Good performance in a challenging environment in H1 2023
Solwers Plc Half-Year Financial Report for January-June 2023 (unaudited)
Solwers Plc Company release 31 August 2022 at 08.30 a.m.
Good performance in a challenging environment in H1 2023
January - June 2023 in brief
The figures for the first half of the year (1 January–30 June 2023) are unaudited.
The figures in brackets refer to the corresponding period in the preceding year and are of the same unit, unless otherwise noted.
- Revenue was EUR 33,194 (32,562) thousand, growth of 1.9 % vs previous year.
- EBITA was EUR 3,536 (3,801) thousand, 10.7 (11.7) % of the revenue.
- EBIT was EUR 2,483 (2,808) thousand, 7.5 (8.6) % of the revenue.
- The company continued the implementation of its growth strategy by acquiring Transport Consultancy Group Nordic in Sweden.
- The Annual General Meeting decided to distribute dividends of EUR 0.073 (0.040) per share for the financial year 2022.
- The company's operating cash flow of EUR +708 (+1,846) thousand declined mainly due to changes in net working capital. Group financial position continued to be good.
- The number of employees at the end of the reporting period was 611 (601).
Solwers outlook
The relatively good order backlog of the year supports the positive development of revenue. The M&A market has remained active, and acquisitions are planned to continue further. Weak Swedish krona will have a negative impact on reported revenue.
The diverse service portfolio, operations in the two countries, as well as the large number of small projects balance and support the achievement of the set mid-term targets. Demand for engineering and project management work related to energy production, energy efficiency and circular economy projects is also expected to grow. Revenue is expected to grow and profitability to remain at a good level.
Key figures
EUR thousand |
H1/2023 | H1/2022 | 2022 | ||
| Revenue | 33 194 | 32 562 | 62 796 | ||
| EBITDA | 4 008 | 4 245 | 8 156 | ||
| EBITDA-% | 12,1 % | 13,0 % | 13,0 % | ||
| EBITA | 3 536 | 3 801 | 7 218 | ||
| EBITA-% | 10,7 % | 11,7 % | 11,5 % | ||
| EBIT | 2 483 | 2 808 | 5 091 | ||
| EBIT-% | 7,5 % | 8,6 % | 8,1 % | ||
| Net Profit | 1 476 | 1 919 | 3 574 | ||
| Net Profit-% | 4,4 % | 5,9 % | 5,7 % | ||
| Earnings per Share (EPS) non-diluted, EUR | 0,15 | 0,21 | 0,38 | ||
| Earnings per Share (EPS) diluted, EUR | 0,15 | 0,21 | 0,38 | ||
| Revenue per employee | 55 | 56 | 105 | ||
| Revenue growth, % | 1,9 % | 48,3 % | 40,6 % | ||
| Billing rate, % | 81,7 % | 81,8 % | 80,0 % | ||
| Adjusted equity | 37 903 | 32 895 | 38 158 | ||
| Net debt | 17 261 | 17 184 | 13 366 | ||
| Equity Ratio, % | 46,0 % | 43,9 % | 46,7 % | ||
| Adjusted Equity Ratio, % | 46,0 % | 43,9 % | 46,7 % | ||
| Total Assets | 82 347 | 74 949 | 81 682 | ||
| Headcount, average during period | 601 | 586 | 600 | ||
| Headcount, at end of period | 611 | 601 | 582 | ||
CEO’s review
Overall market uncertainty continued, yet we delivered a solid result in the first half of the year. Our revenue grew by 1.9% to 33.2 million euro. Our profitability declined slightly compared to the same period last year due to increased salary costs, cost inflation and increased competition. Organic growth in Finland was good, yet the reported revenue is affected by the weak Swedish Krona. Our order stock has remained stable, and our billing rate is at the level of last year.
Of the new projects, particularly interesting ones include Lukkaroinen Architects winning the design competition for the old Vaasa hospital. After further planning, Lukkaroinen's proposal "Huomassa" was chosen as the most feasible for the implementation of the hospital. LVI-Insinööritoimisto Meskanen Oy, another Solwers company, also had a role in the competition proposal. Two other Solwers companies, Insinööritoimisto W. Zenner and Finnmap Infra Oy, are to participate in the implementation planning.
Another major project is the new area planned in Keilaniemi, which is to have offices, a hotel, a congress centre and apartments. The infill site is planned as a block formed by three separate sections, including a wooden office building, a hotel tower and a lower part serving both buildings. Architects Davidsson Tarkela have designed a tall hotel tower in the centre of the block, which, when completed, will form part of the future skyline of Keilaniemi.
Of the projects by the Swedish companies', Licab helped the mining company Kaunis Iron AB to build a quality and environmental management system to be certified according to the international ISO 9001 and ISO 14001 standards in March 2023. Another interesting new project is the one for Establish-Schening that is responsible for the design and operation of a new warehouse for the Royal Swedish Opera, Dramaten and Folkteatern. In addition, Falk CM was awarded a project at Vallentuna, where it will be responsible for project and construction management in the development of JYSK's new premises. The premises will include around 1,500 square meters of shop, storage and staff space, as well as around 200 square meters of outdoor space for the presentation of its products.
We also had the pleasure of welcoming a new company to the group. In February we acquired the entire share capital of Transport Consultancy Group Nordic in Sweden. The company's end-customers are mainly Swedish state and regional rail transport companies and leading international train manufacturers, and its consultancy services focus mostly on project, documentation, and quality management, as well as asset management and delivery assurance. An example of their projects is the Mälardalstrafiken project for the procurement of new trains, where the company is the project leader.
New acquisitions in our home markets in Finland and Sweden will enable us to strategically strengthen the service offering and regional position of our subsidiaries. Small acquisitions of subsidiaries are also possible to strengthen capacity and expertise.
Looking ahead, the general uncertainty in the market has affected customers' willingness to invest. A positive message for our business, however, is that the new government in Finland promises to invest significantly in infrastructure projects. In line with our growth strategy, we will complement the Group's service offering with an estimated number of acquisitions before the end of the year.
The expansion of our service portfolio, together with the business and geographical spread of our companies, balances and reduces the risk of labor shortages, but if the market situation changes suddenly, we are ready to adjust capacity if necessary. We have a large client base across two countries. In addition to large projects, we carry out thousands of small projects every year, with services ranging from design services to project management, financial management and other professional services.
Espoo, August 31st, 2023
Solwers Plc
Board of Directors
For further information, please contact:
Solwers Plc, Jasmine Jussila, Head of Group Communications, tel. +358 40 500 4760
Certified Adviser: UB Securities Oy, Ville Väisänen, CEO, tel. +358 405 886 769
Distribution:
Nasdaq Helsinki
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