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The company will host a physical presentation at 09.00 AM (CET) at House of
Oslo, Ruseløkkveien 34, Oslo. The presentation will be held by CEO Henning
Olsen.
The presentation will be broadcast as a webcast on the following link:
https://channel.royalcast.com/landingpage/hegnarmedia/20220216_8/
The presentation will be followed by a live Q&A session. Investors, analysts and
journalists are welcome to participate at House of Oslo or follow the
presentation digitally, where questions can be submitted in written during the
event.
Below you will find highlights and a summary from the report.
REVENUE
· NOK 1.6 billion (NOK 1.6 billion)
EBITA*
· NOK 50 million (NOK -10 million)
· EBITA* margin 3.1% (-0.7%)
ORDERS
· Order intake of NOK 1.9 billion (NOK 1.4 billion)
· Order backlog of NOK 7.8 billion (NOK 6.5 billion)
LIQUIDITY
· Operating cash flow of NOK 149 million (NOK 110 million)
· Cash position of NOK 626 million (NOK 610 million)
KEY FIGURES 2021
· Revenue of NOK 6.0 billion (NOK 6.4 billion)
· EBITA* of NOK 139 million (NOK 50 million)
· EBITA* margin 2.3% (0.8%)
· Order intake NOK 7.6 billion (NOK 5.3 billion)
· Cash flow from continuing operations of NOK 358 million (NOK 312 million)
*Before other income and expenses (M&A expenses)
Improved margins and strong order intake
Fourth quarter revenue was NOK 1,601 million compared to NOK 1,578 million for
the same period of 2020. The revenue increased with 1% in the quarter. Adjusted
for currency effects the actual growth was 7%, mainly due to strong growth in
Norway, but also Sweden and Finland increased their revenues. Group EBITA* was
NOK 50 million compared to NOK -10 million for the same period last year. The
EBITA* margin increased to 3.1% from -0.7% in the same quarter last year mainly
due to improved profitability in Norway. The order intake in the quarter was
solid with NOK 1,872 million and a book-to-bill ratio of 1.2. The cash flow from
operations in the quarter continued strong with NOK 149 million compared to NOK
110 million in the same quarter last year.
Finland had a revenue of NOK 706 million compared to NOK 740 million in the
fourth quarter of 2020. Adjusted for currency effects the organic growth was 3%.
The profitability was solid with an EBITA of NOK 59 million compared to NOK 62
million in the same period of 2020, leading to an EBITA* margin of 8.3% for the
quarter, slightly down from 8.4% last year. The strong profitability is mainly
explained by continued solid results in Rail Construction and positive results
from sale of machinery.
Revenue from the Swedish operation amounted to NOK 398 million for the quarter
compared to NOK 396 million in the same period of 2020. The organic growth in
the quarter was 7% due to stronger order intake. In the fourth quarter, the
Swedish operation was awarded several important contracts improving the order
backlog and leading to a much stronger position going into 2022. EBITA* for the
quarter was NOK -21 million, at same level as in the same period of 2020. The
profitability is still impacted by low revenue in addition to cost provisions
related to old projects won before 2020.
Revenue in Norway was NOK 508 million compared to NOK 442 million in the fourth
quarter of 2020. The organic growth was 15% in the quarter mainly driven by the
Environment and Civil divisions. EBITA* was NOK 21 million compared to NOK -43
million in the same period of 2020, which leads to an EBITA* margin of 4.2% this
quarter, up from -9.7% for the same period last year. The increased
profitability is mainly explained by improved results in the Environment
division where implemented measures during the year have yielded results. The
profitability in the fourth quarter last year was affected by significant write
-downs in this division.
Group operating profit (EBIT) for the quarter was NOK 10 million, an increase
from NOK -16 million last year. The EBIT in the quarter was affected by one-off
M&A cost provisions of -22 million related to previous years’ acquisitions.
Approximately NOK 10 million is related to a loss in a court case against the
previous owners of Signal och Banbyggarna i Dalarna AB (company acquired in
2017) in Stockholm’s District Court. NRC Group was judged to pay the defendants
litigation costs. NRC Group has appealed. In December 2021, NRC Group received a
claim of approximately NOK 12 million related to an insurance case in Finland
from 2016.
Net financial items amounted to NOK -16 million for the quarter, compared to NOK
-20 million for the same period last year.
Fourth quarter order intake was NOK 1,872 million, split on announced contracts
of NOK 935 million and unannounced order intake of NOK 937 million. The order
backlog amounted to NOK 7,801 million at the end of December, an increase of NOK
154 million from last quarter.
In Norway, new orders included an appointed contract by Oslo Municipality of NOK
95 million for ground, foundation and construction work in connection with the
establishment of a water reservoir at Holmenkollen. The work commenced in
January 2022 and is scheduled for completion in October 2023. NRC Group Sweden
was appointed to a contract of track renewal on the railway connections between
Älvsbyn-Piteå, Bastuträsk-Skellefteå and Västeraspby-Långsele by the Swedish
Transport Administration. The contract is valued at approximately SEK 199
million. The work commenced in November 2021 and is scheduled for completion in
November 2022. New orders in Sweden also included a contract for track related
work in Örebro municipality, appointed by the Swedish Transport Administration.
The contract is valued at SEK 43 million and commenced in November 2021. The
work is scheduled for completion in November 2022. In Finland, new orders
included a contract for track construction, electro and groundwork at Haapajärvi
and Oulainen raw wood terminals in Northern Finland. The contract is valued at
approximately EUR 19.8 million. The work commenced in January 2022 and is
scheduled for completion in November 2023.
The Group has identified an addressable tender pipeline of approximately NOK 19
billion for the next nine months. This compares to a NOK 20 billion tender
pipeline three months ago and NOK 21 billion at the same time in 2020.
The tender pipeline in Finland is approximately NOK 1.6 billion, a decrease of
approximately NOK 2.4 billion compared to the tender pipeline three months ago
mainly due to postponed tenders. The tender pipeline is approximately NOK 3.6
billion lower than the same period last year, mainly related to maintenance
tenders which have been awarded during 2021.
The tender pipeline in Norway is approximately NOK 8.9 billion, an increase of
NOK 1.4 billion compared to the tender pipeline three months ago. The increase
is mainly in Rail Construction. The tender pipeline has increased approximately
by NOK 2.7 billion compared to the same period last year.
In Sweden, the tender pipeline is approximately NOK 8.6 billion, at same level
as three months ago. The tender pipeline is NOK 1.4 billion lower than the same
period last year, which is mainly related to reduced level of tenders in
maintenance as there have been several contracts awarded in 2021.
Update on Covid-19
NRC Group continues a sharp focus on adopting guidelines and policies to prevent
and handle Covid-19 outbreaks. The Group monitors the development of the
pandemic and its potential impact on the industry and on business continuity.
The main risks are related to potential operational impact with new outbreaks
and variants, and if restrictions reoccur.
The infection rate for Covid-19 is expected to remain high for a period. This
will impact the sickness absence rate in the Group.
NRC Group’s main priority is to keep employees safe while maintaining
operations. The Group communicates regularly and transparently to equip teams
for virtual working and safe project execution. The Group complies with
restrictions and guidelines from relevant authorities and follows up with
immediate actions when relevant and needed.
The Covid-19 pandemic has had limited financial impact for NRC Group to date.
Still the long-term impact for the societies and people is characterised by
uncertainty.
Dividend
NRC Group expects to create value for its shareholders by combining increased
share value in a long-term perspective and distribution of dividends. The Board
of Directors at NRC Group has introduced a dividend policy whereby, subject to a
satisfactory underlying financial performance, it is NRC Group’s ambition over
time to distribute a dividend minimum of 30% of the profit for the year. Based
on the 2021 results, the Board of Directors will not propose a dividend for
2021.
Outlook
NRC Group is strongly positioned in a growing market with a substantial tender
pipeline. Proposed national budgets and updated proposals of the National
Transportation Plans with substantial long-term investments, confirm a positive
market outlook.
NRC Group continues its focus on measures to improve profitability. For 2022 we
expect a continued positive operational and financial development with moderate
to strong revenue growth and moderate increase in EBITA* margin compared to
2021.
The fourth quarter 2021 result report and result presentation can be found
attached and will be available on the company’s homepage: www.nrcgroup.com.
This information is considered to be inside information pursuant to the EU
Market Abuse Regulation, and is subject to the disclosure requirements pursuant
to Section 5-12 of the Norwegian Securities Trading Act.
This stock exchange announcement was published by Cecilie Blaauw Cock, Marketing
& Communication at NRC Group ASA, on 16 February 2022.
Kilde
