Quarterly Report • Feb 17, 2021
Quarterly Report
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"When we summarise 2020, I can conclude that we have delivered solid quarters throughout the period despite the turmoil caused by the Covid-19 pandemic. We started a comprehensive turnaround process in 2019, and I am very pleased with the strong improvements and solid profitability this year. The prevailing pandemic is challenging for all of us, but with the commitments from all our employees, a strong culture and outstanding cooperation with our clients, we have managed solid customer deliveries, strong sales and sound financial results in 2020. I am proud and humble of all our employees for their strong commitment and contribution to the turnaround process. Looking ahead, Multiconsult will together with our clients deliver future oriented and sustainable solutions for society."
Grethe Bergly CEO of Multiconsult ASA
| Amounts in NOK million | Q4 2020 | Q4 2019 | FY 2020 | FY 2019 |
|---|---|---|---|---|
| Financial | ||||
| Net operating revenues | 967.1 | 904.5 | 3 660.9 | 3 435.8 |
| Employee benefit expenses | 732.2 | 720.6 | 2 660.1 | 2 654.4 |
| Other operating expenses | 104.4 | 126.5 | 402.2 | 482.3 |
| EBITDA | 130.5 | 57.4 | 598.7 | 299.1 |
| EBITDA margin | 13.5% | 6.3% | 16.4% | 8.7% |
| EBIT | 83.0 | 8.7 | 371.0 | 106.3 |
| EBIT margin | 8.6% | 1.0% | 10.1% | 3.1% |
| EBIT ex. restructuring cost 1 | 83.0 | 12.7 | 401.0 | 140.5 |
| EBIT margin ex. restructuring cost 1 | 8.6% | 1.4% | 11.0% | 4.1% |
| Reported profit for the period | 62.7 | (9.8) | 249.2 | 35.1 |
| Earnings per share (EPS) | 2.33 | (0.36) | 9.25 | 1.30 |
| OPERATIONAL | ||||
| Other opex ratio (ex. IFRS 16) | 15.1% | 18.3% | 15.6% | 18.7% |
| Billing ratio | 71.0% | 68.1% | 70.9% | 69.2% |
| Number of employees | 2 925 | 2 994 | 2 925 | 2 994 |
| Order intake | 1 423 | 1 329 | 4 684 | 4 348 |
| Order backlog | 3 327 | 2 968 | 3 327 | 2 968 |
1) EBIT ex. restructuring cost is calculated by (i) excluding one-off nextLEVEL restructuring cost of NOK 30.0 million in Q3 and YTD 2020, and (ii) excluding one-off charges of NOK 30.2 million in H1 2019 and NOK 4.0 million severance/restructuring cost Q4 2019.
Multiconsult has seen strong improvements and continued profitability throughout the year, including a strong fourth quarter with an EBIT of NOK 83.0 million, an 8.6 per cent margin. EBIT for the full year came in at NOK 371.0 million, while EBIT ex. restructuring cost was NOK 401.0 million, a 11.0 per cent margin. Compared with the fourth quarter 2019, the result is impacted positively by higher billing ratio, higher average billing rates, improved project execution and reduction in operating expenses. Net operating revenues grew by 6.9 per cent year-on-year to NOK 967.1 million in the quarter, and by 6.6 per cent to NOK 3 661 million for the year. The nextLEVEL improvement programme surpassed its targets towards the end of 2020, which together with cost savings related to Covid-19 resulted in a reduction of other operating expenses of 17.5 per cent to NOK 104.4 million in the quarter. Order intake in the quarter was NOK 1 423 million, resulting in an all-time high order backlog of NOK 3 327 million. The board of directors proposes a dividend of NOK 8.00 per share to be paid as ordinary dividend.
Net operating revenues increased by 6.9% to NOK 967.1 million (NOK 904.5 million). Improved project performance and higher activity contributed positively. The billing ratio increased to 71.0% (68.1%), an increase of 2.9pp compared to the same quarter in 2019. There was a net reduction in manning level of 69 employees y-o-y. Average group billing rates are at a higher level compared to the same period in 2019 and contribute positively to the growth in net operating revenues.
Operating expenses consist mainly of employee benefit expenses and other operating expenses. Operating expenses decreased by 1.2% to NOK 836.6 million (NOK 847.1 million). Employee benefit expenses increased by 1.6% compared to the same quarter in 2019. The increase was partly due to extraordinary bonus for strong commitment, in a challenging year, and contribution to the turnaround process to employees. Other operating expenses decreased by 17.5% to NOK 104.4 million (NOK 126.5 million), partly an effect of the nextLEVEL improvement programme, together with the impact of reduced costs on general expenditures due to Covid-19 pandemic.
EBITDA was NOK 130.5 million (NOK 57.4 million), an increase of 127.4% compared to the same period last year.
EBIT was NOK 83.0 million (NOK 8.7 million), reflecting an EBIT margin of 8.6% in the period.
Net financial items were an expense of NOK 8.3 million (NOK 14.6 million).
Group tax rate was 15.9% (negative 72.2%). The group tax rate in the quarter is affected by a final tax calculation on group level for the full year.
Reported profit for the period was NOK 62.7 million (loss NOK 9.8 million).
Net operating revenues increased by 6.6% to NOK 3 661 million (NOK 3 436 million) and is exclusively organic driven. The increase in net operating revenues was driven by improved billing ratio which increased to 70.9% (69.2%), an increase of 1.7pp compared to 2019. Higher average billing rates and improved project performance also contributed to the growth in net operating revenues. Average billing rates for the group are higher than previous year. There was a calendar effect of two more working days which had a positive impact of approximately NOK 28.3 million compared to 2019.
Operating expenses decreased by 2.4% to NOK 3 062 million (NOK 3 137 million). Operating expenses consist mainly of employee benefit expenses and other operating expenses. Employee benefit expenses increased by 0.2% compared to the same period last year. The increase was mainly a result of ordinary salary adjustment for the workforce and extraordinary bonus to employees, partly offset by reduced manning level. In addition, the temporary Covid-19 tax reliefs from governments reduced the employee benefit expense by approximately NOK 14.3 million. Other operating expenses decreased by 16.6%, a reduction of NOK 80.1 million. The reduction in other operating expenses was in part an effect of the nextLEVEL improvement program and partly a result of lower spending due to the Covid-19 pandemic.
EBITDA was NOK 598.7 million (NOK 299.1 million), an increase of 100.1% compared to the same period last year.
EBIT reported was NOK 371.0 million and includes a one-off restructuring cost of NOK 30.0 million. EBIT in 2019 was NOK 106.3 million and includes one-off charges of NOK 34.2 million.
EBIT ex. restructuring cost was NOK 401.0 million (NOK 140.5 million), reflecting an EBIT margin of 11.0% (4.1%). The restructuring of NOK 30.0 million is a right-of-use assets impairment loss. The impairment relates to a review of Multiconsult's office portfolio and is part of the previously announced restructuring costs in the nextLEVEL improvement programme. The comparable 2019 EBIT figure includes one-off charges of NOK 34.2 million.
Net financial items were an expense of NOK 39.4 million (expense of NOK 52.7 million), a reduction mainly driven by gain on currency effects and reduced financing cost.
Group tax rate was 24.3% (34.3%). The group tax rate is affected by non-deductible impairment loss of right-of-use assets.
Reported profit for the period was NOK 249.2 million (NOK 35.1 million).
Total assets amounted to NOK 2 718 million (NOK 2 661 million, 30 September 2020), and total equity amounted to NOK 773.6 million (NOK 782.4 million 30 September 2020). The group held cash and cash equivalents of NOK 277.4 million (NOK 118.4 million, 30 September 2020).
Net interest-bearing liabilities amounted to NOK 571.3 million (NOK 738.2 million, 30 September 2020). Adjusted for IFRS 16 lease obligations, net interest-bearing debt is negative NOK 293.3 million (negative NOK 136.7 million, 30 September 2020).
Net cash flow from operating activities was positive NOK 292.1 million (NOK 253.7 million). Net cash flow from operating activities is affected by increase in profit before tax, offset by change in working capital.
Net cash flow used in investment activities was NOK 8.8 million this quarter (NOK 5.4 million), related to ordinary asset replacement.
Net cash flow from financing activities amounted to negative NOK 123.1 million (negative NOK 185.5 million) which is mainly affected by dividend payment, sale and purchase of treasury shares and instalments on lease liabilities.
In March 2020 Multiconsult refinanced its loan portfolio with Nordea. This included an overdraft loan facility of NOK 320.0 million, and a new 3-year revolving credit facility (RCF) of NOK 200.0 million until March 2023. Both credit facilities have improved margins and covenants. Available undrawn amount under the facilities is NOK 520.0 million as of 31 December 2020.
Net cash flow from operating activities was positive NOK 667.7 million (positive NOK 248.2 million). Net cash flow from operating activities is mainly affected by increase in profit before tax and decrease in working capital both contributed positively.
Net cash flow used in investment activities was NOK 27.8 million (NOK 57.2 million), mainly related to ordinary asset replacement.
Net cash flow from financing activities amounted to negative NOK 437.5 million (negative NOK 236.8 million) which is mainly affected by reduction of interest-bearing liabilities and lease liabilities. In the first quarter the company refinanced and re-paid the previous NOK 172.0 million term loan and made a drawdown of NOK 172.0 million on the NOK 200.0 million revolving credit facility. In second quarter the company reduced drawn amount under the RCF by NOK 72 million, and in the third quarter by NOK 100 million.
The board proposes a dividend of NOK 8.00 per share (NOK 2.00) as ordinary dividend for 2020.
The board's proposal for dividend is based on the good financial results for 2020, and a strong balance sheet that provides the company with adequate financial flexibility. The level of dividend is according to the dividend policy of the company.
The order backlog at the end of the fourth quarter 2020 remains solid at an all-time high NOK 3 327 million (NOK 2 968 million), an increase of 12.1%. Business areas Buildings & Properties and Transportation holds the largest proportion of the order backlog. All business areas except Industry and Cities & Society have seen an increase in the order backlog. The size and timing of execution of the order backlog varies significantly between the business areas and locations.
Order intake during the quarter increased by 7.0% compared to the fourth quarter 2019. Among significant sales in the quarter
was the new hospital at Gaustad (nye Rikshospitalet) under the business area Building & Properties, Water supply to Oslo (City of Oslo) under the business area Water & Environment and assessing dam safety of the Daugava Hydroelectric Power Plant in Latvia under the business area Renewable Energy.
Order backlog does not reflect the total expected volume related to frame agreements and includes only call-offs that have been signed under these agreements. Among significant call-offs on existing frame agreements, added to the order intake, for the quarter were Fornebubanen and Statnett SF.
Significant or strategically important contracts awarded this quarter were:
Multiconsult's profitability improvement programme nextLEVEL was introduced at the end of 2019 and is one of our key measures to improve performance and profitability. The profitability improvement programme has continued throughout 2020 and is now in its final phase.
In total, nextLEVEL has a target of NOK 150 million in annual profitability improvement to be realised over a period of 18 months. Multiconsult surpassed the target towards the end of 2020 and has successfully committed to improvements above the NOK 150 million target, up from 92% (NOK 138 million) in mid-October. The final report on the programme will be made in the first quarter of 2021.
As from 2020, Multiconsult's reporting segments are presented as five segments, Region Oslo, Region Norway, Energy, LINK arkitektur and International.
Comparison to same period last year has been re-stated using the new principles and is made on the new structure. See note 3 – Accounting Policies.
This segment offers services in seven business areas and comprises the Oslo region, and Large Projects in Norway.
| Q4 | Q4 | FY | FY | |
|---|---|---|---|---|
| Amounts in NOK million | 2020 | 2019 | 2020 | 2019 |
| Net operating revenues | 312.5 | 289.3 | 1 175.7 | 1 090.9 |
| EBIT | 50.6 | 7.2 | 186.1 | 53.0 |
| EBIT% | 16.2% | 2.5% | 15.8% | 4.9% |
| Order intake | 725.1 | 532.8 | 1 573 | 1 431 |
| Order backlog | 1 256 | 1 027 | 1 256 | 1 027 |
| Billing ratio | 73.4% | 69.5% | 73.4% | 70.0% |
| Number of employees | 769 | 817 | 769 | 817 |
The increase in net operating revenues of 8.0% in the period was driven by higher billing ratio of 3.9pp compared to the same period last year, while billing rates and manning level were at a lower level.
Operating expenses came in 8.0% lower than in the same period 2019. With a reduction in manning level, offset by
With solid quarterly results throughout the whole period the ambitions for operational turnaround have been met and surpasses the target. Going forward the focus will shift towards securing and addressing that the improvements made in the programme continues.
The one-off restructuring costs related to nextLEVEL is estimated to be NOK 45-50 million. Reported one-off nextLEVEL restructuring costs related to the programme accumulates to NOK 34.0 million, NOK 30.0 million in 2020.
ordinary regular salary adjustment and extraordinary bonus to all employees, the employee benefit expenses came in at the same level as last year. Other operating expenses decreased significantly, due to reduced costs on general expenditures.
Order intake in the fourth quarter increased by 36.1% compared to the fourth quarter in 2019. The growth is supported by increase in the business areas Transportation and Cities & Society. The largest reduction was in Water & Environment.
Order backlog for the segment at the end of the fourth quarter is NOK 1 256.0 million. The largest share of the order backlog is held by the business areas Buildings & Properties, Transportation and Water & Environment. The order backlog increased by 22.4% compared to the fourth quarter in 2019, and is at an all-time high.
Net operating revenues increased by 7.8% compared to the same period last year, due to improved project performance and an increase in the billing ratio of 3.4pp, up to 73.4% for the year. Higher billing rates contributed to the increase. A reduced manning level partly offset the increase in net operating revenue.
Operating expenses decreased in the period, by 4.7%, driven by lower cost level in general. Employee benefit expenses decreased slightly on a reduced manning level, and partly offset by ordinary regular salary adjustment. Temporary Covid-19 tax reliefs reduced the employee benefit expense compared to 2019. An extraordinary bonus to all employees for their contribution and commitment is reflected in employee
benefit expenses. Other operating expenses in general, including reduced costs from administrative staff and shared services, decreased significally compared to the same period last year.
Order intake increased by 9.9% in the period, mainly resulting from higher sales in business areas Transportation and Renewable Energy.
This segment offers services in seven business areas and comprises all offices outside Oslo with presence in all larger cities in Norway and several other locations, a total of 23 offices.
| Amounts in NOK million | Q4 2020 |
Q4 2019 |
FY 2020 |
FY 2019 |
|---|---|---|---|---|
| Net operating revenues | 379.9 | 363.4 | 1 449.8 1 381.9 | |
| EBIT | 46.6 | 11.7 | 184.0 | 56.5 |
| EBIT% | 12.3% | 3.2% | 12.7% | 4.1% |
| Order intake | 350.0 | 378.6 | 1 557 | 1 438 |
| Order backlog | 597.6 | 580.8 | 597.6 | 580.8 |
| Billing ratio | 70.5% | 66.9% | 69.9% | 67.9% |
| Number of employees | 1 033 | 1 068 | 1 033 | 1 068 |
The increase in net operating revenues of 4.5% in the quarter was mainly driven by a higher billing ratio of 3.6pp compared to the same period in 2019. Average billing rate in the period was at a higher level and contributed to growth in net operating revenues. The increase in net operating revenue was to some extent offset by reduced manning level.
Operating expenses decreased by 6.5% in the quarter. Employee benefit expenses increased on reduced manning level due to ordinary salary adjustment and extraordinary bonus to employees in the quarter. Other operating expenses decreased significantly, due reduced costs on general expenditures.
Order intake in the fourth quarter decreased by 7.6% compared to fourth quarter last year. Order intake increased in the business areas Renewable Energy, Water & Environment and Building & Properties, offset by lower order intake in the other business areas.
Order backlog for the segment at the end of the fourth quarter was at NOK 597.6 million. The order backlog increased by 2.9% compared to the same period in 2019. All business areas except Building & Properties and Cities & Society decreased their order backlog compared to the same period last year. Order backlog decreased by 8.7% from third quarter 2020.
Net operating revenues increased by 4.9% compared to 2019, the increase is mainly due to higher billing ratio of 2.0pp, up to 69.9% (67.9%) for the year. The average billing rate in 2020 was also at a higher level and contributed to growth in
net operating revenues. There was a reduction in the manning level of 35 employees in the period. The reduction in manning level partly offset the increase in net operating revenue.
Operating expenses came in 5.0% lower than in the same period in 2019. Employee benefit expenses increased slightly on a reduced manning level, the increase is in line with ordinary regular salary adjustment. In the period temporary Covid-19 tax reliefs reduced the employee benefit expense compared to 2019. An extraordinary bonus to all employees for their contribution and commitment is reflected in employee benefit expenses. Other operating expenses decreased significantly due to lower spending in general including reduced costs from administrative staff and shared services contributed positively compared to 2019.
Order intake in the period increased by 8.3% compared to 2019. Region Norway had a solid increase in most of the major business areas compared to the same period last year.
The segment offers national and international services in the business area Renewable Energy with some activity in Water & Environment and include the subsidiary Multiconsult UK.
| Amounts in NOK million | Q4 2020 |
Q4 2019 |
FY 2020 |
FY 2019 |
|---|---|---|---|---|
| Net operating revenues | 63.7 | 66.8 | 248.8 | 250.6 |
| EBIT | 3.4 | (2.2) | 6.8 | (10.6) |
| EBIT% | 5.3% | (3.3%) | 2.7% | (4.2%) |
| Order intake | 63.1 | 73.3 | 334.2 | 381.0 |
| Order backlog | 295.1 | 262.8 | 295.1 | 262.8 |
| Billing ratio | 61.3% | 63.7% | 61.3% | 62.8% |
| Number of employees | 186 | 199 | 186 | 199 |
Compared to fourth quarter 2019 net operating revenues decreased by 4.7%. The reduction was mainly driven by lower activity reflected in a lower billing ratio. Billing ratio was 2.5pp lower than same period last year.
Operating expenses decreased by 12.4% in the quarter. Employee benefit expenses decreased more than the reduction in manning level. In the UK furlough reliefs and temporary working hours reduction related to Covid-19 pandemic contribute to a decrease in employee benefit expenses. An extraordinary bonus to employees in the quarter is reflected in employee benefit expenses. Other operating expenses decreased significantly, due to reduced costs on general expenditures.
Order intake in the fourth quarter decreased by 13.9% compared to the same quarter last year.
Order backlog was at NOK 295.1 million at the end of the quarter. The order backlog increased by 12.3% compared to the fourth quarter 2019 and decreased by 3.6% from third quarter 2020. In the business unit there are some start-up issues due to local political- and Covid-19 constraints for international projects.
Net operating revenues decreased by 0.7% due to a reduction in the billing ratio of 1.4pp and a reduction in the number of employees. The decrease in net operating revenue was partly offset by a higher average billing rate compared to the same period last year. The reduction in the number of employees was made to align the capacity with demand and adjust for future competence requirement.
Operating expenses came in 7.3% lower than in the same period last year, mainly due to decrease in employee benefit expenses. A reduced manning level and a temporary reduction of working hours for all employees in the UK related to the Covid-19 pandemic contributed to the decrease compared to the same period last year. In addition, temporary Covid-19 tax reliefs from governments reduced the employee benefit expense. Other operating expenses decreased due to reduced costs from administrative staff and shared services. Other operating expenditure was in line with the expenditure in the same period last year.
The performance from Energy in Norway has improved compared to 2019. Multiconsult UK operates mainly in the international Energy market is facing a more challenging market and is loss-making in 2020.
Order intake in the period decreased by 12.3% compared to same period 2019.
This segment comprises LINK arkitektur with its 15 offices in Norway, Sweden and Denmark.
| Q4 2020 |
Q4 2019 |
FY 2020 |
FY 2019 |
|---|---|---|---|
| 151.7 | 135.1 | 561.6 | 535.8 |
| 14.0 | (7.5) | 25.7 | 11.0 |
| 9.2% | (5.6%) | 4.6% | 2.1% |
| 178.4 | 236.8 | 745.2 | 728.6 |
| 637.7 | 620.2 | 637.7 | 620.2 |
| 74.4% | 73.0% | 73.6% | 74.0% |
| 487 | 489 | 487 | 489 |
The increase in net operating revenues of 12.3% in the quarter was mainly driven by a higher billing rate compared to the same period last year. Higher billing ratio of 1.4pp, up to 74.4% (73.0%) for the quarter contributed to growth in net operating revenues.
Operating expenses decreased by 2.8% in the quarter. Employee benefit expenses decreased slightly and in line with manning level and ordinary salary adjustment. An extraordinary bonus to employees in the quarter is reflected in the employee benefit expenses. Other operating expenses decreased significantly due to reduced costs from administrative staff and shared services compared to 2019.
For the period the performance from LINK arkitektur in all three regions is at a good level, with regional diffrences in Norway, Sweden, and Denmark.
Order intake in the fourth quarter was NOK 178.4 million, a reduction of 24.7% compared to the same period last year.
Order backlog for the segment at the end of fourth quarter increased by 2.8%, to NOK 637.7 million, compared to the same period in 2019, and decreased by 1.2% from third quarter 2020.
The increase in net operating revenues of 4.8% was mainly driven by a higher average billing rate in 2020 compared to the same period last year. Billing ratio was 0.4pp lower for the segment in total, but with regional differences.
Operating expenses increased by 2.0% compared to 2019. Higher employee expenditure increased partly due to ordinary salary adjustment, currency translation effects, and an extraordinary bonus to employees for their contribution and commitment. In the period temporary Covid-19 tax reliefs reduced the employee benefit expense compared to 2019. Other operating expenses decreased, due reduced costs from administrative staff and shared services. While other own operating expenditure was higher than in the same period last year.
For the year the performance in LINK arkitektur in Norway is at a good level, while both the businesses in Sweden and, in particular Denmark, are facing more challenging markets and are loss-making.
Order intake in the period increased by 2.3% compared to the same period last year.
This segment comprises the subsidiaries Multiconsult Polska and Iterio AB.
| FY |
|---|
| 2019 |
| 206.9 |
| 17.3 |
| 8.4% |
| 369.6 |
| 497.6 |
| 73.5% |
| 299 |
Net operating revenues increased by 14.3% in the fourth quarter, mainly driven by a higher billing ratio of 3.7pp compared to the same period last year, and increased capasity from higher manning level in both Iterio AB and Multiconsult Polska. Average billing rates for the segment are higher than previous year and contribute to the growth in net operating revenues.
Operating expenses increased by 9.9% compared to the same quarter in 2019. The increase is mainly due to higher employee benefit expenses driven by the high activity level and the corresponding increase in manning level. An extraordinary bonus to all employees for their contribution and commitment is reflected in employee benefit expenses. Other operating expenses decreased significantly, due to reduced costs on general expenditures.
Order intake in the fourth quarter decreased by 1.5% compared to same quarter last year.
Order backlog for the segment at the end of the fourth quarter increased by 17.9% to NOK 586.8 million, a decrease of 0.4% from third quarter 2020.
Net operating revenues increased by 17.2% compared to 2019. The increase is driven by higher production activity and higher manning level both in Iterio AB and Multiconsult Polska. Billing ratio and billing rates were on a higher level compared to the same period last year and contributed positively to the growth in net operating revenues.
Operating expenses came in 14.3% higher than same period 2019, driven by higher employee benefit expenses, from increased manning level in both Multiconsult Polska and Iterio AB. An extraordinary bonus to all employees for their contribution and commitment is reflected in the employee benefit expenses. Other operating expenses decreased significantly, due to reduced costs on general expenditures.
Order intake year to date 2020 increased by 28.4% mainly due to higher order intake in the business areas Transportation, Oil & Gas and Water & Environment.
As of 31 December 2020, the group had 2 925 (2 994) employees, a net reduction in manning level of 69 employees' year-on-year. The employee turnover ratio for the group for the period December 2019 to December 2020 was 11.1 % (11.8%).
On 13 January 2021, Multiconsult and Argeo Survey AS entered a strategic partnership to increase the quality of ground investigations and improve mapping and analysis of the ground conditions for large coastal development projects and offshore structures. Together, the parties have invested in a Hugin AUV (Autonomous Underwater Vehicle).
OUTLOOK
These forward-looking statements reflect current views about future events and are, by their nature, subject to significant risks and uncertainties because they relate to events and depend on circumstances in the future.
Multiconsult is well ahead in the turnaround process that started in 2019, where the focus has been on the core business, sales, costs and project execution. The nextLEVEL programme has already successfully committed to improvements above the target.
Multiconsult has experienced limited negative financial impact of the Covid-19 pandemic. However, the pandemic continues to create uncertainty for the industry going forward. The recent upswing in, and potential consequences of, the mutated corona virus is adding to this uncertainty.
On 22 January 2021, Multiconsult announced a contract to provide technical support in the spatial survey and ground study for master plan and predesign documentation for Solidarity Transport Hub in Poland. The contract value is estimated to NOK 68 million over the next two years.
The general market for Multiconsult's services remains good across most business areas. Opportunities in the pipeline are also at a good level. There are however some more uncertainties particularly within business area Buildings & Properties and in the international Energy market, partially due factors related to Covid-19. The ongoing public reforms and reorganisation at customer level are also creating some short-term uncertainties and potential delays. Political uncertainty, macroeconomic events and competition from foreign players comprise some key risk factors, but also opportunities to Multiconsult's market outlook.
The order backlog provides the company with a good foundation, combined with a solid market position, strong competence and leading customer solutions. Multiconsult believes it is well placed to handle the challenges of the current uncertainties facing the economy and our industry.
The risk of disagreements and legal disputes related to the possible cost of delays and project errors is always present in the consultancy business. Multiconsult has developed internal procedures and competences to reduce risk exposure for legal disputes. Multiconsult has also normal and relevant insurance policies and routines for protection of normal and most potential consequences of such matters. Further details regarding the insurance coverage are provided in note 20 to the consolidated financial statements for 2019.
The extraordinary risk factor due to the ongoing Covid-19 pandemic, is described under Risk and Risk Management in the 2019 Annual Report and in the Outlook section above. Multiconsult has not identified significant additional risk factors related to Covid-19 beyond those described therein. Multiconsult has not identified significant additional risk exposures beyond the ones described in the 2019 Annual Report. More generally, Multiconsult has experienced an increase in the number of and size of potential legal disputes, which potentially may, in adverse circumstances, have negative financial impact.
Multiconsult is exposed to a number of risk factors: legal liability, credit risk, currency risk, interest rate risk, liquidity risk, and accounting estimates risk. The Risk and Risk Management section in the 2019 Annual Report contains detailed description and mitigating actions.
Net operating revenues: Operating revenues less sub consultants and disbursements.
EBITDA: EBIT before depreciation, amortisation and impairment.
EBITDA margin (%): EBITDA as a percentage of net operating revenues.
EBIT: Earnings before net financial items, results from associates and joint ventures and income tax.
EBIT margin (%): EBIT as a percentage of net operating revenues.
Other opex ratio (APM): Other operating expenses adjusted for IFRS 16 effects as a percentage of net operating revenue.
Billing ratio (%): Hours recorded on chargeable projects as a percentage of total hours worked (including administrative staff) and employer-paid absence. Billing ratio per segment includes allocated administrative staff.
Employees: Number of employees comprise all staff on payroll including staff on temporarily leave (paid and unpaid), excluding temporary personnel.
Order intake: Expected operating revenues on new contracts and confirmed changes to existing contracts. Only group external contracts are included.
Order backlog: Expected remaining operating revenues on new and existing contracts. Only group external contracts are included. Call-offs on frame agreements are included in the order backlog when signed.
Net interest-bearing debt: Non-current and current interest-bearing liabilities deducted cash and cash equivalents.
This report includes forward-looking statements, which are based on our current expectations and projections about future events. All statements other than statements of historical facts included in this notice, including statements regarding our future financial position, risks and uncertainties related to our business, strategy, capital expenditures, projected costs and our plans and objectives for future operations, including our plans for future costs savings and synergies may be deemed to be forward-looking statements. Words such as "believe," "expect," "anticipate," "may," "assume," "plan," "intend," "will," "should," "estimate," "risk"
and similar expressions or the negatives of these expressions are intended to identify forward-looking statements. By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. You should not place undue reliance on these forward-looking statements. In addition, any forwardlooking statements are made only as of the date of this notice, and we do not intend and do not assume any obligation to update any statements set forth in this report.
Unaudited for the period ended 31 December 2020
| Operating revenues 1 103 011 1 056 918 4 186 161 4 068 683 Expenses for sub consultants and disbursements 135 920 152 460 525 225 632 848 |
|
|---|---|
| Net operating revenues 967 091 904 458 3 660 936 3 435 835 |
|
| Employee benefit expenses 732 217 720 568 2 660 077 2 654 431 |
|
| Other operating expenses 104 367 126 509 402 174 482 271 |
|
| Operating expenses excluding depreciation and amortisation 836 584 847 077 3 062 250 3 136 702 |
|
| Operating profit before depreciation and amortisation (EBITDA) 130 507 57 381 598 686 299 133 |
|
| Depreciation and amortisation 47 527 48 635 197 639 192 804 |
|
| Impairment - - 30 000 |
- |
| Operating profit (EBIT) 82 980 8 746 371 047 106 329 |
|
| Share of profit from associated companies and joint ventures (191) 199 (2 269) |
(169) |
| Financial income and expenses | |
| Financial income 6 794 1 014 22 692 3 954 |
|
| Financial expenses 15 080 15 627 62 119 56 683 |
|
| Net financial items (8 286) (14 613) (39 427) (52 729) |
|
| Profit before income tax 74 504 (5 668) 329 350 53 431 |
|
| Income tax expense 11 811 4 093 80 141 18 320 |
|
| Profit for the period 62 693 (9 761) 249 209 35 110 |
|
| Attributable to: | |
| Owners of Multiconsult ASA 62 693 (9 761) 249 209 35 110 |
|
| Earnings per share: | |
| Basic and diluted 2.33 (0.36) 9.25 |
1.30 |
| Amounts in NOK thousand | Q4 2020 | Q4 2019 | FY 2020 | FY 2019 |
|---|---|---|---|---|
| Profit for the period | 62 693 | (9 761) | 249 209 | 35 110 |
| Other comprehensive income | ||||
| Remeasurement of defined benefit obligations | 228 | (1 884) | 228 | (1 884) |
| Income taxes | (50) | 414 | (50) | 414 |
| Total items that will not be reclassified subsequently to profit or loss | 178 | (1 470) | 178 | (1 470) |
| Currency translation differences | (5 600) | 3 480 | 12 640 | (2 450) |
| Total items that may be reclassified subsequently to profit or loss | (5 600) | 3 480 | 12 640 | (2 450) |
| Total other comprehensive income for the period | (5 423) | 2 010 | 12 817 | (3 920) |
| Total comprehensive income for the period | 57 270 | (7 751) | 262 026 | 31 190 |
| Attributable to: | ||||
| Owners of Multiconsult ASA | 57 270 | (7 751) | 262 026 | 31 190 |
| Amounts in NOK thousand | 31 December 2020 | 30 September 2020 | 31 December 2019 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Deferred tax assets | 34 023 | 24 341 | 40 322 |
| Intangible assets | 20 913 | 22 512 | 24 919 |
| Goodwill | 454 692 | 457 838 | 447 554 |
| Property, plant and equipment | 103 640 | 101 696 | 112 494 |
| Right-of-use assets | 806 081 | 818 337 | 898 208 |
| Investments in associated companies and joint ventures | 10 227 | 10 842 | 12 509 |
| Assets for reimbursement of provisions | 23 172 | 15 250 | 28 850 |
| Other non-current financial assets and shares | 20 230 | 22 633 | 17 785 |
| Total non-current assets | 1 472 977 | 1 473 449 | 1 582 643 |
| Current assets | |||
| Trade receivables | 626 726 | 642 796 | 638 476 |
| Work in progress | 255 894 | 311 769 | 309 034 |
| Other current receivables and prepaid expenses | 85 154 | 114 465 | 70 573 |
| Cash and cash equivalents | 277 435 | 118 427 | 73 558 |
| Total current assets | 1 245 209 | 1 187 456 | 1 091 642 |
| Total assets | 2 718 185 | 2 660 905 | 2 674 284 |
| EQUITY AND LIABILITIES | |||
| Shareholders' equity | |||
| Total paid in equity | 85 988 | 87 406 | 91 241 |
| Other equity | 687 627 | 694 960 | 490 171 |
| Total shareholders' equity | 773 615 | 782 366 | 581 413 |
| Non-current liabilities | |||
| Pension obligations | 6 474 | 6 546 | 6 542 |
| Deferred tax | 11 512 | 17 164 | 13 074 |
| Provisions | 31 222 | 21 250 | 36 000 |
| Non-current interest-bearing liabilities | - | - | - |
| Non-current lease liabilities Total non-current liabilities |
733 035 782 243 |
743 174 788 134 |
789 618 845 234 |
| Current liabilities | |||
| Trade payables | 106 436 | 152 364 | 160 663 |
| Prepaid revenues | 155 656 | 127 218 | 133 368 |
| Current tax liabilities | 79 053 | 52 520 | 17 979 |
| Public duties payable | 354 779 | 329 788 | 333 626 |
| Current interest-bearing liabilities | - | - | 178 400 |
| Current lease liabilities | 131 499 | 131 721 | 124 940 |
| Other current liabilities | 334 905 | 296 795 | 298 660 |
| Total current liabilities | 1 162 328 | 1 090 405 | 1 247 637 |
| Total liabilities | 1 944 571 | 1 878 539 | 2 092 871 |
| Total equity and liabilities | 2 718 185 | 2 660 905 | 2 674 284 |
| Amounts in NOK thousand | Share capital |
Own shares |
Share premium |
Total paid-in capital |
Retained earnings |
Employee share purchase programme |
Pension | Currency | Total equity |
|---|---|---|---|---|---|---|---|---|---|
| 31 December 2018 | 13 486 | - | 77 758 | 91 242 | 715 381 | (22 033) (201 713) | 10 332 | 593 211 | |
| Dividend | - | - | - | - | (40 456) | - | - | - | (40 456) |
| Treasury shares | - | (1) | - | (1) | - | - | - | - | (1) |
| Employee share purchase | |||||||||
| programme | - | - | - | - | - | (2 532) | - | - | (2 532) |
| Comprehensive income | - | - | - | - | 35 110 | - | (1 470) | (2 450) | 31 190 |
| 31 December 2019 | 13 486 | (1) | 77 758 | 91 241 | 710 035 | (24 565) (203 183) | 7 882 | 581 413 | |
| Dividend | - | - | - | - | (53 626) | - | - | - | (53 626) |
| Treasury shares | - (5 255) | - | (5 255) | - | (3 232) | - | - | (8 487) | |
| Employee share purchase | |||||||||
| programme | - | - | - | - | - | (7 712) | - | - | (7 712) |
| Comprehensive income | - | - | - | - 249 209 | - | 178 | 12 640 | 262 026 | |
| 31 December 2020 | 13 486 (5 256) | 77 758 | 85 988 905 619 | (35 509) (203 005) | 20 522 | 773 615 |
| Amounts in NOK thousand | Q4 2020 | Q4 2019 | FY 2020 | FY 2019 |
|---|---|---|---|---|
| Cash flows from operating activities | ||||
| Profit before tax | 74 504 | (5 668) | 329 350 | 53 431 |
| Interest lease liability | 8 294 | 8 925 | 34 667 | 37 134 |
| Interest expense interest-bearing liability | 749 | 4 997 | 5 851 | 11 472 |
| Income taxes paid | 4 479 | (1 062) | (12 769) | (27 952) |
| Depreciation, amortisation and impairment | 12 517 | 13 665 | 51 945 | 54 802 |
| Depreciation right-of-use asset | 35 010 | 34 971 | 145 694 | 138 003 |
| Impairment right-of-use asset | - | - | 30 000 | - |
| Results from associated companies and joint ventures | 191 | (199) | 2 269 | 169 |
| Other non-cash profit and loss items | - | 867 | - | 860 |
| Sub total operating activities | 135 741 | 56 494 | 587 007 | 267 919 |
| Trade Payables | (45 928) | 41 081 | (54 227) | (75 829) |
| Trade receivables | 16 070 | (127 267) | 11 750 | 28 280 |
| Work in progress | 55 875 | 161 787 | 53 140 | 34 828 |
| Other | 130 295 | 121 597 | 70 026 | (6 951) |
| Total changes in working capital | 156 313 | 197 198 | 80 690 | (19 671) |
| Net cash flow from operating activities | 292 054 | 253 692 | 667 697 | 248 247 |
| Cash flows used in investment activities | ||||
| Net purchase and sale of fixed assets and financial non-current assets | (11 152) | (8 294) | (25 187) | (62 837) |
| Change in non-current financial assets, restricted funds | 2 402 | 2 888 | (2 649) | 5 634 |
| Net cash flow used in investment activities | (8 751) | (5 406) | (27 836) | (57 203) |
| Cash flow from financing activities | ||||
| Proceeds on interest-bearing liabilities | - | - | 172 000 | 149 366 |
| Instalments on interest-bearing liabilities | - | (132 235) | (350 400) | (165 839) |
| Paid interest on interest-bearing liability | (749) | (4 997) | (5 851) | (11 472) |
| Instalments on lease liabilities | (33 328) | (30 830) | (134 070) | (122 693) |
| Paid interest on lease liability | (8 294) | (8 925) | (34 667) | (37 134) |
| Paid dividends | (53 626) | - | (53 626) | (40 456) |
| Sale treasury shares | 15 519 | 3 579 | 21 919 | 3 607 |
| Purchase treasury shares | (42 602) | (12 053) | (52 805) | (12 192) |
| Net cash flow from financing activities | (123 079) | (185 461) | (437 499) | (236 813) |
| Foreign currency effects on cash and cash equivalents | (1 215) | 602 | 1 516 | (714) |
| Net increase/decrease in cash and cash equivalents | 159 008 | 63 427 | 203 877 | (46 482) |
| Cash and cash equivalents at the beginning of the period | 118 427 | 10 131 | 73 558 | 120 040 |
| Cash and cash equivalents at the end of the period | 277 435 | 73 558 | 277 435 | 73 558 |
Multiconsult ASA (the company) is a Norwegian public limited liability company listed on Oslo Børs. The company and its subsidiaries (together the Multiconsult group/the group) are
The financial statements are presented in NOK, rounded to the nearest thousand, unless otherwise stated. As a result of rounding adjustments, the figures in one or more rows or columns included in the financial statements and notes may not add up to the total of that row or column.
These interim condensed consolidated financial statements for the fourth quarter 2020 have been prepared in accordance with IAS 34 as approved by the EU. They have not been audited. They do not include all of the information required for full
The group prepares its consolidated annual financial statements in accordance with IFRS as adopted by the EU (International Financial Reporting Standards - IFRS). References to IFRS in these financial statements refer to IFRS as approved by the EU. The accounting policies adopted are consistent with those of the previous financial year, with the exemptions presented below.
In 2019 quarterly reporting, net write-downs have been presented as a separate key figure. These adjustments are a consequence of a large volume of projects and is part of normal operations in the group. Starting from 2020, net write-downs will not be presented as a key figure. Any material adjustments outside normal operations will be disclosed separately. This is in line with group annual reporting of financial statements. There have been no material adjustments that require disclosure in the fourth quarter 2020.
among the leading suppliers of consultancy and design services in Norway and the Nordic region. The group has subsidiaries outside the Nordic region in Poland, UK and Singapore.
annual financial statements of the group and should be read in conjunction with the consolidated financial statements for 2019. The accounting policies applied are consistent with those applied and described in the consolidated annual financial statements for 2019, which are available upon request from the company's registered office at Nedre Skøyen vei 2, 0276 Oslo and at www. multiconsult.no.
These interim condensed consolidated financial statements for the fourth quarter 2020 were approved by the board of directors and the CEO on 16 February 2021.
Starting from 2020 Multiconsult has changed its reporting segments. Note 5 is presented according to the new segments, and figures for 2019 are restated. To ensure comparability between periods, a given percentage of revenue and cost reported in 2019 as "not allocated" is distributed to the new segments according to the same principles applied to allocation in 2020. See section Segments for a description of the new segments.
In fourth quarter 2019 Multiconsult changed the presentation of restricted cash, interest on interest-bearing liabilities and instalments and paid interest on lease liability. The cash flow for fourth quarter and year to date 2019 is restated to be comparable to cash flow in fourth quarter 2020.
The preparation of interim condensed consolidated financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
In preparing these interim condensed consolidated financial statements, significant judgements made by management in applying the group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the annual consolidated financial statements for 2019 note 2.
The group performs an assessment for impairment of goodwill at year end according to IAS 36. The impairment test is performed on the identified cash generating units (CGUs) in the group. The recoverable amount is estimated value in use, based on
discounted future cash flows. As part of the impairment test the group consider the relationship between its market value and its book value. The impairment tests have not resulted in any impairment for goodwill, property, plant and equipment or intangible assets related to any of the cash generating units.
Refer to section Segments for more information on the segments.
The group has three geographical reporting segments as well as a segment for Energy and LINK arkitektur.
| Q4 2020 Amounts in NOK thousand |
Region Oslo |
Region Norway |
Energy | LINK arkitektur |
Inter national |
Not allocated |
Elimi nations |
Total |
|---|---|---|---|---|---|---|---|---|
| External revenues | 345 860 | 399 911 | 72 306 | 174 046 | 106 329 | 4 559 | - | 1 103 011 |
| Internal revenues | 12 217 | 6 830 | 1 704 | 12 007 | 1 681 | (1 319) | (33 120) | - |
| Total operating revenues | 358 077 | 406 741 | 74 010 | 186 053 | 108 011 | 3 240 | (33 120) 1 103 011 | |
| Net operating revenues | 312 469 | 379 873 | 63 662 | 151 668 | 64 607 | (6 702) | 1 514 | 967 091 |
| Operating expenses | 257 956 | 311 801 | 60 006 | 132 662 | 54 912 | 17 732 | 1 514 | 836 584 |
| EBITDA | 54 513 | 68 072 | 3 655 | 19 006 | 9 695 | (24 434) | - | 130 507 |
| Depreciation, amortisation, impairment | 3 936 | 21 516 | 296 | 5 026 | 4 029 | 12 723 | - | 47 527 |
| EBIT | 50 576 | 46 556 | 3 359 | 13 980 | 5 666 | (37 157) | - | 82 980 |
| Associates and joint ventures | - | - | (191) | - | - | - | - | (191) |
| Number of employees | 769 | 1 033 | 186 | 487 | 321 | 129 | - | 2 925 |
| Q4 2019 Amounts in NOK thousand |
Region Oslo |
Region Norway |
Energy | LINK arkitektur |
Inter national |
Not allocated |
Elimi nations |
Total |
|---|---|---|---|---|---|---|---|---|
| External revenues | 355 587 | 384 370 | 84 991 | 164 931 | 86 280 | (21 815) | 2 575 | 1 056 918 |
| Internal revenues | 5 363 | 247 | 3 233 | 3 126 | 2 200 | 26 430 | (40 600) | - |
| Total operating revenues | 360 950 | 384 617 | 88 224 | 168 057 | 88 480 | 4 615 | (38 025) 1 056 918 | |
| Net operating revenues | 289 339 | 363 371 | 66 782 | 135 090 | 56 512 | (5 373) | (1 263) | 904 458 |
| Operating expenses | 280 465 | 333 533 | 68 528 | 136 426 | 49 961 | (21 547) | (290) | 847 077 |
| EBITDA | 8 874 | 29 838 | (1 746) | (1 336) | 6 551 | 16 174 | (973) | 57 381 |
| Depreciation, amortisation, impairment | 1 667 | 18 168 | 482 | 6 207 | 3 458 | 18 787 | (134) | 48 635 |
| EBIT | 7 207 | 11 670 | (2 228) | (7 543) | 3 093 | (2 613) | (839) | 8 746 |
| Associates and joint ventures | - | - | 199 | - | - | - | - | 199 |
| Number of employees | 817 | 1 068 | 199 | 489 | 299 | 122 | - | 2 994 |
| FY 2020 Amounts in NOK thousand |
Region Oslo |
Region Norway |
Energy | LINK arkitektur |
Inter national |
Not allocated |
Elimi nations |
Total |
|---|---|---|---|---|---|---|---|---|
| External revenues | 1 293 843 1 506 295 | 292 059 | 695 317 379 392 | 19 256 | - | 4 186 161 | ||
| Internal revenues | 49 534 | 33 803 | 9 891 | 32 408 | 5 975 | 6 513 (138 125) | - | |
| Total operating revenues | 1 343 377 1 540 098 | 301 950 | 727 725 385 367 | 25 770 (138 125) 4 186 161 | ||||
| Net operating revenues | 1 175 700 1 449 805 | 248 770 | 561 595 242 541 | (10 276) | (7 200) 3 660 936 | |||
| Operating expenses | 972 416 | 1 178 641 | 240 333 | 509 870 202 361 | (33 614) | (7 756) 3 062 250 | ||
| EBITDA | 203 284 | 271 164 | 8 438 | 51 725 | 40 181 | 23 338 | 556 | 598 686 |
| Depreciation, amortisation, impairment | 17 166 | 87 197 | 1 645 | 25 988 | 15 407 | 81 615 | (1 379) | 227 639 |
| EBIT | 186 118 | 183 968 | 6 793 | 25 737 | 24 774 | (58 277) | 1 935 | 371 047 |
| Associates and joint ventures | - | - | (2 269) | - | - | - | - | (2 269) |
| Number of employees | 769 | 1 033 | 186 | 487 | 321 | 129 | - | 2 925 |
| FY 2019 Amounts in NOK thousand |
Region Oslo |
Region Norway |
Energy | LINK arkitektur |
Inter national |
Not allocated |
Elimi nations |
Total |
|---|---|---|---|---|---|---|---|---|
| External revenues | 1 310 703 1 482 754 | 330 123 | 651 187 302 521 | (15 855) | 7 250 4 068 683 | |||
| Internal revenues Total operating revenues |
5 763 | 376 1 316 466 1 483 130 |
12 249 342 372 |
12 042 663 229 |
7 608 310 129 |
36 917 21 061 |
(74 955) | - (67 705) 4 068 683 |
| Net operating revenues | 1 090 928 1 381 857 | 250 607 | 535 798 206 926 | (25 230) | (5 051) 3 435 835 | |||
| Operating expenses | 1 020 337 1 241 204 | 259 273 | 499 782 | 176 979 | (56 378) | (4 495) 3 136 702 | ||
| EBITDA | 70 592 | 140 653 | (8 666) | 36 015 | 29 947 | 31 148 | (556) | 299 133 |
| Depreciation, amortisation, impairment | 17 586 | 84 153 | 1 912 | 25 008 | 12 625 | 52 056 | (535) | 192 804 |
| EBIT | 53 006 | 56 500 | (10 578) | 11 008 | 17 322 | (20 908) | (21) | 106 329 |
| Associates and joint ventures | - | - | (169) | - | - | - | - | (169) |
| Number of employees | 817 | 1 068 | 199 | 489 | 299 | 122 | - | 2 994 |
The group's net operating revenues are affected by the number of working days within each reporting period while employee expenses are recognised for full calendar days. The number of working days in a month is affected by public holidays and vacations. The timing of public holidays (e.g. Easter) during
quarters and whether they fall on weekends or weekdays impacts revenues, earnings, cash flows and working capital balances. Generally, the company's employees are granted leave during Easter and Christmas. The summer holidays primarily impact the month of July and the third quarter.
There were no significant events and transactions in the period.
See note 23 to the consolidated financial statements for 2019 for a description of related parties and related parties transactions in 2019.
The company has 40 741 treasury shares as of 31 December 2020. For a description of the share purchase programme for all the employees and the performance bonus based bonus scheme for the group management see note 9 in the consolidated financial statements for 2019.
For the periods presented there are no dilutive effects on profits or number of shares. Basic and diluted earnings per share are therefore the same.
| Q4 2020 | Q4 2019 | FY 2020 | FY 2019 | |
|---|---|---|---|---|
| Profit for the period (in NOK thousand) | 62 693 | (9 761) | 249 209 | 35 110 |
| Average no of shares | 26 855 074 | 26 919 639 | 26 930 713 | 26 957 519 |
| Earnings per share (NOK) | 2.33 | (0.36) | 9.25 | 1.30 |
The group's financial instruments are interest bearing debt, accounts receivables and other receivables, cash and cash equivalents and accounts payables. It is assumed that the
book value is a good approximation of fair value for the group's financial instruments.
| Amounts in NOK thousand | 31 December 2020 | 30 September 2020 | 31 December 2019 |
|---|---|---|---|
| Multiconsult ASA | - | - | 178 400 |
| Total | - | - | 178 400 |
The group owns a limited number of shares and participations available for sale (NOK 0.5 million), and it is assumed that the book value is a good estimate of fair value. Fair value of derivatives (interest rate swap) was recorded with an unrealised loss of NOK 1.6 million at 31 December 2020 (loss of NOK 2.0 million at 30 September 2020).
Multiconsult ASA has an overdraft loan facility of NOK 320.0 million, which is part of a cash pool. The cash pool is a multicurrency and multi-account system including the legal entities Multiconsult Norge AS, LINK arkitektur AS, Iterio AB, Multiconsult UK Limited and Johs Holt AS, where Multiconsult ASA is the owner of the cash pool's top account and the debtor of the facility. In addition, Multiconsult ASA holds a 3-year revolving credit facility of NOK 200 million, plus accordion until March 2023. The loan agreements include a covenant requiring that net interestbearing liabilities (excluding restricted cash) of the group shall not exceed 3.0 times last twelve months EBITDA, and a covenant requiring an equity ratio of at least 25%, reported quarterly. Covenant ratios are calculated excluding IFRS 16 effects, and the EBITDA includes "carve-out" for certain limited one-off costs. Multiconsult ASA is in compliance with its financial covenants at 31 December 2020.
Multiconsult uses alternative performance measures for periodic and annual financial reporting in order to provide a better understanding of the group's underlying financial performance.
| Amounts in NOK million (except percentage) | Q4 2020 | Q4 2019 | FY 2020 | FY 2019 |
|---|---|---|---|---|
| Net operating revenues | 967.1 | 904.5 | 3 660.9 | 3 435.8 |
| Estimated calendar effect* | - | - | (28.3) | - |
| Adjusted net operating revenues | 967.1 | 904.5 | 3 632.6 | 3 435.8 |
| Reported employee benefit expenses | 732.2 | 720.6 | 2 660.1 | 2 654.4 |
| Reported other operating expenses | 104.4 | 126.5 | 402.2 | 482.3 |
| Operating expenses | 836.6 | 847.1 | 3 062.3 | 3 136.7 |
| Adjusted EBITDA | 130.5 | 57.4 | 570.4 | 299.1 |
| Depreciation and amortisation | 47.5 | 48.6 | 197.6 | 192.8 |
| Impairment | - | - | 30.0 | - |
| Adjusted EBIT | 83.0 | 8.7 | 342.7 | 106.3 |
| Adjusted EBITDA margin (%) | 13.5% | 6.3% | 15.7% | 8.7% |
| Adjusted EBIT margin (%) | 8.6% | 1.0% | 9.4% | 3.1% |
* APM does not state underlying net operating revenues. Estimated calendar effect equals number of working days in comparing periods.
| Amounts in NOK million | 31 December 2020 |
30 September 2020 |
31 December 2019 |
|---|---|---|---|
| Non-current interest-bearing liabilities (including IFRS 16 leases) | 733.0 | 743.2 | 789.6 |
| Current interest-bearing liabilities (including IFRS 16 leases) | 131.5 | 131.7 | 303.3 |
| Restricted cash and non-current restricted funds | 15.8 | 18.2 | 17.0 |
| Cash and cash equivalents | 277.4 | 118.4 | 69.7 |
| Interest-bearing liabilities including IFRS 16 lease liabilities | 571.3 | 738.3 | 1 006.2 |
| Less non-current and current IFRS 16 lease liabilities | 864.5 | 874.9 | 914.6 |
| Net interest-bearing liabilities | (293.3) | (136.6) | 91.6 |
| Amounts in NOK million (except percentage) | 31 December 2020 |
30 September 2020 |
31 December 2019 |
|---|---|---|---|
| Equity | 773.6 | 782.4 | 581.4 |
| Total assets | 2 718.2 | 2 660.9 | 2 674.3 |
| Equity ratio | 28.5% | 29.4% | 21.7% |
| Equity (excluding IFRS 16) | 832.1 | 838.9 | 597.9 |
| Total assets (excluding IFRS 16) | 1 912.1 | 1 842.6 | 1 779.8 |
| Equity ratio (excluding IFRS 16) | 43.5% | 45.5% | 33.6% |
Loan covenants related to equity is calculated excluding IFRS 16.
| Amounts in NOK million | Q4 2020 | Q4 2019 | FY 2020 | FY 2019 |
|---|---|---|---|---|
| Increase in EBITDA | 41.7 | 39.4 | 168.8 | 158.5 |
| Increase in EBITDA restructuring cost | - | - | 30.0 | - |
| Increase depreciation | (35.0) | (35.0) | (145.7) | (138.0) |
| Increase impairment | - | - | (30.0) | - |
| Effect EBIT | 6.7 | 4.4 | 23.1 | 20.5 |
| Interest expense | (8.3) | (8.9) | (34.6) | (37.1) |
| Profit before tax | (1.6) | (4.5) | (11.6) | (16.6) |
| Amounts in NOK million (except percentage) | Q4 2020 | Q4 2019 | FY 2020 | FY 2019 |
|---|---|---|---|---|
| Other operating expenses | 104.4 | 126.5 | 402.2 | 482.3 |
| Other operating expenses IFRS 16 effect* | 41.7 | 39.4 | 168.8 | 158.5 |
| Other operating expenses excluding IFRS 16 | 146.0 | 165.9 | 570.9 | 640.8 |
| Net operating revenue | 967.1 | 904.5 | 3 660.9 | 3 435.8 |
| Other opex ratio (ex. IFRS 16) | 15.1% | 18.3% | 15.6% | 18.7% |
* Adjusted for NOK 30.0 million restructuring cost
YOUR NOTES
Visiting address: Nedre Skøyen vei 2 0276 Oslo
Postal address: P O Box 265 Skøyen NO-0213 Oslo
T: (+47) 21 58 50 00 E: [email protected]
Investor relations: E: [email protected]
www.multiconsult.no
Org no 910 253 158
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