Kreate Group Plc Inside information
Inside information, profit warning: Kreate Group’s revenue estimated at EUR300–325 million and EBITAEUR7.0–8.5 million for 2023
Revised guidance for 2023:
Kreate estimates that its revenue (2022:
Justifications:
A strong order backlog and the planned and partly faster than expected execution of projects have increased Kreate's revenue in the first half of the year. The same trend is expected to continue in the second half of the year, leading to a higher level of revenue than previously estimated.
At the same time, the high level of inflation and wage development in the industry during the early part of the year, as well as changes in the overall construction market, have impacted profitability. In addition, contrary to previous estimates, projects without indexation terms from previous years have caused negative margin effects, thereby weakening the profitability for the year 2023. In the railway construction business, the postponement of projects initially expected to start in the early part of the year has tightened the market and had a negative impact on the estimated volume and profitability of this business.
Previous guidance for 2023 (published on
Kreate estimates that its revenue will remain at the 2022 level (2022:
Justifications for previous guidance:
Kreate’s high order backlog at the beginning of 2023 supports the positive development of revenue, but the general economic situation may affect the accumulation of the new order backlog during the year. In addition to the order backlog, Kreate’s specialisation in demanding construction as well as the stable infrastructure construction market support EBITA growth in 2023.
Due to the silent period, Kreate will not comment on its updated guidance or publicly disclose information concerning its financial performance for the early part of the year before the publication of the half-year report.
Board of Directors
For more information, please contact:
Distribution: Nasdaq Helsinki, key media, kreate.fi/en
Contacts
Mikko Laine , CFO, Kreate Group Oyj, +358 50 599 9201, mikko.laine@kreate.fi
About Kreate Group Oyj
Attachments
- Download announcement as PDF.pdf
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