Working to improve profitability

Over the past year, we have managed to lighten our balance sheet by over EUR 90 million by, for example, making more efficient use of working capital. We have sold plots that have been in the balance sheet for a long time, and have accelerated sales of existing smaller-scale investments and unsold residential units. We are also aiming to manage the capital tied up in our balance sheet by acquiring new plots for plot funds.

In addition, we have made savings in subcontracting, reduced the costs incurred by additional and alteration work, and scaled back work charged on an hourly basis. We have also overhauled our key construction processes and standardised our working methods. Although these measures have had an impact, they are still only first-aid.

The New Children’s Hospital is one good example of a successful and cost-effective project. We managed to stick to the planned costs and even finished ahead of schedule. We are also extremely proud of the many awards that the hospital has already received, such as the 2018 Finlandia Prize for Architecture.

Developments in construction processes are also visible in housing.  For example, in late 2018 we introduced our revised planning and design process for residential development projects. The process enables closer and earlier cooperation between planning and design, production, and procurement. The goal is to clarify tasks, responsibilities and schedules, thereby improving profitability in our residential development projects.

We will continue to improve our profitability and the cost-effectiveness of our projects over the coming year.

“By taking a good attitude and a firm grip, we’ve been able to achieve the targets we’ve been set. We will now continue these efforts to create a culture of high performance and renew our leadership culture,” says CFO Ilkka Pitkänen.