Revenue grew and execution of strategy continued as planned

Solwers Plc, Company Release, November 29, 2024 at 9.00 am EET

Business Review Jan 1 - Aug 30, 2024: Revenue grew and execution of strategy continued as planned

Key Figures

Solwers Consolidated EUR thousand		Q3/2024	Q3/2023	01-09/2024	01-09/2023
Revenue		16,648	13,776	56,558	46,970
Revenue growth-%		20.9%	5.2 %	20.4 %	2.9 %
EBITDA		1,477	1,653	5,229	5,660
EBITDA-%		8.9 %	12.0 %	9.2 %	12.1 %
EBITA		1,211	1,395	4,470	4,930
EBITA-%		7.3 %	10.1 %	7.9 %	10.5 %
EBIT		515	911	2,467	3,394
EBIT-%		3.1 %	6.6 %	4.4 %	7.2 %
Headcount, average		715	616	705	604
Headcount, at period end		722	631	722	631
Equity ratio, %				44.8 %	47.8 %

July-September Highlights:

Acquisitions in Finland and Sweden

• 4.7.2024 –  Siren Architects acquired by subsidiary Architects Davidsson Tarkela
• 19.8.2024 – Spectra Consult AB acquired by subsidiary WiseGate AB

Events after Q3:

• 25.10.2024 Decision on geographic expansionand establishment of a country subsidiary in Poland. Ongoing mapping of potential acquisition targets in the region.
• Redemtions of non-controlling interests in the subsidiary Finnmap Infra Oy amounted to 6.01%. Ownership share is now 97.20%.

CEO Stefan Nyström: 

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Although the market recovery has been delayed, there are positive signs of improvement. Solwers' order backlog reached its peak for the year in the third quarter, and profitability remained positive. Solwers’ Swedish subsidiaries outperformed our companies in Finland. The decrease in interest rates in both Finland and Sweden is also an encouraging signal of potential increase in investment activity.

In the third quarter, Solwers' revenue grew by over 20 percent compared to the same period last year. Typically, the third quarter is weak due to summer vacations, profitability also decreased compared to the previous year.  The reasons for this were client caution in advancing projects, intense price competition, and a reduced billing rate – which nevertheless remained at a good level.

During the third quarter we got new projects from both private and public sector. In Sweden, we are involved in OKG nuclear power plant decommissioning project, green transition projects, and facility design supporting the country's armed forces. Examples of projects in Finland include Malmi Hospital, Rovaniemi Central Police Station and Remand Prison. Our companies are also included in frame agreements, including VA SYD MAXIMA wastewater treatment system, Finntraffic and Fingrid. There are several interesting new project proposals in the pipeline. 

In the field of corporate acquisitions, two companies reached the finish line. Spectra Consult AB joined the WiseGate AB group, which grew by 20 skilled consultants. Additionally, Siren Arkkitehdit Oy, Finland's oldest architectural firm by history, joined Solwers with 18 talents. The group now has a total of 29 operational companies and well over 700 experts in Finland and Sweden.

Solwers continues to implement its growth strategy according to plans. In October, the company made a strategic decision to expand geographically to Poland, and we are currently mapping potential acquisition targets in the region. Major investments are planned in Poland for infrastructure construction and the renewal of the energy industry. The country is emerging as a logistics hub in Central Europe. In addition, a part of the planning for the reconstruction of Ukraine is likely to take place in Poland. 

We consider capacity adjustment measures in functions where it is necessary. At the same time, we are recruiting in those companies where the work situation is positive and organic growth is possible. The preparations for listing transition as well as investments in sales and marketing continue. Market sentiments for the coming months remain expectant. The last quarter has kicked off positively and the outlook for the rest of the year remains unchanged.

Solwers' outlook for 2024 remains unchanged

Solwers' outlook for 2024 remains unchanged and in accordance with the Financial Statements Release published on March 11, 2024.

Solwers’ business is supported by the megatrend of urbanization, the green transition in Europe, tightening regulation on biodiversity, self-sufficiency in energy production, and especially in Sweden the increased orders of the defence equipment industry which create new business opportunities.

In the ongoing year 2024 the acquisitions continue to support our existing business. We focus on areas where new production and investments are booming such as energy, automation, and power transmission.

Solwers has a good order backlog in the public sector and infrastructure projects and long assignments also in hospital and school design projects. The company has a wide client base and a diverse service portfolio - around 70 per cent are small, under EUR 10 000 projects. In addition, we continue to manage business risk by operating in multiple locations in at least two countries.

Solwers’ business climate is expected to improve towards the end of 2024 with the general market pick-up.

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This is not an interim report under IAS 34. The company complies with the half-yearly reporting requirements of the Securities Markets Act and publishes business reviews for the first three and nine months of the year, which present key information on the company’s financial performance. The financial information presented in this business review is unaudited.

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Enquiries: 

Jasmine Jussila, Head of Group Communications, Solwers Plc, tel. +358 40 500 4760, [email protected] 

Certified Advisor: 

UB Corporate Finance, [email protected]

Distribution:

• Nasdaq Helsinki Ltd
• Key Media
• www.solwers.com