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Consti Oyj — Interim / Quarterly Report 2016
Feb 16, 2017
3306_rns_2017-02-16_44f0858c-3b25-408b-9567-00dad8ca5518.pdf
Interim / Quarterly Report
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CONSTI
CONSTI'S FINANCIAL STATEMENTS BULLETIN JANUARY – DECEMBER 2016
PROFITABLE GROWTH CONTINUED IN 2016
10–12/2016 highlights (comparison figures in parenthesis 10–12/2015):
- Net sales EUR 74.8 (74.9) million; change -0.2 %
- EBITDA EUR 4.9 (3.5) million and EBITDA margin 6.5 % (4.7 %)
- Adjusted EBITDA EUR 4.9 (5.1) million and adjusted EBITDA margin 6.5 % (6.8 %)
- Operating profit (EBIT) EUR 4.4 (3.1) million and EBIT margin 5.9 % (4.1 %)
- Adjusted EBIT EUR 4.4 (4.6) million and adjusted EBIT margin 5.9 % (6.2 %)
- Order backlog EUR 190.8 (181.3) million
- Free cash flow EUR 0.5 (1.8) million
- Earnings per share EUR 0.44 (0.29)
1–12/2016 highlights (comparison figures in parenthesis 1–12/2015):
- Net sales EUR 261.6 (256.2) million; growth 2.1 %
- EBITDA EUR 13.1 (10.5) million and EBITDA margin 5.0 % (4.1 %)
- Adjusted EBITDA EUR 13.1 (12.6) million and adjusted EBITDA margin 5.0 % (4.9 %)
- Operating profit (EBIT) EUR 11.0 (8.4) million and EBIT margin 4.2 % (3.3 %)
- Adjusted EBIT EUR 11.0 (10.5) million and adjusted EBIT margin 4.2 % (4.1 %)
- Free cash flow EUR 10.9 (8.9) million
- Earnings per share EUR 1.05 (0.61)
- The Board of Directors proposes a dividend of EUR 0.54 (0.39) per share
Guidance on the Group outlook for 2017:
The Company estimates that its total annual net sales for 2017 will grow compared to 2016.
| KEY FIGURES (EUR 1,000) | 10-12/2016 | 10-12/2015 | Change % | 1-12/2016 | 1-12/2015 | Change % |
|---|---|---|---|---|---|---|
| Net sales | 74,823 | 74,939 | -0.2 % | 261,558 | 256,151 | 2.1 % |
| Adjusted EBITDA* | 4,892 | 5,074 | -3.6 % | 13,142 | 12,613 | 4.2 % |
| Adjusted EBITDA margin, % | 6.5 % | 6.8 % | 5.0 % | 4.9 % | ||
| EBITDA | 4,892 | 3,493 | 40.1 % | 13,120 | 10,507 | 24.9 % |
| EBITDA margin, % | 6.5 % | 4.7 % | 5.0 % | 4.1 % | ||
| Adjusted EBIT* | 4,447 | 4,633 | -4.0 % | 11,004 | 10,520 | 4.6 % |
| Adjusted EBIT margin, % | 5.9 % | 6.2 % | 4.2 % | 4.1 % | ||
| Operating profit (EBIT) | 4,447 | 3,052 | 45.7 % | 10,982 | 8,414 | 30.5 % |
| Operating profit (EBIT) margin, % | 5.9 % | 4.1 % | 4.2 % | 3.3 % | ||
| Profit for the period | 3,385 | 2,203 | 53.7 % | 7,978 | 3,260 | 144.7 % |
| Order backlog | 190,806 | 181,301 | 5.2 % | |||
| Free cash flow | 507 | 1,750 | -71.0 % | 10,865 | 8,910 | 21.9 % |
| Cash conversion, % | 10.4 % | 50.1 % | 82.8 % | 84.8 % | ||
| Net interest-bearing debt | 12,097 | 17,407 | -30.5 % | |||
| Gearing, % | 40.8 % | 70.9 % | ||||
| Number of personnel at period end | 935 | 890 | 5.1 % | |||
| Earnings per share, undiluted (EUR) | 0.44 | 0.29 | 52.8 % | 1.05 | 0.61 | 71.3 % |
- 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 Q1 2016, 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
Profitable growth continued in 2016
"2016 progressed nearly as expected at Consti. Our entire year's net sales was 261.6 million euro, which is 2.1 percent more than the previous year. Our comparable EBIT grew to 11.0 million euro which is 4.2 percent of net sales, when in the previous year it was 10.5 million euro and 4.1 percent of net sales. Order intake during the year was 4.5 percent more than in the previous year, and at the end of the year our order backlog was 190.8 million euro.
The slower than anticipated net sales growth was mainly due to our net sales cumulating from relatively small projects, the competition for skilled personnel caused by the active new construction market, and the slow start of large projects. Although the growth of our net sales was slightly slower than we anticipated, 2016 was Consti's best year to date by many measures. Our net sales, result and order backlog were all better than ever. The strong development of our order backlog also warrants positive expectations for 2017.
Strong growth in new construction affected renovation
The past year was marked by the strong increase in new construction. This had a positive impact on the demand of technical building services, as Consti also operates on the new construction market in this field. However, the effect of new construction shows in building technology instalments with a slight delay, and the major share of new construction sites started in 2016 will have building technology installed during 2017.
In contrast, new construction somewhat decreased interest toward large renovations in business premises. Demand for residential building pipeline renovations and facade renovations, as well as maintenance services and service contracting were highlighted in order intake.
Acquisitions strengthened Service Business
We succeeded in expanding our offering with acquisitions both in the Greater Helsinki area and in Pirkanmaa and we will continue scouting good acquisition targets. All three of the acquisitions we made in 2016 strengthen Consti's Service Business. Our goal to increase the share of our service and maintenance business was accomplished well this year as Service Businesses' share of the entire Group's net sales grew from 12 percent to 15 percent.
Outlook for 2017
Based on our current market and business outlook we believe that the demand for renovations and technical building services will continue to grow steadily next year as well. As new construction stabilises, achieving organic growth will become easier as opportunities for hiring skilled professionals improve," says Consti Group's CEO Marko Holopainen.
Operating environment
The European construction business research group Euroconstruct estimates that the Finnish building market in 2016 grew by approximately 8 percent compared to the previous year. Renovation grew an estimated 1.5 percent and new construction is estimated to have grown as much as 15 percent from the previous year. Consti believes that the strong growth in new construction reduced the amount of large-scale renovations particularly in business premises during 2016.
Although renovation growth slowed down somewhat in 2016, the renovation needs of existing building stock are believed to sustain steady growth into the next decade. Euroconstruct's estimate
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sees Finland's renovation growth in 2017-2019 at approximately two percent per year, while the corresponding time period's average growth estimate for new construction is approximately -1 percent a year. The general economic condition has a clearly smaller impact on renovations and technical building services than on new construction.
In Finland renovation spending has been at least as much as the value of new construction since 2014. Euroconstruct estimates that the total value of Finland's renovation market in 2016 was 12.4 billion euro, which is equivalent to approximately 50 percent of the entire building market. The ageing building stock increases the demand for technical building renovation, such as pipeline renovations and facade renovations. At the moment mainly buildings from the 1960s and an increasing number of buildings from the 1970s are being renovated in Finland. Renovations will start next in the considerably larger building stock of the 1980s.
In addition to ageing, buildings require more renovation, technical building services and building technology maintenance services due to heightened energy efficiency requirements, urbanization, modification of the use of buildings, the development of housing automatisation and the ageing populations' need for barrier-free buildings.
Renovation markets are concentrating increasingly clearly to growth centres. Renovations in areas where population is declining are not always economically viable. In renovation the largest growth in the next 10 years is expected to come from renovation needs of apartment buildings owned by housing corporations in growth centres.
A significant share of the renovation market comes from building technology. The Finnish Association of HPAC Technical Contractors estimates that the Finnish building technology market amounted to a total of approximately five billion euro in 2016. HPAC technology's share of the building technology market is about two thirds. In new construction the share of building technology continues to grow and modern building technology is also being installed increasingly much into buildings being completely renovated. The significance of building technology and automation is continually emphasised as systems develop and the amount of technology increases in buildings. The building technology market is expected to grow faster than the entire renovation market.
The renovation and building technology market is very fragmented in Finland. Large construction companies focus on new construction with larger projects than in renovation. Renovation and building technology markets consist of numerous small, local companies that usually focus on only one segment of renovation or building technology.
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 facade 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 Facades, and Renovation Contracting. All these also contain servicing and maintenance services which is not reported as 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.
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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 Facades) 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. Pirkanmaan JT-Palvelut Oy was acquired in November. The aim is to finish its integration into Consti Business Facades during the first half of 2017.
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
10–12/2016
Consti Group's October-December net sales decreased 0.2 percent and was 74.8 (74.9) million euro. October-December organic growth was -1.5 percent. Technical Building Services sales were 26.5 (30.3) million euro, Renovation Contracting sales were 21.3 (20.7) and Building Facades sales were 29.1 (25.2) million euro.
Net sales grew in Building Facades and Renovation Contracting, but declined in Technical Building Services. Technical Building Services' net sales declined 12.5 percent due to the decrease in business premise services compared to the corresponding period the previous year. Net sales growth remained at a good level in Technical Building Services' Service operations. Renovation Contracting net sales grew 3.1 percent. Growth continued good in the Turku region. Building Facades' net sales grew 15.6 percent. Growth was good particularly in facade business in the Greater Helsinki area.
Operating profit (EBIT) for October-December grew from the previous year and was 4.4 (3.1) million euro. Operating profit from net sales was 5.9 (4.1) percent. The adjusted EBIT before items affecting comparability was 4.4 (4.6) million euro for the fourth quarter. The adjusted EBIT margin before items affecting comparability was 5.9 (6.2) percent. Costs affecting comparability during the comparison period totalled 1.6 million euro relating to planning of structural arrangements, adopting IFRS standards and planning and executing the IPO. 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 Service Business. The comparison period's adjusted EBIT was improved by the significant projects finished during the end of 2015.
The order backlog at the end of the reporting period grew 5.2 percent and was 190.8 (181.3) million euro. The order backlog increased in Technical Building Services by 2.2 percent and in Building Facades by 39.3 percent, and decreased 23.8 percent in Renovation Contracting. Order intake value during October-December grew 3.8 percent. Order intake was increased especially by the deal signed with real estate development company Grand Residence Development Oy
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regarding the complete renovation and use modification of a prime property located on Helsinki's Korkeavuorenkatu. The project is worth nearly 20 million euro and will utilise Consti's expertise in facades, residential renovations and building technology. Order intake increased 90.7 percent in Building Facades, but decreased 6.9 percent in Technical Building Services and 56.0 percent in Renovation Contracting.
1-12/2016
Consti Group's January-December net sales grew 2.1 percent and was 261.6 (256.2) million euro. January-December organic growth was 0.9 percent. Technical Building Service net sales was 103.9 (102.6) million euro, Renovation Contracting net sales was 75.0 (68.7) and Building Facades net sales was 88.6 (89.2) million euro. These figures include Service Business's net sales growth which was 25.7 percent amounting to 40.4 (32.2) million euro.
Net sales grew in both Technical Building Services and Renovation Contracting, but decreased somewhat in Building Facades. Technical Building Services net sales grew 1.3 percent. Technical Building Services' net sales growth was good in service operations. Renovation Contracting net sales grew 9.1 percent. Growth was strong in the Greater Helsinki area and in the Turku region. Building Facades' net sales decreased 0.7 percent. The decline in sales was 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-December grew from the previous year and was 11.0 (8.4) million euro. Operating profit from sales was 4.2 (3.3) percent. Costs affecting comparability during the reporting period totalled 0.02 (2.1) million euro, relating to the IPO. The January-December adjusted EBIT before items affecting comparability was 11.0 (10.5) million euro. The adjusted EBIT margin before items affecting comparability was 4.2 (4.1) percent.
The order backlog at the end of the reporting period grew 5.2 percent compared to the end of the comparison period and was 190.8 million euro. The order intake value during January-December grew 4.5 percent. Orders increased by 18,6 percent in Technical Building Services and 40,1 percent in Building Facades, but decreased 50.1 percent in Renovation Contracting.
| ITEMS AFFECTING COMPARABILITY (EUR 1,000) | 1-12/2016 | 1-12/2015 |
|---|---|---|
| Planning of structural arrangements | -385 | |
| Adoption of IFRS standards | -353 | |
| Planning and execution of IPO | -23 | -1,368 |
| Items affecting comparability, total | -23 | -2,106 |
Investments and business combinations
Investments into intangible and tangible assets in October-December were 0.5 (0.5) million euro, which is 0.7 (0.6) percent of the company's net sales. Investments into tangible and intangible assets in January-December were 1.9 (2.7) million euro, which is 0.7 (1.0) percent of the company's net sales. The largest investments were made into property, plant and equipment which primarily include machinery and equipment purchases.
Investments relating to acquisitions and business combinations in October-December were 0.5 (0.0) million euro. During the reporting period Consti signed deals for acquiring Pirkanmaan JT-Palvelut Oy's share base and Cool Air Service Ky's business. JT-Palvelut was founded in 1989. It
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is a second generation family business that had net sales in 2015 amounting to approximately 1.3 million euro. With the acquisition the entire JT-Palvelut staff become Consti employees. The deal strengthens Consti's facade maintenance service offering in Tampere. Cool Air Service was founded in 2012 and it specialises in cooling equipment instalments and maintenance. It operates in the Pirkanmaa region and strengthens Consti Technical Building Service's service business. The entire staff of the acquired company will move to work for Consti. Also all current customers will be transferred to Consti and existing partnership agreements will continue.
Investments relating to acquisitions and business combinations in January-December amounted to 0.9 (0.0) million euro. Consti signed a deal on acquiring Eleta Talotekniikka in January 2016. Eleta is an Espoo-based company founded in 1987 specialised in building technology. In 2015 Eleta Talotekniikka's net sales were approximately 2 million euro. All Eleta employees transferred to work for Consti. The deal further enhances Consti's strong expertise in technical building services in the Greater Helsinki area and supports the company's drive to increase its maintenance and energy competence. In November 2016 Consti signed deals to acquire the share base of Pirkanmaan JT-Palvelut Oy and the business of Cool Air Service Finland Ky.
Cash flow and financial position
The operating cash flow in October-December before financing items and taxes was 1.0 (2.2) million euro. Free cash flow, i.e. operating cash flow before financing items and taxes less investments in intangible and tangible assets was 0.5 (1.8) million euro. The cash flow ratio in October-December was 10.4 (50.1) percent. Cash flow was positively affected by the improvement of operating result, but increased tied up working capital compared to the corresponding period the previous year weakened cash flow in the fourth.
The January-December operating cash flow before financing items and taxes was 12.8 (11.6) million euro. Free cash flow, i.e. operating cash flow before financing items and taxes less investments in intangible and tangible assets was 10.9 (8.9) million euro. The cash flow ratio in January-December was 82.8 (84.8) 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 December 31st 2016 were 9.3 (4.1) million euro. In addition, the company has undrawn revolving credit facilities amounting to 5,0 million euro. The Group's interest bearing debts were 21.4 (21.5) 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 net interest bearing net debt was 12.1 (17.4) million euro and the gearing ratio 40.8 (70.9) percent.
The balance sheet total on December 31st 2016 was 98.1 (90.7) million euro. At the end of the reporting period tangible assets in the balance sheet were 5.1 (5.4) million euro. Equity ratio was 34.5 (31.4) percent. Rental liabilities associated with off-balance sheet operational leasing agreements totalled 4.4 (4.4) million euro on December 31st 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 was seen especially in 2016.
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| MATURITY DISTRIBUTION OF INTEREST-BEARING DEBT (EUR 1,000) | 2017 | 2018 | 2019 | 2020 | 2021 | 2022- | Total |
|---|---|---|---|---|---|---|---|
| Bank loans | 240 | 240 | 240 | 20,180 | 0 | 0 | 20,900 |
| Finance lease liabilities | 87 | 51 | 48 | 0 | 0 | 0 | 186 |
| Other interest-bearing liabilities | 554 | 414 | 261 | 63 | 0 | 0 | 1,291 |
| Total | 880 | 705 | 549 | 20,243 | 0 | 0 | 22,377 |
Personnel
Consti Group had 935 (890) employees at the end of the reporting period. The average employee count during January-December was 933 (910).
At the end of the reporting period 524 (509) employees worked in Technical Building Services, 163 (164) in Renovation Contracting and 239 (209) in the Building Facades business area. The parent company employed 9 (8) people.
During 2016 personnel development focused on increasing supervisor training and continued training in safety, the technical competence of instalment staff, project management skills and customer relations.
| PERSONNEL BY SEGMENT AT PERIOD END | 12/2016 | 12/2015 |
|---|---|---|
| Technical Building Services | 524 | 509 |
| Renovation Contracting | 163 | 164 |
| Building Facades | 239 | 209 |
| Parent company | 9 | 8 |
| Total Group | 935 | 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
On January 4th 2016 Consti Group Plc announced the acquisition of 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 was approximately 2 million euro in 2015. 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 Greater Helsinki area and supports the company's drive to increase its maintenance and energy competence.
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
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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 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.
Consti Group Plc updated its guidance on net sales with a stock exchange release on October 26th 2016, in which it stated that it estimates net sales to grow compared to 2015. Previously Consti estimated that net sales would grow between 5-10 percent compared to 2015.
Consti Group Plc announced on November 10th 2016 that its Board had decided to set up a share-based incentive plan for key personnel. The aim of the new plan is to merge the objectives of the shareholders and key people in order to increase the value of the Company in the long-term, to engage key people to the Company, and to offer them a competitive reward plan based on earning of the Company's shares.
Consti Group Plc announced on November 25th 2016 the transferring of a total of 6,164 of its own shares related to the purchase of the shares of Pirkanmaan JT-Palvelut Oy to cover part of the purchase price which was paid with Consti's own shares.
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
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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 the 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.
Corporate Governance and Auditors
Consti Group Plc's Board of Directors on December 31st 2016 included Tapio Hakakari (Chairman), Antti Korkeela, Erkki Norvio, Janne Näränen, Niina Rajakoski, Petri Rignell and Pekka Salokangas. 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.
On August 16th 2016 Janne Näränen asked to be relieved of his duties on the Nomination and Compensation Committee. The Board Meeting on August 16th 2016 chose Pekka Salokangas to replace Janne Näränen on the Nomination and Compensation Committee.
On December 31st 2016 the Board members and CEO owned personally or through a holding company a total of 570,405 Consti Group Plc's shares, which amounts to 7.26 percent of the Company's entire share base and votes.
Authorised Public Accounting firm Ernst & Young Ltd has acted as the Auditor of the Company with Mikko Rytilahti, Authorised Public Accountant as the Principal Auditor.
Consti complies with regulations of The Finnish Corporate Governance Code. In insider issues Consti complies with EU Regulation on Market Abuse ((EU) 596/2014, "MAR") and 2- and 3-tier regulation supplementing it, the Finnish Securities Markets Act, the insider guidelines of Nasdaq Helsinki Ltd as well as guidance issued by authorities. Consti Group Plc's Board of Director's report on the Company's corporate governance from 2016 and the remuneration and incentives report from 2016 will be published on Consti Group Plc's website on week 11.
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Shares and share capital
Consti Group Plc's share capital on December 31st 2016 was 80,000 euro and the number of shares 7,858,267. Consti Group Plc held 237,336 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. The Company's shares have no par value. 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 – 31 December 2016 Consti Group Plc's lowest share price was 8.90 euro and the highest 17.48 euro. The share's trade volume weighted average price was 11.90 euro. At the close of the stock day on the last trading day of the reporting period December 30th 2016 was 14.76 euro and the Company's market value was 116.0 million euro.
Related-party transactions
There were no significant related-party transactions during the reporting period.
Outlook for 2017
Renovation is expected to continue growing in 2017. Euroconstruct estimated in its December forecast that renovation in Finland will increase approximately two percent from the previous year. The general economic conditions have a considerably smaller impact on renovation and technical building services than on new construction.
Consti estimates that its total annual net sales for 2017 will grow compared to 2016.
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 is described in detail in note 18 to the financial statements "Financial risk management".
Dividend and dividend policy and the Board's suggestion for profit distribution
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 is 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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Consti Group Plc's distributable funds on December 31st 2016 were 53,689,223 euro, including retained earnings of 26,482,807 euro. The Board proposes to the Annual General Meeting that a dividend of 0.54 (0.39) euro per share be paid for the financial period 1 January – 31 December 2016. The Board of Directors will call the Annual General Meeting of shareholders to convene on Tuesday April 4th 2017.
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CONSTI
SUMMARY OF FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 1.1. - 31.12.2016
Accounting principles
Consti Group Plc's financial statements bulletin has been prepared for the accounting period of 1.1. - 31.12.2016 according to the IAS 34 Interim Financial reporting principles. Consti has abided by the same accounting principles in its interim financial reporting as in its IFRS financial statements 2015. Consti's financial statement 2016 has been audited and an auditor's report has been received on February 15th 2017. All figures in the abridged financial statement 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 interim reports.
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (EUR 1,000) | 10-12/2016 | 10-12/2015 | Change % | 1-12/2016 | 1-12/2015 | Change % |
|---|---|---|---|---|---|---|
| Net sales | 74,823 | 74,939 | -0.2 % | 261,558 | 256,151 | 2.1 % |
| Other operating income | 187 | 301 | -37.8 % | 920 | 798 | 15.3 % |
| Change in inventories of finished goods and work in progress | 0 | 0 | 0 | 0 | ||
| Materials and services | -50,491 | -51,222 | 1.4 % | -179,558 | -178,072 | -0.8 % |
| Employee benefit expenses | -14,682 | -14,966 | 1.9 % | -53,081 | -51,574 | -2.9 % |
| Depreciation | -446 | -441 | -1.0 % | -2,138 | -2,093 | -2.1 % |
| Other operating expenses | -4,945 | -5,559 | 11.1 % | -16,719 | -16,796 | 0.5 % |
| Operating profit (EBIT) | 4,447 | 3,052 | 45.7 % | 10,982 | 8,414 | 30.5 % |
| Total financial income and expenses | -192 | -281 | 31.8 % | -915 | -4,360 | 79.0 % |
| Profit before taxes (EBT) | 4,255 | 2,771 | 53.6 % | 10,067 | 4,054 | 148.3 % |
| Total taxes | -870 | -568 | -53.1 % | -2,089 | -794 | -163.2 % |
| Profit for the period | 3,385 | 2,203 | 53.7 % | 7,978 | 3,260 | 144.7 % |
| Comprehensive income for the period 1) | 3,385 | 2,203 | 53.7 % | 7,978 | 3,260 | 144.7 % |
| Earnings per share attributable to equity holders of parent company | ||||||
| Earnings per share, undiluted (EUR) | 0.44 | 0.29 | 52.8 % | 1.05 | 0.61 | 71.3 % |
| Earnings per share, diluted (EUR) | 0.44 | 0.29 | 52.8 % | 1.05 | 0.61 | 71.3 % |
1) The group has no other comprehensive income items.
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CONSTI
| CONSOLIDATED BALANCE SHEET (EUR 1,000) | 31 Dec 2016 | 31 Dec 2015 | Change % |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Property, plant and equipment | 5,126 | 5,354 | -4.3 % |
| Goodwill | 44,126 | 43,484 | 1.5 % |
| Other intangible assets | 386 | 425 | -9.2 % |
| Available-for-sale financial assets | 8 | 8 | -3.3 % |
| Long-term receivables | 0 | 0 | |
| Deferred tax receivables | 77 | 430 | -82.1 % |
| Total non-current assets | 49,722 | 49,701 | 0.0 % |
| Current assets | |||
| Inventories | 500 | 507 | -1.3 % |
| Trade and other receivables | 38,552 | 36,415 | 5.9 % |
| Cash and cash equivalents | 9,304 | 4,070 | 128.6 % |
| Total current assets | 48,356 | 40,991 | 18.0 % |
| TOTAL ASSETS | 98,078 | 90,692 | 8.1 % |
| EQUITY AND LIABILITIES | |||
| Equity | 29,643 | 24,538 | 20.8 % |
| Non-current liabilities | |||
| Interest-bearing liabilities | 20,805 | 20,864 | -0.3 % |
| Total non-current liabilities | 20,805 | 20,864 | -0.3 % |
| Current liabilities | |||
| Trade and other payables | 45,890 | 43,389 | 5.8 % |
| Interest-bearing liabilities | 597 | 613 | -2.7 % |
| Provisions | 1,144 | 1,288 | -11.2 % |
| Total current liabilities | 47,630 | 45,290 | 5.2 % |
| TOTAL EQUITY AND LIABILITIES | 98,078 | 90,692 | 8.1 % |
Q4 | 13
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 | 7,978 | 7,978 | 7,978 | |||
| Share issue | 0 | 0 | ||||
| Dividend distribution | -2,970 | -2,970 | -2,970 | |||
| Conveyance of own shares | 87 | 10 | 97 | 97 | ||
| Transactions with shareholders, total | 0 | 87 | 10 | -2,970 | -2,873 | -2,873 |
| Equity on 31 December 2016 | 80 | 27,405 | -446 | 2,604 | 29,563 | 29,643 |
| 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 |
Q4 | 14
CONSTI
| CONSOLIDATED STATEMENT OF CASH FLOWS (EUR 1,000) | 10-12/2016 | 10-12/2015 | 1-12/2016 | 1-12/2015 |
|---|---|---|---|---|
| Cash flows from operating activities | ||||
| Operating profit | 4,447 | 3,052 | 10,982 | 8,414 |
| Adjustments: | ||||
| Depreciation | 446 | 441 | 2,138 | 2,093 |
| Other adjustments | -41 | -64 | -161 | -116 |
| Change in working capital | -3,825 | -1,198 | -180 | 1,190 |
| Operating cash flow before financial and tax items | 1,027 | 2,231 | 12,778 | 11,581 |
| Financial items, net | -192 | -280 | -915 | -1,762 |
| Taxes paid | -297 | -53 | -1,208 | -66 |
| Net cash flow from operating activities | 537 | 1,898 | 10,656 | 9,753 |
| Cash flows from investing activities | ||||
| Acquisition of subsidiaries and business operations, net of cash acquired | -473 | 0 | -884 | 0 |
| Investments in tangible and intangible assets | -519 | -481 | -1,913 | -2,671 |
| Proceeds from sale of property, plant and equipment | 22 | 168 | 458 | 1,475 |
| Proceeds from sale of available-for-sale financial assets | 0 | 57 | 5 | 57 |
| Net cash flow from investing activities | -970 | -256 | -2,334 | -1,139 |
| Cash flows from financing activities | ||||
| Purchase of own shares | 0 | 0 | 0 | -151 |
| Share issue | 0 | 0 | 0 | 536 |
| Other changes in equity | 0 | 393 | -2,969 | 392 |
| Change in interest-bearing liabilities | 137 | -24 | -117 | -15,645 |
| Net cash flow from financing activities | 137 | 369 | -3,087 | -14,868 |
| Change in cash and cash equivalents | -296 | 2,011 | 5,235 | -6,254 |
| Cash and cash equivalents at period start | 9,599 | 2,059 | 4,070 | 10,324 |
| Cash and cash equivalents at period end | 9,304 | 4,070 | 9,304 | 4,070 |
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CONSTI
| KEY FIGURES (EUR 1,000) | 12/2016 | 12/2015 |
|---|---|---|
| INCOME STATEMENT | ||
| Net sales | 261,558 | 256,151 |
| Adjusted EBITDA | 13,142 | 12,613 |
| Adjusted EBITDA margin, % | 5.0 % | 4.9 % |
| EBITDA | 13,120 | 10,507 |
| EBITDA margin, % | 5.0 % | 4.1 % |
| Adjusted operating profit (EBIT) | 11,004 | 10,520 |
| Adjusted operating profit (EBIT) margin, % | 4.2 % | 4.1 % |
| Operating profit (EBIT) | 10,982 | 8,414 |
| Operating profit margin, % | 4.2 % | 3.3 % |
| Profit before taxes (EBT) | 10,067 | 4,054 |
| as % of sales | 3.8 % | 1.6 % |
| Profit for the period | 7,978 | 3,260 |
| as % of sales | 3.1 % | 1.3 % |
| OTHER KEY FIGURES | ||
| Balance sheet total | 98,078 | 90,692 |
| Net interest-bearing debt | 12,097 | 17,407 |
| Equity ratio, % | 34.5 % | 31.4 % |
| Gearing, % | 40.8 % | 70.9 % |
| Free cash flow | 10,865 | 8,910 |
| Cash conversion, % | 82.8 % | 84.8 % |
| Order backlog | 190,806 | 181,301 |
| Order intake | 223,055 | 213,504 |
| Average number of personnel | 933 | 910 |
| Number of personnel at period end | 935 | 890 |
| SHARE RELATED KEY FIGURES | ||
| Earnings per share, undiluted (EUR) | 1.05 | 0.61 |
| Earnings per share, diluted (EUR) | 1.05 | 0.61 |
| Shareholders' equity per share (EUR) | 3.89 | 3.22 |
| Number of shares, end of period | 7,858,267 | 7,858,267 |
| Number of outstanding shares, end of period | 7,620,931 | 7,614,767 |
| Average number of shares | 7,615,373 | 5,329,936 |
Q4 | 16
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 |
| 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 Facades. 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) | 10-12/2016 | 10-12/2015 | Change % | 1-12/2016 | 1-12/2015 | Change % |
|---|---|---|---|---|---|---|
| Technical Building Services | 26,497 | 30,298 | -12.5 % | 103,892 | 102,578 | 1.3 % |
| Renovation Contracting | 21,326 | 20,681 | 3.1 % | 74,966 | 68,697 | 9.1 % |
| Building Facades | 29,112 | 25,193 | 15.6 % | 88,615 | 89,221 | -0.7 % |
| Parent company and elimin. | -2,112 | -1,233 | -71.3 % | -5,915 | -4,345 | -36.1 % |
| Total Net sales | 74,823 | 74,939 | -0.2 % | 261,558 | 256,151 | 2.1 % |
| ORDER INTAKE BY SEGMENT (EUR 1,000) | 10-12/2016 | 10-12/2015 | Change % | 1-12/2016 | 1-12/2015 | Change % |
| --- | --- | --- | --- | --- | --- | --- |
| Technical Building Services | 19,869 | 21,350 | -6.9 % | 85,834 | 72,363 | 18.6 % |
| Renovation Contracting | 12,202 | 27,738 | -56.0 % | 40,122 | 80,482 | -50.1 % |
| Building Facades | 34,341 | 18,008 | 90.7 % | 100,517 | 71,744 | 40.1 % |
| Parent company and elimin. | -352 | -3,457 | 89.8 % | -3,418 | -11,085 | 69.2 % |
| Total Order intake | 66,059 | 63,639 | 3.8 % | 223,055 | 213,504 | 4.5 % |
| ORDER BACKLOG BY SEGMENT (EUR 1,000) | 10-12/2016 | 10-12/2015 | Change % | 1-12/2016 | 1-12/2015 | Change % |
| --- | --- | --- | --- | --- | --- | --- |
| Technical Building Services | 70,700 | 69,200 | 2.2 % | 70,700 | 69,200 | 2.2 % |
| Renovation Contracting | 43,515 | 57,100 | -23.8 % | 43,515 | 57,100 | -23.8 % |
| Building Facades | 76,591 | 55,001 | 39.3 % | 76,591 | 55,001 | 39.3 % |
| Total Order backlog | 190,806 | 181,301 | 5.2 % | 190,806 | 181,301 | 5.2 % |
Reconciliation between operating profit (EBIT) reported in accordance to 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 financial report:
Q4 | 18
CONSTI
| 1-12/2016 (EUR 1,000) | IFRS | IAC | Income statement before IAC |
|---|---|---|---|
| Net sales | 261,558 | 261,558 | |
| Other operating income | 920 | 920 | |
| Change in inventories of finished goods and work in progress | 0 | 0 | |
| Materials and services | -179,558 | -179,558 | |
| Employee benefit expenses | -53,081 | -53,081 | |
| Other operating expenses | -16,719 | -23 | -16,697 |
| EBITDA | 13,120 | -23 | 13,142 |
| Depreciation | -2,138 | -2,138 | |
| Operating profit (EBIT) | 10,982 | -23 | 11,004 |
| 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 |
Q4 | 19
CONSTI
Business combinations
Consti made the following acquisitions during the January-December 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 | 2.0 |
| Building facades service, Tampere | Finland | Share deal | November | 100 % | 10 | 1.3 |
| Service and maintenance of cooling equipment, Tampere | Finland | Asset deal | November | 100 % | 2 | 0.2 |
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 | 105 |
| Intangible assets | 149 |
| Cash and cash equivalents | 222 |
| Inventories | 67 |
| Trade and other receivables | 429 |
| Available-for-sale financial assets | 5 |
| Total assets | 977 |
| Liabilities | |
| Trade and other payables | 347 |
| Interest-bearing liabilities | 42 |
| Deferred tax liabilities | 28 |
| Total liabilities | 417 |
| Fair value of identified net assets, total | 561 |
| Goodwill arising from acquisitions | 641 |
| Amount of consideration transferred | 1,202 |
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 108 thousand have been recognised as expenses and are included under administrative expenses.
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CONSTI
Largest shareholders
| 10 LARGEST SHAREHOLDERS
31 December 2016 | | Number of shares | % of shares and
voting rights |
| --- | --- | --- | --- |
| 1 | Keskinäinen Eläkevakuutusyhtiö Etera | 474,066 | 6.03 % |
| 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 | Fondita Nordic Micro Cap Placeringsfond | 260,000 | 3.31 % |
| 9 | Consti Yhtiöt Oyj | 237,336 | 3.02 % |
| 10 | Sijoitusrahasto Danske Invest Suomi Yhteisöosake | 234,246 | 2.98 % |
| Ten largest owners, total | | 3,266,290 | 41.57 % |
| Nominee registered | | 1,419,035 | 18.06 % |
| Others | | 3,172,942 | 40.38 % |
| Total | | 7,858,267 | 100.00 % |
Q4 | 21
CONSTI
| QUARTERLY INFORMATION (EUR 1.000) | Q4/16 | Q3/16 | Q2/16 | Q1/16 | Q4/15 | Q3/15 | Q2/15 | Q1/15 |
|---|---|---|---|---|---|---|---|---|
| Net sales | 74,823 | 70,554 | 64,813 | 51,367 | 74,939 | 70,361 | 63,357 | 47,494 |
| Other operating income | 187 | 435 | 115 | 183 | 301 | 151 | 167 | 179 |
| Change in inventories of finished goods and work in progress | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Materials and services | -50,491 | -49,423 | -44,481 | -35,163 | -51,222 | -50,920 | -43,641 | -32,289 |
| Employee benefit expenses | -14,682 | -12,878 | -13,457 | -12,064 | -14,966 | -12,273 | -12,914 | -11,421 |
| Other operating expenses | -4,945 | -4,167 | -3,922 | -3,686 | -5,559 | -3,721 | -4,139 | -3,377 |
| Adjusted EBITDA | 4,892 | 4,521 | 3,069 | 660 | 5,074 | 3,788 | 2,870 | 881 |
| Adjusted EBITDA margin, % | 6.5 % | 6.4 % | 4.7 % | 1.3 % | 6.8 % | 5.4 % | 4.5 % | 1.9 % |
| EBITDA | 4,892 | 4,521 | 3,069 | 637 | 3,493 | 3,598 | 2,830 | 586 |
| EBITDA margin, % | 6.5 % | 6.4 % | 4.7 % | 1.2 % | 4.7 % | 5.1 % | 4.5 % | 1.2 % |
| Depreciation | -446 | -792 | -454 | -446 | -441 | -632 | -506 | -515 |
| Adjusted operating profit (EBIT) | 4,447 | 3,729 | 2,614 | 214 | 4,633 | 3,156 | 2,364 | 366 |
| Adjusted operating profit (EBIT) margin, % | 5.9 % | 5.3 % | 4.0 % | 0.4 % | 6.2 % | 4.5 % | 3.7 % | 0.8 % |
| Operating profit (EBIT) | 4,447 | 3,729 | 2,614 | 191 | 3,052 | 2,966 | 2,324 | 71 |
| Operating profit margin, % | 5.9 % | 5.3 % | 4.0 % | 0.4 % | 4.1 % | 4.2 % | 3.7 % | 0.1 % |
| Total financial income and expenses | -192 | -202 | -233 | -288 | -281 | -1,465 | -1,261 | -1,353 |
| Profit before taxes (EBT) | 4,255 | 3,527 | 2,381 | -97 | 2,771 | 1,501 | 1,063 | -1,282 |
| Total taxes | -870 | -736 | -503 | 19 | -568 | -256 | -217 | 246 |
| Profit for the period | 3,385 | 2,791 | 1,878 | -77 | 2,203 | 1,245 | 846 | -1,036 |
| Balance sheet total | 98,078 | 97,132 | 91,815 | 87,229 | 90,692 | 88,494 | 95,252 | 93,981 |
| Net interest-bearing debt | 12,097 | 11,667 | 17,780 | 15,014 | 17,407 | 19,441 | 38,514 | 43,307 |
| Equity ratio, % | 34.5 % | 32.5 % | 31.5 % | 33.4 % | 31.4 % | 30.6 % | 1.8 % | -0.7 % |
| Gearing, % | 40.8 % | 44.6 % | 76.1 % | 61.4 % | 70.9 % | 88.6 % | 2811.2 % | neg. opo |
| Order backlog | 190,806 | 185,614 | 212,590 | 191,725 | 181,301 | 172,299 | 199,833 | 179,866 |
| Order intake | 66,059 | 30,285 | 75,554 | 51,156 | 63,639 | 28,502 | 74,534 | 46,829 |
| Average number of personnel | 941 | 956 | 940 | 896 | 900 | 947 | 936 | 858 |
| Number of personnel at period end | 935 | 931 | 990 | 904 | 890 | 928 | 981 | 864 |
| Earnings per share, undiluted (EUR) | 0.44 | 0.37 | 0.25 | -0.01 | 0.29 | 0.25 | 0.18 | -0.26 |
| Number of outstanding shares, end of period | 7,620,931 | 7,614,767 | 7,614,767 | 7,614,767 | 7,614,767 | 7,568,800 | 5,007,400 | 4,025,000 |
| Average number of shares | 7,617,179 | 7,614,767 | 7,614,767 | 7,614,767 | 7,573,796 | 5,033,320 | 4,651,889 | 4,025,000 |
Events after the reporting period
Consti Group Plc announced on January 31st 2017 the transferring of a total of 28,928 of its own shares related to the purchase of the shares of Oulun Talosaneeraus Oy to cover part of the purchase price which was paid with Consti's own shares. Oulun Talosaneeraus Oy operates in the Oulu area, where it has gained a strong foothold during its ten years in business. The company focuses on pipeline renovations and in 2016 its net sales were approximately 8 million euro. The company employs nearly 30 professionals in its field. The entire staff of Oulun Talosaneeraus will move to work for Consti. Also all current customers will be transferred to Consti and existing partnership agreements will continue. The deal strengthens Consti's position as a noteworthy renovation provider in the Oulu region.
In Helsinki, February 15th 2017
Consti Group Plc's Board of Directors
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CONSTI
Press conference
A press conference for analysts, investors and media will be arranged on Thursday February 16th 2017 at 10.00 a.m. at Hotel Glo Kluuvi, at Kluuvikatu 4, 2nd floor, Helsinki. The conference is hosted by CEO Marko Holopainen and CFO Esa Korkeela.
Financial communication in 2017
Consti will publish its Financial Statements, Board of Directors' Report, Auditors' Report, and Corporate Governance Statement on the company website during week 11/2017.
Consti Group Plc's Annual General Meeting shall be arranged on Tuesday April 4th 2017 in Helsinki. The complete invitation to the Annual General Meeting, including the Board of Director's proposals to the Meeting, will be published as a separate Stock Exchange release.
Consti Group Plc shall publish three interim reports during 2017:
- Interim report 1-3/2017 published May 4th 2017
- Half-year financial report 1-6/2017 published August 10th 2017
- Interim report 1-9/2017 published November 9th 2017
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
Q4 | 23