Release Date: August 21, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Strong operational performance with high billing ratio and good sales.
- Continuous high order backlog with organic growth of 11.4%.
- EBITA of NOK186 million, representing a margin of 13%.
- Positive impact from the put option related to A-lab.
- Increased focus on diversity and inclusion within the organization.
Negative Points
- Increased competition in all business areas.
- Temporary and permanent layoffs in the Architecture segment due to a challenging market.
- Bad debt provision in Multiconsult Polska due to a pending court case.
- Reduced call-off on some frame agreements in Iterio, affecting results.
- Slightly lower recruitment rate in Q3 compared to the same quarter in 2023.
Q & A Highlights
Q: Can you say something about the recruitment for Q3?
A: Yes. The third quarter is when we invest in new people, particularly graduates. This year, the recruitment rate is slightly lower than in Q3 2023. (Grethe Bergly, CEO)
Q: The order backlog was flat year over year, and the number of employees is up 5%. How are you working with this in relation to future growth?
A: We have a record high order backlog and are not worried. We monitor the backlog based on the number of employees, and we are seeing good steady sales. (Grethe Bergly, CEO)
Q: You mentioned NOK7.4 million in Denmark, but also write-ups in the portfolio. Can you comment more on that?
A: This is just normal operation where we reevaluate our projects quarterly. This quarter, it had a positive effect. (Ove Haupberg, CFO)
Q: How did the first half of the year compare to your expectations at the start of the year?
A: Q2 was roughly in line with expectations, though there were some particulars not part of normal operations. Overall, we had a strong start in Q1, and Q2 was a high production period. (Grethe Bergly, CEO)
Q: Could you tell us more about the scope of the costs in International and how they are expected to develop?
A: The bad debt provision in Poland was a significant cost. Otherwise, it's mainly call-off on frame agreements affecting net operating income. (Ove Haupberg, CFO)
Q: How important is the defense sector for you, and what is the outlook for this sector?
A: We expect growth in the defense sector, with all subsidiaries having projects in this area. It's an area of good growth but not vital for us. (Grethe Bergly, CEO)
Q: Where does the increased competition apply, in which business area?
A: Increased competition is noted in Buildings and Properties, but resources are transferable, so we expect it across all business areas. (Grethe Bergly, CEO)
Q: Do you expect further improvements in Architecture beyond the autumn?
A: Carefully, yes. Our architectural companies are seeing increased activity and client contact, so we have a positive outlook. (Grethe Bergly, CEO)
Q: Will you consider working on the financial targets for the Capital Markets Day? Are there any major changes in the planned strategy?
A: We will address this in November, but we are not planning any drastic changes in direction or targets. (Grethe Bergly, CEO)
Q: Related to the activity in defense, in which segment will it impact?
A: It will likely impact all our segments. (Grethe Bergly, CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
