SRV's order backlog continued to grow - SRV's interim report 1 January - 31 March 2010
05.05.2010 08:30
Reporting period 1 January-31 March 2010 in brief:
- SRV's revenue was EUR 95.0 million (EUR 87.0 million in January-March 2009), change 9.1%
- Operating profit was EUR 1.6 million (EUR 1.8 million), change 12.9% negative
- Profit before taxes was EUR 0.2 million (EUR 0.3 million), change 49.4% negative
- The order backlog at the close of the review period was EUR 530.0 million (EUR 458.5 million), change 15.6%
- New contracts EUR 140.6 million (EUR 91.3 million), change 53.9%
- The equity ratio was 37.0 per cent (40.5%)
- Earnings per share were EUR -0.01 (EUR 0.00)
- SRV changes the previous outlook for 2010 due to the postponement of start-ups of projects in Russia. Revenue in 2010 is expected to exceed the previous year's level and profit before taxes is expected to be positive.The interim report has been prepared in accordance with IAS 34. The disclosed information is unaudited.
"SRV posted positive development in revenue and its order backlog in January-March. The volume of new contracts increased by 54 per cent, despite the fall in the order backlog of our international operations. This is proof of SRV's strong competitiveness, since our order backlog has continued to grow for four consecutive quarters. SRV's operating profit and financial result declined.
SRV's Business Premises performed well in an extremely challenging market, its order backlog showing growth of 31.2 per cent. Our robust expertise in implementation, and our reputation as a reliable construction firm, have supported new customer acquisition in a tight market situation and enabled us to further increase our market share. Revenue in the Business Premises business area was almost on a par with the previous year and profitability was good.
The Housing business area continued to perform strongly. Its revenue and operating profit clearly improved, thanks to the growth in contract production volumes and housing sales. SRV sold a total of 95 housing units to consumers (27 units in January-March 2009). Demand for housing is also directed towards projects under construction; SRV will start up new residential projects within the next few months.
In our Russian operations, start-ups of projects under development were postponed. However, the Russian financial and property markets are gradually recovering. In order to further boost our growth strategy, we have continued to diversify our business model. Besides developing implementation of SRV's current projects, we are placing a particular emphasis on the preparation of the first investment sites for the property fund we established with VTB and Deutsche Bank, as well as the development of a shopping centre to be realised in cooperation with Shanghai Industrial Investment Group.
SRV's solvency and financial position have remained strong, supporting us in utilising our innovative project development know-how", says Hannu Linnoinen, CEO of SRV.
Enclosed SRV Group Interim Report.