Quarterly Report • Feb 28, 2018
Quarterly Report
Open in ViewerOpens in native device viewer
| Amounts in MNOK (except EPS, shares and percentage) | Q4 2017 | Q4 2016 | FY 2017 | FY 2016 |
|---|---|---|---|---|
| FINANCIAL | ||||
| Net operating revenues | 830.2 | 685.5 | 2 977.6 | 2 604.6 |
| Growth (%) | 21.1% | 5.5% | 14.3% | 15.9% |
| EBITDA, underlying 1) | 9.4 | 29.7 | 164.7 | 225.5 |
| EBITDA margin (%), underlying 1) | 1.1% | 4.3% | 5.5% | 8.7% |
| EBIT, underlying 1) | (2.7) | 18.9 | 118.0 | 182.3 |
| EBIT margin (%), underlying 1) | (0.3%) | 2.8% | 4.0% | 7.0% |
| Basic earnings per share (NOK) | (0.42) | 3.45 | 3.01 | 8.15 |
| Average number of shares | 26 860 323 | 26 246 690 | 26 407 850 | 26 243 164 |
| Net interest bearing debt (negative is asset) 1) | 134.5 | (116.5) | 134.5 | (116.5) |
| Cash and cash equivalents | 154.3 | 176.0 | 154.3 | 176.0 |
| Order intake | 1 026.9 | 947.1 | 3 762.5 | 3 084.7 |
|---|---|---|---|---|
| Order backlog | 2 147.7 | 1 793.1 | 2 147.7 | 1 793.1 |
| Billing ratio (%) | 68.4% | 69.0% | 68.4% | 69.2% |
| Employees | 2 851 | 2 344 | 2 851 | 2 344 |
1) Refer to page 25 for definitions of EBITDA and EBIT and alternative performance measures.
Multiconsult had a fourth quarter EBIT of negative NOK 2.7 million, impacted by project writedowns and a high level of one-off operating expenses. Net operating revenues grew by 21.2% to NOK 830.2 million in the quarter. For the full year 2017, net operating revenues were NOK 2 977.6 million with an EBIT margin of 4.0%. Order backlog remains stable at NOK 2.1 billion at year-end.
(Figures in brackets = same period prior year or relevant balance sheet date 2017).
With effect from 1 January 2017, Multiconsult ASA has made a change to the reporting of its business areas. Please see note 4 for further details.
Net operating revenues increased by 21.1% to NOK 830.2 million (NOK 685.5 million) compared to the same quarter last year. The increase in net operating revenues reflects higher production due to acquisition of the Hjellnes group, Iterio AB, aarhus arkitekterne A/S and net recruitment. However, challenging project execution on many projects in Regions Norway and Greater Oslo Area resulted in net writedowns of NOK 21.4 million, that together with the decrease in the billing ratio to 68.4% (69.0%), impacted operating revenues negatively in the quarter. Billing rates increased moderately compared to the fourth quarter 2016. Buildings & Properties projects, Campus Ås and Tønsberg Hospital together with Transportation projects, InterCity Østfoldbanen Fredrikstad-Sarpsborg and New Airbase Ørland made strong contributions to operating revenues.
Operating expenses increased by 25.2% to NOK 820.8 million (NOK 655.8 million). The increase is mainly attributable to higher employee benefit expenses caused by increased headcount from acquisitions and net recruitment in addition to ordinary salary adjustment. Administrative expenses increased accordingly in the quarter.
EBITDA was NOK 9.4 million (NOK 29.7 million), a decrease of 68.4% compared to the same period last year, reflecting higher net operating revenues, which were more than offset by higher operating expenses in the quarter.
EBIT amounted to negative NOK 2.7 million (NOK 18.9 million).
Results from associated companies and joint ventures amounted to NOK 0.4 million (NOK 0.0 million).
Net financial items were an expense of NOK 8.2 million (expense of NOK 2.1 million), due to establishment of new credit facilities and higher interest bearing debt.
Group tax rate was negative 6.9% (27.1%). The tax rate is mainly impacted by negative profit before tax in the quarter.
Reported profit for the period was negative NOK 11.3 million (NOK 90.5 million). Earnings per share for the quarter were negative NOK 0.42 (NOK 3.45).
Net operating revenues increased by 14.3% to NOK 2 977.6 million (NOK 2 604.6 million) compared to the previous year. The increase in net operating revenues was mainly driven by higher production due to acquisitions of the Hjellnes group, Iterio AB, aarhus arkitekterne A/S as well as net recruitment. Growth in revenues was partly offset by a lower billing ratio at 68.4% (69.2%) and one less working day compared to 2016. Average billing rate for the group is at the same level as previous year.
EBITDA was NOK 164.7 million (NOK 225.5 million), a decrease of 26.9% compared to the same period previous year. Higher net operating revenues were more than offset by the increase in operating expenses in the period. Higher employee benefit
expenses reflect increased headcount related to acquisitions and net recruitment and ordinary salary adjustment. Administrative expenses increased accordingly in the period. However, direct expenses related to the new ERP system, M&A and integration of acquired companies impacted the period with a total of approximately NOK 25.0 million.
EBIT amounted to NOK 118.0 million (NOK 182.3 million), a decrease of 35.3%.
Group tax rate was 26.1% was marginally higher than last year (25.7%).
Reported profit for the period was NOK 79.5 million (NOK 213.8 million). Earnings per share for 2017 were NOK 3.01 (NOK 8.15).
Net cash flow from operating activities was NOK 80.5 million (NOK 106.5 million). The decrease was related to lower net profit that was more than offset by the non-cash effect of termination of the defined benefit pension plan for 280 participants in December 2016.
Net cash flow used in investment activities was NOK 15.4 million this quarter (NOK 53 million), related to ordinary asset replacement. In the fourth quarter 2016 investment activities was mainly related to the acquisition of aarhus arkitekterne.
Net cash flow used in financing activities amounted to NOK 69.4 million (positive NOK 7.3 million), due to a higher level of interest bearing debt and purchase of treasury shares for the employee share purchase program.
Net cash flow from operating activities was NOK 61.6 million (NOK 90.2 million). The decrease was mainly related to the lower net profit, partially offset by non-cash effect from the termination of the defined benefit pension plan.
Net cash flow used in investment activities was NOK 217.4 million (NOK 101.3 million), mainly related to the acquisition of Iterio AB, Hjellnes Consult AS and Johs Holt AS, as well as ordinary asset replacement.
Net cash flow from financing activities was NOK 126.7 million (negative NOK 37.3 million), reflecting increased interest bearing debt less dividend payment.
As of 31 December 2017, total assets amounted to NOK 1 798.1 million (NOK 1 662.6 million at 30 September 2017), and total equity amounted to NOK 582.1 million (NOK 586.2 million at 30 September 2017), primarily due to the negative result after tax in the period.
The group held cash and cash equivalents of NOK 154.3 million as of 31 December 2017 (NOK 156.0 million at 30 September 2017). Interest bearing debt amounted to NOK 288.8 million (NOK 336.4 million at 30 September 2017). Net interest bearing debt amounted to NOK 134.5 million (NOK 180.3 million at 30 September 2017).
The order backlog at year-end 2017 was NOK 2 147.7 million (NOK 1 793.1 million at year-end 2016), an increase of 19.8% year on year. Call-offs on frame agreements are only included in the order backlog when signed. This means for example that the new and significant frame agreement for Fornebubanen with Oslo kommune (municipality of Oslo) for the design of the entire Fornebu metro line is only included with a minor call-off in the order backlog at year end.
Order intake during the fourth quarter 2017 increased by 8.4% to NOK 1 026.9 million (NOK 947.1 million) compared to same quarter previous year. There was solid order intake within Buildings & Properties, Transportation and Renewable Energy in the quarter. New order intake from the Hjellnes group and Iterio impacted the order intake positively compared to last year. There have been many small and mid-size contract awards and the project tender pipeline remains strong.
Among important new contracts this quarter were the Northern Lights Carbon Capture and Storage project for Statoil and Drammen Hospital for Helse Sør-Øst RHF as well as NTNU Faculty of Health and Social Sciences & Student Union Athletics for Backe Trondheim AS. Important addons to existing contracts this quarter were Intercity Østfold (Fredrikstad-Sarpsborg), Campus Ås, and the Follo line in Norway as well as Kamuzu Barrage in Malawi and Kikuletwa power station in Tanzania.
Multiconsult is organised in three geographical segments, Greater Oslo Area, Regions Norway, International, and a segment for LINK arkitektur.
The segment offers services in six business areas and comprises the central area of eastern Norway, with regional offices in Oslo, Fredrikstad and Drammen.
| Amounts in MNOK | Q4 2017 |
Q4 2016 |
YTD 2017 |
YTD 2016 |
|---|---|---|---|---|
| Net op. revenues | 393.0 | 314.4 | 1 307.0 | 1 197.3 |
| EBITDA | 5.8 | 19.5 | 80.6 | 139.8 |
| EBITDA% | 1.5% | 6.2% | 6.2% | 11.7% |
| Order intake | 542.3 | 419.7 | 1 685.1 | 1 336.1 |
| Order Backlog | 878.6 | 777.0 | 878.6 | 777.0 |
| Billing ratio | 66.4% | 67.6% | 67.0% | 70.0% |
| Employees | 1 179 | 879 | 1 179 | 879 |
Net operating revenues in the quarter increased by 25.0% to NOK 393.0 million (NOK 314.4 million) compared to the same quarter last year. The increase was mainly driven by the acquisition of the Hjellnes group and higher billing rates, partly offset by project write-downs and lower billing ratio, which fell to 66.4% (67.6%). Integration and onboarding of the Hjellnes group impacted the billing ratio negatively in the quarter.
EBITDA amounted to NOK 5.8 million (NOK 19.5 million), a decrease of 70.2% from last year. Higher employee benefit expenses, as a result of acquisitions, net recruitment and ordinary salary adjustment as well as increased administrative expenses, further contributed to the decrease in EBITDA.
Order intake in the fourth quarter was NOK 542.3 million (NOK 419.7 million), an increase of 29.2% compared to the same quarter last year. This is mainly explained by strong contributions from Buildings & Properties and Transportation, in addition to the acquisition of the Hjellnes group. Important add-ons to existing contracts this quarter were Intercity Østfold (Fredrikstad – Sarpsborg), the Follo line and Campus Ås in Norway as well as Kamuzu Barrage in Malawi. New contracts, such as Northern Lights Carbon Capture and Storage, Mjøsa bridge as well as Jaren station, were also awarded in the quarter.
Order backlog for the segment at year-end amounted to NOK 878.6 million (NOK 777.0 million), up 13.1% year on year.
Net operating revenues increased by 9.2% to NOK 1 307.0 million (NOK 1 197.3 million), mainly due to acquisition of the Hjellnes group and net recruitment. The decrease in billing
ratio to 67.0% (70.0%) partly offset the increase in net operating revenues. Billing rates increased modestly compared to last year.
EBITDA amounted to NOK 80.6 million (NOK 139.8 million), a decrease of 42.3%. Increased revenue was more than offset by higher employee benefit expenses explained by acquisitions, net recruitment and ordinary salary adjustment. Increased headcount related to administrative expenses contributed further to the decrease in EBITDA.
Order intake for the year amounted to NOK 1 685.1 million (NOK 1 336.1), an increase of 26.1% from last year. The order backlog of the Hjellnes group of NOK 153.4 million was reported as order intake and included in the order backlog in the third quarter 2017.
The segment offers services in six business areas and comprises regional offices in Kristiansand, Stavanger, Bergen, Trondheim and Tromsø.
| Q4 2017 |
Q4 2016 |
YTD 2017 |
YTD 2016 |
|---|---|---|---|
| 261.0 | 250.4 | 1 027.3 | 960.6 |
| (10.7) | (0.5) | 37.1 | 60.0 |
| (4.1%) | (0.2%) | 3.6% | 6.2% |
| 269.5 | 268.4 | 976.7 | 1 063.8 |
| 408.5 | 505.9 | 408.5 | 505.9 |
| 67.5% | 67.7% | 67.3% | 68.4% |
| 841 | 793 | 841 | 793 |
Net operating revenues amounted to NOK 261.0 million (NOK 250.4 million), an increase of 4.2% compared to the same quarter last year. The growth was mainly driven by higher production due to net recruitment. Growth in net operating revenues was partly offset by project write-downs and a decrease in the billing ratio to 67.5% (67.7%). Billing rates improved modestly in the quarter.
EBITDA decreased to negative NOK 10.7 million (negative NOK 0.5 million). The increase in net operating revenues was more than offset by higher operating expenses, including ordinary salary adjustment, increased office rent and other administrative expenses.
Order intake in the fourth quarter was NOK 269.5 million (NOK 268.4 million), an increase of 0.4% compared to the same quarter last year. Renewable Energy and Water & Environment contributed positively while there was lower order intake in Transportation, Buildings & Properties and Industry in the
quarter. Among new contracts this quarter were Kvitfjell and Raudfjell wind power station for Risa AS as well as reconstruction of the NTNU science building in Norway. Important add-ons to existing contracts this quarter were Kikuletwa power station in Tanzania as well as E39 Eiganes tunnel in Norway.
Order backlog for the segment at year-end amounted to NOK 408.5 million (NOK 505.9 million), down 19.3% year on year.
Net operating revenues increased by 6.9% to NOK 1 027.3 million (NOK 960.6 million) due to higher production from acquisitions and net recruitment. Akvator AS contributed with a full 12 months in the period compared to only seven months last year. Billing rates improved compared to last year. However, the increase in revenues was partly offset by a lower billing ratio of 67.3% (68.4%).
EBITDA amounted to NOK 37.1 million (NOK 60.0 million), a decrease of 38.1%, mainly due to higher operating expenses related to acquisitions, ordinary salary adjustments, increased office rent and other administrative expenses.
Order intake amounted to NOK 976.7 million (NOK 1 063.8), a decrease of 8.2% from last year.
The international segment comprises the subsidiaries Multiconsult UK, Multiconsult Asia, Multiconsult Polska and Iterio AB.
| Amounts in MNOK | Q4 2017 |
Q4 2016 |
YTD 2017 |
YTD 2016 |
|---|---|---|---|---|
| Net op. revenues | 47.2 | 30.8 | 177.8 | 97.0 |
| EBITDA | 0.7 | 6.6 | 19.3 | 12.8 |
| EBITDA% | 1.6% | 21.3% | 10.9% | 13.2% |
| Order intake | 70.8 | 16.6 | 402.4 | 102.5 |
| Order Backlog | 364.7 | 150.2 | 364.7 | 150.2 |
| Billing ratio | 70.0% | 71.9% | 71.5% | 65.6% |
| Employees | 216 | 130 | 216 | 130 |
Net operating revenues amounted to NOK 47.2 million (NOK 30.8 million), an increase of 53.3% compared to the same quarter last year. The increase in net operating revenues is mainly explained by contribution from the acquisition of Iterio AB and increased project activity in Multiconsult Polska.
EBITDA was NOK 0.7 million (NOK 6.6 million), a decrease of 88.7% in the quarter. Iterio AB, together with Multiconsult UK contributed positively, while Multiconsult Asia was negatively impacted by low project activity.
Order intake in the fourth quarter was NOK 70.8 million (NOK 16.6 million), an increase of 325.2% compared to
the same quarter last year. The main contribution came in Transportation projects for Multiconsult Polska and Iterio AB.
Order backlog for the segment at year-end amounted to NOK 364.7 million (NOK 150.2 million), up 142.7% year on year.
Net operating revenues amounted to NOK 177.8 million (NOK 97.0 million), an increase of 83.2% compared to the same period last year. The growth in net operating revenues is mainly attributed to the contribution from Iterio AB as well as high production in Multiconsult Polska.
EBITDA was NOK 19.3 million (NOK 12.8 million) for the period, reflecting the acquisition of Iterio AB and improved operations in Multiconsult UK.
Order intake amounted to NOK 402.4 million (NOK 102.5 million), an increase of 292.7% from previous year, reflecting the acquisition of Iterio AB in the first quarter 2017 and strong order intake in the third quarter 2017.
This segment comprises LINK arkitektur with its 15 offices throughout Scandinavia.
| Amounts in MNOK | Q4 2017 |
Q4 2016 |
YTD 2017 |
YTD 2016 |
|---|---|---|---|---|
| Net op. revenues | 143.6 | 93.3 | 488.8 | 346.1 |
| EBITDA | 15.3 | 4.8 | 31.1 | 14.1 |
| EBITDA% | 10.6% | 5.1% | 6.4% | 4.1% |
| Order intake | 140.7 | 242.4 | 690.2 | 582.3 |
| Order Backlog | 496.0 | 360.0 | 496.0 | 360.0 |
| Billing ratio | 75.2% | 75.5% | 72.4% | 71.4% |
| Employees | 475 | 420 | 475 | 420 |
Net operating revenues amounted to NOK 143.6 million (NOK 93.3 million), an increase of 53.9% compared to the same quarter last year. Growth was mainly driven by contribution from the acquired aarhus arkitekterne A/S as well as higher production from net recruitment. In addition, solid project execution resulted in net project write-ups. The billing ratio remained stable at 75.2% (75.5%).
EBITDA amounted to NOK 15.3 million (NOK 4.8 million) in the fourth quarter. Improved net operating revenues were partly offset by higher employee benefit expenses as a result of acquisitions and net recruitment.
Order intake in the fourth quarter was NOK 140.7 million (NOK 242.4 million), a decrease of 42.0% compared to the same quarter last year. The majority of the order intake in the quarter came from a substantial amount of smaller, but important new contracts and add-ons to existing contracts.
Order backlog for the segment at year-end amounted to NOK 496.0 million (NOK 360.0 million), an increase of 37.8% compared to the same quarter last year.
Net operating revenues amounted to NOK 488.8 million (NOK 346.1 million), an increase of 41.2% compared to the same period last year. Working hours were increased from 37.5 to 40.0 hours per week for all employees in Norway starting 1 October 2016 and contributed positively to the growth compared to last year. Higher production from acquisition of
aarhus arkitekterne, net recruitment and increased billing ratio impacted operating revenues positively.
EBITDA amounted to NOK 31.1 million (NOK 14.1 million) in the period, an increase of 120.1%. Improved net operating revenues were partly offset by higher employee benefit expenses as a result of acquisitions and net recruitment.
Order intake was NOK 690.2 million (NOK 582.3 million), an increase of 18.5%.
At 31 December 2017 the group had 2 851 employees. The turnover ratio for the group was 6% for the period December 2016 to December 2017.
Multiconsult has adopted HSE policies and implemented guidelines to ensure compliance with applicable regulations and continued maintainance and development of its HSE standards. The company's HSE efforts are managed on both central and regional levels.
Recorded sick leave ratio for Multiconsult Norge AS was 3.2% in the fourth quarter. Sick leave for the group in the fourth quarter was 3.3%.
In the fourth quarter, the merger of the South- and South-West business units in Norway were announced with effect from 1 January 2018. The main purpose of the merger is to strengthen operations and management, improve marketing and sales efforts in Rogaland and Agder as well as reduce costs. The new interdisciplinary unit with almost 200 employees will be the leading advisory business in South- and South-Western Norway.
Group Management has decided to make organisational changes effective from 1 March 2018. The changes are made to facilitatethe groups 3-2-1 GO Strategy ambitions. The group will focus on growth in Renewable Energy internationally and the business unit Energy is established with a new Executive Vice President (EVP). The EVP will be a part of the group Management team, and report directly to the CEO. Jörgen Hasselström is appointed acting EVP and assumed his role 22 January 2018 until a permanent EVP is appointed.
Effective 1 March 2018, organisational changes will be made in Greater Oslo Area with a revised organisational set-up that fully integrates the Hjellnes Group. The new structure will strengthen the new business areas, City & Society and Water & Environment.
On 25 January Multiconsult announced a signed call-off under the Fornebubanen frame agreement with the Municipality of Oslo. The call-off was made on pre-design work for Fornebubanen. The value of the call-off is approximately NOK 21 million for Multiconsult, delivered by an engineering group called PG Fornebubanen, consisting of Multiconsult and Cowi. The work has already started and will last until April 2018.
On 9 January Multiconsult announced a contract award with the Norwegian Public Roads Administration Region West (Statens vegvesen Region vest) for the bus lane from Diagonalen in Stavanger to Hans-Grete trail in Sandnes, Norway. The value of the contract is NOK 23 million.Work began in January and the majority of the project is planned to be completed within the first half of 2019.
The overall market outlook remains fairly positive.
Buildings & Properties is expected to maintain stable growth although there is some uncertainty in the residential market. The outlook for the architecture market shows signs of positive development especially within healthcare buildings, but continues to be impacted by regional variations. Public sector investment is driving a strong outlook for Transportation within road and rail and several large projects are expected to be assigned in the coming year. The Renewable Energy market in Norway is expected to be stable, with growth anticipated in the transmission sector. International Renewable Energy markets continue to grow with a strong pipeline, providing new business opportunities for Multiconsult. Investment in the Industry sector in Norway is expected to increase mainly in refineries, chemical production, aquaculture, and metal production. Demand for our services in the Oil & Gas market is expected to slowly improve going forward. Within Water & Environment there is a stable demand for water and waste infrastructure projects as well as for soil contamination inspections.
The overall competitive landscape is migrating towards more Engineering, Procurement and Construction (EPC) contracts. Continued strong competition is maintaining price pressure on large projects in Norway. Market rates have shown some improvement, however the cost level for the Norwegian workforce is creating challenges to profitability for the industry in general.
In the light of the weak results in 2017, the group is launching a comprehensive profitability program with a target of improving the EBIT margin to a minimum of 6.0% for 2018. The program focuses primarily on improving operations in the Greater Oslo Area and Regions Norway with focus on improving sales, billing ratio and project execution. The program includes measures to achieve efficiency gains from the ERP system, synergies from integration of acquired businesses and general cost reduction. Some specific measures such as tighter resource management have already been implemented. The program also describes the roadmap to achieving our EBIT margin ambition towards 2020.
Multiconsult's strong market position, flexible business model and wide service offering provides a sound base for further growth, both domestic and international. Resources from Multiconsult Polska should gradually be phased into ongoing projects to strengthen competitiveness. The top line synergies between Multiconsult and LINK arkitektur are expected to continue to further strengthen the group's value proposition to customers. The integration of the Hjellnes group into the Greater Oslo Area is expected to provide top line synergies in the health care and transportation sectors.
The order backlog is stable and provides a strong foundation for continued growth, supported by valuable frame agreements generated from a broad and robust customer base.
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 good insurance policies and routines for following up such cases. Further details regarding the insurance coverage are provided in note 19 to the consolidated financial statements for 2016. The largest claim at 31 December 2017 was related to Prinsensgate 26 project with Stortinget. The legal process is progressing as expected.
Multiconsult is exposed to credit risk, primarily related to transactions with clients and from bank deposits. The company's credit losses on accounts receivable have historically been modest. New customers are subject to credit assessment and approval before credit is extended to them. Responsibility for credit management in the parent company is centralised, and routines are integrated in the group's quality assurance system. The company has established routines for assessing the creditworthiness of the customer, and the possible need for bank guarantees or other risk mitigation measures.
The group is exposed to currency risk through ongoing projects abroad with fees generated in foreign currencies. Hedging contracts have been entered into for certain projects to reduce this risk. Currency risk is regarded as modest.
In the third quarter 2017, Multiconsult ASA increased its debt and restructured its credit facilities in connection with the acquisition of the Hjellnes group. Multiconsult ASA entered into a loan agreement with Nordea for NOK 215.0 million, which was used to settle the cash payment of NOK 119.0 million to the selling shareholders in the Hjellnes group as well as to pay down the previously drawn Multiconsult ASA revolving credit facility of NOK 95 million. Interest swaps have been entered into to ensure approximately 50% of interest cost at fixed rates.
Multiconsult Norge AS has an overdraft facility of NOK 320.0 million with the group's main bank.
Net operating revenues: Operating revenues less sub consultants and disbursements.
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.
EBITDA: EBIT before depreciation, amortisation and impairment.
EBITDA margin (%): EBITDA as a percentage of net operating revenues.
Operating expenses: Employee benefit expenses plus other operating expenses.
Net interest bearing debt: Non-current and current interest bearing liabilities deducted cash and cash equivalents.
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.
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.
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 2017
| Q4 2017 | Q4 2016 | FY 2017 | FY 2016 |
|---|---|---|---|
| 963 124 | 786 264 | 3 375 399 | 2 968 069 |
| 132 930 | 100 813 | 397 758 | 363 448 |
| 830 194 | 685 451 | 2 977 642 | 2 604 621 |
| 688 055 | 431 235 | 2 319 810 | 1 841 605 |
| 132 772 | 117 219 | 493 088 | 430 227 |
| 820 827 | 548 454 | 2 812 898 | 2 271 832 |
| 9 367 | 136 997 | 164 744 | 332 788 |
| 12 114 | 10 789 | 46 791 | 43 205 |
| (2 747) | 126 207 | 117 953 | 289 584 |
| 379 | 10 | 1 157 | 4 053 |
| 4 082 | |||
| 9 186 | 4 374 | 14 375 | 9 986 |
| (8 162) | (2 087) | (11 419) | (5 904) |
| (10 530) | 124 130 | 107 691 | 287 732 |
| 722 | 33 622 | 28 157 | 73 964 |
| (11 252) | 90 509 | 79 534 | 213 768 |
| (11 252) | 90 509 | 79 534 | 213 768 |
| (0.42) | 3.45 | 3.01 | 8.15 |
| 1 024 | 2 287 | 2 956 |
1) Gain on settlement of defined benefit pension plan of NOK 107.3 million is included as decreased employee benefit expenses in Q4 2016.
| Amounts in TNOK | Q4 2017 | Q4 2016 | FY 2017 | FY 2016 |
|---|---|---|---|---|
| Profit for the period | (11 252) | 90 509 | 79 534 | 213 768 |
| Other comprehensive income | ||||
| Remeasurment of defined benefit obligations | (1 452) | 82 447 | (1 452) | 37 923 |
| Tax | 334 | (20 602) | 334 | (9 471) |
| Total items that will not be reclassified to profit or loss | (1 118) | 61 845 | (1 118) | 28 452 |
| Currency translation differences | 9 948 | (2 466) | 13 802 | (4 187) |
| Total items that may be reclassified subsequently to profit or loss | 9 948 | (2 466) | 13 802 | (4 187) |
| Total other comprehensive income for the period | 8 830 | 59 379 | 12 684 | 24 265 |
| Total comprehensive income for the period | (2 422) | 149 888 | 92 218 | 238 033 |
| Attributable to: | ||||
| Owners of Multiconsult ASA | (2 422) | 149 888 | 92 218 | 238 033 |
| Amounts in TNOK | At 31 December 2017 | At 30 September 2017 | At 31 December 2016 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Deferred tax assets | 25 627 | 27 478 | 25 104 |
| Intangible assets | 19 704 | 8 142 | 9 348 |
| Goodwill | 449 142 | 444 735 | 235 727 |
| Property, plant and equipment | 100 747 | 109 018 | 85 984 |
| Associated companies and joint ventures | 10 809 | 8 103 | 10 464 |
| Non-current receivables and shares | 6 995 | 9 464 | 7 941 |
| Assets for reimbursement of provisions | 22 000 | 17 000 | 22 610 |
| Total non-current assets | 635 024 | 623 940 | 397 178 |
| Current assets | |||
| Trade receivables | 588 377 | 467 460 | 455 058 |
| Work in progress | 355 433 | 386 243 | 270 346 |
| Other receivables and prepaid costs | 65 012 | 28 911 | 83 007 |
| Cash and cash equivalents | 154 291 | 156 031 | 175 990 |
| Total current assets | 1 163 113 | 1 038 645 | 984 401 |
| Total assets | 1 798 137 | 1 662 585 | 1 381 579 |
| EQUITY AND LIABILITIES | |||
| Shareholders' equity | |||
| Total paid in equity | 91 242 | 91 231 | 26 443 |
| Other equity | 490 829 | 494 986 | 481 077 |
| Total shareholders' equity | 582 072 | 586 216 | 507 520 |
| Non-current liabilities | |||
| Retirement benefit obligations | 6 667 | 5 121 | 5 859 |
| Deferred tax | 13 835 | 13 153 | 11 075 |
| Provisions | 29 937 | 22 900 | 33 527 |
| Non-current interest bearing liabilities | 217 838 | 217 253 | 55 994 |
| Total non-current liabilities | 268 276 | 258 427 | 106 454 |
| Current liabilities | |||
| Trade payables | 152 521 | 94 342 | 151 903 |
| Current tax liabilities | 14 627 | 22 017 | 29 454 |
| VAT and other public taxes and duties payables | 296 266 | 214 914 | 248 124 |
| Current interest bearing liabilities | 70 938 | 119 116 | 3 477 |
| Other current liabilities | 413 437 | 367 553 | 334 648 |
| Total current liabilities | 947 789 | 817 943 | 767 605 |
| Total liabilities | 1 216 065 | 1 076 369 | 874 059 |
| Total equity and liabilities | 1 798 137 | 1 662 585 | 1 381 579 |
| Amounts in TNOK | Share capital |
Own shares |
Share premium |
Total paid-in capital |
Retained earnings |
Pension | Translation differences |
Total equity |
|---|---|---|---|---|---|---|---|---|
| 31 December 2015 | 13 125 | (9) | 13 320 | 26 436 | 550 241 | (229 676) | 3 179 | 350 181 |
| Dividend | - | - | - | - | (76 123) | - | - | (76 123) |
| Treasury shares | - | 8 | - | 8 | 1 542 | - | - | 1 550 |
| Employee share purchase programme | - | - | - | - | (6 119) | - | - | (6 119) |
| Comprehensive income | - | - | - | - | 213 768 | 28 452 | (4 187) | 238 033 |
| 31 December 2016 | 13 125 | (1) | 13 320 | 26 443 | 683 309 | (201 224) | (1 008) | 507 520 |
| Dividend | - | - | - | - | (78 715) | - | - | (78 715) |
| Share Issue | 361 | - | 64 438 | 64 799 | - | - | - | 64 799 |
| Treasury shares | - | 1 | - | 1 | 204 | - | - | 205 |
| Employee share purchase programme | - | - | - | - | (3 955) | - | - | (3 955) |
| Comprehensive income | - | - | - | - | 79 534 | (1 118) | 13 802 | 92 218 |
| 31 December 2017 | 13 486 | - | 77 758 | 91 242 | 680 378 | (202 343) | 12 794 | 582 072 |
| Cash flows from operating activities Profit before tax (10 530) 124 130 107 691 287 732 Income taxes paid 753 3 343 (37 623) Depreciation, amortization and impairment 12 114 10 789 46 791 43 205 Results from associated companies and joint ventures (379) (10) (1 157) Other non-cash profit and loss items 2 010 (109 849) 2 010 Sub total operating activities 3 968 28 402 117 712 156 233 Changes in working capital 76 544 78 050 (56 106) Net cash flow from operating activities 80 512 106 452 61 605 90 167 Cash flows from investment activities Net purchase and sale of fixed assets and financial non-current assets (15 405) (8 952) (46 789) Proceeds/payments related to equity accounted investments - - 339 847 Net cash effect of business combinations - (44 005) (170 907) Net cash flow used in investment activities (15 405) (52 957) (217 357) Cash flows from financing activities Change in interest-bearing liabilities (47 593) 15 006 229 306 46 525 Paid dividends - - (78 715) Sale treasury shares 10 664 42 607 11 119 42 607 Purchase treasury shares (32 432) (50 339) (35 030) Net cash flow from financing activities (69 361) 7 275 126 681 Foreign currency effects on cash and cash equivalents 2 513 (1 579) 7 372 Net increase/decrease in cash and cash equivalents (1 740) 59 191 (21 699) Cash and cash equivalents at the beginning of the period 156 031 116 800 175 990 232 954 Cash and cash equivalents at the end of the period 154 291 175 990 154 291 175 990 |
Amounts in TNOK | Q4 2017 | Q4 2016 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|
| (60 412) | |||||
| (4 053) | |||||
| (110 238) | |||||
| (66 066) | |||||
| (37 872) | |||||
| (64 260) | |||||
| (101 285) | |||||
| (76 123) | |||||
| (50 339) | |||||
| (37 329) | |||||
| (8 516) | |||||
| (56 964) | |||||
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 fourth quarter of 2017 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 annual financial statements of the group and should be read in conjunction with the consolidated financial statements for 2016. The accounting policies applied are consistent with those applied and described in the consolidated annual financial statements for 2016, which are available upon request from the company's registered office at Nedre Skøyen vei 2, 0276 Oslo and at www. multiconsult.no.
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 2016 (see especially note 2).
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.
These interim condensed consolidated financial statements for the fourth quarter of 2017 were approved by the Board of Directors and the CEO on 27 February 2018.
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.
At the time of approval for issue of these interim condensed consolidated financial statements, some new standards, amendments to standards and interpretations have been published, but are not yet effective and have not been applied in preparing these consolidated financial statements. Those that may be relevant for the group are described in note 2 to the annual consolidated financial statements for 2016.
Refer to note 5 to the consolidated annual financial statements for 2016 for more information on the segments.
The group has three geographical reporting segments as well as a segment for LINK arkitektur. Revenues and expenses are
reported in the segment with reference to where the employee is employed. The cost of administrative services, rent of premises, depreciation and so forth is allocated to the segments.
| Greater | Regions | Inter | LINK | Not | Elimi | ||
|---|---|---|---|---|---|---|---|
| Amounts in TNOK | Oslo Area | Norway | national | arkitektur | allocated | nations | Total |
| External revenues | 456 865 | 298 653 | 53 680 | 150 161 | 3 766 | - | 963 124 |
| Internal revenues | 71 440 | 23 518 | 8 224 | 19 418 | 417 | (123 016) | - |
| Total operating revenues | 528 304 | 322 170 | 61 904 | 169 579 | 4 183 | (123 016) | 963 124 |
| Net operating revenues | 393 027 | 261 041 | 47 195 | 143 608 | (14 678) | - | 830 194 |
| Operating expenses | 387 223 | 271 773 | 46 457 | 128 358 | (12 984) | - | 820 827 |
| EBITDA | 5 804 | (10 731) | 738 | 15 250 | (1 694) | - | 9 368 |
| Depreciation, amortisation, impairment | 4 996 | 6 061 | 550 | 1 440 | (933) | - | 12 114 |
| EBIT | 808 | (16 792) | 188 | 13 811 | (760) | - | (2 746) |
| Associates and joint ventures | (259) | - | 377 | 261 | - | - | 379 |
| Receivables 1) | 490 958 | 236 140 | 90 091 | 194 962 | 5 001 | (78 478) | 938 674 |
| Number of employees | 1 179 | 841 | 216 | 475 | 140 | - | 2 851 |
1) Receivables includes accounts receivables (before provision for loss) and accrued revenues.
| Amounts in TNOK | Greater Oslo Area |
Regions Norway |
Inter national |
LINK arkitektur |
Not allocated |
Elimi nations |
Total |
|---|---|---|---|---|---|---|---|
| External revenues | 387 723 | 267 487 | 33 471 | 101 354 | (3 770) | - | 786 264 |
| Internal revenues | 3 762 | - | 10 534 | 3 646 | 973 | (18 914) | - |
| Total operating revenues | 391 485 | 267 487 | 44 005 | 105 000 | (2 798) | (18 914) | 786 264 |
| Net operating revenues | 314 386 | 250 400 | 30 796 | 93 321 | (3 452) | - | 685 451 |
| Operating expenses 1) | 294 916 | 250 884 | 24 243 | 88 563 | (110 151) | - | 548 454 |
| EBITDA | 19 471 | (484) | 6 553 | 4 758 | 106 699 | - | 136 997 |
| Depreciation, amortisation, impairment | 5 328 | 4 097 | 384 | 980 | - | - | 10 789 |
| EBIT | 14 143 | (4 581) | 6 169 | 3 778 | 106 699 | - | 126 207 |
| Associates and joint ventures | 178 | - | (169) | - | - | - | 10 |
| Receivables 2) | 324 411 | 221 657 | 53 014 | 152 188 | 3 312 | (18 241) | 736 341 |
| Number of employees | 879 | 793 | 130 | 420 | 122 | - | 2 344 |
1) Gain of curtailment of defined benefit pension plan of NOK 107.3 million is included as decreased operating expenses, not allocated 2) Receivables includes accounts receivables (before provision for loss) and accrued revenues.
| Amounts in TNOK | Greater Oslo Area |
Regions Norway |
Inter national |
LINK arkitektur |
Not allocated |
Elimi nations |
Total |
|---|---|---|---|---|---|---|---|
| External revenues | 1 527 432 | 1 097 987 | 196 631 | 545 202 | 8 147 | - 3 375 399 | |
| Internal revenues | 80 037 | 26 934 | 29 202 | 42 291 | 4 377 | (182 842) | - |
| Total operating revenues | 1 607 469 | 1 124 921 | 225 834 | 587 493 | 12 524 | (182 842) 3 375 399 | |
| Net operating revenues | 1 306 957 | 1 027 303 | 177 753 | 488 829 | (23 200) | - 2 977 642 | |
| Operating expenses | 1 226 319 | 990 216 | 158 438 | 457 771 | (19 845) | - 2 812 898 | |
| EBITDA | 80 638 | 37 087 | 19 315 | 31 058 | (3 354) | - | 164 744 |
| Depreciation, amortisation, impairment | 16 044 | 24 085 | 2 038 | 5 591 | (967) | - | 46 791 |
| EBIT | 64 594 | 13 002 | 17 278 | 25 467 | (2 387) | - | 117 953 |
| Associates and joint ventures | (259) | - | 377 | 261 | - | - | 379 |
| Receivables 1) | 490 958 | 236 140 | 90 091 | 194 962 | 5 001 | (78 478) | 938 674 |
| Number of employees | 1 179 | 841 | 216 | 475 | 140 | - | 2 851 |
1) Receivables includes accounts receivables (before provision for loss) and accrued revenues.
| Amounts in TNOK | Greater Oslo Area |
Regions Norway |
Inter national |
LINK arkitektur |
Not allocated |
Elimi nations |
Total |
|---|---|---|---|---|---|---|---|
| External revenues | 1 466 774 | 1 026 004 | 104 642 | 369 580 | 1 070 | - | 2 968 069 |
| Internal revenues | 12 598 | - | 35 112 | 17 409 | 5 500 | (70 619) | - |
| Total operating revenues | 1 479 372 | 1 026 004 | 139 754 | 386 989 | 6 570 | (70 619) 2 968 069 | |
| Net operating revenues | 1 197 326 | 960 560 | 97 036 | 346 126 | 3 573 | - | 2 604 621 |
| Operating expenses 1) | 1 057 524 | 900 600 | 84 208 | 332 015 | (102 516) | - | 2 271 832 |
| EBITDA | 139 801 | 59 960 | 12 828 | 14 111 | 106 089 | - | 332 788 |
| Depreciation, amortisation, impairment | 14 675 | 22 668 | 1 696 | 4 166 | - | - | 43 205 |
| EBIT | 125 125 | 37 292 | 11 132 | 9 945 | 106 089 | - | 289 584 |
| Associates and joint ventures | 513 | - | 3 539 | - | - | - | 4 053 |
| Receivables 2) | 324 411 | 221 657 | 53 014 | 152 188 | 3 312 | (18 241) | 736 341 |
| Number of employees | 879 | 793 | 130 | 420 | 122 | - | 2 344 |
1) Gain of settlement of defined benefit pension plan of NOK 107.3 million is included as decreased operating expenses, not allocated.
2) Receivables includes accounts receivables (before provision for loss) and accrued revenues.
An adjustment to the business area definitions was implemented from 1 January 2017 in response to recent market developments. The new business areas and the respective operating revenues
for the fourth quarter and full year 2017 are presented in the table below.
| Q4 2017 Full year 2017 |
|---|
| 473 480 1 615 541 |
| 51 381 204 313 |
| 21 588 106 801 |
| 113 736 433 116 |
| 224 775 782 615 |
| 78 195 233 044 |
| 963 154 3 375 429 |
Buildings & Properties include advisory and engineering at all stages of a construction project for all types of buildings. The business area provides services such as demand- and feasibility studies, sketch pre-project, detailed design and follow-up during the construction period, and real estate consultancy. The focus is on sustainable and long-term solutions. LINK arkitektur is included.
Industry offers complete, interdisciplinary advisory and engineering services in all project phases. Services include investigations, project development, project management, design and procurement, construction with all technical systems, construction management and follow-up, and commissioning.
Oil & Gas provides services throughout the whole value chain, from early phase studies through FEED (Front End Engineering Design) to detailed engineering and delivery for both onshore and offshore projects. Services provided onshore are within terminal and production facilities, facilities and constructions, harbour and marine constructions, underground warehouses, land-based pipelines and landfills, and electrical substations. Services provided offshore are within oil and gas rigs and platforms, concrete marine constructions, modules and
structures for rigs and platforms, seabed installations, arctic climate technology for floating and subsea constructions, and noise and vibration measurement amongst others.
Renewable Energy covers the entire project life cycle in hydropower, transmission and distribution, land-based wind power andsolar energy. Services provided are from start-up and preliminary studies to detailed design and construction management, commissioning and operational shutdown.
Transportation largely comprises advisory services for planning safe and forward-looking transport systems. The business area covers road, rail, airport, harbor and channel transport systems.
Water & Environment includes services in all phases of the lifetime of a project including inspections, engineering, operation and maintenance, and remediation and demolition. Focus is placed on sustainable development of the environment through advisory services related to Greenhouse gas emissions, flood and mud slide protection, water and drains, blue-green structures and issues related to pollution of air, water and soil.
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. 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.
Multiconsult ASA acquired 100% of the shares in Iterio AB on 7 March 2017. See note 12 for further information.
The Annual General Meeting on 11 May 2017 resolved payment of ordinary dividends related to the 2016 financial year of NOK 78.7 million (NOK 3.0 per share) that was paid to the shareholders registered on 11 May 2017.
Multiconsult ASA acquired 100% of the shares in Hjellnes Consult AS and Johs Holt AS on 25 September 2017. See note 12 for further information. The Board of Directors resolved on 30 August 2017 an increase of the share capital by NOK 360 597. On 25 September 2017 the share capital increase was completed and registered in the Norwegian Register of Business Enterprises. After the issuance of the new shares the share capital of Multiconsult ASA is NOK 13 485 197 divided into 26 970 394 shares, each with a nominal value of NOK 0.50.
See note 22 to the consolidated financial statements for 2016 for a description of related parties and related parties transactions in 2016.
Among the Company's shareholders Stiftelsen Multiconsult (the Multiconsult Foundation) is considered to be a related party according to IFRS due to its ownership and influence. The Foundation had a shareholding of 18.7% at 31 December 2016 and 19.8% at 31 December 2017.
In 2015 Multiconsult ASA introduced a share purchase programme for its employees. Through the share purchase programme the company offers its employees shares in Multiconsult ASA with a discount of 20%. Shares purchased through the programme are subject to a two-year lock-up period.
As part of the share based bonus arrangement for group management for 2016, the group management have in total purchased and been allotted 7 248 Multiconsult shares. As stated in note 8 in the 2016 annual report, if defined targets are met, a part of the earned bonus will be paid in 2017 in the form of shares with a discount of 30% and a three year lock-in period. There is a maximum equivalent to four months' salary for the CEO and two months' salary for the other members of group management.
The stock of treasury shares reduced equity by NOK 4 thousand at 31 December 2017, equvivalent to the purchase price of the shares.
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 2017 | Q4 2016 | FY 2017 | FY 2016 | |
|---|---|---|---|---|
| Profit for the period (in TNOK) | (11 252) | 90 509 | 79 534 | 213 769 |
| Average no shares | 26 860 323 | 26 246 690 | 26 407 850 | 26 243 164 |
| Earnings per share (NOK) | (0.42) | 3.45 | 3.01 | 8.15 |
For a description of the corporate pension schemes see note 11 to the consolidated financial statements for 2016.
The company has with effect from 31 December 2016 settled the defined benefit pension plan for employees in Multiconsult ASA and Multiconsult Norge AS. A new defined contribution pension plan now covers all the employees in the two companies. Other
defined benefit pension plans in the group still exist for four employees in LINK arkitektur AS and one individual agreement in Multiconsult ASA.
Refer to note 11 to the consolidated annual financial statements for 2016 for further information on the group's pension plans.
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 TNOK | NOK 30 Dec 2017 |
NOK 30 Sept 2017 |
NOK 31 Dec 2016 |
Local currency 31 Dec 2017 |
Local currency 30 Sept 2017 |
Local currency 31 Dec 2016 |
Local currency |
|---|---|---|---|---|---|---|---|
| Multiconsult ASA | 215 000 | 215 000 | 50 000 | 215 000 | 215 000 | 50 000 | NOK |
| Multiconsult Norge AS | 70 938 | 105 455 | - | 70 938 | 105 455 | - | NOK |
| Multiconsult UK | - | - | 5 837 | - | - | 550 | GBP |
| Multiconsult Asia | - | - | 897 | - | - | 150 | SGD |
| Multiconsult Polska | - | - | 457 | 309 | - | 222 | PLN |
| LINK arkitektur AS | - | 11 198 | - | - | 11 198 | - | NOK |
| LINK arkitektur AB | - | 1 409 | - | 1 438 | 1 438 | - | SEK |
| aarhus arkitekterne | 2 838 | 3 307 | 2 279 | 2 177 | 2 625 | 1 865 | DKK |
| Total | 288 776 | 336 369 | 59 470 | - | - | - |
The group owns a limited amount 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 (currency swaps) were recorded with an unrealised loss (liability) of NOK 1.5 million at 31 December 2017 (NOK 0.3 million at 30 September 2017).
On 25 September 2017, Multiconsult ASA acquired all the shares of Hjellnes Consult AS for NOK 151.8 million. The acquisition was settled in cash and in Multiconsult shares. 65 percent of the purchase price was settled with cash and 35 percent was settled with shares. External transaction related costs of NOK 1.9 million are expensed and included in part of other operating expensesn. Hjellnes Consult AS employs more than 230 engineers and is localised in Oslo. In 2016 the company had total revenues of NOK 266.2 million and profit before tax of NOK 12.9 million. Hjellnes Consult AS provides multidisciplinary consulting services and has extensive expertise in buildings, plants, infrastructure and the environment.
Multiconsult and Hjellnes Consult AS have been operating in the same industry for a long time and are a good fit, strategically, professionally and culturally. Combining forces increases the interdisciplinary capacity and expertise within the core business areas Buildings & Properties, Transportation, as well as Water & Environment. Multiconsult plans to exploit this advantage to win new market shares and increase the competitiveness of the company's strategic investments in urbanism and healthcare, in line with the company's 3-2-1 GO strategic objectives.
Hjellnes Consult AS is consolidated in the group balance sheet as of 30 September 2017.
Amounts in TNOK
| Assets | 73 207 |
|---|---|
| Liabilities | 47 117 |
| Net identifiable assets and liabilities | 26 090 |
| Excess values: | |
| Goodwill | 125 710 |
| Net assets | 151 800 |
|---|---|
| Settled with Multiconsult shares | 53 459 |
| Cash and cash equivalents | 3 197 |
| Net cash | (95 144) |
The acquisition generated an excess value of NOK 125.7 million. The excess value is allocated to goodwill and is related to the competence of the staff. The purchase price allocation is preliminary.
On 25 September 2017, Multiconsult ASA acquired all the shares of Johs Holt AS for NOK 32.2 million. The acquisition was settled in cash and in Multiconsult shares. 65 percent of the purchase price was settled with cash and 35 percent was settled with shares. External transaction related costs are expensed as part of other operating expenses of NOK 0.4 million.
Johs Holt AS has 27 employees. In 2016 the company had total revenues of NOK 35 million and profit before tax of NOK 3.5 million.
Johs Holt AS provides consulting services for all types of bridges and other heavy structures.
| Amounts in TNOK | |
|---|---|
| Assets | 11 658 |
| Liabilities | 7 058 |
| Net identifiable assets and liabilities | 4 600 |
| Excess values: Goodwill |
27 600 |
| Net assets | 32 200 |
| Settled with Multiconsult shares | 11 340 |
| Cash and cash equivalents | 1 975 |
| Net cash | (18 885) |
The acquisition generated an excess value of NOK 27.6 million. The excess value is allocated to goodwill and is related to the competence of the staff. The purchase price allocation is preliminary.
Johs Holt AS is consolidated in the group balance sheet as of 30 September 2017.
On 7 March 2017, Multiconsult ASA acquired all the shares of Iterio AB for NOK 52.6 million (SEK 55.5 million). The acquisition was settled in cash and financed through Multiconsult's existing credit facilities. External transaction related costs are expensed as part of other operating expenses of NOK 0.5 million. The acquisition is a first step towards Multiconsult's strategic objective of developing a multidisciplinary business in Sweden.
Iterio AB are engineering consultants with focus on planning and construction. They are mainly involved with project and design management as well as data coordination. Their core expertise is within geotechnics, environment and traffic and they have a solid customer base. The company was established in 2011 and employs more than 70 engineers at ita offices in Stockholm, Gothenburg and Malmø. Iterio AB is a valuable addition and will be a good fit with LINK arkitektur's and Multiconsult group's existing presence and commitment in Sweden and Scandinavia.
Amounts in TSEK
| Assets | 26 580 |
|---|---|
| Liabilities | 13 383 |
| Net identifiable assets and liabilities | 13 197 |
| Excess values: | |
| Goodwill | 42 303 |
| Net assets | 55 500 |
| Cash and cash equivalents | 5 472 |
| Net cash | (50 028) |
The acquisition generated an excess value of SEK 42.3 million. The excess value is allocated to goodwill and is related to the competence of the staff. SEK 5.5 million of the purchase price was paid in the second quarter. Iterio AB is consolidated into the group accounts as of 1 March 2017.
If the business combinations of Hjellnes Consult AS, Johs Holt AS and Iterio AB had been effected at 1 January 2017 the net operating revenue for the group year 2017 would have been MNOK 3 186.6.
EBIT would have been MNOK 123.1 and profit for the year would have been MNOK 80.9.
The group consider these pro-forma numbers to represent an approximate measure of the performance of the combined group annualised basis 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.
The company has with effect from 1 January 2017 settled the defined benefit pension plan. The settlement resulted in a positive P&L effect and Multiconsult has determined that this effect of NOK 107.3 million in lower salary expense is excluded from the underlying results in 2016.
| Amounts in MNOK (except percentage) | Q4 2017 | Q4 2016 | FY 2017 | FY 2016 |
|---|---|---|---|---|
| Net operating revenues | 830.2 | 685.5 | 2 977.6 | 2 604.6 |
| Reported operating expenses | 820.8 | 548.5 | 2 812.9 | 2 271.8 |
| Reported EBITDA | 9.4 | 137.0 | 164.7 | 332.8 |
| APMs – Liquidation of defined benefit pension plan | - | 107.3 | - | 107.3 |
| Underlying operating expenses | 820.8 | 655.8 | 2 812.9 | 2 379.1 |
| EBITDA underlying | 9.4 | 29.7 | 164.7 | 225.5 |
| Depreciation, amortisation and impairments | 12.1 | 10.8 | 46.8 | 43.2 |
| EBIT, underlying | (2.7) | 18.9 | 118.0 | 182.3 |
| EBITDA margin (%), underlying | 1.1% | 4.3% | 5.5% | 8.7% |
| EBIT margin (%), underlying | (0.3%) | 2.8% | 4.0% | 7.0% |
| Amounts in MNOK | Q4 2017 | Q4 2016 | FY 2017 | FY 2016 |
|---|---|---|---|---|
| Non-current interest bearing liabilities | 217.8 | 56.0 | 217.8 | 56.0 |
| Current interest bearing liabilities | 70.9 | 3.5 | 70.9 | 3.5 |
| Cash and cash equivalents | 154.3 | 176.0 | 154.3 | 176.0 |
| Net interest bearing debt (asset) | 134.5 | (116.5) | 134.5 | (116.5) |
Nedre Skøyen vei 2, 0276 Oslo P O Box 265 Skøyen, 0213 Oslo Telephone 21 58 50 00 Fax 21 58 50 01
[email protected] www.multiconsult.no Org no 910 253 158
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.