Long-term, sustainable development
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Conference call about annual report 2023
MT Højgaard Holding hosted a conference call on 22 February at which the management presented the results and outlook before answering questions.
The conference call was conducted in Danish and can be heard here.
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MT Højgaard Holding aims to generate long-term, profitable growth in the Danish core business, which consists of the two large construction companies MT Højgaard Danmark and Enemærke & Petersen, supplemented by MT Højgaard Property Development.
From 2019 to 2023, the core business has generated average annual revenue growth of 20%, while earnings have increased more than fivefold in the period.
In parallel, MT Højgaard Holding has divested all other activities to focus all management and financial resources on driving progress in the Danish core business. Only a few activities in MT Højgaard International remain and are expected to be divested in 2024.
MT Højgaard Holding focuses on Denmark, where the Group covers the entire value chain from project development, civil works, construction and refurbishment to operation. Each of the three business units have their own specialist capabilities and characteristics, and their management teams develop the units in close interaction with markets and customers. The Group’s management exerts active ownership, drive synergies across the Group and promote cooperation to increase value creation.
2024 outlook
The Group expects 2024 revenue in the range of DKK 10.0-10.5 billion (2023: DKK 9.8 billion) and operating profit (EBIT) of DKK 400-425 million (2023: DKK 389 million). The expectations of continued progress are supported by a high order backlog, a promising project pipeline and a strong exposure to growth areas in the market.
Dividend policy
The gradual improvement in earnings will make it possible to pay dividends to the shareholders. MT Højgaard Holding will endeavour to pay dividends, while bearing in mind the need to reduce debt and the Group’s liquidity forecast and solvency.
The guideline for dividend is:
- With a solvency of 20-30% the company will endeavour to pay out 25-30% of profit for the year.
- With a solvency of over 30% the company will endeavour to pay out at least 50% of profit for the year.