Correction: SRV Group Plc lowers operative operating profit guidance for 2021

SRV GROUP PLC      INSIDE INFORMATION    13 DECEMBER 2021          17.15 EET

Correction: SRV Group Plc lowers operative operating profit guidance for 2021

Correction: SRV Group Plc corrects the stock exchange release published on 13 December 2021 at 14.55 EET. In the original stock exchange release, outlook concerning revenue was incorrect: 900-975 million euros. The correct outlook for revenue is 900-1,000 million euros. Below the release with the correct outlook.

SRV Group Plc weakens its outlook and changes operative operating profit guidance for 2021. The earlier issued operative operating profit guidance for 2021 (16-21 million euros) will not be met. According to the new estimate the operative operating profit will be positive.

The weakened outlook is due to the increased costs of finalizing construction works of Tampere Arena, and postponement of the divestment of the Pearl Plaza shopping centre.

In its Q3 interim report the company said that there are cost risks concerning finalizing construction works of Tampere Arena. These risks have realised. The negative impact of Tampere Arena project for 2021 operative operating profit is estimated to be ca. -20 million euros, of which ca. -13 million euros was already included in the reported outcome of Q3 2021.

The negotiations of the sale of the Pearl Plaza shopping centre continue actively, but the sale will not be finalized during 2021 as forecasted earlier.

According to company´s new outlook the operative operating profit of the year 2021 is estimated to be positive (earlier outlook: 16-21 million euros). The outlook concerning revenue remains unchanged (900-1,000 million euros).

For further information, please contact:
Saku Sipola, President & CEO, tel. +358 (0)40 551 5953, saku.sipola@srv.fi
Jarkko Rantala, CFO, tel. +358 (0)40 674 1949, jarkko.rantala@srv.fi

 

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SRV in brief
SRV is a developer and innovator in the construction industry. Our objective is a new lifecycle-wise reality where solutions related to construction ensure well-being, financial value and the benefit of users, residents and environment – for years and generations to come. Our genuine cooperation and enthusiasm for our work comes across in every encounter. Sustainability is reflected in all our activities.

Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in Finland and Russia. In 2020, our revenue totalled EUR 975.5 million. In addition to about 1,000 SRV employees, we employ a network of around 4,200 subcontractors.

SRV – Building for life

 

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