UK markets closed
  • FTSE 100

    +20.07 (+0.27%)
  • FTSE 250

    +5.36 (+0.03%)
  • AIM

    +2.68 (+0.32%)

    -0.0005 (-0.04%)

    -0.0023 (-0.19%)

    -73.03 (-0.53%)
  • CMC Crypto 200

    +4.32 (+1.13%)
  • S&P 500

    -1.14 (-0.03%)
  • DOW

    +152.97 (+0.45%)

    -1.66 (-2.13%)

    +8.40 (+0.48%)
  • NIKKEI 225

    -100.06 (-0.35%)

    -87.32 (-0.49%)
  • DAX

    +1.82 (+0.01%)
  • CAC 40

    +5.16 (+0.08%)

Consti Plc Interim Report for January – September 2022

Consti Oyj
Consti Oyj


Consti Plc Interim Report for January – September 2022


79/2022 highlights (comparison figures in parenthesis 79/2021):

  • Net sales EUR 79.0 (76.0) million; growth 4.0%

  • EBITDA EUR 4.2 (4.0) million and EBITDA margin 5.3% (5.3%)

  • Adjusted operating result (EBIT) EUR 3.3 (3.1) million and Adjusted EBIT margin 4.2% (4.1%)

  • Operating result (EBIT) EUR 3.3 (3.1) million and EBIT margin 4.2% (4.1%)

  • Order backlog EUR 210.5 (217.9) million; change -3.4 %

  • Order intake EUR 38.4 (40.0) million; change -4.0%

  • Free cash flow EUR 5.8 (3.6) million

  • Earnings per share EUR 0.32 (0.29)

1–9/2022 highlights (comparison figures in parenthesis 1–9/2021):

  • Net sales EUR 212.0 (206.2) million; growth 2.8%

  • EBITDA EUR 9.3 (5.2) million and EBITDA margin 4.4% (2.5%)

  • Adjusted operating result (EBIT) EUR 6.6 (6.5) million and Adjusted EBIT margin 3.1% (3.2%)

  • Operating result (EBIT) EUR 6.6 (2.7) million and EBIT margin 3.1% (1.3%)

  • Order intake EUR 174.6 (208.3) million; change -16.1%

  • Free cash flow EUR 7.6 (-0.7) million

  • Earnings per share EUR 0.62 (0.18)

Guidance on the Group outlook for 2022:
The Company estimates that its operating result for 2022 will be in the range of EUR 9-13 million.




Change %



Change %


Net sales



4.0 %



2.8 %





3.3 %



78.4 %


EBITDA margin, %

5.3 %

5.3 %


4.4 %

2.5 %


3.2 %

Adjusted operating result (EBIT)



6.6 %



1.2 %


Adjusted EBIT margin, %

4.2 %

4.1 %


3.1 %

3.2 %


3.3 %

Operating result (EBIT)



6.6 %



145.0 %


Operating result (EBIT) margin, %

4.2 %

4.1 %


3.1 %

1.3 %


2.0 %

Profit/loss for the period



11.4 %



233.1 %


Order backlog






-3.4 %


Free cash flow



61.9 %





Cash conversion, %

140.1 %

89.4 %


82.0 %



59.3 %

Net interest-bearing debt






-31.1 %


Gearing, %




39.7 %

62.6 %


44.7 %

Return on investment, ROI %




15.7 %

9.3 %


9.2 %

Number of personnel at period end






-1.0 %


Earnings per share, undiluted (EUR)



10.3 %



244.4 %



CEO Esa Korkeela’s comment

"Our net sales for the third quarter of 2022 were 79.0 (76.0) million euro. Net sales increased by 4.0 percent year-on-year.

Our operating result for July–September was 3.3 (3.1) million euro which is 4.2 (4.1) percent of our net sales. The third quarter advanced according to our expectations and our projects predominantly progressed as planned. Our profitability remained stable, although cost inflation had a negative impact on our result through both increased construction costs and increased indirect costs.

Thanks to solid profitability and released working capital, our free cash flow for July–September improved compared to the previous year and was 5.8 (3.6) million euro. As a result of the positive cash flow development, our balance sheet and liquidity positions also strengthened during the third quarter.

During July-September, our order intake was 38.4 (40.0) million euro. In addition, during the reporting period, we announced that our Building Technology business area was selected as an alliance partner for the development phases of both Laakso Joint Hospital and Jorvi Hospital's new ward building. After the development phases, the alliances will make separate decisions on the launch of the implementation phases. The value of Consti's building technology services in the implementation phase of the projects would total approximately 75 million euro. These projects are not yet included in our order backlog.

Our order backlog at the end of the reporting period was 210.5 (217.9) million euro, which is 3.4 percent lower than in the comparison period. Compared to the comparison period, we estimate that a larger share of our order backlog at the end of the reporting period will contribute to our net sales during the rest of the year, both in absolute and relative terms.

We continued to implement our strategy during the reporting period. To provide new solutions to improve our customers' energy efficiency, we launched the Consti OPTIMI multi-energy system in September. Consti OPTIMI is a solution developed by our experts that can even halve the energy consumption of properties. The system also significantly cuts carbon dioxide emissions. We believe that the sharply increased energy prices will make the system we have developed even more relevant.

In addition, we continued to take targeted measures to ensure the performance of our business in an uncertain operating environment. Our short-term actions will continue to focus especially on procurement, tendering, customer work and fixed cost management.

Our market environment remained reasonably good during the third quarter. Russia's military aggression, cost inflation and rising interest rates are however creating uncertainty in the short-term demand outlook for renovation and building technology. This uncertainty may lead to the rescheduling of some projects in the negotiation phase as well as the postponement of investment decisions. However, demand is maintained by the needs-oriented nature of renovations. Due to the geopolitical situation, the EU is seeking to accelerate the green transition, which is expected to create demand for Consti's services and solutions.

Our strong order backlog, the progress of our strategic projects, and our steadily improved performance puts us in a good position to continue our positive and solid development also in the fourth quarter.”

Operating environment

Construction market 2022-23

In its October economic outlook, the Confederation of Finnish Construction Industries CFCI estimates that the volume of total construction will grow by around 2.0 percent in 2022 from the previous year. According to CFCI's forecast, the renovation market is estimated to grow by approximately 1.5 percent in 2022. In 2023, the total volume of construction is expected to decrease by approximately 2.0 percent, while the renovation market is projected to grow by 2.0 percent. Renovation is supported by unwinding demand, energy renovations accelerated by higher energy prices and energy shortages, and the green transition. On the other hand, the outlook for renovation is weakened by rapidly rising construction costs and interest rates.

The construction trends group led by the Ministry of Finance assesses the development of construction business trends in its Construction 2022–2023 report, which was published at the end of August. The construction trends group estimates that construction will grow by 2–4% this year and that the growth will focus on residential buildings. In 2023, construction production is projected to decrease by 3–5%. For renovation, the construction trends group forecasts growth of approximately 1% in 2022 and 2023. Growth for 2022 and 2023 is foreseen for the renovation of both residential and commercial buildings.

Russia's aggression in Ukraine has caused an increase in energy costs, which, according to the construction trends group, is likely to significantly increase the number of renovations related to improving energy efficiency and renewing energy systems in the coming years. The Confederation of Finnish Construction Industries CFCI also estimates that with the current energy prices, the payback period for energy renovations has clearly shortened, which means that improving energy efficiency has started to pay off also when conducted as a separate renovation work.

The renovation market in general

Professional renovations have increased almost continuously in Finland for the past 20 years. Growth has been relatively steady, as renovations are more need-driven and less cyclical than new construction. In addition to the age of the building stock, the need for renovations is increased especially by climate change and energy efficiency requirements, as well as urbanisation and changes in working methods.

The value of professional renovations was approximately 14 billion euro in 2021, of which residential buildings accounted for about 8.1 billion euro. The majority of renovations are conducted in apartment buildings and terraced houses. The renovation market in Finland is very fragmented and there are numerous small companies working in the sector.

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 Finland between 1980-2020. Although the growth rate of renovations is expected to slow down somewhat, it is estimated that renovations have better growth prospects than new construction, when looking at the 2020s as a whole. New construction growth has been driven by residential building, and also numerous public service construction projects, especially schools and hospitals. Despite the growth in new school construction, public construction is expected to slow down in the next few years, and this will have a significant impact on the volume of construction.

In Finland renovations are driven primarily by the age of the building stock. Housing construction peaked in the 1970s and building technology, facades and structures from that era now require substantial renovations. Thus far, the greatest number of renovations have been conducted on housing companies built in the 1960s and renovations have focused on building technology. Building technology has been the fastest growing renovation type. Forecon estimates that building technology renovations increased about 4–5 percent annually in the 2020s, while the number of renovations as a whole has grown approximately 1–2 percent per year. Building technology has accounted for about half of all housing company renovations in recent years, and about 40 percent of all the renovations of the building stock. Exterior surfaces and structures have been the second largest renovation type, making up nearly 40 percent of all renovations. Facade renovations have had to be postponed in many housing companies for financial reasons, to make way for pipeline renovations. Consequently, housing company renovations will focus more strongly on facade renovations in upcoming years. In addition, strong weather fluctuations and wind driven rain brought forth by climate change put facades under greater duress than before and add to maintenance needs. Approximately one fifth of all renovation projects are maintenance and repair projects.

The demand for renovations in Finland is also driven by the growing need for commercial and office building renovations. Commercial and office building construction was especially rapid in Finland in the 1980s and also in the early 1990s and 2000s. Buildings from this time period do not often meet current needs. For example, the increase in remote work and e-commerce have set new challenges for the efficient use of these premises.

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.

Repair measures related to emission reduction and improved energy efficiency hold more importance than before. Finland, as part of the EU, is committed to strongly reducing emissions. The EU is preparing a large-scale ‘Renovation Wave’ initiative which aims to double the renovation rate to cut emissions and improve energy efficiency.

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 the 2022

The uncertainty in Consti's operating environment increased significantly after Russia launched an attack on Ukraine in February. Due to geopolitical instability, the prices of building materials and products important to the company have continued to rise. In addition to the cost impacts, the war has a negative impact on the availability of building materials and products, which may complicate Consti’s ability to advance ongoing projects according to plans. Russia's military aggressions, cost inflation and rising interest rates are also creating uncertainty in the short-term demand outlook for renovation and building technology. This uncertainty may lead to the rescheduling of some projects in the negotiation phase, as well as the postponement of investment decisions. However, demand is maintained by the needs-oriented nature of renovations.

Consti has continued to take additional targeted measures to ensure its business performance in an uncertain operating environment. The measures will continue to focus especially on procurement, tendering, customer work and fixed cost management.

The strong order backlog, progress of strategic projects, and steadily improved performance put Consti in a good position to continue its positive and solid development in 2022.

The Company estimates that its operating result for 2022 will be in the range of EUR 9-13 million.

Press conference

Microsoft Teams meeting for analysts, portfolio managers and media representatives, will take place 27 October 2022, at 10:00 a.m. (EET). The meeting will be hosted by CEO Esa Korkeela and CFO Joni Sorsanen.

Financial communication in 2023

Consti Plc’s Financial Statements for 2022 will be published 3 February 2023.

The electronic version of the annual report, which includes the full financial statements for 2022, will be published in week 11/2023.

Consti Plc’s Annual General Meeting for 2023 is scheduled to take place on Tuesday, 4 April 2023 in Helsinki.

Consti Plc shall publish three interim reports during 2023:

  • Interim report 1-3/2023 published 27 April 2023

  • Half-year financial report 1-6/2023 published 21 July 2023

  • Interim report 1-9/2023 published 27 October 2023


Further information:

Esa Korkeela, CEO, Consti Plc, Tel. +358 40 730 8568
Joni Sorsanen, CFO, Consti Plc, Tel. +358 50 443 3045


Nasdaq Helsinki Ltd.
Major media

Consti is a leading Finnish company concentrating on renovation and technical services. Consti offers comprehensive renovation and building technology services and selected new construction services to housing companies, corporations, investors and the public sector in Finland’s growth centres. Company has four business areas: Housing Companies, Corporations, Public Sector and Building Technology. In 2021, Consti Group’s net sales amounted to 289 million euro. It employs approximately 1000 professionals in renovation construction and building technology.

Consti Plc is listed on Nasdaq Helsinki. The trading code is CONSTI.