“Multiconsult delivered a solid Q1 with revenue growth and significant improved profitability compared with 2019. The improvement comes on the back of solid customer deliveries, and is also caused by significantly reduced operating expenses resulting from the nextLEVEL improvement program. We are well underway, but I believe there is potential for further improvement. At the same time we are delivering solid sales resulting in an all-time high order backlog at the end of the quarter. This is very important going into a period of more uncertainly caused by the Covid-19 situation. I would like to thank all of our dedicated Multiconsult employees for their relentless efforts and dedication in achieving these improvements” – says Grethe Bergly, CEO in Multiconsult.
Net operating revenues increased by 5.2% to NOK 993.6 million (NOK 944.2 million) compared to the same quarter last year. The increase in net operating revenues is exclusively organic. Higher activity and higher average group billing rates compared to the same period in 2019 contribute positively to the growth in net operating revenues. There was a calendar effect of one more working day with an impact of NOK 13.4 million.
Reported operating expenses increased by 2.5% to NOK 825.9 million (NOK 805.9 million). Other operating expenses decreased by 12.3%, suggesting that the nextLEVEL improvement program is on track.
EBIT was NOK 117.5 million (NOK 92.5 million), an increase of 27.0% y-o-y, reflecting an EBIT margin of 11.8%.
The order backlog at the end of the first quarter 2020 increased to NOK 3 099 million (NOK 2 865 million) and is at an all-time-high level. Order intake during the first quarter increased by 11.4% compared to the first quarter in 2019.
The Covid-19 situation has resulted in considerably increased uncertainty and will impact our business. While we so far have seen a relatively modest negative impact of the Covid-19 situation, it is currently not possible to predict the consequences for the industry and for Multiconsult going forward. A softening of the market can be expected in parts of our business as a direct consequence of the Covid-19 situation. The company is taking prudent, responsible and necessary actions, to secure our people, our business, and, in close cooperation with our customers, our deliveries so that our clients are affected to the minimum extent possible.
With a solid market position, leading competences, technology and solutions for our customers, Multiconsult believes it is well placed to handle the challenges of the current uncertainties facing the economy and our industry.
A presentation of first quarter 2020 results will be held today, Wednesday 20 May. In light of the Covid-19 outbreak and the accompanying disease prevention measures taken into effect by the Norwegian authorities the presentation will only be held as webcast.
A webcast in Norwegian will be held at 08:30 CET, followed by an audio cast at 09:30 CET in English. The presentations will be held by CEO Grethe Bergly and CFO Hans-Jørgen Wibstad.
The live webcast from the Norwegian presentation can be accessed at www.multiconsult-ir.com and at https://channel.royalcast.com/webcast/hegnarmedia/20200226_2/.
The live audio cast from the English presentation can be accessed at https://channel.royalcast.com/webcast/hegnarmedia/20200520_5/ or by conference call.
Questions to the management can be made directly on the conference call after the presentations or by in writing on the live Webcast.
Participant Access Information for the conference calls:
Please join the selected event conference 5-10 minutes prior to the start time. You will be asked to provide the confirmation code or the title of your conference.
Event Conference Title: Multiconsult Q1 2020
Confirmation Code: 569168
Location Purpose Phone Number
Norway Participant +47 21956342
United Kingdom Participant +44 (0)203 7696819
United States Participant +1 646-787-0157
Sweeden Participant +46-8-1241-0952
International Participant +44 203 7696819
For further information, please contact:
Hans-Jørgen Wibstad, CFO
Phone: +47 916 89 661
Gaute Christensen, VP Communications
Phone: +47 911 70 188
ABOUT MULTICONSULT ASA
Multiconsult is a leading Norwegian multidisciplinary engineering consulting company, with approx. 3 000 employees and 45 offices in Norway and abroad. The Company focuses on seven market areas: Buildings & Properties, Transport & Infrastructure, Energy, Oil & Gas, Industry, Environment & Natural resources and Architecture. 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.
This information is subject of the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.