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Multiconsult
Quarterly Report • May 8, 2024
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Quarterly Report
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Q1 | 2024 INTERIM REPORT
1
multiconsult-ir.com
CEO comments
Multiconsult started the year with a strong quarter, continuing the momentum from the end of 2023. Delivering a good result and solid figures on order intake, organic growth, and general overall good operational performance. The performance was influenced by high activity, with a billing ratio of 73.5 per cent, 2.5 percentage points higher than the comparable quarter last year. Our skilled and dedicated employees continued to deliver projects with high value for clients and society, and the demand for our services remains strong.
The first quarter EBITA came in at NOK 136.8 million, reflecting an EBITA margin of 10.0 per cent. Net operating revenues grew by 4.3 per cent to NOK 1 366.9 million. Adjusted for the calendar effect, the organic revenue growth came in at 9.8 per cent.
Our employees' efforts and expertise are fundamental to the solid reputation of Multiconsult. I am delighted to share that Multiconsult Polska has been honoured as the engineering company of the year in Poland - a well-deserved accolade. Furthermore, I am proud that our architects in LINK Arkitektur has achieved the noteworthy accomplishment of being on the list among the world's top architecture companies (ranked 44th – Archello).
In our strategy, we aim to significantly influence our industry and collaborate with clients who have the courage to pursue unconventional and innovative projects. A prime example of this approach is the solar plant at Isfjord Radio in Svalbard, which recently was awarded the Solar Energy Award - Facility of the Year. I am impressed by how our employees leveraged their professional skills to assist the client in establishing such a facility in a harsh climate with arctic conditions and in a particularly vulnerable wildlife and natural environment. The operational success of this facility demonstrates that solar power can play a role in contributing to the green shift in arctic climates.
Increased focus on strategic alignment between our subsidiaries was the focus of our annual top management summit in February. Through value creating co-operation we aim to facilitate even better services for our clients. Alignment and co-operation are also important measures for Multiconsult's further growth, development, and profitability as well as for maximising the efficiency of our operations.
Two major announcements that may have significant effect on the industry and our main business areas are The Norwegian National Transport Plan for 2025 - 2036 (NTP) and EU's Energy Performance of Buildings Directive (EPBD). The NTP indicates a high level of investment leading to a continued high demand for Multiconsult's services. On the other hand, the EPBD which is the main legislative instrument regulating buildings
"In our strategy we seek to shape our industry and collaborate with clients who have the courage to pursue ground-breaking and innovative projects. The solar cell plant at Isfjord Radio in Svalbard is a great example of how our employee's expertise finds solutions overcoming the harshest environments to create lasting impact with solar power for the facility in artic conditions."
Grethe Bergly, CEO of Multiconsult
across the EU (including Norway), introduces new and stricter environmental requirements and energy efficiency standards for buildings. Responding to this directive, an increased speed will be required for rehabilitation, conversion, and extension of buildings – a market Multiconsult is well positioned for and represents an enhanced market potential.
Multiconsult's services remains in high demand, as reflected by the solid order intake at NOK 1.85 billion in the quarter. The order intake results in a high and increased order backlog, reaching NOK 5.09 billion, with a diversified portfolio distributed among all business areas. The overall market outlook remains stable. There are geographical differences and while the housing and real-estate market remains challenging, the overall building and property market shows signs of levelling off. As for the architecture business, we maintain the close monitoring and make necessary adjustments to staffing levels. There is a continued solid market outlook within the remaining business areas.
Grethe Bergly
CEO of Multiconsult ASA
Highlights Q1
First quarter
- Good quarter with high order intake, strong operational performance and results
- Net operating revenues increased by 4.3 per cent to NOK 1 366.9 million (1 310.2)
- The organic revenue growth adjusted for the calendar effect was 9.8 per cent
- EBITA of NOK 136.8 million (216.3), equal to an EBITA margin of 10.0 per cent (16.5) • Net revenues and EBITA impacted negatively by NOK 113.7 million from the calendar effect compared with Q1 2023
- Improved billing ratio of 73.5 per cent (71.0), up 2.5pp
- Solid order intake of NOK 1 847 million (2 573)
- Order backlog of NOK 5 086 million (4 654)
- Full-time equivalents (FTE) increased by 9.9 per cent, to 3 550 (3 230)
- Net profit of NOK 95.5 million (158.1)
- Earnings per share NOK 3.52 (5.76)
- The overall market outlook remains stable
Consolidated key figures
| Amounts in NOK million (except EPS and percentage) | Q1 2024 | Q1 2023 | FY 2023 |
|---|---|---|---|
| Financial | |||
| Net operating revenues | 1 366.9 | 1 310.2 | 4 802.5 |
| Employee benefit expenses | 1 017.9 | 898.8 | 3 553.6 |
| Other operating expenses | 153.0 | 140.2 | 592.6 |
| EBITDA | 196.1 | 271.1 | 656.3 |
| EBITDA margin | 14.3% | 20.7% | 13.7% |
| EBITA | 136.8 | 216.3 | 419.5 |
| EBITA margin | 10.0% | 16.5% | 8.7% |
| EBITA adjusted 1) | 136.8 | 216.3 | 446.2 |
| EBITA margin adjusted 1) | 10.0% | 16.5% | 9.3% |
| Reported profit for the period | 95.5 | 158.1 | 316.6 |
| Earnings per share (EPS) | 3.52 | 5.76 | 11.56 |
| Operational | |||
| Billing ratio | 73.5% | 71.0% | 70.8% |
| Number of employees | 3 772 | 3 423 | 3 749 |
| Full-time equivalents (FTE) | 3 550 | 3 230 | 3 388 |
| Order intake | 1 847 | 2 573 | 6 926 |
| Order backlog | 5 086 | 4 654 | 4 883 |
1) Note to comparable figure FY 2023: EBITA adjusted of NOK 446.2 million, 9.3 per cent margin is adjusted for one-offs related to share ownership programme (NOK 18.7 million) and restructuring cost (NOK 8.0 million). Reported EBITA of NOK 419.5 million, 8.7 per cent margin.
Net operating revenues
EBITA
Note to comparable figure: Q4 2023: EBITA adjusted of NOK 145.1 million, 10.7 per cent margin is adjusted for one-offs related to share ownership programme (NOK 18.7 million) and restructuring cost (NOK 8.0 million). Reported EBITA of NOK 118.4 million, 8.7 per cent margin.
First quarter 2024
Multiconsult delivered a strong first quarter, continuing the positive development with high activity and good operational performance. The first quarter EBITA came in at NOK 136.8 million (216.3), equal to an EBITA margin of 10.0 per cent. The performance was influenced by high activity, with a billing ratio of 73.5 per cent, 2.5 percentage points higher than the comparable quarter last year. Net operating revenues grew by 4.3 per cent to NOK 1 366.9 million, the organic revenue growth was 9.8 per cent adjusted for the calendar effect. There was an impact of six fewer working days compared to the same period last year, with an estimated negative effect of NOK 113.7 million on net operating revenues and EBITA. The order intake was solid at NOK 1 847 million resulting in an order backlog of NOK 5 086 million.
Financial review
Multiconsult group ("Multiconsult" or "the group") comprises Multiconsult ASA ("parent company" or "company") and all subsidiaries and associated companies. Comparable text, and figures in brackets reflect the same period prior year or relevant balance sheet date in 2023.
Group results
First quarter 2024 Multiconsult group
Net operating revenues amounted to NOK 1 366.9 million (1 310.2), an increase of 4.3 per cent compared to the same quarter last year. The organic revenue growth amounted to 9.8 per cent, adjusted for calendar effect and acquisition. The increase in net operating revenues was driven by higher billing ratio, increased capacity, and higher billing rates. The billing ratio exceeded last year's comparable quarter by 2.5 percentage points, reaching 73.5 per cent (71.0). Higher capacity, reflected by an increase in full-time equivalents (FTE) of 9.9 per cent and higher billing rates, contributed positively to growth in net operating revenues.
Operating expenses consist of employee benefit expenses and other operating expenses. Operating expenses increased by 12.7 per cent to NOK 1 170.9 million (1 039.1) compared to the same quarter in 2023. Employee benefit expenses increased by 13.2 per cent in line with ordinary salary adjustment, increased manning level from acquisitions, and significant increase in net recruitment. Other operating expenses increased to NOK 153.0 million (140.2), an increase of 9.1 per cent mainly due to higher office expenditure including office expenditures related to acquired companies, consultancy and IT-cost, and cost increase in general.
EBITDA was NOK 196.1 million (271.1), a decrease of 27.7 per cent compared to the same period last year, reflecting an EBITDA margin of 14.3 per cent (20.7) in the quarter.
EBITA was NOK 136.8 million (216.3), a decrease of 36.8 per cent year-over-year, reflecting an EBITA margin of 10.0 per cent (16.5) in the quarter.
Net financial items were an expense of NOK 18.4 million (expense of NOK 12.3 million), an increase of expenses equal to 49.1 per cent. The increase is related to higher interestbearing liabilities, higher interest rates and lower net currency losses compared to same quarter last year.
Group tax rate was 21.3 per cent (22.3).
Reported profit for the period was NOK 95.5 million (158.1). Earnings per share for the quarter were NOK 3.52 (5.76).
Calendar effect. In the first quarter of 2024 there were six fewer working days compared to the first quarter 2023. This had a negative impact on net operating revenues and operating results. Multiconsult uses alternative performance measures to provide a better understanding of the group's underlying financial performance, see last section of this report. There was a negative calendar effect of NOK 113.7 million on EBITA implying that, when adjusted for this effect, the EBITA and EBITA margin was higher than the comparable quarter last year.
Financial position, cash flow and liquidity
First quarter 2024 Multiconsult group
Total assets amounted to NOK 3 972.6 million (3 880.0, Dec 2023), and total equity amounted to NOK 1 182.7 million (1 080.3, Dec 2023). The group held cash and cash equivalents of NOK 71.4 million (278.1, Dec 2023), with no drawdown on cash pool (no drawdown on cash pool, Dec 2023).
Net interest-bearing liabilities amounted to NOK 1 124.6 million (937.7, Dec 2023). Adjusted for IFRS 16 lease obligations, net interest-bearing debt was NOK 297.9 million (138.0, Dec 2023).
Net cash flow from operating activities was negative NOK 28.3 million (negative 25.9). Net cash flow from operating activities was affected by change in working capital. The change in working capital in the quarter was within normal fluctuations.
Net cash flow used in investment activities was NOK 70.0 million (11.2). Ordinary asset replacement amounted to NOK 36.2 million (9.9). Net cash paid for acquisitions was NOK 32.6 million.
Net cash flow from financing activities amounted to negative NOK 110.9 million (negative NOK 77.4 ) which was affected by instalments on the revolving credit facility of NOK 50.0 million and instalments on lease liabilities.
People and organisation
Employee engagement, personal and professional development, a learning organisation and strong recruitment capabilities are important factors for Multiconsult's long-term success. The number of fulltime equivalents (FTE) in the quarter amounted to 3 550 (3 230), an increase of 9.9 per cent compared to same quarter last year. At the end of the first quarter the total number of employees was 3 772 (3 423), an increase of 349 employees year-over-year, a 10.2 per cent growth.
In the quarter the annual top management summit was held with the topic "strategic alignment".
A new module of the Multiconsult group's top leadership programme, has been arranged with participation from all subsidiaries.
Multiconsult Polska was awarded "Technical Advisor of the Year" in Poland. The award was announced at the Polish Infrastructure and Construction 2024 conference.
LINK Arkitektur has achieved the noteworthy accomplishment of being on the list among the world's top architecture companies (ranked 44th – Archello).
Håkon Duus is nominated for the Future Leaders Award under the auspices of EFCA (European Federation of Engineering Consultancy Associations).
In accordance with the continuation of the share ownership programme launched in 2023, a total of 2 720 MULTI shares were transferred to new employees during the quarter.
Multiconsult conducted an employee engagement survey during the quarter. The engagement score is aligned with benchmark companies, and the employee net promoter score remains slightly higher than benchmark, indicating a high level of employee satisfaction.
In Multiconsult Norge AS, the International Women's Day was marked as a part of our efforts to further build awareness in diversity and inclusion.
Markets, order intake and backlog
Multiconsult group reports on markets, order intake and backlog through the following four business areas:
- Buildings & Properties
- Mobility & Transportation
- Energy & Industry
- Water & Environment
First quarter 2024
The total consolidated order intake in the quarter amounted to NOK 1 847 million (2 573), a decrease of 28.2 per cent year-over-year. In the first quarter 2023 we had an exceptionally high order intake, of which approximately NOK 1 070 million was for the new Rikshospitalet and Aker hospital. The order backlog is high, with a diversified portfolio distributed across all business areas. At the end of the quarter the order backlog was NOK 5 086 million (4 883, Dec 2023), an increase of 4.1 per cent compared to year end 2023 and a growth of 9.3 per cent year-over-year.
The size and timing of execution of the order backlog varies significantly between the business areas and locations. The 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.
During the quarter the market associated with our four business areas is outlined below:
Buildings & Properties
Continued high activity in an uncertain market. While the housing and real-estate market is slow, we note positive development in other parts of the market, such as defence projects and energy efficiency projects. The Scandinavian market for architecture is considered to have reached the bottom of its downturn phase.
Among projects included in the order intake during the quarter were:
- New Rikshospitalet
- Aker hospital
- Pharma and Life Science project, Copenhagen
- Hvalheim Housing and Service Centre
Mobility & Transportation
Continued at a high level. Multiconsult has a strong position with a strong order backlog and large ongoing projects.
Among projects included in the order intake during the quarter were:
- Fornebubanen (ENG: Fornebu Line)
- Myrdal station (rail)
- E10 Hålogalandsvegen
Energy & Industry
Maintained at a high activity level. Notably, there was a steady and strong demand within projects associated with the green shift and increased energy demand. The order backlog has remained at a high level for an extended period.
Among projects included in the order intake during the quarter were:
- Hammerfest LNG Snøhvit Future project
- Yggdrasil Power from Shore
- Andfjord Salmon, with Hæhre Entreprenør AS
Water & Environment
Remained strong with growing demand for water and sewage infrastructure projects. Order intake during the quarter was strong mainly due to contracts related to Water supply to Oslo.
The increasing emphasis on sustainability and climate adaptation across different sectors opens new markets and increased demand for advisory services in areas such as natural hazard, nature restoration and environmental services.
Among projects included in the order intake during the quarter were:
- Water supply to Oslo
- Nordbykollen waste water treatment
Segments
Multiconsult is a specialist engineering and architecture consultancy company. Its business concept is delivering multidisciplinary consultancy, creating value for clients, shareholders, employees, and other stakeholders.
Multiconsult is organised in four reporting segments:
- Region Oslo
- Region Norway
- Architecture
- International
From the second quarter of 2023, and due to the acquisition of A-lab, the segment Architecture was introduced, which incorporates the financial statements from A-lab and LINK Arkitektur.
Region Oslo
This segment offers services in four business areas and comprises the Oslo region, including the Lillehammer office, Large Projects in Norway and the subsidiary Multiconsult UK.
Key figures – Region Oslo
| Amounts in NOK million | Q1 2024 | Q1 2023 | FY 2023 |
|---|---|---|---|
| Net operating revenues | 510.1 | 514.9 | 1 873.6 |
| EBITA | 62.9 | 98.1 | 249.6 |
| EBITA % | 12.3% | 19.1% | 13.3% |
| Billing ratio | 73.6% | 73.2% | 71.9% |
| Full-time equivalents (FTE) | 1 121 | 1 049 | 1 089 |
First quarter 2024 Region Oslo
Net operating revenues in the quarter was NOK 510.1 million (514.9), a decrease of 0.9 per cent compared to the same quarter last year. Both net operating revenues and EBITA were affected by the negative calendar effect, which was offset by higher billing ratio, increased capacity, and higher billing rates. Billing ratio increased by 0.4 percentage points to 73.6 per cent (73.2). There was a 6.9 per cent growth in full-time equivalents (FTE), as well as higher billing rates.
Operating expenses amounted to NOK 441.7 million (413.8), an increase of 6.7 per cent. Employee benefit expenses was NOK 352.4 million (322.9), an increase of 9.1 per cent. The increase was mainly driven by net recruitment and ordinary salary adjustment. Other operating expenses amounted to NOK 89.3 million (90.9), a decrease of 1.8 per cent on reduced costs in general.
EBITA amounted to NOK 62.9 million (98.1), and the corresponding margin was 12.3 per cent (19.1). The higher billing ratio, increased capacity and higher rates all contributed positively, while there was a negative calendar effect and higher employee benefit expenses.
Net operating revenues
Amounts in NOK million
EBITA
Region Norway
This segment offers services in four business areas and comprises all offices outside the Region Oslo, with presence in all larger cities and several other locations in Norway.
Key figures – Region Norway
| Amounts in NOK million | Q1 2024 | Q1 2023 | FY 2023 |
|---|---|---|---|
| Net operating revenues | 559.0 | 556.7 | 1 960.0 |
| EBITA | 66.4 | 93.0 | 165.6 |
| EBITA % | 11.9% | 16.7% | 8.4% |
| Billing ratio | 72.8% | 71.6% | 70.2% |
| Full-time equivalents (FTE) | 1 271 | 1 183 | 1 213 |
First quarter 2024 Region Norway
Net operating revenues amounted to NOK 559.0 million (556.7) an increase of 0.4 per cent compared to the same quarter last year. Both net operating revenues and EBITA were affected by the negative calendar effect, which was offset by higher billing ratio, increased capacity, and higher billing rates. The billing ratio increased by 1.2 percentage points to 72.8 per cent (71.6). Net operating revenues were also positively affected by higher capacity, reflected in a 7.4 per cent growth in full-time equivalents (FTE). Additionally, good operational performance, and higher billing rates made positive contributions to the net operating revenues.
Operating expenses amounted to NOK 484.3 million (454.6), an increase of 6.5 per cent. Employee benefit expenses came in at NOK 378.2 million (346.2), an increase of 9.2 per cent. The increase was mainly driven by the high growth in full-time equivalents (FTE) and ordinary salary adjustment. Other operating expenses amounted to NOK 106.1 million (108.5), a decrease of 2.2 per cent on reduced costs in general.
EBITA amounted to NOK 66.4 million (93.0), and the corresponding margin was 11.9 per cent (16.7). Higher billing ratio, increased capacity and higher rates all contributed positively, while there was a negative calendar effect and higher employee benefit expenses.
Net operating revenues
Amounts in NOK million
EBITA
Architecture
This segment comprises the architecture firms LINK Arkitektur and A-lab with offices in Norway, Sweden, Denmark, and Portugal, and offers services in the two business areas: Buildings & Properties and Energy & Industry. Figures are affected by the acquisition of A-lab that was made last year and included in the financial accounts with effect from 30 June 2023.
Key figures – Architecture
| Amounts in NOK million | Q1 2024 | Q1 2023 | FY 2023 |
|---|---|---|---|
| Net operating revenues | 194.3 | 170.2 | 672.4 |
| EBITA | 5.1 | 22.8 | 11.3 |
| EBITA % | 2.6% | 13.4% | 1.7% |
| Billing ratio | 72.7% | 70.8% | 70.5% |
| Full-time equivalents (FTE) | 541 | 459 | 503 |
First quarter 2024 Architecture
Net operating revenues amounted to NOK 194.3 million (170.2) an increase of 14.2 per cent compared to the same quarter last year. The increase in net operating revenues reflects higher capacity due to the acquisition of A-lab, reflected in a 17.9 per cent growth in full-time equivalents (FTE). Higher billing ratio of 1.9 percentage points to 72.7 per cent (70.8) and higher billing rates contributed positively on net operating revenues.
Operating expenses increased by 27.7 per cent to NOK 180.6 million (141.5). Employee benefit expenses increased by 26.7 per cent mainly due to the inclusion of employees from A-lab to this segment, and regular salary adjustment. Other operating expenses amounted to NOK 26.5 million (19.9), representing a 33.2 per cent increase. This increase is attributed to the inclusion of A-lab, which led to higher office cost and other general costs.
EBITA amounted to NOK 5.1 million (22.8), and the corresponding margin was 2.6 per cent (13.4). Higher billing ratio, increased capacity and higher rates all contributed positively, while there was a negative calendar effect and higher employee benefit expenses. Furthermore, there was a negative contribution from A-lab.
Net operating revenues
Amounts in NOK million
EBITA
■ EBITA (NOK million) – EBITA margin (%) 24 18%
2022
2021
2023
2024
International
This segment comprises the subsidiaries Multiconsult Polska in Poland and Iterio AB with subsidiaries in Sweden and offers services mainly in the business area Mobility & Transportation. Starting from first quarter 2024, due to acquisitions made by subsidiary Iterio AB, segment International will incorporate financial statements from acquired companies.
Key figures – International
| Amounts in NOK million | Q1 2024 | Q1 2023 | FY 2023 |
|---|---|---|---|
| Net operating revenues | 96.0 | 73.3 | 314.5 |
| EBITA | 5.2 | 4.6 | 25.2 |
| EBITA % | 5.4% | 6.3% | 8.0% |
| Billing ratio | 79.6% | 66.8% | 72.9% |
| Full-time equivalents (FTE) | 457 | 389 | 433 |
First quarter 2024 International
Net operating revenues amounted to NOK 96.0 million (73.3), an increase of 31.0 per cent compared to the same quarter last year. The main driver behind the increase in net operating revenues was an increase in billing rates and a higher billing ratio that came in at 79.6 per cent (66.8), an increase of 12.8 percentage points. Moreover, the growth in net operating revenues measured in NOK surpassed the growth in local currency due to the impact of currency exchange rate translation effects.
Operating expenses amounted to NOK 85.7 million (64.1), 33.8 per cent higher than in the same period last year. Employee benefit expenses increased by 30.3 per cent influenced by inflation, ordinary salary adjustment, employee benefit expenses from acquired companies and net recruitment in the segment. Other operating expenses amounted to NOK 14.3 million, an increase of 54.1 per cent compared to the same quarter last year. The increase in other operating expenses was driven by expenses from acquired companies, high inflation and increased capacity.
EBITA amounted to NOK 5.2 million (4.6), and the corresponding margin was 5.4 per cent (6.3). Higher billing ratio, increased capacity and higher rates contributed positively, while there were higher operating expenses.
Net operating revenues
Amounts in NOK million
120
EBITA ■ EBITA (NOK million) – EBITA margin (%)
Subsequent events
On 11 April, Multiconsult ASA held the annual general meeting. The annual general meeting approved all the proposed items on the agenda.
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.
The overall market outlook remains stable. While the housing and real-estate market remains challenging and the overall building and property market is stable with continued uncertainty, there is a continued solid market outlook within the remaining business areas.
The market outlook associated with our four business areas is outlined below:
Buildings & Properties
Diverse outlook with geographical variations. Activity remains high, in a stable market with continued uncertainty. The challenges have persisted within housing and real-estate with some positive signs. Meanwhile investments in defence and energy efficiency are still expected to be high. The Energy Performance of Buildings Directive (EPBD) was approved on 12 April, which may result in an acceleration within the market for rehabilitation, conversion, and extension of buildings in a longterm perspective.
Mobility & Transportation
Remainss robust with steady investments expected within infrastructure. The Norwegian National Transport Plan 2025- 2036 was presented during the quarter and Multiconsult is well positioned for priorities outlined in the plan.
Energy & Industry
Still solid with a continued high investment level. Uncertainty due to political discussions and access to power supply has a negative impact on several project initiatives related to the green shift. The announcement of the winner of the offshore lease area Sørlige Nordsjø II will generate new opportunities in the market.
Water & Environment
Expected to develop in a positive direction as a result of new EU requirements which generates a large demand for water and sewage infrastructure projects, alongside climate change adaptation initiatives, driven by a growing emphasis on sustainability.
Multiconsult does not provide forecast.
Risk and uncertainties
Through its business activities, Multiconsult manages a considerable contract portfolio of engineering, architectural and advisory services that is exposed to a wide variety of risk factors. The risk of disagreements and legal disputes related to the possible cost of delays and project errors is always present in the business.
The Risk and risk management section of the Directors report in the 2023 Annual Report contains detailed description and mitigating actions related to several risk factors, including: project risk (including risk related to Sotra Link project), credit risk, currency risk, interest rate risk, liquidity risk, accounting estimates risk, employees and expertise risk, nature and climate risk, macro-economic developments and geopolitical tensions and war in Ukraine, and information and cyber security risk.
Definitions
Net operating revenues: Operating revenues less sub consultants, direct external project costs and disbursements.
EBITDA: EBIT before depreciation, amortisation and impairment.
EBITDA margin (%): EBITDA as a percentage of net operating revenues.
EBITA: EBIT before amortisation and impairment of goodwill and acquisition-related intangible assets.
EBITA margin (%): EBITA as a percentage of net operating revenues.
EBITA adjusted: EBITA adjusted for one-offs related to share ownership programme and restructuring cost.
EBITA adjusted margin (%): EBITA adjusted 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.
Employees: Number of employees comprise all staff on payroll including staff on temporarily leave (paid and unpaid), excluding temporary personnel. Number of employees measured at the end of the period.
Billing ratio (%): Total billable hours in a period as a percentage of total hours reported in the period (including administrative staff) and employer-paid absence. Billing ratio per segment includes allocated administrative staff.
FTE (Full-time equivalents): Total hours reported in the period converted to the equivalent number of full-time positions.
Total hours: Hours of attendance plus hours of employer-paid absence.
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 interestbearing liabilities deducted cash and cash equivalents.
Disclaimer
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.
Interim condensed consolidated financial statements
Unaudited for the period ended 31 March 2024
Interim condensed consolidated statement of profit or loss
| Amounts in NOK thousand, except EPS | Q1 2024 | Q1 2023 | FY 2023 |
|---|---|---|---|
| Operating revenues | 1 591 577 | 1 496 640 | 5 626 259 |
| Expenses for sub consultants and disbursements | 224 633 | 186 462 | 823 780 |
| Net operating revenues | 1 366 943 | 1 310 178 | 4 802 479 |
| Employee benefit expenses | 1 017 900 | 898 811 | 3 553 604 |
| Other operating expenses | 152 951 | 140 245 | 592 621 |
| Operating expenses excl. depreciation and amortisation | 1 170 851 | 1 039 056 | 4 146 225 |
| Operating profit before depreciation and amortisation (EBITDA) | 196 092 | 271 121 | 656 255 |
| Depreciation, amortisation and impairment | 60 127 | 56 523 | 248 087 |
| Operating profit (EBIT) | 135 965 | 214 599 | 408 167 |
| Share of profit from associated companies and joint ventures | 3 854 | 1 242 | 12 606 |
| Financial income and expenses | |||
| Financial income | 5 987 | 6 908 | 68 356 |
| Financial expenses | 24 338 | 19 219 | 93 624 |
| Net financial items | (18 351) | (12 311) | (25 268) |
| Profit before income taxes | 121 469 | 203 530 | 395 504 |
| Income tax expense | 25 920 | 45 392 | 78 907 |
| Profit for the period | 95 549 | 158 138 | 316 597 |
| Attributable to: | |||
| Attributable to the equity holders of the company | 97 204 | 158 138 | 318 118 |
| Attributable to non-controlling interests | (1 654) | - | (1 521) |
| Earnings per share attributable to the equity holders of the parent company | |||
| Basic and diluted (NOK) | 3.52 | 5.76 | 11.56 |
Interim condensed consolidated statement of comprehensive income
| Q1 2024 | Q1 2023 | FY 2023 |
|---|---|---|
| 95 549 | 158 138 | 316 597 |
| (850) | ||
| 187 | ||
| (663) | ||
| 6 519 | 14 766 | 15 899 |
| 6 519 | 14 766 | 15 899 |
| 6 519 | 14 766 | 15 236 |
| 102 068 | 172 904 | 331 833 |
| 103 684 | 172 904 | 333 365 |
| (1 617) | - | (1 532) |
| - - - |
- - - |
Interim condensed consolidated statement of financial position
| Amounts in NOK thousand | 31 March 2024 | 31 March 2023 | 31 December 2023 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Deferred tax assets | 57 046 | 40 892 | 53 319 |
| Intangible assets | 43 292 | 22 060 | 33 745 |
| Goodwill | 1 102 270 | 930 498 | 1 064 414 |
| Property, plant and equipment | 167 704 | 103 879 | 146 398 |
| Right-of-use assets | 756 727 | 687 600 | 729 400 |
| Investments in associated companies and joint ventures | 42 054 | 27 173 | 36 989 |
| Assets for reimbursement of provisions | 85 163 | 65 880 | 86 951 |
| Other non-current financial assets and shares | 35 899 | 30 700 | 34 714 |
| Total non-current assets | 2 290 154 | 1 908 682 | 2 185 929 |
| Current assets | |||
| Trade receivables | 968 119 | 822 424 | 976 787 |
| Work in progress | 392 291 | 333 278 | 259 207 |
| Other current receivables and prepaid expenses | 250 599 | 218 460 | 179 960 |
| Cash and cash equivalents | 71 429 | 5 557 | 278 088 |
| Total current assets | 1 682 438 | 1 379 719 | 1 694 042 |
| Total assets | 3 972 592 | 3 288 401 | 3 879 971 |
| EQUITY AND LIABILITIES | |||
| Shareholders' equity | |||
| Total paid in capital | 206 169 | 157 286 | 205 815 |
| Other equity | 932 746 | 979 809 | 829 035 |
| Non-controlling interests | 43 806 | - | 45 422 |
| Total shareholders' equity | 1 182 721 | 1 137 095 | 1 080 272 |
| Non-current liabilities | |||
| Pension obligations | 4 628 | 4 549 | 4 628 |
| Deferred tax | 17 899 | 15 407 | 11 739 |
| Provisions | 93 458 | 73 345 | 96 795 |
| Other non-current obligations | 57 326 | - | 45 122 |
| Non-current interest-bearing liabilities | 400 000 | - | 450 000 |
| Non-current lease liabilities | 621 005 | 573 537 | 604 406 |
| Total non-current liabilities | 1 194 316 | 666 838 | 1 212 690 |
| Current liabilities | |||
| Trade payables | 239 827 | 126 282 | 218 968 |
| Prepaid revenues | 159 909 | 137 538 | 168 458 |
| Current tax liabilities | 73 550 | 114 319 | 91 307 |
| Public duties payable | 422 032 | 437 897 | 491 429 |
| Current interest-bearing liabilities | - | 31 789 | - |
| Current lease liabilities | 205 726 | 174 615 | 195 301 |
| Other current liabilities | 494 511 | 462 029 | 421 544 |
| Total current liabilities | 1 595 555 | 1 484 468 | 1 587 009 |
| Total liabilities | 2 789 871 | 2 151 306 | 2 799 699 |
| Total equity and liabilities | 3 972 592 | 3 288 401 | 3 879 971 |
Interim condensed consolidated statement of changes in equity
| Amounts in NOK thousand | Share capital |
Own shares |
Share premium |
Total paid in capital |
Retained earnings |
Employee ownership programme |
Pension Currency | Non con trolling interests (NCI) |
Total equity |
|
|---|---|---|---|---|---|---|---|---|---|---|
| 31 December 2022 | 13 767 | (3 855) | 175 630 | 185 543 | 1 063 480 | (59 315) | (202 866) | 5 606 | - | 992 448 |
| Share issue | - | - | - | - | - | - | - | - | - | |
| Dividend | - | - | - | - | - | - | - | - | - | - |
| Treasury shares | - | (28 257) | - | (28 257) | - | - | - | - | - | (28 257) |
| Employee share purchase programme |
- | - | - | - | - | - | - | - | - | - |
| Comprehensive income | - | - | - | - | 158 138 | - | - | 14 766 | - | 172 904 |
| 31 March 2023 | 13 767 | (32 112) | 175 630 | 157 286 | 1 221 618 | (59 315) | (202 866) | 20 373 | - 1 137 095 | |
| 31 December 2022 | 13 767 | (3 855) | 175 630 | 185 543 | 1 063 480 | (59 315) | (202 866) | 5 606 | - | 992 448 |
| Share issue | 70 | - | 20 972 | 21 043 | - | - | - | - | - | 21 043 |
| Dividend | - | - | - | - | (247 288) | - | - | - | - | (247 288) |
| Treasury shares | - | (770) | - | (770) | - | (6 742) | - | - | - | (7 512) |
| Employee ownership | ||||||||||
| programme | - | - | - | - | - | (10 803) | - | - | - | (10 803) |
| Comprehensive income | - | - | - | - | 318 129 | - | (663) | 15 899 | (1 532) | 331 833 |
| NCI | - | - | - | - | - | - | - | - | 46 954 | 46 954 |
| NCI gross put option | - | - | - | - | (46 405) | - | - | - | - | (46 405) |
| 31 December 2023 | 13 837 | (4 625) | 196 603 | 205 815 | 1 087 916 | (76 860) | (203 530) | 21 506 | 45 422 1 080 272 | |
| 31 December 2023 | 13 837 | (4 625) | 196 603 | 205 815 | 1 087 916 | (76 860) | (203 530) | 21 506 | 45 422 1 080 272 | |
| Share issue | - | - | - | - | - | - | - | - | - | - |
| Dividend | - | - | - | - | - | - | - | - | - | - |
| Treasury shares | - | 354 | - | 354 | - | 27 | - | - | - | 381 |
| Employee ownership | ||||||||||
| programme | - | - | - | - | - | - | - | - | - | - |
| Comprehensive income | - | - | - | - | 97 166 | - | - | 6 519 | (1 617) | 102 067 |
| 31 March 2024 | 13 837 | (4 271) | 196 603 | 206 169 | 1 185 082 | (76 832) | (203 530) | 28 025 | 43 805 1 182 720 |
Interim condensed consolidated statement of cash flows
| Amounts in NOK thousand Q1 2024 Q1 2023 FY 2023 Cash flow from operating activities Profit before income taxes 121 469 203 530 395 504 Interest lease liabilities 9 951 7 752 37 846 Interest expense interest-bearing liabilities 8 381 2 244 22 671 Income taxes paid (43 848) (16 129) (93 283) Depreciation, amortisation and impairment 17 412 16 375 76 079 Depreciation right-of-use assets 42 816 40 147 163 963 Impairment right-of-use assets (103) - (392) |
|---|
| Results from associated companies and joint ventures (3 854) (1 242) (12 606) |
| Other non-cash profit and loss items (678) (1 017) 913 |
| Subtotal operating activities 151 548 251 660 590 696 |
| Trade payables 20 416 (6 395) 79 354 |
| Trade receivables 12 009 (226 133) (341 185) |
| Work in progress (132 804) (28 950) 53 747 |
| Public duties payable (70 700) 27 494 65 938 |
| Other (8 813) (43 600) (25 220) |
| Total changes in working capital (179 892) (277 586) (167 367) |
| Net cash flow from operating activities (28 344) (25 926) 423 329 |
| Cash flows used in investment activities |
| Net purchase and sale of fixed assets and financial non-current assets (36 154) (9 942) (99 011) |
| Proceeds/payments related to joint ventures and jointly controlled entities - - |
| Change in non-current financial assets, restricted funds (1 230) (1 290) (1 667) |
| Net cash effect of business combinations (32 576) - (92 649) |
| Net cash flow used in investment activities (69 960) (11 232) (193 326) |
| Cash flow from financing activities |
| Proceeds on interest-bearing liabilities - - 450 000 |
| Instalments on interest-bearing liabilities (50 000) - |
| Paid interest on interest-bearing liabilities (8 381) (2 244) (22 671) |
| Instalments on lease liabilities (42 582) (40 580) (160 250) |
| Paid interest on lease liabilities (9 951) (7 752) (37 846) |
| Paid dividends - - (247 288) |
| Cost of share issuance - - (100) |
| Sale treasury shares - - 88 935 |
| Purchase treasury shares - (26 781) (143 789) |
| Net cash flow from financing activities (110 914) (77 357) (73 009) |
| Foreign currency effects on cash and cash equivalents 2 560 5 513 6 536 |
| Net increase/decrease in cash and cash equivalents (206 659) (109 002) 163 530 |
| Cash and cash equivalents at the beginning of the period 278 088 114 559 114 559 |
| Cash and cash equivalents at the end of the period 71 429 5 557 278 088 |
Changes in working capital were adjusted for opening balance in acquired companies during first quarter 2024.
Notes to the financial statements
Note 1: General information
The company and the group
Multiconsult ASA (the company) is a Norwegian public limited liability company listed on Oslo Stock Exchange. The company and its subsidiaries (together the Multiconsult group/the group) are 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, United Kingdom, Portugal, Serbia and Singapore.
Note 2: Basis of preparation and statements
Basis for preparation
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.
Statements
These interim condensed consolidated financial statements for the first quarter 2024 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 2023. The accounting policies applied are consistent with those applied and described in the consolidated annual financial statements for 2023, which are available upon request from the company's registered office at Nedre Skøyen vei 2, 0276 Oslo and at www.multiconsult-ir. com.
These interim condensed consolidated financial statements for the first quarter 2024 were approved by the board of directors and the CEO on 7 May 2024.
Note 3: Accounting policies
The group prepares its consolidated annual financial statements in accordance with IFRS® Accounting Standards 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.
Note 4: Estimates, judgments and assumptions
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. The key sources of estimation uncertainty were the same as those applied to the annual consolidated financial statements for the 2023, and described in note 2 in the annual consolidated financial statements.
Impairment test of Goodwill
Cash-generating units are reviewed for impairment when indicators exist. The estimated recoverable amounts are affected by assumptions in connection with the estimation of future cash flows, as well as discount rate for the estimation of the present value of the cash flows. An assessment of impairment indicators has been made on 31 March 2024. No impairment indicators were identified, and thereby a full test is not performed. The group performed full impairment tests on 31 December 2023 which did not result in any impairment for goodwill, property, plant and equipment or intangible assets related to any of the cash generating units.
Note 5: Segments
Multiconsult's financial reporting is presented in the following four segments; Region Oslo, Region Norway, Architecture and International.
Starting from the second quarter of 2023, due to the acquired shares in A-lab, segment LINK Arkitektur will incorporate the
financial statements from A-lab, and consequently, the segment name has been modified to "Architecture".
Starting from first quarter 2024, due to acquisitions made by subsidiary Iterio AB, segment International will incorporate financial statements from acquired companies.
| Q1 2024 | Region | Region | Not | ||||
|---|---|---|---|---|---|---|---|
| Amounts in NOK thousand | Oslo | Norway | Architecture | International | allocated | Eliminations | Total |
| Net operating revenues | 510 070 | 559 040 | 194 280 | 96 043 | 12 304 | (4 793) | 1 366 943 |
| Operating expenses | 441 680 | 484 268 | 180 631 | 85 704 | (16 640) | (4 793) | 1 170 851 |
| EBITDA | 68 389 | 74 772 | 13 648 | 10 339 | 28 944 | - | 196 092 |
| Depreciation | 5 487 | 8 358 | 8 585 | 5 142 | 31 732 | - | 59 304 |
| EBITA | 62 903 | 66 414 | 5 064 | 5 197 | (2 789) | - | 136 789 |
| Full-time equivalents (FTE) | 1 121 | 1 271 | 541 | 457 | 159 | - | 3 550 |
| Q1 2023 | Region | Region | Not | ||||
|---|---|---|---|---|---|---|---|
| Amounts in NOK thousand | Oslo | Norway | Architecture | International | allocated | Eliminations | Total |
| Net operating revenues | 514 859 | 556 692 | 170 157 | 73 301 | (2 493) | (2 339) | 1 310 178 |
| Operating expenses | 413 814 | 454 640 | 141 505 | 64 074 | (32 637) | (2 339) | 1 039 056 |
| EBITDA | 101 045 | 102 052 | 28 652 | 9 227 | 30 144 | - | 271 121 |
| Depreciation | 2 932 | 9 078 | 5 896 | 4 589 | 32 279 | - | 54 774 |
| EBITA | 98 113 | 92 974 | 22 756 | 4 638 | (2 134) | - | 216 348 |
| Full-time equivalents (FTE) | 1 049 | 1 183 | 459 | 389 | 149 | - | 3 230 |
| FY 2023 | Region | Region | Not | ||||
|---|---|---|---|---|---|---|---|
| Amounts in NOK thousand | Oslo | Norway | Architecture | International | allocated | Eliminations | Total |
| Net operating revenues | 1 873 592 | 1 960 035 | 672 397 | 314 519 | (7 836) | (10 228) | 4 802 479 |
| Operating expenses | 1 604 914 | 1 758 922 | 631 804 | 269 690 | (108 876) | (10 228) | 4 146 225 |
| EBITDA | 268 678 | 201 113 | 40 593 | 44 830 | 101 041 | - | 656 255 |
| Depreciation | 19 063 | 35 494 | 29 270 | 19 624 | 133 305 | - | 236 757 |
| EBITA | 249 615 | 165 619 | 11 323 | 25 205 | (32 265) | - | 419 498 |
| Full-time equivalents (FTE) | 1 089 | 1 213 | 503 | 433 | 150 | - | 3 388 |
Note 6: Explanatory comments regarding the impact of revenue seasonality on quarterly reporting
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.
Note 7: Significant events and transactions
In first quarter 2024 Multiconsult completed purchases of businesses, see note 12 – Business combinations. There were no significant events or transactions in the period.
Note 8: Treasury shares
The company holds 32 853 treasury shares on 31 March 2024. In 2015 Multiconsult ASA introduced a share purchase programme for employees. In connection with this, and over time, the company holds variable position of treasury shares. For the year 2023, the programme was replaced by an employee ownership programme. This programme consisted of two parts: (i) Share purchase programme and (ii) Share ownership programme. In accordance with continuation of the share ownership programme launched in 2023 a total of 115 new employees in first quarter 2024 have been offered
40 complimentary shares which will be handed over during the second quarter. During first quarter 2024 a total of 2 720 MULTI shares were transferred to new employees who accepted the offer received previous quarter.
For a description of the employee ownership programme for all employees and the performance-based bonus scheme for the group management, see note 9 in the consolidated financial statements for 2023.
Note 9: Earnings per share
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.
| Q1 2024 | Q1 2023 | FY 2023 | |
|---|---|---|---|
| Profit attributable to the equity holders (in NOK thousand) | 97 204 | 158 138 | 318 118 |
| Average no of shares (excl own shares) | 27 640 892 | 27 446 421 | 27 509 248 |
| Earnings per share attributable to the equity holders of the parent company (NOK) | 3.52 | 5.76 | 11.56 |
Note 10: Financial instruments
The group's financial instruments, according to IFRS standards include interest-bearing liabilities, 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.
Interest bearing liabilities
| Amounts in NOK thousand | 31 March 2024 | 31 March 2023 | 31 December 2023 |
|---|---|---|---|
| Multiconsult ASA | 400 000 | 31 789 | 450 000 |
| Total | 400 000 | 31 789 | 450 000 |
At the end of the period Multiconsult ASA has an overdraft loan facility of NOK 320.0 million, which is part of a cash pool. The cash pool is a multi-currency and multi-account system for the legal entities Multiconsult Norge AS, LINK Arkitektur AS, LINK Arkitektur AB, LINK Arkitektur A/S, Iterio AB and Multiconsult UK Limited, where Multiconsult ASA is the owner of the cash pool's top account and the interestbearing debt or of the facility. In addition, Multiconsult ASA
has a revolving credit facility of NOK 300.0 million. The revolving credit facility includes an accordion option of NOK 500.0 million. Loan portfolio with Nordea bank is a 3-year (+ 3 month) facility until March 2026. At the end of the period the total drawdown on the revolving credit facility amounts to NOK 400 million. Multiconsult ASA is compliant with its financial covenants on 31 March 2024.
Note 11: Events after the reporting period
No events have been identified that require disclosure.
Note 12: Business combinations
Acquisition of VA Resurs
On 16 January 2024, Multiconsult announced that its Swedish subsidiary Iterio AB had acquired 100 percent of the shares in VA Resurs Stockholm AB and VA Resurs S AB Llc Belgrade to strengthen its competence and presence in Sweden. VA Resurs is a consultancy company that provides services in project and construction management. The company has extensive experience in designing, coordinating, investigating, and managing projects within water, stormwater and wastewater. The company consists of 11 skilled professionals based in Stockholm.
Closing date for the transaction was on 19 March 2024, and as a practical approach 31 March 2024 is used as closing date. The total purchase price was set to NOK 47.8 million, after adjustment for the value of net debt and normalised working capital at the transaction date. A contingent consideration, estimated to an amount of NOK 12.2 million at acquisition date, may be paid to the seller as an earn-out payment based on defined levels of consolidated EBIT from annual account for 2024-2025. Full payment was considered most likely, and consequently the maximum earn-out was recognised.
Preliminary Purchase Price Allocation
The preliminary purchase price allocation identified the following assets and liabilities at the acquisition date:
Assets:
Amounts in NOK thousand
| Intangible assets | 11 269 |
|---|---|
| Property, plant and equipment | 55 |
| Trade receivables | 3 341 |
| Other current receivables and prepaid cost | 411 |
| Cash and cash equivalents | 3 052 |
| Total identifiable assets | 18 128 |
Liabilities:
| Net identifiable assets | 12 079 |
|---|---|
| Total identifiable liabilities | 6 048 |
| Other current liabilities | 3 286 |
| Trade payables | 443 |
| Deferred tax | 2 319 |
| Amounts in NOK thousand |
Goodwill:
| Total net assets | 47 812 |
|---|---|
| Goodwill | 35 732 |
| Net identified assets | (12 079) |
| Total consideration | 47 812 |
| Amounts in NOK thousand |
Consideration:
| Amounts in NOK thousand | |
|---|---|
| Settled with cash | 35 628 |
| Earn-out | 12 184 |
| Total consideration | 47 812 |
Adjustments:
| Amounts in NOK thousand | |
|---|---|
| ------------------------- | -- |
| Cash in purchased entities | (3 052) |
|---|---|
| Net adjustments | (3 052) |
| Net cash paid | (32 576) |
|---|---|
| Earn-out settlement | (12 184) |
This preliminary purchase price allocation is based on company accounts considered to correspond with fair value, adjusted for differences between IFRS standards and local accounting rules. As new information may emerge during
Alternative performance measures (APMs)
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. As of first quarter 2024 the alternative performance measure
the first year that could lead to changes, the purchase price allocation is presented as preliminary. As part of the purchase price allocation intangible assets related to customer relationships and order backlog of NOK 11.3 million were identified. The fair value of the acquired trade receivables was identified to NOK 3.3 million. The acquisition generated an excess value of NOK 35.7 million allocated to goodwill. Goodwill is related to the competence of the staff and to synergy effects. Goodwill is not expected to be tax-deductible.
Incremental external transaction-related costs of NOK 1.7 million were expensed as part of other operating expenses.
Pro-forma impact of the acquisition on the result of the group
If the businesses acquired in 2024 had been effective on 1 January 2024, net operating revenues for the group for the first quarter 2024 would have been NOK 1 372.9 million, and profit for the group for the first quarter 2024 would have been NOK 97.0 million. The group considers these proforma numbers to represent an approximate measure of the performance of the combined group.
related to Other OPEX ratio has been removed from this overview as underlying accounting principles have changed, mainly related to IT cost, and key figure does no longer provide relevant and comparable information.
EBITA
| Amounts in NOK thousand (except percentage) | Q1 2024 | Q1 2023 | FY 2023 |
|---|---|---|---|
| EBIT | 135 965 | 214 599 | 408 167 |
| Amortisation on acquisition related items | 823 | 1 749 | 11 330 |
| EBITA | 136 789 | 216 348 | 419 498 |
| Net operating revenues | 1 366 943 | 1 310 178 | 4 802 479 |
| EBITA margin | 10.0% | 16.5% | 8.7% |
Adjusted EBITA
Reported figures adjusted for share ownership programme and restructuring cost (impairment IFRS16).
EBITA
| Amounts in NOK thousand (except percentage) | Q1 2024 | Q1 2023 | FY 2023 |
|---|---|---|---|
| EBITA | 136 789 | 216 348 | 419 498 |
| Share ownership programme | - | - | 18 661 |
| Restructuring cost (impairment IFRS16) | - | - | 8 045 |
| Adjusted EBITA | 136 789 | 216 348 | 446 204 |
| Adjusted EBITA margin | 10.0% | 16.5% | 9.3% |
Adjusted EBITA including calendar effect
Reported figures adjusted for restructuring cost and other items affecting comparability. In the first quarter 2024 there was a calender effect of six fewer working days which had a negative impact on net operating revenues and EBITA of approximately NOK 113.7 million compared to 2023.
| Amounts in NOK thousand (except percentage) | Q1 2024 | Q1 2023 | FY 2023 |
|---|---|---|---|
| Net operating revenues | 1 366 943 | 1 310 178 | 4 802 479 |
| Calendar effect | 113 668 | - | - |
| Adjusted net operating revenues | 1 480 611 | 1 310 178 | 4 802 479 |
| Adjusted EBITA including calendar effect | 250 456 | 216 348 | 446 204 |
| Adjusted EBITA margin including calendar effect | 16.9% | 16.5% | 9.3% |
Equity ratio
| Amounts in NOK thousand (except percentage) | 31 March 2024 | 31 March 2023 | 31 December 2023 |
|---|---|---|---|
| Total shareholders' equity | 1 182 721 | 1 137 095 | 1 080 272 |
| Total assets | 3 972 592 | 3 288 401 | 3 879 971 |
| Equity ratio | 29.8% | 34.6% | 27.8% |
| Total shareholders' equity (excl. IFRS 16) | 1 252 725 | 1 197 647 | 1 150 579 |
| Total assets (excl. IFRS 16) | 3 215 865 | 2 600 800 | 3 150 571 |
| Equity ratio excluding right-of-use assets | 39.0% | 46.0% | 36.5% |
Net interest-bearing liabilities
| Amounts in NOK thousand | 31 March 2024 | 31 March 2023 | 31 December 2023 |
|---|---|---|---|
| Cash and cash equivalents, excluding restricted cash | 71 429 | 5 557 | 278 088 |
| Cash and cash equivalents, restricted cash | 2 546 | - | 7 004 |
| Non-current financial assets, restricted funds | 28 117 | 23 952 | 26 887 |
| Interest-bearing liabilities | 1 226 731 | 779 941 | 1 249 707 |
| Net interest-bearing liabilities including IFRS 16 lease liabilities | 1 124 638 | 750 432 | 937 728 |
| Non-current and current IFRS 16 lease liabilities | 826 731 | 748 152 | 799 707 |
| Net interest-bearing liabilities excluding IFRS 16 lease liabilities | 297 908 | 2 280 | 138 021 |
Investor relations information
Financial calendar
| 08 May 2024 | Q1 2024 results |
|---|---|
| 21 Aug 2024 | Half-yearly report |
| 06 Nov 2024 | Q3 2024 results |
IR contact
Pål-Sverre Jørgensen Group Treasurer & IRO
Executive management
| Grethe Bergly | CEO |
|---|---|
| Ove B. Haupberg | CFO |
| Johan Arntzen | COO |
| Kari Nicolaisen | EVP HR & Corporate Communications |
| Thor Ørjan Holt | EVP Sales |
| Leif Olav Bogen | EVP Region Oslo |
| Kari Sveva Dowsett | EVP Region Norway |
| Kristin Olsson Augestad | EVP Architecture |
| Geir Juterud | EVP Projects |
Board of directors
| Rikard Appelgren | Chair of the board |
|---|---|
| Hanne Rønneberg | Director |
| Tove Raanes | Director |
| Sverre Hurum | Director |
| Tore Sjursen | Director |
| Karine Gjersø | Director, employee elected |
| Gunnar Vatnar | Director, employee elected |
| Torben Wedervang | Director, employee elected |
This is Multiconsult
Multiconsult is one of the leading firms of consulting engineers, architects and designers in Norway. With roots going back to 1908, the company has played an important role in Norway's development and economic growth. Thanks to its over 3 700 highly skilled employees, the company is able to provide a range of services including multidisciplinary consulting and design, project engineering and management, verification, inspection, supervision and architecture – both in Norway and internationally.
Multiconsult ASA
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