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MT Højgaard Holding A/S: Results as expected – full-year outlook reaffirmed
MT Højgaard Holding A/S publishes its interim financial report for the first half of 2021 with the following highlights:
FIRST-HALF RESULTS AS EXPECTED
Revenue increased by 14% to DKK 3,289 million compared to the first half of 2020, including approx. 8% organic growth.
Second-quarter growth was 24%.Operating profit* for the first half was almost unchanged at DKK 41 million, and the operating margin* was 1.2%.
Earnings were impacted by a loss on a project property sale, write-downs on projects, higher selling and bidding costs, and preparation of projects that have been sold or are expected to be sold with up-start in the second half. The biggest effect was in the second quarter, where operating profit was DKK 21 million.
The pre-tax result from continuing operations was a profit of DKK 6 million, compared to a loss of DKK 1 million in the first half of 2020.
Profit for the period was DKK 6 million compared to DKK 78 million in the first half of 2020, where the sale of Lindpro in 2020 contributed DKK 79 million under discontinued operations.
INCREASING ORDER INTAKE AND ORDER BOOK
First-half order intake was DKK 4.8 billion, 64% higher than in the first half of 2020. Second-quarter growth was 89%.
At the end of June, the order book had risen to DKK 9.7 billion from DKK 6.6 billion at the same time last year and DKK 8.2 billion at the turn of the year.
To this should be added projects won but not yet contracted to a value of around DKK 4 billion and future activity in the strategic framework agreements.
UNCHANGED OUTLOOK FOR 2021
MT Højgaard Holding reaffirms its expectations of double-digit growth in revenue and operating profit.
Revenue is still expected to increase by 13% to DKK 6.8 billion from DKK 6.0 billion in 2020.
Operating profit* is still expected to increase by 29% to DKK 160 million from DKK 124 million in 2020.
The expected improvement in the second half will be driven by the portfolio of new orders, better margins, higher utilisation of capacity and significantly increasing income from sales of projects and project properties.
93% of expected contract revenue for 2021 had been contracted at the end of June.
Positive market conditions in Denmark, while Covid-19 is expected to continue to impact the international business.
“The healthy order intake shows that we are competitive and that there is strong demand in the areas where our business units have something special to offer. With the order book as a whole, we are making good progress towards laying a firm foundation for the coming years’ activity, and this effort will continue. In terms of results, we are where we should be. We have always said that 2021 would get off to a slow start and we still expect considerably better earnings in the second half of the year as we increase production, make better use of capacity and sell more products we have developed in-house, “ says President and CEO Morten Hansen, MT Højgaard Holding.
CEO Morten Hansen and CFO Martin Solberg can be contacted on telephone +45 2270 9365.
Attachment: Interim financial report for the first half 2021
* Operating profit/(loss) and operating margin are presented before special items and special amortisation (amortisation of the write-ups of customer relationships, brand and order
book in connection with enterprise acquisitions)
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