MTH GROUP: Satisfactory performance after three-year turnaround

MT Højgaard has achieved significant changes in the past three years. The Group's turnaround has produced the expected improvement in the financial results: Operating profit (EBIT) was DKK 352 million, up from DKK 207 million in 2014 (before special items), supported in part by an extraordinary contribution from Greenland Contractors.

The EBIT margin was 5.4% (2014: 3.0%), surpassing management's target of not less than 5%. Consolidated revenue amounted to DKK 6.5 billion, a slight drop from last year caused mainly by the postponement of a number of large projects.

The MT Højgaard companies demonstrated their greater competitive strength by winning new orders worth DKK 7.5 billion (2014: DKK 5.9 billion). In addition, the Group won orders of DKK 2.1 billion which had not yet been contracted at 31 December 2015.

“After our three-year turnaround, we are very pleased to present such improved financial results for 2015. They were made possible by our close collaboration with customers and business partners and by an extraordinary staff effort,” said MT Højgaard CEO Torben Biilmann.

Profitable growth
The fairly positive market trends are expected to continue in the years ahead. Going into 2016, the MT Højgaard Group's order book stood at DKK 7.5 billion (2014: DKK 6.5 billion). The order book's profitability and risk profile is consistent with the Group's requirements.

MT Højgaard expects a full-year 2016 operating profit (EBIT) of DKK 300 million, despite a much smaller contribution from Greenland Contractors. The postponed start-up of a number of projects will continue to restrain revenue in the first half of the year, but the full-year 2016 revenue is expected to improve to about DKK 7 billion, for an EBIT margin of just below the 5% target.

Management sees a good growth potential over the next few years, backed by a positive economic outlook, improved competitive strength for the Group and a focused strategy. In its strategy for the Group's further development, management continues to give priority to retaining the already achieved satisfactory profitability over top-line growth. Against this backdrop, management sees a good potential for further improvements in 2017 and for the Group to achieve its target of a 5% EBIT margin.

Forward-looking statements are inherently subject to risk and uncertainty which may cause ac-tual developments to differ materially from the guidance provided. The principal risks and un-certainties are described in the annual report.

The annual report is available here