This release is a summary of Kreate Group’s Financial Statement Bulletin 2023. The complete Financial Statement Bulletin is attached, and also available on the company’s website at https://kreate.fi/en/investor/.
October - December in brief
- Order backlog amounted to
EUR 196.3 (306.9) million, a decrease of 36.0% -
Revenue decreased compared to the reference period, amounting to
EUR 80.2 (83.1) million - The year-on-year change in revenue was -3.5% (9.6%)
-
EBITDA was
EUR 4.9 (3.8) million, amounting to 6.1 (4.5) per cent of revenue -
EBITA was
EUR 2.7 (2.3) million, amounting to 3.4 (2.8) per cent of revenue -
Earnings per share were
EUR 0.18 (0.14) -
Free cash flow from operating activities was
EUR 19.7 (15.2) million -
Interest-bearing net debt was
EUR 16.8 (33.4) million
January - December in brief
- Revenue grew compared to the reference period, amounting to
EUR 320.0 (273.9) million - The year-on-year change in revenue was 16.8% (15.3%)
-
EBITDA was
EUR 14.0 (13.6) million, amounting to 4.4 (5.0) per cent of revenue -
EBITA was
EUR 7.8 (8.8) million, amounting to 2.4 (3.2) per cent of revenue -
Earnings per share were
EUR 0.44 (0.63) -
Free cash flow from operating activities was
EUR 26.1 (3.5) million -
The Board of Directors proposes to the Annual General Meeting on
25 March 2024 that, based on the balance sheet verified for 2023, a dividend ofEUR 0.48 be issued per share for shares held outside the company at the time of dividend distribution. The dividend will be paid in two instalments. The first instalment ofEUR 0,30 per share will be paid inApril 2024 and the second instalment ofEUR 0.18 per share will be paid inOctober 2024 .
Result guidance for 2024
Kreate estimates that its revenue in 2024 will decline and be in the range of EUR 270–300 million (2023:
Justifications: The company's guidance is based on the order backlog expected to be realised in 2024 at the turn of the year. The company sees stable continuity in Kreate's characteristic demanding infrastructure construction due to the countercyclical nature of the business, despite the prevailing level of interest rate and cost inflation and the general market outlook. The company offers projects more selectively, which is expected to decrease revenue and improve profitability.
Key figures
EUR million | 10-12/2023 | 10-12/2022 | 1-12/2023 | 1-12/2022 |
Order backlog |
|
| 196.3 | 306.9 |
Revenue | 80.2 | 83.1 | 320.0 | 273.9 |
Year-on-year change in revenue, % | -3.5 | 9.6 | 16.8 | 15.3 |
EBITDA | 4.9 | 3.8 | 14.0 | 13.6 |
EBITDA, % | 6.1 | 4.5 | 4.4 | 5.0 |
EBITA | 2.7 | 2.3 | 7.8 | 8.8 |
EBITA, % | 3.4 | 2.8 | 2.4 | 3.2 |
Operating profit | 2.6 | 2.3 | 7.6 | 8.6 |
Operating profit, % | 3.3 | 2.8 | 2.4 | 3.2 |
Result for the period | 1.6 | 1.3 | 3.9 | 5.6 |
|
|
|
|
|
Capital employed |
|
| 59.6 | 75.9 |
Return on capital employed, % |
|
| 11.2 | 12.5 |
Return on equity, % |
|
| 9.1 | 13.5 |
Net investments in operating activities | -0.7 | -0.5 | -5.9 | -4.2 |
Free cash flow from operating activities | 19.7 | 15.2 | 26.1 | 3.5 |
Net working capital |
|
| -11.3 | 4.7 |
Net debt |
|
| 16.8 | 33.4 |
Net debt/EBITDA, rolling 12 months |
|
| 1.2 | 2.5 |
Net debt/EBITDA, rolling 12 months pro forma* |
|
|
| 2,4* |
Equity ratio, % |
|
| 31.8 | 31.6 |
|
|
|
|
|
Earnings per share, diluted, € | 0.18 | 0.14 | 0.44 | 0.63 |
Earnings per share, undiluted, € | 0.18 | 0.14 | 0.44 | 0.64 |
Dividend per share, € |
|
| 0,48** | 0.46 |
|
|
|
|
|
Personnel at the end of the period |
|
| 472 | 447 |
Personnel on average | 475 | 449 | 454 | 416 |
*) The pro forma includes the EBITDA of the acquisition from 1 Jan 2022 to
**) Board of Directors’ proposal to the Annual General Meeting
President & CEO Timo Vikström:
“The year 2023 was yet another challenging year in many ways. Since 2020, the COVID-19 pandemic, Russia’s war of aggression, cost inflation and, most recently, the rapidly changing level of interest rates and an economic downturn have all taken their toll on the industry,
First of all, we have managed to grow in a falling market. Our 2023 revenue increased by 17 per cent year-on-year while, according to the latest forecast, the construction market took a double-digit dive and infrastructure construction declined by 4–10 per cent. Although our last quarter of the year fell slightly behind the previous year’s level in terms of revenue, the quarter was particularly gratifying with regard to free cash flow from operating activities amounting to
The strong cash flow in the last quarter of the year is partly a reflection of the normal seasonal variation in the business, as smaller projects are often completed before winter, but it also clearly indicates that we have continued to improve the efficiency of working capital management throughout the entire organisation. We have also revised our risk management, keeping an even sharper eye on, for example, the contract terms and what projects we offer in general. The increased importance of risk management is well reflected, among other things, in the fact that, in the last quarter of the year, after careful consideration, we did not participate in tenders for projects worth several hundred million euros because we judged their risk-sharing mechanisms to be too disadvantageous.
Healthy business and our order backlog, strong liquidity position and - taking into account the construction market situation - fairly good profit (EBITA) of
Tender calculation has been very active towards the end of 2023 and and market demand surprisingly high. We are confident that the activity will continue in 2024, especially driven by the investment programmes of cities located in growth centres as well as government rail investments, which will have a positive impact on the development of our order backlog this year. During the early part of the year, public tenders expected for calculation include the
We have also been pleased with the development of our Swedish business. Our revenue in
We have entered 2024 with quite a lot of confidence. We have survived the market turmoil in an exemplary manner and we have good visibility into projects that are starting and ongoing in 2024. Our order backlog of
We owe our success to our personnel. We have a wonderful team that makes the impossible possible every day – sustainable infrastructure for everyone. In 2023, we have been involved in construction in more than 100 projects and at around 60 locations in
Board of Directors’ proposal on the use of distributable funds
The parent company Kreate Group Plc’s distributable funds amounted to
The first instalment of the dividend,
The second instalment of the dividend,
On the day of making the proposal for profit distribution,
Webcast event
A live webcast open to all will be held today,
Board of Directors
Distribution: Nasdaq Helsinki, key media, kreate.fi/en
Contacts
Mikko Laine , CFO, Kreate Group Oyj, +358 50 599 9201, mikko.laine@kreate.fiNiina Streng , Head of Investor Relations and ESG, Kreate Group Oyj, +358 41 732 3362, niina.streng@kreate.fi- Timo Vikström, President & CEO, Kreate Group Oyj, +358 400 740 057, timo.vikstrom@kreate.fi
About Kreate Group Oyj
Attachments
- Download announcement as PDF.pdf
- Kreate Group Plc Financial Statement Bulletin 2023.pdf
© STT Info Finland, source