Quarterly Report • Nov 8, 2018
Quarterly Report
Open in ViewerOpens in native device viewer
| Amounts in MNOK (except EPS, shares and percentage) | Q3 2018 | Q3 2017 | YTD 2018 | YTD 2017 | FY 2017 |
|---|---|---|---|---|---|
| FINANCIAL | |||||
| Net operating revenues | 675.5 | 608.8 | 2 422.1 | 2 147.4 | 2 977.6 |
| Growth (%) | 10.9% | 9.8% | 12.8% | 11.9% | 14.3% |
| EBITDA | 18.2 | 22.6 | 127.9 | 155.4 | 164.7 |
| EBITDA margin (%) | 2.7% | 3.7% | 5.3% | 7.2% | 5.5% |
| EBIT | 4.5 | 10.5 | 89.5 | 120.7 | 118.0 |
| EBIT margin (%) | 0.7% | 1.7% | 3.7% | 5.6% | 4.0% |
| Basic earnings per share (NOK) | (0.02) | 0.29 | 2.29 | 3.46 | 3.01 |
| Average number of shares | 26 970 394 | 26 281 729 | 26 970 254 | 26 255 365 | 26 407 850 |
| Net interest bearing debt | 313.3 | 180.3 | 313.3 | 180.3 | 134.5 |
| Cash and cash equivalents | 120.9 | 156.0 | 120.9 | 156.0 | 154.3 |
| OPERATIONAL | |||||
| Order intake | 879.6 | 795.0 | 3 111.7 | 2 735.6 | 3 762.5 |
| Order backlog | 2 364.5 | 2 107.9 | 2 364.5 | 2 107.9 | 2 147.7 |
| Billing ratio (%) | 67.3% | 66.6% | 70.1% | 68.3% | 68.4% |
| Employees | 2 875 | 2 845 | 2 875 | 2 845 | 2 851 |
Refer to page 23 for definitions of underlying financial performance and alternative performance measures.
Multiconsult had a weak third quarter EBIT of NOK 4.5 million. Earnings were impacted by low project activity in LINK arkitektur and International segments. Net operating revenues grew by 10.9% to NOK 675.5 million in the quarter and by 12.8% to NOK 2 422.1 million year to date, mainly driven by the impact of acquisitions. Year to date EBIT was NOK 89.5 million reflecting a 3.7% margin. Profitability improvement remains the number one priority and intensified measures are being implemented across the group.
(Figures in brackets = same period prior year or relevant balance sheet date 2018).
Hjellnes group Balance Sheet and employee count were included as of 30 September 2017 with no Income Statement effect in the third quarter 2017.
Net operating revenues increased by 10.9% to NOK 675.5 million (NOK 608.8 million) compared to the same quarter last year. The increase in net operating revenues reflects higher production due to acquisition of the Hjellnes group. The billing ratio in the quarter increased to 67.3% (66.6%). Net project write-downs of NOK 7.3 million (NOK 3.7 million) impacted net operating revenues negatively, however still reflecting a relatively normal level. Average group billing rates are at the same level as the same period in 2017.
Operating revenues by business area Q3 Amounts in MNOK ■ Q3 2018 ■ Q3 2017
Operating expenses increased by 12.1% to NOK 657.3 million (NOK 586.2 million). The increase is mainly attributable to higher employee benefit expenses caused by increased manning levels from acquisitions, net recruitment, and ordinary salary adjustment effective from 1 July.
EBITDA was NOK 18.2 million (NOK 22.6 million), a decrease of 19.6% compared to the same period last year. Higher net operating revenues were more than offset by higher operating expenses.
EBIT amounted to NOK 4.5 million (NOK 10.5 million) reflecting a 0.7% EBIT margin.
Results from associated companies and joint ventures amounted to NOK 0.6 million (NOK 0.2 million).
Net financial items were an expense of NOK 4.0 million (NOK 1.1 million).
Group tax rate was for technical reasons in the quarter calculated at 144.1% (19.1%) and reflects group results and the negative results in Multiconsult Asia, where no deferred tax asset is recognised.
Reported loss for the period was NOK 0.5 million (profit of NOK 7.8 million). Earnings per share for the quarter were negative NOK 0.02 (positive NOK 0.29).
Net operating revenues increased by 12.8% to NOK 2 422.1 million (NOK 2 147.4 million) compared to the same period last year. The increase in net operating revenues was mainly driven by higher production due to acquisitions of the Hjellnes group and Iterio AB. The billing ratio increased to 70.1% (68.3%). Average billing rates for the group are slightly higher than previous year. Net project write-downs were at a relatively normal level at NOK 32.9 million, compared to net write-ups of NOK 4.3 million in the previous year. There was a calendar effect of one less working day, reducing net operating revenues by approximately NOK 11.6 million compared to the same period last year.
EBITDA was NOK 127.9 million (NOK 155.4 million), a decrease of 17.7% compared to the same period previous year. Higher net operating revenues were more than offset by the increase in operating expenses in the period. Higher employee benefit expenses reflect increased manning levels related to acquisitions and ordinary salary adjustment. Other operating expenses increased accordingly.
EBIT amounted to NOK 89.5 million (NOK 120.7 million), a decrease of 25.8%. EBIT margin was 3.7% year to date 2018.
Group tax rate was 25.7% (23.2%). The increase is related to negative results in Multiconsult Asia as no deferred tax asset was recognised.
Reported profit for the period was NOK 61.8 million (NOK 90.8 million). Earnings per share were NOK 2.29 (NOK 3.46).
Net cash flow from operating activities was negative NOK 53.3 million (NOK 34 million). The decrease is mainly caused by increased working capital.
Net cash flow used in investment activities was NOK 9.3 million this quarter (NOK 121.5 million), related to ordinary asset replacement. In the same quarter last year, investments include acquisition of the Hjellnes group.
Net cash flow from financing activities amounted to NOK 50.1 million (NOK 88.0 million), mainly due to higher level of interest-bearing debt.
Net cash flow from operating activities was negative NOK 96.8 million (negative NOK 18.9 million). The decrease was mainly related to a higher level of work in progress at period end.
Net cash flow used in investment activities was NOK 36.7 million (NOK 202.0 million), related to ordinary asset replacement. In the same period last year, investments include the acquisition of Iterio AB and the Hjellnes group.
Net cash flow from financing activities was NOK 104.8 million (NOK 196.0 million), reflecting increased interest bearing-debt less ordinary dividend payment.
As of 30 September 2018, total assets amounted to NOK 1 937.9 million (NOK 1 949.0 million at 30 June 2018), and total equity amounted to NOK 592.5 million (NOK 590.9 million at 30 June 2018).
The group held cash and cash equivalents of NOK 120.9 million as of 30 September 2018 (NOK 132.2 million at 30 June 2018). Net interest bearing debt amounted to NOK 313.3 million (NOK 251.9 million at 30 June 2018).
The order backlog at the end of the third quarter 2018 was NOK 2 364.5 million (NOK 2 107.9 million), an increase of 12.2% year on year.
Order intake during the third quarter increased by 10.6% to NOK 879.6 million (NOK 795.0 million) compared to the same quarter previous year. All business areas experienced an increase except Buildings & Properties, which had solid sales, but at a slightly lower level than same quarter last year. Transportation and Renewable Energy had the largest contributions to the increase. Many small and midsize contracts have been awarded in the period and the project tender pipeline remains strong, especially within Transportation.
Among important new contracts this quarter were E6 Ranheim – Værnes for Nye veier and Hammerfest hospital for Sykehusbygg HF, in partnership with LINK arkitektur. Important add-ons to existing contracts this quarter were Campus Ås with Statsbygg and Tonstad Wind park with ENGIE in Norway as well as Devoll Hydropower with Devoll in Albania and Jurong Rock Caverns with Tritec in Singapore.
Call-offs on an increasing amount of frame agreements, such as Fornebubanen for Oslo kommune and submarine maintenance facilities with Forsvarsbygg are only included in the order backlog when signed.
In the light of the weak results in 2017, the group launched a comprehensive profitability improvement programme with the ambition of improving the EBIT margin for 2018 to at least 6%. The programme focuses primarily on improving operations in the Greater Oslo Area and Regions Norway with priority on improving sales, billing ratio and project execution. The programme also includes measures to achieve efficiency gains and general cost reductions.
Regions Norway and the Greater Oslo Area continue to achieve improvements in the billing ratio. Earnings in the Greater Oslo Area is negatively impacted by the comprehensive reorganisation effective from March 2018. In addition, there are expenses related to business development activities regarding international renewable energy that represent an investment for future profitable growth. In spite of the visible improvements, Multiconsult will continue the efforts on improving the billing ratio until both segments maintain historically satisfactory levels of above 70%.
Net write-downs reflect a normal level of 1-2% of net operating revenues for Greater Oslo Area, while Regions Norway are at a somewhat higher level. The programme continues to focus on improving project execution until current levels for both segments are maintained at satisfactory levels.
Billing rates show positive development, but intensified efforts are needed to pass on cost increases to customers in order to absorb the full effect of historical salary adjustments.
Important changes have been made, especially in respect of costs to make operations leaner going forward. Management will continue to focus on cost reductions that do not impact market or organisational competitiveness. As a consequence of the weak results in LINK arkitektur and
International segments in the third quarter combined with slower than anticipated improvements in the Greater Oslo Area, group EBIT margin is expected to end at a similar level to last year, thereby not achieving the target of 6%.
So far, improvement work has focused on Regions Norway and the Greater Oslo Area. Multiconsult has intensified the work with the profitability improvement programme, including new, group-wide measures. These include measures to improve sales processes across the group, standardise project portfolio follow-up, increased use of the design centre in Poland, and exploration of flexible manning models.
Further information will be given at the Capital Marked Update 8 November 2018.
Multiconsult's segments are presented as three geographical segments, Greater Oslo Area, Regions Norway, International, and a segment for LINK arkitektur.
The segment offers services in seven business areas and comprises the central area of eastern Norway, with regional offices in Oslo, Fredrikstad and Drammen.
| Amounts in MNOK | Q3 2018 |
Q3 2017 |
YTD 2018 |
YTD 2017 |
|---|---|---|---|---|
| Net op. revenues | 322.2 | 255.6 | 1 124.4 | 914.5 |
| EBITDA | 19.2 | 8.7 | 64.5 | 75.5 |
| EBITDA % | 6.0% | 3.4% | 5.7% | 8.3% |
| EBIT | 14.5 | 5.0 | 52.4 | 64.5 |
| EBIT % | 4.5% | 1.9% | 4.7% | 7.1% |
| Order intake | 418.1 | 345.2 | 1 474.2 | 1 142.9 |
| Order Backlog | 970.1 | 831.6 | 970.1 | 831.6 |
| Billing ratio | 68.0% | 64.5% | 69.8% | 67.2% |
| Employees | 1 154 | 1 187 | 1 154 | 1 187 |
Net operating revenues in the quarter increased by 26.1% to NOK 322.2 million (NOK 255.6 million) compared to the same quarter last year. The increase was mainly driven by the acquisition of the Hjellnes group and a higher billing ratio at 68.0% (64.5%). Billing rates increased in the quarter, but less than expected. With the exception of Renewable Energy, all business areas experienced increased operating revenues compared to the same quarter last year.
EBITDA amounted to NOK 19.2 million (NOK 8.7 million), an increase of 120.7% from last year. Higher net operating revenues were partly offset by increased operating expenses, mainly as a result of the acquisition of the Hjellnes group and ordinary salary adjustment.
EBIT amounted to NOK 14.5 million (NOK 5.0 million) reflecting a 4.5% EBIT margin.
Order intake in the third quarter was NOK 418.1 million (NOK 345.2 million), an increase of 21.1%. In the same quarter last year the backlog of Hjellnes group was included as order intake with a positive impact of NOK 153.4 million. There was strong growth in Renewable Energy and Cities & Society.
Order backlog for the segment at the end of the third quarter 2018 amounted to NOK 970.1 million (NOK 831.6 million), up 16.7% year on year.
Net operating revenues increased by 23.0% to NOK 1 124.4 million (NOK 914.5 million), mainly due to acquisition of the Hjellnes group and higher billing ratio at 69.8% (67.2%). Net write-downs reduced net operating revenues by NOK 19.4 million, while there was net-write ups of NOK 11.3 million in the same period last year. Billing rates increased, but not to the extent that the annual salary adjustment has been absorbed.
EBITDA amounted to NOK 64.5 million (NOK 75.5 million), a decrease of 14.6%. Increased revenue was more than offset by higher employee benefit expenses explained by acquisitions and ordinary salary adjustment. Other operating expenses increased in the period due to increased manning level. Business development costs of approximately NOK 6 million related to the strategic objective for international renewable energy was recorded in operating expenses.
EBIT amounted to NOK 52.4 million (NOK 64.5 million) reflecting a 4.7% EBIT margin.
Order intake year to date amounted to NOK 1 474.2 million (NOK 1 142.9), an increase of 29.0% from last year. In the same period last year the backlog of Hjellnes group was included as order intake with a positive impact of NOK 153.4 million.
The segment offers services in seven business areas and comprises regional offices in Stavanger, Bergen, Trondheim and Tromsø.
| Amounts in MNOK | Q3 2018 |
Q3 2017 |
YTD 2018 |
YTD 2017 |
|---|---|---|---|---|
| Net op. revenues | 223.9 | 215.8 | 798.5 | 765.8 |
| EBITDA | 16.6 | 7.2 | 67.6 | 48.3 |
| EBITDA % | 7.4% | 3.3% | 8.5% | 6.3% |
| EBIT | 10.8 | 0.9 | 50.5 | 30.3 |
| EBIT % | 4.8% | 0.4% | 6.3% | 4.0% |
| Order intake | 257.6 | 152.3 | 950.5 | 707.2 |
| Order Backlog | 502.2 | 422.8 | 502.2 | 422.8 |
| Billing ratio | 68.4% | 66.2% | 70.6% | 67.3% |
| Employees | 833 | 842 | 833 | 842 |
Net operating revenues amounted to NOK 223.9 million (NOK 215.8 million), an increase of 4.0% compared to the same quarter last year. A higher billing ratio at 68.4% (66.2%) increased revenues. Net write-downs amounted to NOK 7.0 million (NOK 3.0 million). There was a marked improvement in billing rates in the quarter. With the exception of Industry, all business areas showed an increase in operating revenues.
EBITDA increased by 130.7% to NOK 16.6 million (NOK 7.2 million). Operating expenses developed in line with manning level and ordinary salary adjustment.
EBIT amounted to NOK 10.8 million (NOK 0.9 million) reflecting a 4.8% EBIT margin.
Order intake in the third quarter was NOK 257.6 million (NOK 152.3 million), representing an increase of 69.1% compared to the same quarter last year. There was an increase in Transportation, Buildings & Properties, and Renewable Energy, while Oil & Gas decreased.
Order backlog for the segment at the end of the third quarter 2018 amounted to NOK 502.2 million (NOK 422.8 million), up 18.8% year on year.
Net operating revenues increased by 4.3% to NOK 798.5 million (NOK 765.8 million). The billing ratio increased to 70.6% (67.3%) and billing rates improved compared to last year, but not to the extent that the effect of salary adjustments has been fully absorbed. Net write-downs in the period of NOK 18.6 million (NOK 8.9 million) partly offset growth in revenues.
EBITDA amounted to NOK 67.6 million (NOK 48.3 million), an increase of 39.9%. Higher revenues were partly offset by increased employee benefit expenses due to ordinary salary adjustments.
EBIT amounted to NOK 50.5 million (NOK 30.3 million) reflecting a 6.3% EBIT margin.
Order intake amounted to NOK 950.5 million (NOK 707.2 million), an increase of 34.4% from last year.
The international segment comprises the subsidiaries Multiconsult UK, Multiconsult Asia, Multiconsult Polska and Iterio AB.
| Amounts in MNOK | Q3 2018 |
Q3 2017 |
YTD 2018 |
YTD 2017 |
|---|---|---|---|---|
| Net op. revenues | 37.5 | 37.8 | 143.6 | 130.6 |
| EBITDA | (4.5) | 1.6 | 7.4 | 18.6 |
| EBITDA % | (12.0%) | 4.3% | 5.2% | 14.2% |
| EBIT | (5.1) | 1.2 | 5.7 | 17.1 |
| EBIT % | (13.6%) | 3.2% | 4.0% | 13.1% |
| Order intake | 68.9 | 105.6 | 169.2 | 331.6 |
| Order Backlog | 332.0 | 347.5 | 332.0 | 347.5 |
| Billing ratio | 66.4% | 70.8% | 71.6% | 72.1% |
| Employees | 269 | 205 | 269 | 205 |
Net operating revenues amounted to NOK 37.5 million (NOK 37.8 million), approximately at the same level as the same quarter last year.
EBITDA was negative NOK 4.5 million (NOK 1.6 million), in the quarter mainly due to increased operating expenses. The positive contribution from Multiconsult Polska and Iterio AB was more than offset by losses in Multiconsult UK and Multiconsult Asia due to low project activity as well as project expenses in the UK.
EBIT amounted to negative NOK 5.1 million (NOK 1.2 million) reflecting a negative 13.6% EBIT margin.
Order intake in the third quarter was NOK 68.9 million (NOK 105.6 million), a decrease of 34.8% compared to the same quarter last year. The main contribution to the order intake came in Transportation projects for Multiconsult Polska and Iterio AB, although at a lower level.
Order backlog at the end of the third quarter amounted to NOK 332.0 million (NOK 347.5 million), down 4.5% year on year.
Net operating revenues amounted to NOK 143.6 million (NOK 130.6 million), an increase of 10.0% compared to the same period last year. The growth in net operating revenues was mainly attributed to the acquired contribution from Iterio AB as well as increased revenues in Multiconsult Polska. Growth was partly offset by lower project activity in Multiconsult Asia.
EBITDA was NOK 7.4 million (NOK 18.6 million) for the period. Solid operations in Multiconsult Polska were more than offset by low project activity in Multiconsult Asia and lower activity and project expenses in Multiconsult UK.
EBIT amounted to NOK 5.7 million (NOK 17.1 million) reflecting a 4.0% EBIT margin.
Order intake amounted to NOK 169.2 million (NOK 331.6 million), a decrease of 96.0% from previous year, reflecting the acquisition of the backlog of NOK 85.4 million from Iterio AB in the first quarter 2017. Year to date 2018 there has been solid contribution from Transportation in Multiconsult Polska and new contribution from Iterio AB.
This segment comprises LINK arkitektur with its 15 offices throughout Scandinavia.
| Amounts in MNOK | Q3 2018 |
Q3 2017 |
YTD 2018 |
YTD 2017 |
|---|---|---|---|---|
| Net op. revenues | 98.2 | 106.0 | 372.6 | 345.2 |
| EBITDA | (7.3) | 5.7 | 12.7 | 15.8 |
| EBITDA % | (7.4%) | 5.4% | 3.4% | 4.6% |
| EBIT | (9.1) | 4.1 | 7.1 | 11.6 |
| EBIT % | (9.3%) | 3.8% | 1.9% | 3.4% |
| Order intake | 135.0 | 191.4 | 512.8 | 549.6 |
| Order Backlog | 532.5 | 506.0 | 532.5 | 506.0 |
| Billing ratio | 67.6% | 70.3% | 72.9% | 71.4% |
| Employees | 487 | 476 | 487 | 476 |
Net operating revenues amounted to NOK 98.2 million (NOK 106.0 million), a decrease of 7.3% compared to the same quarter last year. The decrease was mainly driven by a lower billing ratio of 67.6% (70.3%) as a result of exceptionally high tendering activity in Norway and low project activity in Denmark in the quarter. Average billing rates were at a lower level than last year.
EBITDA amounted to negative NOK 7.3 million (NOK 5.7 million) in the third quarter, mainly due to lower net operating revenues.
EBIT amounted to negative NOK 9.1 million (NOK 4.1 million) reflecting a negative 9.3% EBIT margin.
Order intake in the third quarter was NOK 135.0 million (NOK 191.4 million), a decrease of 29.5%. The majority of the order intake in the quarter came from add-ons to existing contracts in addition to several smaller, but important new contracts. LINK arkitektur played an important role in the successful award to the Multiconsult group for the new Hammerfest hospital.
Order backlog for the segment at the end of the third quarter 2018 amounted to NOK 532.5 million (NOK 506.0 million), an increase of 5.2%.
Net operating revenues amounted to NOK 372.6 million (NOK 345.2 million), an increase of 7.9% compared to the same period last year. Higher production due to net recruitment as well as an improvement in the billing ratio to 72.9% (71.4%) contributed positively to the growth.
EBITDA amounted to NOK 12.7 million (NOK 15.8 million) in the period, a decrease of 19.7%. Improved net operating revenues were more than offset by higher employee benefit expenses as a result of net recruitment. Manning in Denmark is adjusted to align capacity to the current project portfolio. The effect of lower employee benefit expenses is not yet reflected in reported results but will reduce future cost.
EBIT amounted to NOK 7.1 million (NOK 11.6 million) reflecting a 1.9% EBIT margin.
Order intake was NOK 512.8 million (NOK 549.6 million), a decrease of 6.7%.
At 30 September 2018 the group had 2 875 employees. The employee turnover ratio for the group was 9.5% for the period September 2017 to September 2018.
Multiconsult has adopted HSE policies and implemented guidelines to ensure compliance with applicable regulations and continued maintenance and development of its HSE standards. The company's HSE efforts are managed on both central and regional levels.
The recorded sick leave ratio for the Multiconsult group was 3.2% in the third quarter.
A new organisational structure for The Greater Oslo Area was implemented on 1 March 2018. There has been a
comprehensive process to reorganise and integrate more than 1 000 employees in business units from Multiconsult Norge AS, Hjellnes Consult AS, Johs Holt AS, and Analyse & Strategi AS.
On 23 October Multiconsult announced a significant contract award with Oslo City Water and Sewerage Works Agency (Oslo Kommune, vann- og avløpsetaten) for the design project for a new water supply to the city of Oslo. The value of the contract to Multiconsult is estimated to generate in excess of NOK 200 million, in addition to significant options. Work began immediately and the majority of the project is planned to be completed within the first three years.
On 12 October Multiconsult announced a prestigious contract award with General Directorate of National Roads and
Motorways in Poland for design and construction works for A1 Motorway section between Kamiensk and Radomsko in Poland. This is an EPC contract won by a consortium of two of the biggest construction companies in Poland – STRABAG and BUDIMEX. Multiconsult will deliver all engineering services, beginning immediately and completing the majority of work by the end of 2019. The value of the contract is approximately NOK 22 million to Multiconsult.
The overall market outlook continues to show positive development across all business areas.
Buildings & Properties is expected to maintain stable growth, especially within health care, education and commercial buildings, but with some uncertainty in the residential market in certain regions. The outlook for the architecture market is fairly positive in all segments especially within healthcare buildings in Norway. Public sector investment, confirmed by the National Budget, is driving a strong outlook for Transportation within road and rail and several large projects are expected to be assigned in the coming year. The Renewable Energy market in Norway is expected to remain stable, with growth anticipated in the transmission and wind power sectors. International Renewable Energy markets show a strong pipeline, continuing to provide new business opportunities for Multiconsult. Investment in the Industry sector in Norway is expected to increase mainly in refineries, chemical production, and aquaculture. Demand for our services in the Oil & Gas market is expected to improve going forward. Within Water & Environment there is stable demand for water and waste infrastructure projects as well as for soil contamination inspections.
The overall competitive landscape has moved towards more Engineering, Procurement and Construction (EPC) contracts, driving new contract structures for the consulting business. The general trend towards more frame agreements is expected to continue especially within large and complex public projects. Continued strong competition is maintaining significant price pressure on large projects in Norway across all business areas. Market rates have shown some improvement, however the cost level for the Norwegian workforce is creating challenges to profitability for the industry in general. This trend must be broken if long-term profitability ambitions are to be achieved.
Multiconsult's strong market position, flexible business model and wide service offering provides a sound base for profitable growth, both domestic and international. The purpose of, Multiconsult Polska is to provide resources to our Norwegian projects in order to strengthen competitiveness. The top line synergies between Multiconsult and LINK arkitektur are expected to continue to further strengthen the group's value proposition to customers. The integration of the Hjellnes group into the Greater Oslo Area is expected to provide top line synergies in the health care and transportation sectors.
The order backlog is increasing and provides a strong foundation for growth, supported by valuable frame agreements generated from a broad and robust customer base.
The risk of disagreements and legal disputes related to the possible cost of delays and project errors is always present in the consultancy business. Multiconsult has good insurance policies and routines for following up such cases. Further details regarding the insurance coverage are provided in note 19 to the consolidated financial statements for 2017. The largest claim at 30 September 2018 was related to the Prinsensgate 26 project with Stortinget. The legal process is progressing as expected.
Multiconsult has not identified any additional risk exposures beyond the ones described in the 2017 Annual Report. Multiconsult is exposed to a number of risk factors: legal liability, credit risk, currency risk, interest rate risk, liquidity risk, and accounting estimates risk. The Risk and Risk Management section in the 2017 Annual Report contains detailed description and mitigation actions.
Multiconsult ASA has a loan agreement with Nordea Bank for NOK 215.0 million. Interest swaps have been entered into to ensure that approximately 50% of interest cost is at fixed rates. Multiconsult Norge AS has an overdraft facility of NOK 320.0 million with the group's main bank.
The existing loan agreements include a covenant requirement that net interest bearing liabilities (excluding restricted cash) of the group shall not exceed 2.0 times last twelve months EBITDA for the group (NIBD/EBITDA), and an equity ratio of at least 25 per cent, reported quarterly. In the third quarter 2018, as a consequence of the reported EBITDA, Nordea Bank waived the NIBD/12 month trailing EBITDA ratio covenant, all other conditions were unchanged.
Net operating revenues: Operating revenues less sub consultants and disbursements.
EBIT: Earnings before net financial items, results from associates and joint ventures and income tax.
EBIT margin (%): EBIT as a percentage of net operating revenues.
EBITDA: EBIT before depreciation, amortisation and impairment.
EBITDA margin (%): EBITDA as a percentage of net operating revenues.
Operating expenses: Employee benefit expenses plus other operating expenses.
Net interest bearing debt: Non-current and current interest bearing liabilities deducted cash and cash equivalents.
Order intake: Expected operating revenues on new contracts and confirmed changes to existing contracts. Only group external contracts are included.
Order Backlog: Expected remaining operating revenues on new and existing contracts. Only group external contracts are included. Call-offs on frame agreements are included in the order backlog when signed.
Billing ratio (%): Hours recorded on chargeable projects as a percentage of total hours worked (including administrative staff) and employer-paid absence. Billing ratio per segment includes allocated administrative staff.
Employees: Number of employees comprise all staff on payroll including staff on temporarily leave (paid and unpaid), excluding temporary personnel.
This report includes forward-looking statements, which are based on our current expectations and projections about future events. All statements other than statements of historical facts included in this notice, including statements regarding our future financial position, risks and uncertainties related to our business, strategy, capital expenditures, projected costs and our plans and objectives for future operations, including our plans for future costs savings and synergies may be deemed to be forward-looking statements. Words such as "believe," "expect," "anticipate," "may," "assume," "plan," "intend," "will," "should," "estimate," "risk"
and similar expressions or the negatives of these expressions are intended to identify forward-looking statements. By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. You should not place undue reliance on these forward-looking statements. In addition, any forwardlooking statements are made only as of the date of this notice, and we do not intend and do not assume any obligation to update any statements set forth in this report.
Unaudited for the period ended 30 September 2018
| Amounts in TNOK, except EPS | Q3 2018 | Q3 2017 | YTD 2018 | YTD 2017 | FY 2017 |
|---|---|---|---|---|---|
| Operating revenues | 817 119 | 679 152 | 2 867 130 | 2 412 275 | 3 375 399 |
| Expenses for sub consultants and disbursements | 141 659 | 70 339 | 445 008 | 264 827 | 397 758 |
| Net operating revenues | 675 460 | 608 813 | 2 422 122 | 2 147 448 | 2 977 642 |
| Employee benefit expenses 1) | 523 994 | 465 921 | 1 847 927 | 1 605 781 | 2 265 379 |
| Other operating expenses 1) | 133 286 | 120 313 | 446 294 | 386 289 | 547 519 |
| Operating expenses excl. depreciation and amortisation | 657 281 | 586 234 | 2 294 221 | 1 992 071 | 2 812 898 |
| Operating profit before depreciation and amortisation | |||||
| (EBITDA) | 18 179 | 22 579 | 127 901 | 155 377 | 164 744 |
| Depreciation and amortisation | 13 656 | 12 076 | 38 375 | 34 677 | 46 791 |
| Operating profit (EBIT) | 4 523 | 10 503 | 89 527 | 120 700 | 117 953 |
| Results from associated companies and joint ventures | 642 | 179 | 941 | 778 | 1 157 |
| Financial income | 997 | 12 | 4 777 | 1 932 | 2 956 |
| Financial expenses | 4 983 | 1 111 | 12 078 | 5 189 | 14 375 |
| Net financial items | (3 986) | (1 099) | (7 302) | (3 257) | (11 419) |
| Profit before tax | 1 179 | 9 582 | 83 166 | 118 220 | 107 691 |
| Income tax expense | 1 700 | 1 832 | 21 377 | 27 435 | 28 157 |
| Profit for the period | (520) | 7 751 | 61 790 | 90 785 | 79 534 |
| Attributable to: | |||||
| Owners of Multiconsult ASA | (520) | 7 751 | 61 790 | 90 785 | 79 534 |
| Earnings per share | |||||
| Basic and diluted (NOK) | (0.02) | 0.29 | 2.29 | 3.46 | 3.01 |
1) Restated 2017 figures, see note 2.
| Amounts in TNOK | Q3 2018 | Q3 2017 | YTD 2018 | YTD 2017 | FY 2017 |
|---|---|---|---|---|---|
| Profit for the period | (520) | 7 751 | 61 790 | 90 785 | 79 534 |
| Other comprehensive income | |||||
| Remeasurment of defined benefit obligations | - | - | - | - | (1 452) |
| Tax | - | - | - | - | 334 |
| Total items that will not be reclassified to profit or loss | - | - | (1 118) | ||
| Currency translation differences | 2 055 | (811) | (10 829) | 3 854 | 13 802 |
| Total items that may be reclassified subsequently to profit or loss | 2 055 | (811) | (10 829) | 3 854 | 13 802 |
| Total other comprehensive income for the period | 2 055 | (811) | (10 829) | 3 854 | 12 684 |
| Total comprehensive income for the period | 1 534 | 6 940 | 50 960 | 94 369 | 92 218 |
| Attributable to: Owners of Multiconsult ASA |
1 534 | 6 940 | 50 960 | 94 639 | 92 218 |
| Amounts in TNOK | At 30 September 2018 | At 30 June 2018 | At 31 December 2017 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Deferred tax assets | 22 392 | 21 356 | 25 610 |
| Intangible assets | 26 287 | 26 451 | 19 704 |
| Goodwill | 445 524 | 445 180 | 449 942 |
| Property, plant and equipment | 95 067 | 95 881 | 99 947 |
| Associated companies and joint ventures | 11 746 | 11 108 | 10 809 |
| Non-current receivables and shares | 6 380 | 7 124 | 6 995 |
| Assets for reimbursement of provisions | 19 500 | 22 820 | 22 000 |
| Total non-current assets | 626 896 | 629 919 | 635 007 |
| Current assets | |||
| Trade receivables | 582 356 | 604 031 | 588 377 |
| Work in progress | 545 708 | 516 743 | 368 447 |
| Other receivables and prepaid costs | 62 094 | 66 066 | 65 012 |
| Cash and cash equivalents | 120 888 | 132 227 | 154 291 |
| Total current assets | 1 311 047 | 1 319 066 | 1 176 126 |
| Total assets | 1 937 943 | 1 948 986 | 1 811 133 |
| EQUITY AND LIABILITIES | |||
| Shareholders' equity | |||
| Total paid in equity | 91 242 | 91 242 | 91 242 |
| Other equity | 501 216 | 499 683 | 490 830 |
| Total shareholders' equity | 592 459 | 590 925 | 582 072 |
| Non-current liabilities | |||
| Retirement benefit obligations | 7 710 | 5 997 | 6 667 |
| Deferred tax | 12 695 | 12 551 | 13 835 |
| Provisions | 28 255 | 32 572 | 29 937 |
| Non-current interest bearing liabilities 2) | 4 381 | 196 905 | 195 203 |
| Total non-current liabilities | 53 042 | 248 026 | 245 642 |
| Current liabilities | |||
| Trade payables 1) | 214 432 | 150 003 | 140 186 |
| Prepayments 1) | 75 464 | 93 892 | 97 871 |
| Current tax liabilities | 25 450 | 24 364 | 14 610 |
| VAT and other public taxes and duties payables | 226 012 | 269 349 | 296 266 |
| Current interest bearing liabilities 2) | 429 814 | 187 179 | 93 573 |
| Other current liabilities 1) | 321 272 | 385 249 | 340 913 |
| Total current liabilities | 1 292 443 | 1 110 035 | 983 420 |
| Total liabilities | 1 345 485 | 1 358 061 | 1 229 062 |
| Total equity and liabilities | 1 937 943 | 1 948 986 | 1 811 133 |
1) Restated 2017 figures, see note 3 section IFRS 15 Revenue from contracts with customers.
2) Loan agreement with Nordea are in third quarter 2018 classified as current interest bearing liabilities, see note 2.
| Total | ||||||||
|---|---|---|---|---|---|---|---|---|
| Amounts in TNOK | Share capital |
Own shares |
Share premium |
paid-in capital |
Retained earnings |
Pension | Translation differences |
Total equity |
| 31 December 2016 | 13 125 | (1) | 13 320 | 26 443 | 683 309 | (201 224) | (1 008) | 507 520 |
| Dividend | - | - | - | - | (78 715) | - | - | (78 715) |
| Share Issue | 361 | - | 64 438 | 64 799 | - | - | - | 64 799 |
| Treasury shares | - | (11) | - | (11) | (1 893) | - | - | (1 904) |
| Employee share purchase programme | - | - | - | - | (124) | - | - | (124) |
| Comprehensive income | - | - | - | - | 90 785 | - | 3 854 | 94 639 |
| 30 September 2017 | 13 486 | (12) | 77 758 | 91 231 | 693 363 | (201 224) | 2 846 | 586 216 |
| 31 December 2016 | 13 125 | (1) | 13 320 | 26 443 | 683 309 | (201 224) | (1 008) | 507 520 |
| Dividend | - | - | - | - | (78 715) | - | - | (78 715) |
| Share Issue | 361 | - | 64 438 | 64 799 | - | - | - | 64 799 |
| Treasury shares | - | 1 | - | 1 | 204 | - | - | 205 |
| Employee share purchase programme | - | - | - | - | (3 955) | - | - | (3 955) |
| Comprehensive income | - | - | - | - | 79 534 | (1 118) | 13 802 | 92 218 |
| 31 December 2017 | 13 486 | - | 77 758 | 91 242 | 680 378 | (202 343) | 12 794 | 582 072 |
| Dividend | - | - | - | - | (40 456) | - | - | (40 456) |
| Share Issue | - | - | - | - | - | - | - | - |
| Treasury shares | - | - | - | - | 4 | - | - | 4 |
| Employee share purchase programme | - | - | - | - | (121) | - | - | (121) |
| Comprehensive income | - | - | - | - | 61 790 | - | (10 829) | 50 960 |
| 30 September 2018 | 13 486 | - | 77 758 | 91 242 | 701 595 | (202 344) | 1 965 | 592 459 |
| Amounts in TNOK | Q3 2018 | Q3 2017 | YTD 2018 | YTD 2017 | FY 2017 |
|---|---|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||
| Profit before tax | 1 179 | 9 582 | 83 167 | 118 220 | 107 691 |
| Income taxes paid | (591) | (4 802) | (10 514) | (38 376) | (37 623) |
| Depreciation and amortisation | 13 656 | 12 076 | 38 375 | 34 677 | 46 791 |
| Results from associated companies and joint ventures | (642) | (179) | (941) | (778) | (1 157) |
| Other non-cash profit and loss items | (1 043) | - | (1 043) | - | 2 010 |
| Subtotal operating activities | 12 560 | 16 678 | 109 043 | 113 743 | 117 712 |
| Changes in working capital | (65 848) | 17 283 | (205 809) | (132 650) | (51 756) |
| Net cash flow from operating activities | (53 288) | 33 961 | (96 766) | (18 906) | 65 956 |
| Cash flows from investment activities | |||||
| Net purchase and sale of fixed assets and financial non-current assets | (9 273) | (7 829) | (36 672) | (31 384) | (46 789) |
| Proceeds/payments related to equity accounted investments | - | 339 | - | 339 | 339 |
| Net cash effect of business combinations | - | (114 029) | - | (170 907) | (175 257) |
| Net cash flow used in investment activities | (9 273) | (121 519) | (36 672) | (201 952) | (221 707) |
| Cash flows from financing activities | |||||
| Change in interest-bearing liabilities | 50 112 | 89 565 | 145 419 | 276 899 | 229 306 |
| Paid dividends | - | - | (40 456) | (78 715) | (78 715) |
| Sale treasury shares | - | 455 | 585 | 455 | 11 119 |
| Purchase treasury shares | - | (2 044) | (737) | (2 598) | (35 030) |
| Net cash flow from financing activities | 50 112 | 87 976 | 104 811 | 196 041 | 126 680 |
| Foreign currency effects on cash and cash equivalents | 1 110 | (2 197) | (4 776) | 4 859 | 7 372 |
| Net increase/decrease in cash and cash equivalents | (11 339) | (1 779) | (33 403) | (19 959) | (21 699) |
| Cash and cash equivalents at the beginning of the period | 132 227 | 157 810 | 154 291 | 175 990 | 175 990 |
| Cash and cash equivalents at the end of the period | 120 888 | 156 031 | 120 888 | 156 031 | 154 291 |
Multiconsult ASA (the company) is a Norwegian public limited liability company listed on Oslo Børs. The company and its subsidiaries (together the Multiconsult group/the group) are
The financial statements are presented in NOK, rounded to the nearest thousand, unless otherwise stated. As a result of rounding adjustments, the figures in one or more rows or columns included in the financial statements and notes may not add up to the total of that row or column.
These interim condensed consolidated financial statements for the third quarter of 2018 have been prepared in accordance with IAS 34 as approved by the EU. They have not been audited. They do not include all of the information required for full annual financial statements of the group and should be read in conjunction with the consolidated financial statements for 2017. The accounting policies applied are consistent with those applied among the leading suppliers of consultancy and design services in Norway and the Nordic region. The group has subsidiaries outside the Nordic region in Poland, UK and Singapore.
and described in the consolidated annual financial statements for 2017, which are available upon request from the company's registered office at Nedre Skøyen vei 2, 0276 Oslo and at www. multiconsult.no.
These interim condensed consolidated financial statements for the third quarter of 2018 were approved by the Board of Directors and the CEO on 7 November 2018.
In September 2017 the new ERP-system was implemented. In connection with the implementation, some classifications in the financial statements are changed. Employee benefit expenses and other operating expenses are restated for the comparative periods.
| Amounts in TNOK | Q3 2017 | YTD 2017 | FY 2017 |
|---|---|---|---|
| Employee benefit expenses | 473 840 | 1 631 754 | 2 319 810 |
| Restatement | 7 919 | 25 973 | 54 431 |
| Restated employee benefit expenses | 465 921 | 1 605 781 | 2 265 379 |
| Other operating expenses | 112 394 | 360 316 | 493 088 |
| Restatement | 7 919 | 25 973 | 54 431 |
| Restated other operating expenses | 120 313 | 386 289 | 547 519 |
Multiconsult has a loan agreement with Nordea for NOK 215.0 million. The loan agreement is long-term and will normally be recognised as non-current interest-bearing liabilities, with the exception of instalments due within 12 months, which are recognised as current interest-bearing liabilities. The loan agreement contains covenant requirements as described in the annual report note 2 b). The covenant requires a NIBD/12 month trailing EBITDA ratio above 2.0 reported quarterly. In the third quarter 2018, as a consequence of the low EBITDA, Multiconsult was in breach of the covenant, and the bank waived the NIBD/12 month trailing EBITDA ratio covenant requirement at 30 October 2018, the loan agreement was reclassified as current interestbearing liabilities in accordance with IAS 1. The loan agreement will from 1 November 2018 be classified as non-current interest bearing liabilities.
The group prepares its consolidated annual financial statements in accordance with IFRS as adopted by the EU (International Financial Reporting Standards - IFRS). References to IFRS in these financial statements refer to IFRS as approved by the EU. The accounting policies adopted are consistent with those of the previous financial year.
At the time of approval for issue of these interim condensed consolidated financial statements, some new standards, amendments to standards and interpretations have been published, but are not yet effective and have not been applied in preparing these consolidated financial statements. Those that may be relevant for the group are described in note 2 to the annual consolidated financial statements for 2017
IFRS 15 Revenue from contracts with customers is effective for annual reporting periods beginning from 1 January 2018. Multiconsult has established that the vast majority of contracts in terms of transaction price are time-based, i.e. the company earns revenue per hour worked. There are some contracts which are time-based with a cap, or fixed price, but these are immaterial compared to total revenue. Current revenue recognition is based on work performed, similar to "over-time" revenue recognition in IFRS 15. Multiconsult has evaluated that for some of its services, for example construction management and co-ordination, the customer simultaneously receives and consumes the benefits provided and therefore revenues is recognised over time. Other services are to a large extent tailored to customer requirements and have no alternative use for Multiconsult.
The group's assessment is that implementation of IFRS 15 has no significant effect on revenue recognition for the group. This is primarily due to the fact that the contracts as a main rule establish right to payment for performance to date. The entity's performance does not create an asset with an alternative use to the entity, and in some contracts the customer simultaneously receives and consumes the benefits provided by its performance. Refer to note 2A to the consolidated annual financial statements for 2017 for further information about the company's assessments related to implementation of IFRS 15.
Work in progress (WIP) is related to work performed but not billed at the reporting date. Project liabilities are related to prepayments from customer. Trade payable and Other current liabilities are restated for the comparative periods.
| FY 2017 |
|---|
| 165 534 |
| 25 348 |
| 140 186 |
| 413 436 |
| 72 523 |
| 340 913 |
| 97 871 |
IFRS 16 Leases is a new accounting standard for principles for recognition, measurement, presentation and disclosures of leases and replaces existing IAS 17 and other guidance on lease accounting within IFRS. The new standard was issued by the IASB in January 2016 and its implementation is mandatory with effect from 1 January 2019.
IFRS 16 requires lessees to recognise a right-of-use asset and lease liability based on the discounted payments required under the lease, taking into account the lease term as determined under the new standard. In the income statement rent expense will be replaced with depreciation of the lease assets and interest expenses.
Multiconsult has concluded that the standard will have a material effect on both the income statement and balance sheet for the group. There will be a material impact on reported EBIT, EBITDA and the presentation in the cash flow statement.
According to IFRS 16.49 Multiconsult will present interest expense on the lease liability separately from the depreciation charge for the right-of-use asset.
Multiconsult has identified and evaluated all terms and conditions including critical judgements to understand all the relevant facts and circumstances in the group's lease contracts.
Multiconsult has two class of assets that will be reported, buildings and cars. In accordance with IFRS 16.5, the group has applied the exemption for low-value assets. This has been defined on the basis that the underlying assets, when new, are individually of low value, i.e. office furniture, water dispensers, coffee machines, IT equipment for use by the individual employees, printers and copy machines etc. Multiconsult has also applied the exemption provision to not include contracts with a term of less than 12 months.
The group has applied the modified retrospective method for implementation of IFRS 16 as of 1 January 2019. This method leaves the comparative figures as previously reported.
The preparation of interim condensed consolidated financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing these interim condensed consolidated financial
statements, significant judgements made by management in applying the group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the annual consolidated financial statements for 2017 (see especially note 2).
Refer to note 5 to the consolidated annual financial statements for 2017 for more information on the segments. The group has three geographical reporting segments as well as a segment for LINK arkitektur. Revenues and expenses are
reported in the segment with reference to where the employee is employed. The cost of administrative services, rent of premises, depreciation and so forth is allocated to the segments.
| Amounts in TNOK | Greater Oslo Area |
Regions Norway |
Inter national |
LINK arkitektur |
Not allocated |
Elimi nations |
Total |
|---|---|---|---|---|---|---|---|
| External revenues | 392 072 | 243 073 | 51 854 | 135 075 | (4 956) | - | 817 119 |
| Internal revenues | 5 363 | - | 10 022 | 7 357 | 727 | (23 469) | - |
| Total operating revenues | 397 435 | 243 073 | 61 876 | 142 433 | (4 229) | (23 469) | 817 119 |
| Net operating revenues | 322 159 | 223 932 | 37 461 | 98 207 | (6 298) | - | 675 460 |
| Operating expenses | 302 989 | 207 373 | 41 948 | 105 514 | (544) | - | 657 280 |
| EBITDA | 19 169 | 16 559 | (4 488) | (7 307) | (5 754) | - | 18 180 |
| Depreciation and amortisation | 4 627 | 5 723 | 620 | 1 813 | 872 | - | 13 656 |
| EBIT | 14 542 | 10 836 | (5 108) | (9 119) | (6 627) | - | 4 524 |
| Associates and joint ventures | 655 | - | - | (13) | - | - | 642 |
| Receivables 1) | 538 577 | 321 447 | 104 306 | 202 455 | - | (27 986) 1 138 799 | |
| Number of employees | 1 154 | 833 | 269 | 487 | 132 | - | 2 875 |
1) Receivables includes accounts receivables (before provision for loss) and accrued revenues.
| Greater | Regions | Inter | LINK | Not | Elimi | ||
|---|---|---|---|---|---|---|---|
| Amounts in TNOK | Oslo Area | Norway | national | arkitektur | allocated | nations | Total |
| External revenues | 300 092 | 225 969 | 43 474 | 116 228 | (6 612) | - | 679 152 |
| Internal revenues | 3 439 | - | 6 696 | 6 049 | 1 868 | (18 051) | - |
| Total operating revenues | 303 531 | 225 969 | 50 170 | 122 277 | (4 744) | (18 051) | 679 152 |
| Net operating revenues | 255 583 | 215 814 | 37 804 | 105 994 | (6 383) | - | 608 813 |
| Operating expenses | 246 920 | 208 636 | 36 185 | 100 272 | (5 777) | - | 586 235 |
| EBITDA | 8 664 | 7 179 | 1 620 | 5 723 | (606) | - | 22 579 |
| Depreciation and amortisation | 3 700 | 6 288 | 417 | 1 667 | 5 | - | 12 076 |
| EBIT | 4 964 | 891 | 1 203 | 4 056 | (611) | - | 10 503 |
| Associates and joint ventures | 191 | - | (12) | - | - | - | 179 |
| Receivables 1) | 384 850 | 229 290 | 76 476 | 188 246 | 2 682 | (15 864) | 865 679 |
| Number of employees | 1 187 | 842 | 205 | 476 | 135 | - | 2 845 |
1) Receivables includes accounts receivables (before provision for loss) and accrued revenues.
| Amounts in TNOK | Greater Oslo Area |
Regions Norway |
Inter national |
LINK arkitektur |
Not allocated |
Elimi nations Total |
|---|---|---|---|---|---|---|
| External revenues | 1 351 626 | 859 194 | 186 394 | 471 163 | (1 247) | - 2 867 130 |
| Internal revenues | 19 141 | - | 25 926 | 22 700 | 4 165 | (71 931) - |
| Total operating revenues | 1 370 766 | 859 194 | 212 320 | 493 863 | 2 918 | (71 931) 2 867 130 |
| Net operating revenues | 1 124 366 | 798 459 | 143 609 | 372 575 | (16 886) | - 2 422 123 |
| Operating expenses | 1 059 914 | 730 816 | 136 192 | 359 851 | 7 447 | - 2 294 221 |
| EBITDA | 64 452 | 67 643 | 7 417 | 12 724 | (24 334) | - 127 902 |
| Depreciation and amortisation | 12 004 | 17 166 | 1 740 | 5 587 | 1 879 | - 38 375 |
| EBIT | 52 448 | 50 477 | 5 677 | 7 137 | (26 212) | - 89 528 |
| Associates and joint ventures | 1 044 | - | - | (102) | - 942 |
|
| Receivables 1) | 538 577 | 321 447 | 104 306 | 202 455 | - | (27 986) 1 138 799 |
| Number of employees | 1 154 | 833 | 269 | 487 | 132 | - 2 875 |
1) Receivables includes accounts receivables (before provision for loss) and accrued revenues.
| Amounts in TNOK | Greater Oslo Area |
Regions Norway |
Inter national |
LINK arkitektur |
Not allocated |
Elimi nations |
Total |
|---|---|---|---|---|---|---|---|
| External revenues | 1 077 725 | 807 506 | 134 460 | 403 559 | (10 976) | - | 2 412 274 |
| Internal revenues | 12 014 | - | 29 497 | 14 355 | 3 960 | (59 826) | - |
| Total operating revenues | 1 089 739 | 807 506 | 163 957 | 417 914 | (7 016) | (59 826) | 2 412 274 |
| Net operating revenues | 914 474 | 765 841 | 130 560 | 345 220 | (8 647) | - | 2 147 449 |
| Operating expenses | 839 017 | 717 500 | 111 982 | 329 381 | (5 801) | - | 1 992 079 |
| EBITDA | 75 457 | 48 341 | 18 578 | 15 839 | (2 846) | - | 155 370 |
| Depreciation and amortisation | 10 976 | 18 024 | 1 488 | 4 200 | (19) | - | 34 670 |
| EBIT | 64 481 | 30 317 | 17 090 | 11 639 | (2 828) | - | 120 700 |
| Associates and joint ventures | 348 | - | 430 | - | - | - | 778 |
| Receivables 1) | 384 850 | 229 290 | 76 476 | 188 246 | 2 682 | (15 864) | 865 679 |
| Number of employees | 1 187 | 842 | 205 | 476 | 135 | - | 2 845 |
1) Receivables includes accounts receivables (before provision for loss) and accrued revenues.
| Amounts in TNOK | Greater Oslo Area |
Regions Norway |
Inter national |
LINK arkitektur |
Not allocated |
Elimi nations |
Total |
|---|---|---|---|---|---|---|---|
| External revenues | 1 544 298 | 1 102 266 | 188 113 | 553 720 | (12 997) | - | 3 375 399 |
| Internal revenues | 76 551 | 30 420 | 37 720 | 33 773 | 4 377 | (182 842) | - |
| Total operating revenues | 1 620 848 | 1 132 686 | 225 834 | 587 493 | (8 620) | (182 842) | 3 375 399 |
| Net operating revenues | 1 306 957 | 1 027 303 | 177 753 | 488 829 | (23 200) | 2 977 642 | |
| Operating expenses | 1 226 319 | 990 216 | 158 438 | 457 771 | (19 845) | 2 812 898 | |
| EBITDA | 80 638 | 37 087 | 19 315 | 31 058 | (3 354) | 164 744 | |
| Depreciation and amortisation | 16 044 | 24 085 | 2 038 | 5 591 | (967) | 46 791 | |
| EBIT | 64 594 | 13 002 | 17 278 | 25 467 | (2 387) | 117 953 | |
| Associates and joint ventures | 1 951 | - | (1 055) | 261 | - | - | 1 157 |
| Receivables 1) | 497 035 | 248 558 | 90 870 | 206 312 | 5 025 | (78 478) | 969 322 |
| # employees | 1 179 | 841 | 216 | 475 | 140 | 2 851 |
1) Receivables includes accounts receivables (before provision for loss) and accrued revenues.
An adjustment to the business area definitions was implemented from 1 January 2017 in response to recent market developments. The new business areas and the respective operating revenues for the third quarter 2018, year to date 2018 and full year 2017 are presented in the table below.
| Amounts in TNOK | Q3 2018 | Q3 2017 | YTD 2018 | YTD 2017 | FY 2017 |
|---|---|---|---|---|---|
| Buildings & Properties | 354 027 | 302 427 | 1 288 622 | 1 067 831 | 1 512 696 |
| Industry | 43 829 | 42 656 | 161 340 | 152 932 | 204 313 |
| Oil & Gas | 18 427 | 18 602 | 71 811 | 85 214 | 106 801 |
| Renewable Energy | 100 735 | 94 903 | 338 013 | 319 380 | 433 116 |
| Transportation | 201 334 | 152 252 | 681 662 | 557 840 | 782 615 |
| Water & Environment | 70 773 | 51 147 | 219 680 | 154 849 | 233 044 |
| City & Society | 27 994 | 17 165 | 106 002 | 74 229 | 102 814 |
| Total | 817 119 | 679 152 | 2 867 130 | 2 412 275 | 3 375 399 |
Buildings & Properties include advisory and engineering at all stages of a construction project for all types of buildings. The business area provides services such as demand- and feasibility studies, sketch pre-project, detailed design and follow-up during the construction period, and real estate consultancy. The focus is on sustainable and long-term solutions. LINK arkitektur is included.
Cities & Society includes complex early-stage planning in urban areas. Mobility, infrastructure, area solutions and real estate development are core markets. The focus is on creating innovative solutions and contribute to building attractive cities of the future.
Industry offers complete, interdisciplinary advisory and engineering services in all project phases. Services include investigations, project development, project management, design and procurement, construction with all technical systems, construction management and follow-up, and commissioning.
Oil & Gas provides services throughout the whole value chain, from early phase studies through FEED (Front End Engineering Design) to detailed engineering and delivery for both onshore and offshore projects. Services provided onshore are within terminal and production facilities, facilities and constructions, harbour and marine constructions, underground warehouses,
land-based pipelines and landfills, and electrical substations. Services provided offshore are within oil and gas rigs and platforms, concrete marine constructions, modules and structures for rigs and platforms, seabed installations, arctic climate technology for floating and subsea constructions, and noise and vibration measurement amongst others.
Renewable Energy covers the entire project life cycle in hydropower, transmission and distribution, land-based wind power and solar energy. Services provided are from start-up and preliminary studies to detailed design and construction management, commissioning and operational shutdown.
Transportation largely comprises advisory services for planning safe and forward-looking transport systems. The business area covers road, rail, airport, and harbor and channel transport systems.
Water & Environment includes services in all phases of the lifetime of a project including inspections, engineering, operation and maintenance, and remediation and demolition. Focus is placed on sustainable development of the environment through advisory services related to Greenhouse gas emissions, flood and mud slide protection, water and drains, blue-green structures and issues related to pollution of air, water and soil.
The group's net operating revenues are affected by the number of working days within each reporting period while employee expenses are recognised for full calendar days. The number of working days in a month is affected by public holidays and vacations.
The timing of public holidays (e.g. Easter) during quarters and whether they fall on weekends or weekdays impacts revenues, earnings, cashflows and working capital balances. Generally, the company's employees are granted leave during Easter and Christmas. The summer holidays primarily impact the month of July and the third quarter.
The Annual General Meeting on 3 May 2018 resolved payment of ordinary dividends related to the 2017 financial year of NOK 40.5 million (NOK 1.50 per share) that was paid to the shareholders registered on 3 May 2018.
See note 22 to the consolidated financial statements for 2017 for a description of related parties and related parties transactions in 2017.
Among the Company's shareholders Stiftelsen Multiconsult (the Multiconsult Foundation) is considered to be a related
Multiconsult ASA has a share purchase programme for all its employees. Through the share purchase programme the company offers its employees shares in Multiconsult ASA with a discount of 20%. Shares purchased through the programme are subject to a two-year lock-up period.
The board of directors implemented a variable performance based bonus scheme for the group management effective from party according to IFRS due to its ownership and influence. The Foundation had a shareholding of 19.8% at 31 December 2017 and 19.8% at 30 September 2018.
The company has 0 treasury shares as of 30 September 2018.
For the periods presented there are no dilutive effects on profits or number of shares. Basic and diluted earnings per share are therefore the same.
| Q3 2018 | Q3 2017 | YTD 2018 | YTD 2017 | FY 2017 | |
|---|---|---|---|---|---|
| Profit for the period (in TNOK) | (520) | 7 751 | 61 790 | 90 785 | 79 534 |
| Average no shares | 26 970 394 | 26 281 729 | 26 970 254 | 26 255 365 | 26 407 850 |
| Earnings per share (NOK) | (0.02) | 0.29 | 2.29 | 3.46 | 3.01 |
For a description of the corporate pension schemes see note 11 to the consolidated financial statements for 2017.
Multiconsult ASA and Multiconsult Norge AS has a defined contribution pension plan that covers all the employees in the
The group's financial instruments are interest bearing debt, accounts receivables and other receivables, cash and cash equivalents and accounts payables. It is assumed that the
two companies. Other defined benefit pension plans in the group still exist for three employees in LINK arkitektur AS and two individual agreement in Multiconsult Norge AS.
book value is a good approximation of fair value for the group's financial instruments.
| Amounts in TNOK | NOK 30 September 2018 |
NOK 30 September 2017 |
NOK 31 December 2017 |
Local currency 30 September 2018 |
Local currency 30 September 2017 |
Local currency 31 December 2017 |
Local currency |
|---|---|---|---|---|---|---|---|
| Multiconsult ASA | 215 000 | 320 455 | 215 000 | 215 000 | 320 455 | 215 000 | NOK |
| Multiconsult Norge AS | 213 584 | - | 70 938 | 213 584 | - | 70 938 | NOK |
| Johs Holt AS | 821 | - | - | 821 | - | - | NOK |
| Multiconsult Polska | 835 | - | - | 377 | - | - | PLN |
| LINK arkitektur AS | - | 11 198 | - | - | 11 198 | - | NOK |
| LINK arkitektur AB | 1 230 | 1 409 | - | 1 339 | 1 438 | - | SEK |
| LINK arkitektur A/S | 2 726 | 3 307 | 2 838 | 2 147 | 2 625 | 2 279 | DKK |
| Total | 434 195 | 336 369 | 288 776 | - | - | - |
The group owns a limited amount of shares and participations available for sale (NOK 0.5 million), and it is assumed that the book value is a good estimate of fair value. Fair value of
derivatives (currency swaps) were recorded with an unrealised gain (asset) of NOK 0.3 million at 30 September (loss of NOK 0.2 million at 30 June 2018).
Multiconsult uses alternative performance measures for periodic and annual financial reporting in order to provide a better understanding of the group's underlying financial performance.
| Amounts in MNOK (except percentage) | Q3 2018 | Q3 2017 | YTD 2018 | YTD 2017 | FY 2017 |
|---|---|---|---|---|---|
| Net operating revenues | 675.5 | 608.8 | 2 422.1 | 2 147.4 | 2 977.6 |
| Estimated calendar effect | - | - | (12.8) | - | - |
| Adjusted net operating revenues | 675.5 | 608.8 | 2 409.3 | 2 147.4 | 2 977.6 |
| Reported employee benefit expenses | 524.0 | 473.8 | 1 847.9 | 1 631.8 | 2 265.4 |
| Reported other operating expenses | 133.3 | 112.4 | 446.3 | 360.3 | 547.5 |
| Operating expenses | 657.3 | 586.2 | 2 294.2 | 1 992.1 | 2 812.9 |
| Adjusted EBITDA | 18.2 | 22.6 | 115.1 | 155.4 | 164.7 |
| Depreciation, amortisation and impairments | 13.7 | 12.1 | 38.4 | 34.7 | 46.8 |
| Adjusted EBIT | 4.5 | 10.5 | 76.7 | 120.7 | 118.0 |
| Adjusted EBITDA margin (%) | 2.7% | 3.7% | 4.8% | 7.2% | 8.2% |
| Adjusted EBIT margin (%) | 0.7% | 1.7% | 3.2% | 5.6% | 6.2% |
Figures show effect on earnings from the corresponding period previous year arising from changes in available working days.
| Amounts in MNOK | Q3 2018 | Q3 2017 | YTD 2018 | YTD 2017 | FY 2017 |
|---|---|---|---|---|---|
| Non-current interest bearing liabilities | 4.4 | 217.3 | 4.4 | 217.3 | 195.2 |
| Current interest bearing liabilities | 429.8 | 119.1 | 429.8 | 119.1 | 93.6 |
| Cash and cash equivalents | 120.9 | 156.0 | 120.9 | 156.0 | 154.3 |
| Net interest bearing debt (asset) | 313.3 | 180.3 | 313.3 | 180.3 | 134.5 |
| Amounts in MNOK | 30 September 2018 | 30 September 2017 | 31 December 2017 |
|---|---|---|---|
| Equity | 592.5 | 586.2 | 582.1 |
| Total assets | 1 937.9 | 1 662.6 | 1 811.1 |
| Equity ratio | 30.6% | 35.3% | 32.1% |
Nedre Skøyen vei 2, 0276 Oslo P O Box 265 Skøyen, 0213 Oslo Telephone 21 58 50 00 Fax 21 58 50 01
[email protected] www.multiconsult.no Org no 910 253 158
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.