed assets and financial non-current assets | (5 020) | (15 045) | (14 035) | (54 543) | (62 837) |
| Change in non-current financial assets, restricted funds | (166) | (1 294) | (5 051) | 2 746 | 5 634 |
| Net cash flow used in investment activities | (5 186) | (16 339) | (19 086) | (51 797) | (57 203) |
| Cash flows from financing activities | |||||
| Proceeds on interest-bearing liabilities | - | 112 443 | 172 000 | 149 366 | 149 366 |
| Instalments on interest-bearing liabilities | (100 000) | - | (350 400) | (33 604) | (165 839) |
| Paid interest on interest-bearing liability | (1 021) | (2 292) | (5 102) | (6 474) | (11 472) |
| Instalments on lease liabilities | (34 066) | (32 008) | (100 742) | (91 863) | (122 693) |
| Paid interest on lease liability | (8 542) | (9 182) | (26 373) | (28 209) | (37 134) |
| Paid dividends | - | - | - | (40 456) | (40 456) |
| Sale treasury shares | - | - | 6 400 | 27 | 3 607 |
| Purchase treasury shares | (3 837) | - | (10 203) | (139) | (12 192) |
| Net cash flow from financing activities | (147 467) | 68 961 | (314 421) | (51 352) | (236 813) |
| Foreign currency effects on cash and cash equivalents | (337) | (519) | 2 731 | (1 311) | (714) |
| Net increase/decrease in cash and cash equivalents | (118 978) | (6 480) | 44 869 | (109 909) | (46 484) |
| Cash and cash equivalents at the beginning of the period | 237 405 | 16 611 | 73 558 | 120 040 | 120 040 |
| Cash and cash equivalents at the end of the period | 118 427 | 10 131 | 118 427 | 10 131 | 73 558 |
Multiconsult ASA (the company) is a Norwegian public limited liability company listed on Oslo Børs. The company and its subsidiaries (together the Multiconsult group/the group) are
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 third quarter 2020 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
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.
In 2019 quarterly reporting, net write-downs have been presented as a separate key figure. These adjustments are a consequence of a large volume of projects and is part of normal operations in the group. Starting from 2020, net write-downs will not be presented as a key figure. Any material adjustments outside normal operations will be disclosed separately. This is in line with group annual reporting of financial statements. There have been no material adjustments that require disclosure in the third quarter 2020.
among the leading suppliers of consultancy and design services in Norway and the Nordic region. The group has subsidiaries outside the Nordic region in Poland, UK and Singapore.
annual financial statements of the group and should be read in conjunction with the consolidated financial statements for 2019. The accounting policies applied are consistent with those applied and described in the consolidated annual financial statements for 2019, which are available upon request from the company's registered office at Nedre Skøyen vei 2, 0276 Oslo and at www. multiconsult.no.
These interim condensed consolidated financial statements for the third quarter 2020 were approved by the board of directors and the CEO on 3 November 2020.
Starting from 2020 Multiconsult has changed its reporting segments. Note 5 is presented according to the new segments, and figures for 2019 are restated. To ensure comparability between periods, a given percentage of revenue and cost reported in 2019 as "not allocated" is distributed to the new segments according to the same principles applied to allocation in 2020. See section Segments for a description of the new segments.
In fourth quarter 2019 Multiconsult changed the presentation of restricted cash, interest on interest-bearing liabilities and instalments and paid interest on lease liability. The cash flow for third quarter and year to date 2019 is restated to be comparable to cash flow in third quarter 2020.
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 and the key sources of estimation uncertainty were the same as those applied to the annual consolidated financial statements for 2019 note 2.
Cash-generating units are reviewed for impairment when indicators exist. The estimated recoverable amounts are affected by assumptions in connection with the estimation of future cash flows, as well as the discount rate for the estimation of the present value of the cash flows. An assessment of impairment indicators has been made at 30 September 2020, the conclusion was that there were no impairment indicators and thereby a full test is not prepared. The group will perform a full test at 31 December 2020.
Refer to section Segments for more information on the segments.
The group has three geographical reporting segments as well as a segment for Energy and LINK arkitektur.
| Q3 2020 Amounts in NOK thousand |
Region Oslo |
Region Norway |
Energy | LINK arkitektur |
Inter national |
Not allocated |
Elimi nations |
Total |
|---|---|---|---|---|---|---|---|---|
| External revenues | 225 544 | 325 971 | 58 580 | 147 306 | 77 850 | (949) | (1 037) | 833 266 |
| Internal revenues | 27 405 | 10 249 | 2 483 | (2 242) | 2 653 | 7 639 | (48 187) | - |
| Total operating revenues | 252 949 | 336 220 | 61 063 | 145 064 | 80 503 | 6 690 | (49 223) | 833 266 |
| Net operating revenues | 231 762 | 311 913 | 50 289 | 106 548 | 51 095 | (157) | (2 905) | 748 546 |
| Operating expenses | 190 965 | 233 657 | 48 769 | 104 145 | 42 942 | (16 877) | (3 190) | 600 411 |
| EBITDA | 40 797 | 78 256 | 1 520 | 2 402 | 8 153 | 16 721 | 285 | 148 135 |
| Depreciation, amortisation, impairment | 4 334 | 22 012 | 433 | 8 210 | 3 853 | 42 802 | (1 639) | 80 004 |
| EBIT | 36 463 | 56 244 | 1 087 | (5 808) | 4 300 | (26 081) | 1 925 | 68 131 |
| Associates and joint ventures | - | - | (52) | - | - | - | - | (52) |
| Number of employees | 780 | 1 042 | 189 | 489 | 312 | 126 | - | 2 938 |
| Q3 2019 Amounts in NOK thousand |
Region Oslo |
Region Norway |
Energy | LINK arkitektur |
Inter national |
Not allocated |
Elimi nations |
Total |
|---|---|---|---|---|---|---|---|---|
| External revenues | 269 655 | 309 622 | 69 527 | 136 718 | 70 638 | 4 658 | (1 541) | 859 276 |
| Internal revenues | - | - | 9 070 | (7 543) | 2 008 | 3 372 | (6 906) | - |
| Total operating revenues | 269 655 | 309 622 | 78 596 | 129 176 | 72 645 | 8 030 | (8 448) | 859 276 |
| Net operating revenues | 245 629 | 285 005 | 50 961 | 107 114 | 47 298 | (14 313) | (1 263) | 720 431 |
| Operating expenses | 213 231 | 265 591 | 55 456 | 103 711 | 40 016 | (28 257) | (1 402) | 648 346 |
| EBITDA | 32 399 | 19 414 | (4 495) | 3 403 | 7 281 | 13 945 | 139 | 72 086 |
| Depreciation, amortisation, impairment | 5 381 | 25 007 | 477 | 6 189 | 2 957 | 11 165 | (134) | 51 044 |
| EBIT | 27 017 | (5 594) | (4 972) | (2 785) | 4 324 | 2 780 | 273 | 21 042 |
| Associates and joint ventures | - | - | 32 | - | - | - | - | 32 |
| Number of employees | 824 | 1 074 | 203 | 494 | 298 | 112 | - | 3 005 |
| YTD 2020 | Region | Region | LINK | Inter | Not | Elimi | ||
|---|---|---|---|---|---|---|---|---|
| Amounts in NOK thousand | Oslo | Norway | Energy | arkitektur | national | allocated | nations | Total |
| External revenues | 947 983 1 106 384 | 219 753 | 521 271 273 063 | 14 697 | - | 3 083 150 | ||
| Internal revenues | 37 317 | 26 973 | 8 187 | 20 402 | 4 294 | 7 833 (105 005) | - | |
| Total operating revenues | 985 299 | 1 133 357 | 227 939 | 541 673 277 356 | 22 530 (105 005) 3 083 150 | |||
| Net operating revenues | 863 231 1 069 932 | 185 109 | 409 927 177 934 | (3 574) | (8 715) 2 693 845 | |||
| Operating expenses | 714 460 | 866 840 | 180 326 | 377 208 147 449 | (51 346) | (9 271) 2 225 666 | ||
| EBITDA | 148 771 | 203 093 | 4 782 | 32 719 | 30 486 | 47 772 | 556 | 468 178 |
| Depreciation, amortisation, impairment | 13 230 | 65 681 | 1 349 | 20 962 | 11 378 | 68 892 | (1 379) | 180 112 |
| EBIT | 135 542 | 137 412 | 3 434 | 11 756 | 19 108 | (21 120) | 1 935 | 288 066 |
| Associates and joint ventures | - | - | (2 079) | - | - | - | - | (2 079) |
| Number of employees | 780 | 1 042 | 189 | 489 | 312 | 126 | - | 2 938 |
| YTD 2019 Amounts in NOK thousand |
Region Oslo |
Region Norway |
Energy | LINK arkitektur |
Inter national |
Not allocated |
Elimi nations |
Total |
|---|---|---|---|---|---|---|---|---|
| External revenues Internal revenues |
400 | 955 116 1 098 383 129 |
245 132 9 016 |
486 256 8 915 |
216 241 5 408 |
5 960 10 487 |
4 676 (34 355) |
3 011 765 - |
| Total operating revenues | 955 516 1 098 513 | 254 148 | 495 171 221 649 | 16 447 | (29 679) 3 011 765 | |||
| Net operating revenues | 801 590 1 018 485 | 183 825 | 400 708 | 150 414 | (19 857) | (3 788) 2 531 377 | ||
| Operating expenses | 739 872 | 907 671 | 190 745 | 363 356 | 127 019 | (34 832) | (4 205) 2 289 626 | |
| EBITDA | 61 718 | 110 815 | (6 920) | 37 352 | 23 395 | 14 974 | 417 | 241 752 |
| Depreciation, amortisation, impairment | 15 919 | 65 985 | 1 430 | 18 801 | 9 167 | 33 269 | (401) | 144 170 |
| EBIT | 45 799 | 44 830 | (8 350) | 18 551 | 14 228 | (18 294) | 818 | 97 582 |
| Associates and joint ventures | - | - | (368) | - | - | - | - | (368) |
| Number of employees | 824 | 1 074 | 203 | 494 | 298 | 112 | - | 3 005 |
| FY 2019 Amounts in NOK thousand |
Region Oslo |
Region Norway |
Energy | LINK arkitektur |
Inter national |
Not allocated |
Elimi nations |
Total |
|---|---|---|---|---|---|---|---|---|
| External revenues | 1 310 703 | 1 482 754 | 330 123 | 651 187 302 521 | (15 855) | 7 250 4 068 683 | ||
| Internal revenues Total operating revenues |
5 763 1 316 466 |
376 1 483 130 |
12 249 342 372 |
12 042 663 229 |
7 608 310 129 |
36 917 21 061 |
(74 955) | - (67 705) 4 068 683 |
| Net operating revenues | 1 090 928 | 1 381 857 | 250 607 | 535 798 206 926 | (25 230) | (5 051) 3 435 835 | ||
| Operating expenses | 1 020 337 | 1 241 204 | 259 273 | 499 782 | 176 979 | (56 378) | (4 495) 3 136 702 | |
| EBITDA | 70 592 | 140 653 | (8 666) | 36 015 | 29 947 | 31 148 | (556) | 299 133 |
| Depreciation, amortisation, impairment | 17 586 | 84 153 | 1 912 | 25 008 | 12 625 | 52 056 | (535) | 192 804 |
| EBIT | 53 006 | 56 500 | (10 578) | 11 008 | 17 322 | (20 908) | (21) | 106 329 |
| Associates and joint ventures | (169) | (169) | ||||||
| Number of employees | 817 | 1 068 | 199 | 489 | 299 | 122 | - | 2 994 |
Other operating expenses for Region Oslo, Region Norway and Energy were in the third quarter of 2020 significantly impacted by a positive adjustment in expenses from administrative staff and shared services related to the first half of 2020. The adjustment is caused by reduced cost in administrative staff and shared services in 2020. The positive effect of this allocation, in
the third quarter, was NOK 9.4 million for Region Oslo, NOK 12.9 million for Region Norway and NOK 2.1 million for Energy. The reductions in cost was allocated from segment Not allocated. These adjustments have no impact on the year to date figure for the regions, nor on the earlier and current reported results for the group.
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.
As part of the nextLEVEL improvement programme, management have reviewed Multiconsult's office portfolio. Based on this, the group has performed an assessment of recoverable amount of the group right-of-use (ROU) assets. Recoverable amount is estimated to be NOK 30 million lower than book value. Therefore, the group has recognised an impairment loss of NOK
30 million in the quarter. The impairment loss is recognised in segment Not allocated.
There were no other significant events and transactions in the period.
See note 23 to the consolidated financial statements for 2019 for a description of related parties and related parties transactions in 2019.
The company has 41 083 treasury shares as of 30 September 2020. For a description of the share purchase programme for all the employees and the performance bonus based bonus scheme for the group management see note 9 in the consolidated financial statements for 2019.
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.
| Q3 2020 | Q3 2019 | YTD 2020 | YTD 2019 | FY 2019 | |
|---|---|---|---|---|---|
| Profit for the period (in NOK thousand) | 36 545 | 7 735 | 186 517 | 44 870 | 35 110 |
| Average no of shares | 26 966 485 | 26 970 182 | 26 956 110 | 26 970 291 | 26 957 519 |
| Earnings per share (NOK) | 1.36 | 0.29 | 6.92 | 1.66 | 1.30 |
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 | 30 September 2020 | 30 June 2020 | 31 December 2019 |
|---|---|---|---|
| Multiconsult ASA | - | 100 000 | 178 400 |
| Total | - | 100 000 | 178 400 |
The group owns a limited number of shares and participations available for sale (NOK 0.5 million), and it is assumed that the book value is a good estimate of fair value. Fair value of derivatives (interest rate swap) was recorded with an unrealised loss of NOK 2.0 million at 30 September 2020 (loss of NOK 2.0 million at 30 June 2020).
Multiconsult ASA has an overdraft loan facility of NOK 320.0 million, which is part of a cash pool. The cash pool is a multicurrency and multi-account system including the legal entities Multiconsult Norge AS, LINK arkitektur AS, Iterio AB, Multiconsult UK Limited and Johs Holt AS, where Multiconsult ASA is the owner of the cash pool's top account and the debtor of the facility. In addition, Multiconsult ASA holds a 3-year revolving credit facility of NOK 200 million, plus accordion until March 2023. The loan agreements include a covenant requiring that net interestbearing liabilities (excluding restricted cash) of the group shall not exceed 3.0 times last twelve months EBITDA, and a covenant requiring an equity ratio of at least 25%, reported quarterly. Covenant ratios are calculated excluding IFRS 16 effects, and the EBITDA includes "carve-out" for certain limited one-off costs. Multiconsult ASA is in compliance with its financial covenants at 30 September 2020.
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) | Q3 2020 | Q3 2019 | YTD 2020 | YTD 2019 | FY 2019 |
|---|---|---|---|---|---|
| Net operating revenues | 748.5 | 720.4 | 2 693.8 | 2 531.4 | 3 435.8 |
| Estimated calendar effect* | - | - | (28.3) | - | - |
| Adjusted net operating revenues | 748.5 | 720.4 | 2 665.5 | 2 531.4 | 3 435.8 |
| Reported employee benefit expenses | 521.0 | 542.9 | 1 927.9 | 1 933.9 | 2 654.4 |
| Reported other operating expenses | 79.4 | 105.5 | 297.8 | 355.8 | 482.3 |
| Operating expenses | 600.4 | 648.3 | 2 225.7 | 2 289.6 | 3 136.7 |
| Adjusted EBITDA | 148.1 | 72.1 | 439.9 | 241.8 | 299.1 |
| Depreciation and amortisation | 50.0 | 51.0 | 150.1 | 144.2 | 192.8 |
| Impairment | 30.0 | - | 30.0 | - | - |
| Adjusted EBIT | 68.1 | 21.0 | 259.8 | 97.6 | 106.3 |
| Adjusted EBITDA margin (%) | 19.8% | 10.0% | 16.5% | 9.6% | 8.7% |
| Adjusted EBIT margin (%) | 9.1% | 2.9% | 9.7% | 3.9% | 3.1% |
* APM does not state underlaying net operating revenues. Estimated calendar effect equals number of working days in comparing periods.
| Amounts in NOK million | 30 September 2020 | 30 June 2020 | 31 December 2019 |
|---|---|---|---|
| Non-current interest-bearing liabilities (including IFRS 16 leases) | 743.2 | 870.9 | 789.6 |
| Current interest-bearing liabilities (including IFRS 16 leases) | 131.7 | 133.2 | 303.3 |
| Restricted cash and non-current restricted funds | 18.2 | 18.8 | 17.0 |
| Cash and cash equivalents | 118.4 | 237.4 | 69.7 |
| Interest-bearing liabilities including IFRS 16 lease liabilities | 738.2 | 748.0 | 1 006.2 |
| Less non-current and current IFRS 16 lease liabilities | 874.9 | 904.1 | 914.6 |
| Net interest-bearing liabilities | (136.7) | (156.2) | 91.6 |
| Amounts in NOK million (except percentage) | 30 September 2020 | 30 June 2020 | 31 December 2019 |
|---|---|---|---|
| Equity | 782.4 | 748.0 | 581.4 |
| Total assets | 2 660.9 | 2 862.6 | 2 674.3 |
| Equity ratio | 29.4% | 26.1% | 21.7% |
| Equity (excluding IFRS 16) | 838.9 | 771.4 | 597.9 |
| Total assets (excluding IFRS 16) | 1 842.6 | 1 982.0 | 1 779.8 |
| Equity ratio (excluding IFRS 16) | 45.5% | 38.9% | 33.6% |
Loan covenants related to equity is calculated excluding IFRS 16.
| Amounts in NOK million | Q3 2020 | Q3 2019 | YTD 2020 | YTD 2019 | FY 2019 |
|---|---|---|---|---|---|
| Increase in EBITDA | 42.6 | 40.0 | 127.1 | 119.2 | 158.5 |
| Increase depreciation | (37.1) | (34.6) | (110.7) | (103.0) | (138.0) |
| Increase impairment | (30.0) | - | (30.0) | - | - |
| Effect EBIT | (24.5) | 5.4 | (13.6) | 16.1 | 20.5 |
| Interest expense | (8.5) | (9.2) | (26.4) | (28.2) | (37.1) |
| Profit before tax | (33.1) | (3.8) | (39.9) | (12.1) | (16.6) |
| Amounts in NOK million (except percentage) | Q3 2020 | Q3 2019 | YTD 2020 | YTD 2019 | FY 2019 |
|---|---|---|---|---|---|
| Other operating expenses | 79.4 | 105.5 | 297.8 | 355.8 | 482.3 |
| Other operating expenses IFRS 16 effect | 42.6 | 40.0 | 127.1 | 119.2 | 158.5 |
| Other operating expenses excluding IFRS 16 | 122.0 | 145.5 | 424.9 | 474.9 | 640.8 |
| Net operating revenue | 748.5 | 720.4 | 2 693.8 | 2 531.4 | 3 435.8 |
| Other operating expenses excluding IFRS 16 margin | 16.3% | 20.2% | 15.8% | 18.8% | 18.7% |
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]
www.multiconsult.no
Org no 910 253 158
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