Multiconsult delivers revenue growth in second quarter and first half 2017

Multiconsult second quarter 2017 and year to date revenue growth, driven by net recruitment and acquisitions. Acquisition of Hjellnes Consult and Johs Holt proceeds according to plan.

Oslo, 31 August 2017 – Multiconsult delivered a second quarter revenue growth of 3.9 per cent to NOK 738.9 million, compared to the same quarter last year. The increase in net operating revenues reflects higher production due to net recruitment and acquisition of Iterio AB, aarhus arkitekterne A/S and Akvator AS. Growth in net operating revenues was further impacted by good project execution. As expected, there was a negative calendar effect of seven less working days in Norway in this quarter, impacting net operating revenues. The billing ratio fell to 69.5% (70.9%) with a negative effect on net operating revenues. Billing rates were at a similar level to last year. 

Net operating revenues year to date increased by 12.7 per cent to NOK 1 538.6 million compared to the same period last year. The increase in net operating revenues was mainly driven by higher production due to net recruitment and acquisition of Iterio AB, aarhus arkitekterne A/S and Akvator AS. Growth in revenues was partly offset by a lower billing ratio at 68.9% (70.0%).

EBIT amounted to NOK 15.8 million and 2.1 per cent EBIT margin in the second quarter 2017.  The higher net operating revenues were more than offset by higher operating expenses in the quarter.

Year to date EBIT amounted to NOK 110.2 million with a 7.2 per cent EBIT margin. Some non-recurring expenses, including implementation of a new ERP system, impacted the period.

“Looking at the first half of 2017, I am pleased to see the strong growth in revenues. The acquisition of Hjellnes Consult and Johs Holt proceeds according to plan and paves way for an improved market position and business, focused on the 3-2-1 GO strategic objectives”, says CEO of Multiconsult ASA Christian Nørgaard Madsen.

The order backlog remains strong at the end of the second quarter at NOK 1 995.0 million, an increase of 8.5% year on year. Order intake during the second quarter decreased by 4.6% to NOK 866.9 million. There were solid sales within Buildings & Properties, Transportation and Renewable Energy in a quarter that had seven less working days in Norway. New contribution from sales in Iterio AB and aarhus arkitekterne A/S impacted the order intake in the quarter positively. The majority of the order intake this quarter came from new contracts, and the tender pipeline in the transportation sector is strong.

Among important new contracts this quarter was Ulven commercial real estate development project with OBOS and Holsfjorden water supply to Oslo with Oslo City Water and Sewage Works Agency. Important add-ons to existing contracts this quarter were Campus Ås and New Airbase Ørland in Norway as well as Mount Coffee in Liberia.

As of 30 June 2017, total assets amounted to NOK 1 587.5 million and total equity of NOK 516.0 million. The group had cash and cash equivalents of NOK 157.8 million, while net interest bearing debt amounted to NOK 89.0 million.

The overall market outlook remains fairly positive. Current market rates have stabilised, the increase in salaries for the Norwegian workforce has led to challenging profitability for the industry in general. Multiconsult’s strong market position, flexible business model and wide service offering provides a sound base for further growth, both domestic and international.

A presentation of the second quarter 2017 results will be held today, 31 August, at 09:00 CET at Hotel Continental, Stortingsgaten 24/26, Oslo.
The presentation will be held by CEO Christian Nørgaard Madsen and CFO Anne Harris.
A live webcast from the presentation can be accessed at www.multiconsult-ir.com and http://webtv.hegnar.no/presentation.php?webcastId=58640064

For further information, please contact:

     Investor relations:   
         
Mirza Koristovic, Head of Investor Relations   
          Phone: +47 93 87 05 25   
          E-mail: ir@multiconsult.no

     Media:   
         Gaute Christensen, VP Communications   
         Phone: +47 911 70 188   
         E-mail: gaute.christensen@multiconsult.no

ABOUT MULTICONSULT ASA
Multiconsult is a leading Norwegian multidisciplinary engineering consulting company, with more than 2 400 employees and 45 offices in Norway and abroad. The Company focuses on six business areas: Buildings & Properties, Transport, Renewable Energy, Oil & Gas, Industry and Water & Environment. The Company has an operating history that spans more than a century, with the inception of Norsk Vandbygningskontor in 1908. In 2015 Multiconsult completed more than 9 000 projects for approx. 4 000 different customers.