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Consti Oyj — Interim / Quarterly Report 2016
Aug 17, 2016
3306_rns_2016-08-17_4621fc0b-4119-4cd9-994c-d9d9c3671af6.pdf
Interim / Quarterly Report
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CONSTI
CONSTI'S HALF-YEAR FINANCIAL REPORT JANUARY – JUNE 2016
ORDER BACKLOG REACHED A RECORD HIGH
4-6/2016 highlights (comparison figures in parenthesis 4-6/2015):
- Net sales EUR 64.8 (63.4) million; growth 2.3%
- EBITDA EUR 3.1 (2.8) million and EBITDA margin 4.7% (4.5%)
- Adjusted EBITDA EUR 3.1 (2.9) million and adjusted EBITDA margin 4.7% (4.5%)
- Operating profit (EBIT) EUR 2.6 (2.3) million and operating profit (EBIT) margin 4.0% (3.7%)
- Adjusted EBIT EUR 2.6 (2.4) million and adjusted EBIT margin 4.0% (3.7%)
- Order backlog EUR 212.6 (199.8) million
- Free cash flow EUR 0.4 (4.9) million
- Earnings per share EUR 0.25 (0.18)
1-6/2016 highlights (comparison figures in parenthesis 1-6/2015):
- Net sales EUR 116.2 (110.9) million; growth 4.8%
- EBITDA EUR 3.7 (3.4) million and EBITDA margin 3.2% (3.1%)
- Adjusted EBITDA EUR 3.7 (3.8) million and adjusted EBITDA margin 3.2% (3.4%)
- Operating profit (EBIT) EUR 2.8 (2.4) million and operating profit (EBIT) margin 2.4% (2.2%)
- Adjusted EBIT EUR 2.8 (2.7) million and adjusted EBIT margin 2.4% (2.5%)
- Free cash flow EUR 3.7 (7.1) million
- Earnings per share EUR 0.24 (-0.04)
Consti specifies its guidance on the Group outlook for 2016:
The company estimates that its total annual net sales for 2016 will grow approximately 5-10 percent compared to 2015. Consti's previous guidance was: "The company estimates that its total annual sales for 2016 will grow compared to 2015."
| KEY FIGURES (EUR 1,000) | 4-6/2016 | 4-6/2015 | Change % | 1-6/2016 | 1-6/2015 | Change % | 1-12/2015 |
|---|---|---|---|---|---|---|---|
| Net sales | 64,813 | 63,357 | 2.3 % | 116,181 | 110,851 | 4.8 % | 256,151 |
| Adjusted EBITDA* | 3,069 | 2,870 | 6.9 % | 3,729 | 3,751 | -0.6 % | 12,613 |
| Adjusted EBITDA margin, % | 4.7 % | 4.5 % | 3.2 % | 3.4 % | 4.9 % | ||
| EBITDA | 3,069 | 2,830 | 8.4 % | 3,706 | 3,416 | 8.5 % | 10,507 |
| EBITDA margin, % | 4.7 % | 4.5 % | 3.2 % | 3.1 % | 4.1 % | ||
| Adjusted EBIT* | 2,614 | 2,364 | 10.6 % | 2,829 | 2,730 | 3.6 % | 10,520 |
| Adjusted EBIT margin, % | 4.0 % | 3.7 % | 2.4 % | 2.5 % | 4.1 % | ||
| Operating profit (EBIT) | 2,614 | 2,324 | 12.5 % | 2,806 | 2,395 | 17.1 % | 8,414 |
| Operating profit (EBIT) margin, % | 4.0 % | 3.7 % | 2.4 % | 2.2 % | 3.3 % | ||
| Profit for the period | 1,878 | 846 | 121.9 % | 1,801 | -190 | 3,260 | |
| Order backlog | 212,590 | 199,833 | 6.4 % | 181,301 | |||
| Free cash flow | 353 | 4,886 | -92.8 % | 3,747 | 7,070 | -47.0 % | 8,910 |
| Cash conversion, % | 11.5 % | 172.7 % | 101.1 % | 207.0 % | 84.8 % | ||
| Net interest-bearing debt | 17,780 | 38,514 | -53.8 % | 17,407 | |||
| Gearing, % | 76.1 % | 2815.2 % | 70.9 % | ||||
| Number of personnel at period end | 990 | 981 | 0.9 % | 890 | |||
| Earnings per share, undiluted (EUR) | 0.25 | 0.18 | 35.6 % | 0.24 | -0.04 | 0.61 |
- New ESMA (European Securities and Markets Authority) guidelines on Alternative Performance Measures (APMs) are effective for the financial year 2016. Consti presents APMs to reflect the underlying business performance and to enhance comparability between financial periods. APMs should not be considered as a substitute for measures of performance in accordance with the IFRS. As of Q12016, Consti relabels the previously referenced "before non-recurring items" with "before items affecting comparability" (IAC). For a more detailed description of items affecting comparability, see section "Sales, result and order backlog".
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CEO's review
Order backlog reached a record high
"Growth in demand of renovation construction and technical building services continued good during the second quarter of the year. Overall we achieved the best Q2 in our company's history. Despite the strong comparison period, we were able to increase order intake and our order backlog reached a record high. Our order backlog in euros at the end of the reporting period was at 212.6 (199.8) million euro, which provides a good foundation for our business during the rest of the year. Our net sales for the second quarter of the year grew 2.3 percent and was 64.8 million euro. Net sales growth was good in Technical Building Services and Renovation Contracting. In Building Facades net sales decreased from the comparison period, but we believe that the strong order inflow of the beginning of the year will be positively seen in Building Façade's sales for the rest of the year. Our profitability also developed positively during the quarter. Our adjusted EBIT was 2.6 million euro, which is 4.0 percent of the net sales, while corresponding figures from the second quarter of 2015 were 2.4 million euro and 3.7 percent of the net sales.
The good market situation continued
The market situation during the first half of the year in general was good. The number of tender requests developed positively during the first half of the year and order intake increased towards the end of the reporting period. We received several significant orders during the spring. The largest ventures are the extensive renovation of Espoonlahti church, renovations at Lahti's future courthouse, technical building services at Hämeenlinna swimming hall and a comprehensive façade renovation venture in Ruoholahti, Helsinki. During the spring Consti also made several significant deals on housing association pipeline and façade renovations.
Strategy implementation progressing
Our strategic ventures are progressing as planned. At the acquisitions front we have continued active mapping and held negotiations with several interesting companies. In our internal development ventures, we have invested in for example personnel training and in developing our IT-strategy. Our strategic goal is to continue profitable growth by strengthening our position in Finland's growth centres.
Outlook for the rest of the year
Based on our current market and business outlook, we believe that the demand for renovation construction and technical building services will remain at a good level during the rest of the year as well. Consequently, we are specifying our guidance on the Group outlook on net sales growth. We estimate that net sales for 2016 will grow by approximately 5-10 percent compared to 2015", says Consti Group Plc's CEO Marko Holopainen.
Operating environment
The relative portion of renovations in the Finnish building market has grown during the past decade, and it is now already larger than the new building market. The Confederation of Finnish Construction Industries RT (CFCI) estimates that renovation amounted to approximately 54 percent of the building market's total value in 2015. The general economic situation has a significantly smaller impact on renovation construction and technical building services than it does on the new building market.
The ageing building stock particularly increases the demand for renovation construction. As
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buildings age, they require more technical renovations such as pipeline and façade renovations. At the moment mainly buildings from the 1960s and an increasing number of buildings from the considerably larger building stock of the 1970s are being renovated in Finland. In renovation construction the largest growth during the next decade is expected to come from residential buildings in large cities. In housing association renovations approximately one third of the renovations are pipelines, one third façades and the rest other structures.
In addition to ageing, buildings require more renovation, technical building services and building technology maintenance services due to heightened energy efficiency requirements, urbanisation, modification of the use of buildings, the development of housing automatisation and the ageing populations' need for barrier-free buildings.
There are currently a great number of buildings in Finland which would benefit from renovations modifying their use to match current needs. Such renovations would improve both the buildings' usability and profitability. Typical modifications of buildings include the altering of old office buildings and industrial buildings in growth centres into hotels, apartments and assisted living facilities. Modifications of the use of buildings are a central part of Consti's services.
Renovation construction markets are concentrating on growth areas, akin to new building. Necessary technical repairs in declining suburbs and less populated areas are often economically unviable.
The European construction business research institute Euroconstruct estimated in its June 2016 forecast that total building in 2016 will increase approximately 6.5 percent from the previous year. Renovation construction is estimated to grow 1.5 percent and new building will see an increase of 12.2 percent from the previous year. In renovation construction demand growth is estimated to continue progressing steadily during upcoming years and the growth is estimated to be faster than new building growth on average.
The boost in new building should have a positive impact on Consti's competitive environment and create new growth opportunities for Technical Building Services. New building growth has a delayed impact on technical building services. The Finnish Association of HPAC Technical Contractors estimated in their June review that business conditions have improved compared to March. HPAC projects are expected to materialise more notably during the autumn when building technology work will begin in ongoing construction projects.
The renovation market is very fragmented in Finland. Large construction companies focus on new building and the field of renovation has typically consisted of several small companies that usually focus on only one segment of renovation.
Measured in net sales, Consti is one of Finland's leading companies in renovation and technical building services.
Group structure
Consti is one of Finland's leading companies focused on renovation and technical building services. Consti has a comprehensive service offering covering technical building services, residential pipeline renovation, renovation contracting, building façade repair and maintenance, and other renovation and technical services for demanding residential, commercial and public properties. Consti has focused its operations especially to the Greater Helsinki area and the Tampere region of Pirkanmaa. The company also has operations in Turku, Lahti and Oulu.
Consti has three business areas: Technical Building Services, Building Façades, and Renovation Contracting. All these also contain Servicing and maintenance services which is not reported as
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its own business area. Consti however reports its Service operations' net sales per financial year. Consti's Service business includes service contracting as well as technical repair and maintenance services to contract customers.
Business areas are reported in one segment. In addition, Consti reports sales, order backlog and order intake for each business area.
The Group's parent company is Consti Group Plc. The business areas operate in three subsidiaries completely owned by the parent company: Consti Talotekniikka Oy (Technical Building Services), Consti Julkisivut Oy (Building Façades) and Consti Korjausurakointi Oy (Renovation Contracting). Eleta Talotekniikka Oy was acquired in January 2016. The merger with Consti Technical Building Services was completed in the end of May 2016.
Long term goals
Consti's goal is to grow in the company's current market areas and to broaden the offering of Consti's full services to Finland's growth centres. The company is seeking to accomplish both organic growth and growth through acquisitions.
The company's long term financial goals are to achieve:
- Annual average net sales growth of at least 10 percent
- Adjusted EBIT margin of over 5 percent
- Cash conversion ratio of over 90 percent
- Net debt and adjusted EBITDA rate of under 2.5 whilst maintaining an efficient capital structure
Sales, result and order backlog
4-6/2016
Consti Group's April-June net sales grew 2.3 percent and was 64.8 (63.4) million euro. Organic growth for April-June was 1.5 percent. Technical Building Services sales were 28.0 (25.4) million euro, Renovation Contracting sales were 17.2 (15.8) and Building Façades sales were 20.7 (23.4) million euro.
Net sales continued to grow in Technical Building Services and Renovation Contracting, but declined in Building Façades. Technical Building Services net sales grew 10.4 percent. Technical Building Services net sales grew well in service operations and in business premise renovations. Renovation Contracting net sales grew 8.8 percent. Renovation Contracting net sales growth continued in the Greater Helsinki area and Turku area. Building Façades net sales decreased 11.4 percent due to a decrease in net sales in one of its areas, rental apartment buildings, compared to the corresponding fiscal period last year.
Operating profit (EBIT) for April-June grew from last year and was 2.6 (2.3) million euro. Operating profit from net sales was 4.0 (3.7) percent. The adjusted EBIT for Q2 before items affecting comparability was 2.6 (2.4) million euro. The adjusted EBIT margin before items affecting comparability was 4.0 (3.7) percent. Costs affecting comparability during the comparison period totalled 0.04 million euro, relating to planning structural arrangements and adopting IFRS standards. The operating profit and operating profit margin fluctuation are affected by the Group's progress in projects that generate revenue according to the percentage-of-completion method, the starting of new projects and the development of demand for services.
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The order backlog at the end of the reporting period grew 6.4 percent and was 212.6 (199.8) million euro. The order backlog increased in Technical Building Services by 8.6 percent, in Renovation Contracting by 0.3 percent and in Building Façades 9.0 percent. Order intake value during April-June grew 1.4 percent. Order intake increased in Technical Building Services by 97.7 percent, and in Building Façades by 16.6 percent, but decreased by 57.7 percent in Renovation Contracting. Order intake increased especially in Technical Building Services for residential housing and in façade renovations in the Greater Helsinki area.
1-6/2016
Consti Group's January-June net sales grew 4.8 percent and was 116.2 (110.9) million euro. In January-June organic growth was 3.7 percent. Technical Building Services net sales were 51.7 (47.2) million euro, Renovation Contracting net sales were 34.0 (30.1) and Building Façades net sales were 32.5 (35.9) million euro.
Net sales continued to grow in Technical Building Services and Renovation Contracting, but declined in Building Façades. Technical Building Services net sales grew 9.7 percent. Technical Building Services net sales grew well in service operations and in business premise renovations. Renovation Contracting net sales grew 12.8 percent. Growth was primarily due to the good order intake from the previous year and the order backlog. Renovation Contracting net sales had strong growth in the Greater Helsinki area and Turku area. Building Façades net sales decreased 9.4 percent due to a decrease in net sales in one of its areas, rental apartment buildings, compared to the corresponding fiscal period last year.
Operating profit (EBIT) for January-June grew from last year and was 2.8 (2.4) million euro. Operating profit from sales was 2.4 (2.2) percent. Costs affecting comparability during the reporting period totalled 0.02 (0.3) million euro, relating to the IPO. The January-June adjusted EBIT before items affecting comparability was 2.8 (2.7) million euro. The adjusted EBIT margin before items affecting comparability was 2.4 (2.5) percent.
The order backlog at the end of the reporting period grew 17.3 percent compared to the end of the previous financial year and was 212.6 million euro. The order intake value during January-June grew 4.4 percent. Orders increased by 33.7 percent in Technical Building Services and 19.7 percent in Building Façades but decreased 46.8 percent in Renovation Contracting.
| ITEMS AFFECTING COMPARABILITY (EUR 1.000) | 1-6/2016 | 1-6/2015 | 1-12/2015 |
|---|---|---|---|
| Planning of structural arrangements | -297 | -385 | |
| Adoption of IFRS standards | -38 | -353 | |
| Planning and execution of IPO | -23 | 0 | -1,368 |
| Items affecting comparability, total | -23 | -335 | -2,106 |
Investments and business combinations
Investments into intangible and tangible goods in April-June were 0.8 (0.5) million euro, which is 1.3 (0.8) percent of the company's net sales. Investments into tangible and intangible assets in January-June were 1.1 (1.4) million euro, which is 0.9 (1.3) percent of net sales. The largest investments were made into property, plant and equipment which primarily include machinery and equipment purchases.
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There were no investments related to business combinations during April-June. In January-June investments related to business combinations were 0.4 (0.0) million euro. In January 2016 Consti signed a deal of the purchase of the entire share base of Eleta Talotekniikka Oy. Eleta is based in Espoo and established in 1987. The company specialises in technical building services and its annual net sales is approximately 2 million euro. In the deal, all Eleta employees transferred to work for Consti. The deal further enhances Consti's strong expertise in technical building services in the Helsinki Metropolitan Area and supports the company's drive to increase its maintenance and energy know-how.
Cash flow and financial position
The operating cash flow in April-June before financing items and taxes was 1.2 (5.4) million euro. Free cash flow, i.e. operating cash flow before financing items and taxes less investments in intangible and tangible assets was 0.4 (4.9) million euro. The cash flow ratio in April-June was 11.5 (172.7) percent. Cash flow was positively affected by the improvement of operating result, but tied up working capital weakened the operating cash flow. The tied up working capital was mainly due to delays in the final reports of projects finished during the reporting period.
The January-June operating cash flow before financing items and taxes was 4.8 (8.5) million euro. Free cash flow, i.e. operating cash flow before financing items and taxes less investments in intangible and tangible assets was 3.7 (7.1) million euro. The cash flow ratio in January-June was 101.1 (207.0) percent. The cash flow was positively affected by the improvement of operating result. Released cash flow from working capital was smaller than in the comparison period.
Consti Group's cash and cash equivalents on June 30th 2016 were 3.7 (11.7) million euro. In addition, the company has undrawn revolving credit facilities amounting to 5.0 million. The Group's interest bearing debts were 21.5 (50.2) million euro. External loans are subject to two financial covenants based on the ratio of the Group's net debt to adjusted EBITDA and gearing. On the balance sheet date, the interest bearing net debt was 17.8 (38.5) million euro and the gearing ratio 76.1 percent.
The balance sheet total on June 30th 2016 was 91.8 (95.3) million euro. At the end of the reporting period tangible assets in the balance sheet were 5.3 (6.3) million euro. Equity ratio was 31.5 (1.8) percent. Rental liabilities associated with off-balance sheet operational leasing agreements totalled 3.6 (3.4) million euro on June 30th 2016.
In September 2015 the Company changed its capital structure and refinanced its indebtedness. The change in capital structure and refinancing of indebtedness decreased financing costs in 2015. The impact is seen especially in 2016.
| MATURITY DISTRIBUTION OF INTEREST-BEARING DEBT (EUR 1.000) | 2016 | 2017 | 2018 | 2019 | 2020 | 2021- | Total |
|---|---|---|---|---|---|---|---|
| Bank loans | 140 | 280 | 280 | 280 | 20,210 | 0 | 21,190 |
| Finance lease liabilities | 46 | 71 | 50 | 24 | 0 | 0 | 191 |
| Other interest-bearing liabilities | 323 | 519 | 387 | 156 | 19 | 0 | 1,404 |
| Total | 509 | 870 | 717 | 460 | 20,229 | 0 | 22,785 |
Personnel
Consti Group had 990 (981) employees at the end of the reporting period. The increase in
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personnel was mainly due to project management personnel recruitments. The average employee count during January-June was 918 (897).
At the end of the reporting period 543 (546) employees worked in Technical Building Services, 173 (170) in Renovation Contracting and 265 (257) in the Building Façades business area. The parent company employed 9 (8) people.
| PERSONNEL BY SEGMENT AT PERIOD END | 6/2016 | 6/2015 | 12/2015 |
|---|---|---|---|
| Technical Building Services | 543 | 546 | 509 |
| Renovation Contracting | 173 | 170 | 164 |
| Building Facades | 265 | 257 | 209 |
| Parent company | 9 | 8 | 8 |
| Total Group | 990 | 981 | 890 |
Management Team
Consti Group Plc's Management Team at the end of the reporting period consisted of CEO Marko Holopainen and the following persons: Esa Korkeela, CFO; Risto Kivi, Consti Julkisivut Oy's CEO; Jukka Mäkinen, Consti Korjausurakointi Oy's CEO; Pekka Pöykkö, Consti Talotekniikka Oy's CEO, Hannu Kimiläinen, Consti Service Business Director; Markku Kalevo, Consti Julkisivut Oy's Bid and Sales Director; Pirkka Lähteinen, Consti Korjausurakointi Oy's Regional Director and Juha Salminen, CDO.
Important events during the reporting period
Consti Group Plc announced Danske Bank's actions to stabilise the share price on 8 January 2016 and its use of the over-allotment option relating to Consti Group Plc's IPO to Helsinki Stock Exchange.
Consti Group Plc received an announcement from Intera Fund I Ky ("Intera") on 11 January 2016, in accordance with the Finnish Securities Market Act Chapter 9, Section 10. According to the announcement, the total number of Consti shares and votes owned by Intera decreased below fifteen (15) percent of the share capital of Consti on 8 January 2016.
Consti Group Plc announced on 4 January 2016 that it is acquiring Eleta Talotekniikka Oy, a company specialising in building automation services. Eleta is based in Espoo and established in 1987. The company specialises in technical building services and its annual net sales is approximately EUR 2 million. In the deal, all Eleta employees transferred to work for Consti. The deal further enhances Consti's strong expertise in technical building services in the Helsinki Metropolitan Area and supports the company's drive to increase its maintenance and energy know-how.
Consti Group Plc received an announcement from Danske Bank A/S ("Danske") on 10 March 2016, in accordance with the Finnish Securities Market Act Chapter 9, Section 10. According to the announcement, the total number of Consti shares and votes owned by Danske's funds and Pensionsforsikringsselskabet Danica A/S increased above five (5) percent of the share capital of Consti on 9 March 2016.
Consti Group Plc received an announcement from Intera Fund I Ky ("Intera") on June 14th 2016, in accordance with the Finnish Securities Market Act Chapter 9, Section 10. According to the announcement, the total number of Consti shares and votes owned by Intera decreased below ten (10) per cent of the share capital of Consti on 13 June 2016.
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The Annual General Meeting 2016 and Board authorisations
The Annual General Meeting of Shareholders of Consti Group Plc held on 6 April 2016 adopted the Financial Statements and discharged the Members of the Board of Directors and the CEO from liability for the financial year 1 January - 31 December 2015. The Annual General Meeting resolved that dividend of EUR 0.39 per share for the financial year 2015 is paid.
The Annual General Meeting resolved that the Board of Directors consists of seven members. The current members of the Board of Directors, Tapio Hakakari, Antti Korkeela, Erkki Norvio, Janne Näränen, Niina Rajakoski, Petri Rignell and Pekka Salokangas were re-elected to the Board of Directors for the following term of office.
Authorised Public Accounting firm Ernst & Young Ltd was elected as the Auditor of the Company and Mikko Rytilahti, Authorised Public Accountant, will act as the Principal Auditor.
It was resolved that the annual remuneration of the members of the Board of Directors is paid as follows: The Chairman of the Board of Directors is paid EUR 30,000 and members of the Board of Directors are each paid EUR 15,000. It was resolved that the travel expenses of the members of the Board of Directors arising from participation in the Board meetings are compensated according to invoice. It was resolved that the remuneration for the Auditor shall be paid according to the Auditor's reasonable invoice.
The Board of Directors was authorised to resolve on the repurchase of a maximum of 471,000 shares in the Company in one or several tranches by using funds in the unrestricted shareholders' equity. The shares may be repurchased for the price formed at the moment of purchase on public trading or for the price otherwise formed on the markets. The own shares may be purchased by deviating from the shareholders' pre-emptive rights (directed repurchase). The shares may be repurchased in order to, for example, carry out the Company's share-based incentive plan. The Board of Directors is authorized to decide on how repurchase is carried out and on all other matters related to the repurchase of shares.
The authorization shall replace previous unused authorizations of the Board of Directors to resolve on the repurchase of the Company's shares. The authorization shall be valid until the closing of the next Annual General Meeting, however, no longer than until 30 June 2017.
The Board of Directors was authorised to resolve on the share issue and the issuance of special rights entitling to shares as referred to in Chapter 10 Section 1 of the Companies Act in one or several tranches, either against payment or without payment. The aggregate amount of shares to be issued, including the shares to be received based on special rights, shall not exceed 780,000 shares. The Board of the Directors may resolve to issue either new shares or to transfer treasury shares potentially held by the Company.
The Board of Directors is authorized to decide on all other matters related to the issuance of shares and special rights, including on a deviation from the shareholders' pre-emptive rights. The authorization is used, for example, to carry out Company's share-based incentive plan or for other purposes resolved by the Board of Directors. The Board of Directors is authorized to decide on all other matters related to the issuance of shares and special rights entitling to shares.
The authorization replaces previous authorizations of the Board of Directors to resolve on the issuance of shares and issuance of other special rights entitling to shares. The authorization shall be valid until the closing of the next Annual General Meeting, however, no longer than until 30 June 2017.
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Organising Meeting of the Board of Directors
The Board of Directors elected by the Annual General Meeting of Shareholders of Consti Group Plc on 6 April 2016, held its organising meeting and elected Tapio Hakakari as the Chairman of the Board.
The Board of Directors appointed Tapio Hakakari, Janne Näränen and Petri Rignell as members of the Nomination and Compensation Committee. The Board of Directors has not established other committees.
Shares and share capital
Consti Group Plc's share capital on June 30th 2016 was 80,000 euro and the number of shares 7,858,267. Consti Group Plc held 243,500 of these shares. The Company has a single series of shares, and each share entitles its holder to one vote at the General Meeting of the company and to an equal dividend. Consti Group Plc's shares are added into the Book-Entry Securities System.
Trade at Nasdaq Helsinki
Consti Group Plc has been listed in the Helsinki Stock Exchange main list since 15 December 2015. The trade symbol is CONSTI. On the Nordic list Consti Group Plc is classified a small cap company within the Industrials sector. During 1 January – 30 June 2016 Consti Group Plc's lowest share price was 8.90 euro and the highest 12.00 euro. The share's trade volume weighted average price was 10.37 euro. At the close of the stock day on the last trading day of the reporting period 30 June 2016 the share value was 11.20 euro and the Company's market value was 88.0 million euro.
Related-party transactions
There were no significant related-party transactions during the reporting period.
Outlook for 2016
Renovation construction is expected to continue steady growth in 2016. The European construction business research group Euroconstruct estimated in its June 2016 forecast that total building in 2016 will increase approximately 6.5 percent from the previous year, renovation construction will grow about 1.5 percent, and new building 12.2 percent from 2015. In renovation construction demand growth is estimated to continue progressing steadily during upcoming years and the growth is estimated to be faster than new building growth on average.
The boost in new building should have a positive impact on Consti's competitive environment and create new growth opportunities for Technical Building Services. New building growth has a delayed impact on technical building services. The Finnish Association of HPAC Technical Contractors estimated in their June review that business conditions have improved compared to March. HPAC projects are expected to materialise more notably during the autumn when building technology work will begin in ongoing construction projects.
The general economic conditions have a considerably smaller impact on renovation construction and technical building services than on new building.
Consti has specified its guidance on the Group outlook for 2016. The company estimates that its total annual net sales for 2016 will grow approximately 5-10 percent compared to 2015. Consti's
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previous guidance was: "The company estimates that its total annual sales for 2016 will grow compared to 2015."
Significant risks and risk management
Consti divides risks to the Company's business into strategic and operative risks, as well as financing risks and risks of injury or damage. Consti's businesses main uncertainties have to do with the Finnish economic situation, which has an impact for example on inhabitants' eagerness to invest and the availability of financing, as well as the success of the Company's growth strategy and related corporate acquisitions, personnel and recruitments. In addition, financing risks come from interest rate, credit and liquidity risks. The Company estimates that no relevant changes have occurred in the Company risks during the fiscal period.
A detailed description of risks related to Consti and its operating environment and business, as well as the Group's risk management are presented in the Board of Directors' Report published in Consti's annual report 2015. Financial risks and their management are described in detail in note 18 to the financial statements "Financial risk management".
Dividend and dividend policy
The Annual General Meeting of Shareholders held on 6 April 2016 resolved that dividend of EUR 0.39 per share for the financial year 2015 is paid. No dividend was paid on own shares held by the Company. The record date for dividend distribution was 8 April 2016, and the dividend was paid on 15 April 2016.
According to the Company dividend policy its goal is to distribute a minimum of 50 percent of the fiscal year's profit as dividend, however taking into consideration the Company's financial position, cash flow and growth opportunities.
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SUMMARY OF FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 1.1. – 30.6.2016
Accounting principles
Consti Group Plc's half-year financial report has been prepared for the accounting period of 1.1. – 30.6.2016 according to the IAS 34 Interim Financial reporting principles. Consti has abided by the same accounting principles in its half-year financial reporting as in its IFRS financial statements 2015. The information presented in the half-year financial reports are not audited. All figures in these accounts have been rounded. Consequently, the sum of individual figures can deviate from the presented sum figure. The preparation of the financial statements in accordance with IFRS requires management to make estimates and assumptions that affect the valuation of the reported assets and liabilities, and the recognition of income and expenses in the statement of income. Although the estimates are based on the management's best knowledge of current events and actions, actual results may differ from the values given in the half-year financial report.
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (EUR 1,000) | 4-6/2016 | 4-6/2015 | Change % | 1-6/2016 | 1-6/2015 | Change % | 1-12/2016 |
|---|---|---|---|---|---|---|---|
| Net sales | 64,813 | 63,357 | 2.3 % | 116,181 | 110,851 | 4.8 % | 256,151 |
| Other operating income | 115 | 167 | -30.9 % | 299 | 346 | -13.7 % | 798 |
| Change in inventories of finished goods and work in progress | 0 | 0 | 0 | 0 | |||
| Materials and services | -44,481 | -43,641 | -1.9 % | -79,644 | -75,930 | -4.9 % | -178,072 |
| Employee benefit expenses | -13,457 | -12,914 | -4.2 % | -25,521 | -24,335 | -4.9 % | -51,574 |
| Depreciation | -454 | -506 | 10.2 % | -900 | -1,021 | 11.9 % | -2,093 |
| Other operating expenses | -3,922 | -4,139 | 5.2 % | -7,608 | -7,516 | -1.2 % | -16,796 |
| Operating profit (EBIT) | 2,614 | 2,324 | 12.5 % | 2,806 | 2,395 | 17.2 % | 8,414 |
| Total financial income and expenses | -233 | -1,261 | 81.5 % | -521 | -2,614 | 80.1 % | -4,360 |
| Profit before taxes (EBT) | 2,381 | 1,063 | 124.1 % | 2,285 | -219 | 4,054 | |
| Total taxes | -503 | -217 | -131.6 % | -483 | 29 | -794 | |
| Profit for the period | 1,878 | 846 | 122.1 % | 1,801 | -190 | 3,260 | |
| Comprehensive income for the period 1) | 1,878 | 846 | 122.1 % | 1,801 | -190 | 3,260 | |
| Earnings per share attributable to equity holders of parent company 2) | |||||||
| Earnings per share, undiluted (EUR) | 0.25 | 0.18 | 35.6 % | 0.24 | -0.04 | 0.61 | |
| Earnings per share, diluted (EUR) | 0.25 | 0.17 | 41.7 % | 0.24 | -0.04 | 0.61 |
1) The group has no other comprehensive income items.
2) Due to a share issue without payment completed in December 2015, the earnings per share (EPS) figures for the previous periods have been adjusted according to IFRS.
H1 | 11
CONSTI
| CONSOLIDATED BALANCE SHEET
(EUR 1,000) | 30 Jun 2016 | 30 Jun 2015 | Change % | 31 Dec 2015 |
| --- | --- | --- | --- | --- |
| ASSETS | | | | |
| | | | | |
| Non-current assets | | | | |
| Property, plant and equipment | 5,344 | 6,283 | -14.9 % | 5,354 |
| Goodwill | 43,743 | 43,484 | 0.6 % | 43,484 |
| Other intangible assets | 409 | 532 | -23.0 % | 425 |
| Available-for-sale financial assets | 8 | 65 | -88.1 % | 8 |
| Long-term receivables | 0 | 0 | | 0 |
| Deferred tax receivables | 294 | 290 | 1.3 % | 430 |
| Total non-current assets | 49,798 | 50,654 | -1.7 % | 49,701 |
| Current assets | | | | |
| Inventories | 532 | 505 | 5.4 % | 507 |
| Trade and other receivables | 37,759 | 32,367 | 16.7 % | 36,415 |
| Cash and cash equivalents | 3,726 | 11,726 | -68.2 % | 4,070 |
| Total current assets | 42,017 | 44,598 | -5.8 % | 40,991 |
| | | | | |
| TOTAL ASSETS | 91,815 | 95,252 | -3.6 % | 90,692 |
| | | | | |
| EQUITY AND LIABILITIES | | | | |
| | | | | |
| Equity | 23,370 | 1,370 | 1605.8 % | 24,538 |
| | | | | |
| Non-current liabilities | | | | |
| Interest-bearing liabilities | 20,872 | 46,614 | -55.2 % | 20,864 |
| Total non-current liabilities | 20,872 | 46,614 | -55.2 % | 20,864 |
| Current liabilities | | | | |
| Trade and other payables | 45,791 | 42,583 | 7.5 % | 43,389 |
| Interest-bearing liabilities | 634 | 3,626 | -82.5 % | 613 |
| Provisions | 1,148 | 1,059 | 8.4 % | 1,288 |
| Total current liabilities | 47,573 | 47,268 | 0.6 % | 45,290 |
| | | | | |
| TOTAL EQUITY AND LIABILITIES | 91,815 | 95,252 | -3.6 % | 90,692 |
H1 | 12
CONSTI
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (EUR 1,000) | Equity attributable to owners of the parent | |||||
|---|---|---|---|---|---|---|
| Share capital | Reserve for invested non-restricted equity | Treasury shares | Retained earnings | Total | Total equity | |
| Equity on 1 January 2016 | 80 | 27,318 | -456 | -2,404 | 24,458 | 24,538 |
| Total comprehensive income | 1,801 | 1,801 | 1,801 | |||
| Share issue | 0 | 0 | ||||
| Dividend distribution | -2,970 | -2,970 | -2,970 | |||
| Purchase of own shares | 0 | 0 | ||||
| Transactions with shareholders, total | 0 | 0 | 0 | -2,970 | -2,970 | -2,970 |
| Equity on 30 June 2016 | 80 | 27,318 | -456 | -3,572 | 23,290 | 23,370 |
| Equity on 1 January 2015 | 3 | 6,431 | -305 | -5,664 | 462 | 465 |
| --- | --- | --- | --- | --- | --- | --- |
| Total comprehensive income | -190 | -190 | -190 | |||
| Share issue | 1,236 | 1,236 | 1,236 | |||
| Purchase of own shares | -142 | -142 | -142 | |||
| Transactions with shareholders, total | 0 | 1,236 | -142 | 0 | 1,094 | 1,094 |
| Equity on 30 June 2015 | 3 | 7,667 | -447 | -5,854 | 1,366 | 1,370 |
| Equity on 1 January 2015 | 3 | 6,431 | -305 | -5,664 | 462 | 465 |
| --- | --- | --- | --- | --- | --- | --- |
| Total comprehensive income | 3,260 | 3,260 | 3,260 | |||
| Share issue | 77 | 20,887 | 20,887 | 20,964 | ||
| Purchase of own shares | -151 | -151 | -151 | |||
| Transactions with shareholders, total | 77 | 20,887 | -151 | 0 | 20,736 | 20,813 |
| Equity on 31 December 2015 | 80 | 27,318 | -456 | -2,404 | 24,458 | 24,538 |
H1 | 13
CONSTI
| CONSOLIDATED STATEMENT OF CASH FLOWS (EUR 1,000) | 4-6/2016 | 4-6/2015 | 1-6/2016 | 1-6/2015 | 1-12/2015 |
|---|---|---|---|---|---|
| Cash flows from operating activities | |||||
| Operating profit | 2,614 | 2,324 | 2,806 | 2,395 | 8,414 |
| Adjustments: | |||||
| Depreciation | 454 | 506 | 900 | 1,021 | 2,093 |
| Other adjustments | -87 | -8 | -109 | -29 | -116 |
| Change in working capital | -1,811 | 2,550 | 1,200 | 5,106 | 1,190 |
| Operating cash flow before financial and tax items | 1,171 | 5,372 | 4,797 | 8,493 | 11,581 |
| Financial items, net | -233 | -385 | -521 | -809 | -1,762 |
| Taxes paid | -310 | 0 | -609 | -3 | -66 |
| Net cash flow from operating activities | 628 | 4,987 | 3,667 | 7,681 | 9,753 |
| Cash flows from investing activities | |||||
| Acquisition of subsidiaries and business operations, net of cash acquired | 0 | 0 | -410 | 0 | 0 |
| Investments in tangible and intangible assets | -818 | -486 | -1,050 | -1,423 | -2,671 |
| Proceeds from sale of property, plant and equipment | 393 | 75 | 428 | 176 | 1,475 |
| Proceeds from sale of available-for-sale financial assets | 0 | 0 | 5 | 0 | 57 |
| Net cash flow from investing activities | -424 | -411 | -1,027 | -1,247 | -1,139 |
| Cash flows from financing activities | |||||
| Purchase of own shares | 0 | -142 | 0 | -142 | -151 |
| Share issue | 0 | 248 | 0 | 248 | 536 |
| Other changes in equity | -2,970 | -1 | -2,970 | -1 | 392 |
| Change in interest-bearing liabilities | 136 | -5,193 | -13 | -5,137 | -15,645 |
| Net cash flow from financing activities | -2,833 | -5,088 | -2,983 | -5,032 | -14,868 |
| Change in cash and cash equivalents | -2,630 | -512 | -343 | 1,402 | -6,254 |
| Cash and cash equivalents at period start | 6,356 | 12,238 | 4,070 | 10,324 | 10,324 |
| Cash and cash equivalents at period end | 3,726 | 11,726 | 3,726 | 11,726 | 4,070 |
H1 | 14
CONSTI
| KEY FIGURES (EUR 1,000) | 6/2016 | 6/2015 | 12/2015 |
|---|---|---|---|
| INCOME STATEMENT | |||
| Net sales | 116,181 | 110,851 | 256,151 |
| Adjusted EBITDA | 3,729 | 3,751 | 12,613 |
| Adjusted EBITDA margin, % | 3.2 % | 3.4 % | 4.9 % |
| EBITDA | 3,706 | 3,416 | 10,507 |
| EBITDA margin, % | 3.2 % | 3.1 % | 4.1 % |
| Adjusted operating profit (EBIT) | 2,829 | 2,730 | 10,520 |
| Adjusted operating profit (EBIT) margin, % | 2.4 % | 2.5 % | 4.1 % |
| Operating profit (EBIT) | 2,806 | 2,395 | 8,414 |
| Operating profit margin, % | 2.4 % | 2.2 % | 3.3 % |
| Profit before taxes (EBT) | 2,285 | -219 | 4,054 |
| as % of sales | 2.0 % | -0.2 % | 1.6 % |
| Profit for the period | 1,801 | -190 | 3,260 |
| as % of sales | 1.6 % | -0.2 % | 1.3 % |
| OTHER KEY FIGURES | |||
| Balance sheet total | 91,815 | 95,252 | 90,692 |
| Net interest-bearing debt | 17,780 | 38,514 | 17,407 |
| Equity ratio, % | 31.5 % | 1.8 % | 31.4 % |
| Gearing, % | 76.1 % | 2811.2 % | 70.9 % |
| Free cash flow | 3,747 | 7,070 | 8,910 |
| Cash conversion, % | 101.1 % | 207.0 % | 84.8 % |
| Order backlog | 212,590 | 199,833 | 181,301 |
| Order intake | 126,711 | 121,363 | 213,504 |
| Average number of personnel | 918 | 897 | 910 |
| Number of personnel at period end | 990 | 981 | 890 |
| SHARE RELATED KEY FIGURES | |||
| Earnings per share, undiluted (EUR) | 0.24 | -0.04 | 0.61 |
| Earnings per share, diluted (EUR) | 0.24 | -0.04 | 0.61 |
| Shareholders' equity per share (EUR) | 3.07 | 0.27 | 3.22 |
| Number of shares, end of period | 7,858,267 | 5,244,500 | 7,858,267 |
| Number of outstanding shares, end of period | 7,614,767 | 5,007,400 | 7,614,767 |
| Average number of shares | 7,614,767 | 4,340,176 | 5,329,936 |
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CONSTI
Calculation of key figures
| EBITDA = | Operating profit (EBIT) + depreciation, amortisation and impairment |
|---|---|
| Net interest-bearing debt = | Interest-bearing liabilities - cash and cash equivalents |
| Equity ratio (%) = | Equity |
| Total assets - advances received | |
| X 100 | |
| Gearing (%) = | Interest-bearing liabilities - cash and cash equivalents |
| Equity | |
| X 100 | |
| Average number of personnel = | The average number of personnel at the end of each calendar month during the period |
| Number of personnel at period end = | Number of personnel at the end of period |
| Free cash flow = | Net cash flow from operating activities before financial and tax items - investments in intangible and tangible assets |
| Cash conversion (%) = | Free cash flow |
| EBITDA | |
| X 100 | |
| Earnings per share = | Profit attributable to equity holders of the parent company |
| Weighted average number of shares outstanding during the period | |
| X 100 | |
| Adjusted EBITDA = | EBITDA before items affecting comparability (IAC) |
| Adjusted operating profit (EBIT) = | Operating profit (EBIT) before items affecting comparability (IAC) |
| Order backlog = | At the end of the period the unrecognised amount of construction contracts recognised in accordance with the percentage of completion method, including not started ordered construction contracts, long-term service agreements and the part which has not been invoiced in ordered invoice based projects |
| Order intake = | Orders of construction contracts, long-term service agreements and invoice based projects during the period |
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CONSTI
Business areas
During the reporting period Consti Group consisted of three domestic operational segments that support each other: Technical Building Services, Renovation Contracting and Building Façades. Due to the similarity of Consti Group's management structure, the operations and business segments these operational segments are combined for the IFRS 8 segment reporting into one reportable segment, which also includes Group services and other items.
| NET SALES BY SEGMENT (EUR 1,000) | 4-6/2016 | 4-6/2015 | Change % | 1-6/2016 | 1-6/2015 | Change % | 1-12/2015 |
|---|---|---|---|---|---|---|---|
| Technical Building Services | 27,997 | 25,350 | 10.4 % | 51,733 | 47,158 | 9.7 % | 102,578 |
| Renovation Contracting | 17,177 | 15,793 | 8.8 % | 33,998 | 30,137 | 12.8 % | 68,697 |
| Building Facades | 20,717 | 23,389 | -11.4 % | 32,547 | 35,924 | -9.4 % | 89,221 |
| Parent company and elimin. | -1,078 | -1,175 | 8.2 % | -2,097 | -2,368 | 11.5 % | -4,345 |
| Total Net sales | 64,813 | 63,357 | 2.3 % | 116,181 | 110,851 | 4.8 % | 256,151 |
| ORDER INTAKE BY SEGMENT (EUR 1,000) | 4-6/2016 | 4-6/2015 | Change % | 1-6/2016 | 1-6/2015 | Change % | 1-12/2015 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Technical Building Services | 34,017 | 17,209 | 97.7 % | 51,743 | 38,709 | 33.7 % | 72,363 |
| Renovation Contracting | 14,513 | 34,341 | -57.7 % | 24,413 | 45,862 | -46.8 % | 80,482 |
| Building Facades | 27,577 | 23,648 | 16.6 % | 52,831 | 44,135 | 19.7 % | 71,744 |
| Parent company and elimin. | -553 | -664 | 16.7 % | -2,275 | -7,343 | 69.0 % | -11,085 |
| Total Order intake | 75,554 | 74,534 | 1.4 % | 126,711 | 121,363 | 4.4 % | 213,504 |
| ORDER BACKLOG BY SEGMENT (EUR 1,000) | 4-6/2016 | 4-6/2015 | Change % | 1-6/2016 | 1-6/2015 | Change % | 1-12/2015 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Technical Building Services | 76,300 | 70,250 | 8.6 % | 76,300 | 70,250 | 8.6 % | 69,200 |
| Renovation Contracting | 57,219 | 57,021 | 0.3 % | 57,219 | 57,021 | 0.3 % | 57,100 |
| Building Facades | 79,071 | 72,562 | 9.0 % | 79,071 | 72,562 | 9.0 % | 55,001 |
| Total Order backlog | 212,590 | 199,833 | 6.4 % | 212,590 | 199,833 | 6.4 % | 181,301 |
Reconciliation between operating profit (EBIT) reported in accordance with IFRS and EBIT before items affecting comparability (adjusted EBIT) commented in this financial review
The income statement under IFRS has been adjusted by the following items when reporting and commenting EBITDA before items affecting comparability (adjusted EBITDA) and EBIT before items affecting comparability (adjusted EBIT) in this half-year financial report:
H1 | 17
CONSTI
| 1-6/2016 (EUR 1,000) | IFRS | IAC | Income statement before IAC |
|---|---|---|---|
| Net sales | 116,181 | 116,181 | |
| Other operating income | 299 | 299 | |
| Change in inventories of finished goods and work in progress | 0 | ||
| Materials and services | -79,644 | -79,644 | |
| Employee benefit expenses | -25,521 | -25,521 | |
| Other operating expenses | -7,608 | -23 | -7,585 |
| EBITDA | 3,706 | -23 | 3,729 |
| Depreciation | -900 | -900 | |
| Operating profit (EBIT) | 2,806 | -23 | 2,829 |
| 1-6/2015 (EUR 1,000) | IFRS | IAC | Income statement before IAC |
| --- | --- | --- | --- |
| Net sales | 110,851 | 110,851 | |
| Other operating income | 346 | 346 | |
| Change in inventories of finished goods and work in progress | 0 | 0 | |
| Materials and services | -75,930 | -75,930 | |
| Employee benefit expenses | -24,335 | -24,335 | |
| Other operating expenses | -7,516 | -335 | -7,181 |
| EBITDA | 3,416 | -335 | 3,751 |
| Depreciation | -1,020 | -1,020 | |
| Operating profit (EBIT) | 2,395 | -335 | 2,730 |
| 1-12/2015 (EUR 1,000) | IFRS | IAC | Income statement before IAC |
| --- | --- | --- | --- |
| Net sales | 256,151 | 256,151 | |
| Other operating income | 798 | 798 | |
| Change in inventories of finished goods and work in progress | 0 | 0 | |
| Materials and services | -178,072 | -178,072 | |
| Employee benefit expenses | -51,574 | -103 | -51,471 |
| Other operating expenses | -16,796 | -2,002 | -14,794 |
| EBITDA | 10,507 | -2,106 | 12,613 |
| Depreciation | -2,093 | -2,093 | |
| Operating profit (EBIT) | 8,414 | -2,106 | 10,520 |
H1 | 18
CONSTI
| GROUP LIABILITIES (EUR 1,000) | 6/2016 | 6/2015 | 12/2015 |
|---|---|---|---|
| Liabilities given on behalf of the Group | |||
| Mortgage deeds | 0 | 191,752 | 0 |
| Other liabilities | |||
| Leasing and rental liabilities | 3,621 | 3,429 | 4,380 |
Business combinations
Consti made the following acquisitions during the January-June 2016 period:
| ACQUIRED BUSINESS | Country | Type | Month of acquisition | Acquired share | No. of employees | Estimated annual net sales (€m) |
|---|---|---|---|---|---|---|
| Building automation, Helsinki | Finland | Share deal | January | 100 % | 18 | 2 |
Acquired assets and liabilities
Fair values of the identified assets and liabilities of the businesses acquired in 2016, after their combination:
Fair value, EUR 1,000
| Assets | |
|---|---|
| Property, plant and equipment | 43 |
| Intangible assets | 100 |
| Cash and cash equivalents | 122 |
| Inventories | 58 |
| Trade and other receivables | 244 |
| Available-for-sale financial assets | 5 |
| Total assets | 572 |
| Liabilities | |
| Trade and other payables | 238 |
| Interest-bearing liabilities | 42 |
| Deferred tax liabilities | 18 |
| Total liabilities | 298 |
| Fair value of identified net assets, total | 274 |
| Goodwill arising from acquisitions | 259 |
| Amount of consideration transferred | 532 |
The goodwill recognised on the acquisition is attributable to the special expertise transferred with the company. The transaction costs arising from the acquisition, totalling EUR 48 thousand have been recognised as expenses and are included under administrative expenses.
H1 | 19
CONSTI
Largest shareholders
| 10 LARGEST SHAREHOLDERS
30 June 2016 | | Number of shares | % of shares and
voting rights |
| --- | --- | --- | --- |
| 1 | Keskinäinen Eläkevakuutusyhtiö Etera | 475,000 | 6.04 % |
| 2 | Esa Korkeela | 399,600 | 5.09 % |
| 3 | Keva | 388,000 | 4.94 % |
| 4 | Risto Kivi | 375,300 | 4.78 % |
| 5 | Keskinäinen Eläkevakuutusyhtiö Ilmarinen | 311,000 | 3.96 % |
| 6 | Markku Kalevo | 296,900 | 3.78 % |
| 7 | Antti Korkeela | 289,842 | 3.69 % |
| 8 | Sijoitusrahasto Danske Invest Suomi Yhteisöosake | 268,268 | 3.41 % |
| 9 | Nordea Fennia Fund | 244,258 | 3.11 % |
| 10 | Consti Yhtiöt Oyj | 243,500 | 3.10 % |
| Ten largest owners, total | | 3,291,668 | 41.89 % |
| Nominee registered | | 1,098,690 | 13.98 % |
| Others | | 3,467,909 | 44.13 % |
| Total | | 7,858,267 | 100.00 % |
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CONSTI
| QUARTERLY INFORMATION (EUR 1,000) | Q2/16 | Q1/16 | Q4/15 | Q3/15 | Q2/15 | Q1/15 | Q4/14 | Q3/14 |
|---|---|---|---|---|---|---|---|---|
| Net sales | 64,813 | 51,367 | 74,939 | 70,361 | 63,357 | 47,494 | 69,854 | 64,345 |
| Other operating income | 115 | 183 | 301 | 151 | 167 | 179 | 181 | 100 |
| Change in inventories of finished goods and work in progress | 0 | 0 | 0 | 0 | 0 | 0 | 38 | 0 |
| Materials and services | -44,481 | -35,163 | -51,222 | -50,920 | -43,641 | -32,289 | -47,969 | -45,293 |
| Employee benefit expenses | -13,457 | -12,064 | -14,966 | -12,273 | -12,914 | -11,421 | -14,141 | -11,391 |
| Other operating expenses | -3,922 | -3,686 | -5,559 | -3,721 | -4,139 | -3,377 | -4,291 | -3,947 |
| Adjusted EBITDA | 3,069 | 660 | 5,074 | 3,788 | 2,870 | 881 | 3,704 | 3,814 |
| Adjusted EBITDA margin, % | 4.7 % | 1.3 % | 6.8 % | 5.4 % | 4.5 % | 1.9 % | 5.3 % | 5.9 % |
| EBITDA | 3,069 | 637 | 3,493 | 3,598 | 2,830 | 586 | 3,672 | 3,814 |
| EBITDA margin, % | 4.7 % | 1.2 % | 4.7 % | 5.1 % | 4.5 % | 1.2 % | 5.3 % | 5.9 % |
| Depreciation | -454 | -446 | -441 | -632 | -506 | -515 | -578 | -510 |
| Adjusted operating profit (EBIT) | 2,614 | 214 | 4,633 | 3,156 | 2,364 | 366 | 3,126 | 3,304 |
| Adjusted operating profit (EBIT) margin, % | 4.0 % | 0.4 % | 6.2 % | 4.5 % | 3.7 % | 0.8 % | 4.5 % | 5.1 % |
| Operating profit (EBIT) | 2,614 | 191 | 3,052 | 2,966 | 2,324 | 71 | 3,094 | 3,304 |
| Operating profit margin, % | 4.0 % | 0.4 % | 4.1 % | 4.2 % | 3.7 % | 0.1 % | 4.4 % | 5.1 % |
| Total financial income and expenses | -233 | -288 | -281 | -1,465 | -1,261 | -1,353 | -1,342 | -1,316 |
| Profit before taxes (EBT) | 2,381 | -97 | 2,771 | 1,501 | 1,063 | -1,282 | 1,752 | 1,988 |
| Total taxes | -503 | 19 | -568 | -256 | -217 | 246 | -449 | -400 |
| Profit for the period | 1,878 | -77 | 2,203 | 1,245 | 846 | -1,036 | 1,303 | 1,588 |
| Balance sheet total | 91,815 | 87,229 | 90,692 | 88,494 | 95,252 | 93,981 | 95,861 | 97,682 |
| Net interest-bearing debt | 17,780 | 15,014 | 17,407 | 19,441 | 38,514 | 43,307 | 44,236 | 49,142 |
| Equity ratio, % | 31.5 % | 33.4 % | 31.4 % | 30.6 % | 1.8 % | -0.7 % | 0.6 % | -0.7 % |
| Gearing, % | 76.1 % | 61.4 % | 70.9 % | 88.6 % | 2811.2 % | neg. opo | 9513.1 % | neg. opo |
| Order backlog | 212,590 | 191,725 | 181,301 | 172,299 | 199,833 | 179,866 | 163,447 | 169,607 |
| Order intake | 75,554 | 51,156 | 63,639 | 28,502 | 74,534 | 46,829 | 52,320 | 49,429 |
| Average number of personnel | 940 | 896 | 900 | 947 | 936 | 858 | 872 | 863 |
| Number of personnel at period end | 990 | 904 | 890 | 928 | 981 | 864 | 853 | 867 |
| Earnings per share, undiluted (EUR) | 0.25 | -0.01 | 0.29 | 0.25 | 0.18 | -0.26 | 0.32 | 0.38 |
| Number of outstanding shares, end of period | 7,614,767 | 7,614,767 | 7,614,767 | 7,568,800 | 5,007,400 | 4,025,000 | 4,025,000 | 4,153,300 |
| Average number of shares | 7,614,767 | 7,614,767 | 7,573,796 | 5,033,320 | 4,651,889 | 4,025,000 | 4,032,062 | 4,153,300 |
Events after the reporting period
No significant events have occurred after the end of the reporting period.
In Helsinki, August 16th 2016
Consti Group Plc's Board of Directors
H1 | 21
CONSTI
Press conference
A press conference for analysts, portfolio managers and media will be arranged on Wednesday August 17th 2016 at 10:00 at Scandic Hotel Simonkenttä's Tapiola-cabinet at Simonkatu 9, Helsinki. The conference is hosted by CEO Marko Holopainen and CFO Esa Korkeela.
Financial communication in 2016
Consti Group Plc shall publish one more interim report during 2016:
- Interim report 1-9/2016 published 10 November 2016
Distribution
Nasdaq Helsinki
Key media
www.consti.fi
This communication includes future-oriented statements that are based on Consti management's current assumptions and issues it is aware of as well as its existing decisions and plans. Although the management believes that the future expectations are well-founded, there is no certainty that these expectations will prove to be correct. Thus the results may significantly deviate from the assumptions included in the future-oriented statements as a result of issues such as changes in the economy, markets competitive conditions, legislation and regulations.
Further information:
Marko Holopainen, CEO +358 400 458 158
Esa Korkeela, CFO +358 40 730 8568
H1 | 22