SOLID PERFORMANCE CONTINUED
10–12/2021 highlights (comparison figures in parenthesis 10–12/2020):
- Net sales
EUR 82.6 (78.1) million; growth 5.8 % - EBITDA
EUR 4.0 (3.7) million and EBITDA margin 4.9 % (4.8 %) - Adjusted operating result (EBIT)
EUR 3.0 (3.5) million and Adjusted EBIT margin 3.6% (4.5%) - Operating result (EBIT)
EUR 3.0 (3.0) million and EBIT margin 3.6 % (3.8 %) - Order backlog
EUR 218.6 (177.9) million; growth 22.9 % - Order intake
EUR 66.9 (54.3) million; growth 23.1% - Free cash flow
EUR 6.1 (3.6) million - Earnings per share
EUR 0.30 (0.27)
1–12/2021 highlights (comparison figures in parenthesis 1–12/2020):
- Net sales
EUR 288.8 (274.6) million; growth 5.1 % - EBITDA
EUR 9.2 (11.4) million and EBITDA margin 3.2 % (4.2 %) - Adjusted operating result (EBIT)
EUR 9.5 (9.5) million and Adjusted EBIT margin 3.3% (3.5%) - Operating result (EBIT)
EUR 5.7 (8.2) million and EBIT margin 2.0 % (3.0 %) - Free cash flow
EUR 5.5 (18.3) million - Earnings per share
EUR 0.47 (0.70) - The Board of Directors proposes a dividend of
EUR 0.45 per share
Guidance on the Group outlook for 2022:
The Company estimates that its operating result for 2022 will be in the range of
10-12/ 2021 | 10-12/ 2020 | Change % | 1-12/ 2021 | 1-12/ 2020 | Change % | |
Net sales | 82,605 | 78,098 | 5.8 % | 288,773 | 274,646 | 5.1 % |
EBITDA | 4,014 | 3,729 | 7.7 % | 9,202 | 11,440 | -19.6 % |
EBITDA margin, % | 4.9 % | 4.8 % | 3.2 % | 4.2 % | ||
Adjusted operating result (EBIT) | 3,011 | 3,522 | -14.5 % | 9,535 | 9,478 | 0.6 % |
Adjusted EBIT margin, % | 3.6 % | 4.5 % | 3.3 % | 3.5 % | ||
Operating result (EBIT) | 3,011 | 2,954 | 1.9 % | 5,705 | 8,237 | -30.7 % |
Operating result (EBIT) margin, % | 3.6 % | 3.8 % | 2.0 % | 3.0 % | ||
Profit/loss for the period | 2,290 | 2,142 | 6.9 % | 3,717 | 5,675 | -34.5 % |
Order backlog | 218,578 | 177,857 | 22.9 % | |||
Free cash flow | 6,136 | 3,641 | 68.5 % | 5,458 | 18,334 | -70.2 % |
Cash conversion, % | 152.9 % | 97.7 % | 59.3 % | 160.3 % | ||
Net interest-bearing debt | 14,262 | 4,737 | 201.1 % | |||
Gearing, % | 44.7 % | 14.1 % | ||||
Return on investment, ROI % | 9.2 % | 13.6 % | ||||
Number of personnel at period end | 961 | 927 | 3.7 % | |||
Earnings per share, undiluted (EUR) | 0.30 | 0.27 | 11.1 % | 0.47 | 0.70 | -32.9 % |
CEO Esa Korkeela’s comment
“Consti's solid performance continued in the last quarter of the year. In October-December, our net sales grew by 5.8 percent and were 82.6
Our adjusted operating result for October-December before items affecting comparability was 3.0
Due to our solid profitability and released working capital, our free cash flow in October-December improved significantly compared to the previous year and was 6.1
During October-December, our order intake was 66.9
In 2021, we focused on implementing our strategy which was announced in February, focusing on exploiting attractive growth opportunities in the company's existing businesses, expanding into new construction, sustainability, and expanding the value created for customers. During the financial year, we made progress on our strategic projects as planned. In June, we recorded two new construction projects in accordance with our strategy, and in August we carried out the acquisition of
The market environment for construction and technical building services remained at an adequate level in the last quarter of the year. In October-December, the increase in construction costs had a somewhat greater impact on our business than in the beginning of the year in ongoing projects where a rapid increase in material costs has not been sufficiently considered at the tendering phase. The coronavirus pandemic (covid-19) as a whole did not have a significant impact on our business during the financial year 2021.
Based on our current market view, we believe that demand for renovations and building services will remain at an adequate level in 2022. The most significant uncertainties in the operating environment are related to the increase in construction costs and the availability of materials. In addition, the coronavirus pandemic continues to create uncertainty in the operating environment, especially due to the large number of coronavirus cases. However, our strong order backlog gives us good opportunities to continue our positive and solid performance in 2022.”
Operating environment
Professional renovations have increased almost continuously in
In 2021 the renovation market grew an estimated 1–1.5 percent. At the same time, it is estimated that the new construction market grew as much as 7.8 percent and that the entire building construction market grew about 4.7 percent. The corona pandemic did not have a significant impact on construction in 2021. The renovation market in
The value of professional renovations was approximately
Renovations have made up approximately half of all housing construction projects in recent years. In 2021 the share was about 45 percent. Forecon’s market analysis estimates that the number of renovations tripled in
In
The demand for renovations in
Renovation needs are also increased by many phenomena classified as megatrends such as population aging, urbanisation, and climate change. Climate change mitigation necessitates better energy efficiency in buildings, which increases the need to renovate both residential buildings and commercial and office premises.
Renovations are expected to increase in 2022 by about 1.3–2.0 percent.
General risks to growth include increased construction costs and the availability of both personnel and materials. The shortage of skilled personnel particularly affects growth centres, where both new construction and renovations are increasingly concentrating.
Outlook for 2022
The Finnish building market is estimated to grow by around 2.0 percent in 2022 from the previous year. The renovation market is estimated to grow by approximately 1.3 percent in 2022. Renovations of both residential buildings and business premises are expected to increase.
The most significant uncertainties in the operating environment in 2022 are related to rising construction costs and the availability of materials. In addition, the coronavirus pandemic may have a negative impact on the company’s ability to carry out ongoing projects due to the large number of coronavirus cases.
The Company estimates that its operating result for 2022 will be in the range of
Press conference
Microsoft Teams meeting for analysts, portfolio managers and media representatives, will take place
Financial reporting in 2022
Consti Plc’s Annual General Meeting shall be arranged on Tuesday
- Interim report 1-3/2022 published
29 April 2022 - Half-year financial report 1-6/2022 published
22 July 2022 - Interim report 1-9/2022 published
27 October 2022
Further information:
Esa Korkeela, CEO,
Joni Sorsanen, CFO,
Distribution:
Major media
www.consti.fi
Attachment
- Consti Financial Statements Bulletin 2021
© OMX, source