SRV's revenue grew - SRV's financial statement release 1 Jan - 31 Dec 2009
11.02.2010 08:30
Reporting period 1 January - 31 December 2009 in brief:
- SRV's revenue was EUR 385.0 million (EUR 537.0 million in January-December 2008), change 28.3% negative
- Operating profit was EUR 9.9 million (EUR 32.9 million), change 69.8% negative
- Profit before taxes was EUR 5.8 million (EUR 23.7 million), change 75.6% negative
- The order backlog at the close of the review period was EUR 480.6 million (EUR 455.3 million), change 5.6%
- New contracts EUR 396.1 million (EUR 399.1 million), change 0.8% negative
- The equity ratio was 41.3 per cent (41.3%)
- Earnings per share were EUR 0.06 (EUR 0.43)
- Proposed divided EUR 0.12 (EUR 0.12) per share
Fourth quarter 1 October - 31 December 2009 in brief:
- Revenue amounted to EUR 120.1 million (EUR 121.4 million in October - December 2008)
- Operating profit was EUR 2.8 million (EUR 0.7 million)
- Profit before taxes was EUR 2.3 million (EUR -2.6 million)
- Earnings per share were EUR 0.02 (EUR -0.06)
"As a result of the recession in the construction business, SRV's revenue declined but financial result is clearly positive, even though it is on an unsatisfactory level. In the difficult market situation, we have invested in customer acquisition. We have been able to increase our order backlog by 5.6 per cent, and the volume of new contracts remains at almost the previous year's level. The Group's costs have been adjusted due to the lower volume.
The operational profitability of SRV's Business Premises business area remained on a good level, even though revenue and operating profit fell from the corresponding period a year earlier. The order backlog remained almost on the previous year's level. SRV's strong competence supports the profitable implementation of current projects and facilitates customer acquisition in tight market conditions.
The revenue and operating profit of the Housing business area increased thanks to the growth in contract production volumes and housing sales. SRV sold a total of 530 housing units to consumers and, through negotiated contracts, to investors (205 units in 2008). Housing sales to consumers picked up, particularly in the final quarter when 86 housing units were sold (13 in October-December 2008), and SRV decided to start the construction of a total of 247 developer contracting housing projects at the year-end. The order backlog grew thanks to contracts won and to new developer contracting housing projects.
The market situation in Russia has pushed back both customers' and SRV's projects. The fund established in early June with VTB Capital and Deutsche Bank is a step towards implementing SRV's growth strategy in Russia. This arrangement gives SRV the opportunity to be the project management contractor in numerous significant construction projects in major Russian cities. SRV views its growth potential in Russia as good, and continues to invest in development projects.
Net operational cash flow showed a marked improvement and was EUR 3.6 million positive. Net cash flow in the comparison year 2008 was EUR 103.2 million negative due to the considerable increase in inventories.
During the final quarter, we focused strongly on our personnel's professional and supervisory skills. The objective of the training programs is to take full advantage of the group's best practices and the latest know-how in the industry in all business operations.
SRV's healthy solvency and strong financial position support us in utilising our innovative project development know-how", says Hannu Linnoinen, CEO of SRV.
Enclosed SRV Group's financial statement release.