NYAB OYJ
COMPANY ANNOUNCEMENT
NYAB Plc’s financial statement release 2023: Strong growth in cash flow and order backlog
October-December in brief
- Revenue amounted to
EUR 87.8 (89.8) million, representing a change of -2.1%. In constant currencies, revenue growth was 1.3%. -
EBITDA was
EUR 8.6 (20.8) million, amounting to 9.8% (23.1%) of revenue. Comparison period includes sales gain from Skarta Energy transaction ofEUR 14.7 million on EBITDA. -
Operating profit (EBIT) was
EUR 6.6 (19.2) million, amounting to 7.5% (21.4%) of revenue -
Free cash flow was
EUR 16.8 (9.5) million - Net debt/EBITDA was -0.3
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NYAB signed a contract with an estimated value of
EUR 89 million regarding the construction ofAurora Line and a contract with an estimated value ofEUR 69 million to construct a solar farm in Utajärvi, Northern Ostrobothnia -
Order backlog improved 23.0% and amounted to
EUR 294.7 (239.7) million.
January-December in brief
- Revenue amounted to
EUR 280.4 (253.3) million, representing a change of 10.7%. In constant currencies, revenue growth was 16.6%. -
EBITDA was
EUR 21.4 (30.4) million, amounting to 7.6% (12.0%) of revenue. Comparison period includes sales gain from Skarta Energy transaction ofEUR 14.7 million on EBITDA. -
Operating profit (EBIT) was
EUR 15.2 (25.7) million, amounting to 5.4% (10.2%) of revenue -
Free cash flow was
EUR 22.3 (3.7) million -
The Board of Directors proposes a capital repayment of
EUR 0.014 (0.007) per share, of whichEUR 0.008 per share is ordinary profit distribution andEUR 0.006 is extraordinary profit distribution and which equals approximatelyEUR 9.9 (4.9) million, to be paid for shareholders. - NYAB gives a financial guidance where its revenue and operating profit for 2024 are expected to increase from 2023.
This announcement is a summary of NYAB Plc’s financial statement release January-
Key figures (IFRS)
| 10–12 | 10–12/ | 7–12/ 2023 | 7–12/ 2022 | 1–12/ 2023 | 1–12/ 2022 |
Revenue, EUR thousand | 87,848 | 89,765 | 175,946 | 180,113 | 280,417 | 253,318 |
Year-on-year change in revenue, % | -2.1% | -0,6% | -2.3% | NA | 10.7% | 92.3% |
EBITDA, EUR thousand | 8,578 | 20,776 | 16,578 | 27,327 | 21,374 | 30,389 |
% of net sales | 9.8% | 23.1% | 9.4% | 15.2% | 7.6% | 12.0% |
EBITA, EUR thousand | 7,644 | 19,729 | 14,776 | 25,424 | 17,818 | 27,217 |
% of net sales | 8.7% | 22.0% | 8.4% | 14.10% | 6.4% | 10.7% |
Operating Profit (EBIT), EUR thousand | 6,614 | 19,214 | 13,190 | 24,425 | 15,187 | 25,744 |
% of net sales | 7.5% | 21.4% | 7.5% | 13.6% | 5.4% | 10.2% |
Profit for the period, EUR thousand | 3,564 | 19,319 | 8,131 | 23,657 | 9,049 | 23,320 |
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Earnings per share (EPS), basic, in euros | 0.01 | 0.03 | 0.01 | 0.04 | 0.01 | 0.03 |
Earnings per share (EPS), diluted, in euros | 0.01 | 0.03 | 0.01 | 0.04 | 0.01 | 0.03 |
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Interest-bearing liabilities | 17,014 | 20,837 | 17,014 | 20,837 | 17,014 | 20,837 |
Equity, EUR | 185,326 | 180,418 | 185,326 | 180,418 | 185,326 | 180,418 |
Balance sheet total | 266,088 | 259,098 | 266,088 | 259,098 | 266,088 | 259,098 |
Return on equity, previous 12 months, % | 4.9% | 22.5% | 4.9% | 22.5% | 4.9% | 22.5% |
Return on capital employed, previous 12 months, % | 6.6% | 22.7% | 6.6% | 22.7% | 6.6% | 22.7% |
Equity ratio -% | 73.0% | 69.6% | 73.0% | 69.6% | 73.0% | 69.6% |
Net debt, EUR thousand | -5,630 | 7,010 | -5,630 | 7,010 | -5,630 | 7,010 |
Net gearing -% | -3.0% | 3.9% | -3.0% | 3.9% | -3.0% | 3.9% |
Net debt/EBITDA, previous 12 months | -0.26 | 0.23 | -0.26 | 0.23 | -0.26 | 0.23 |
Free cash flow, EUR thousand | 16,819 | 9,531 | 13,032 | 11,976 | 22,338 | 3,699 |
Order backlog, EUR thousand | 294,730 | 239,682 | 294,730 | 239,682 | 294,730 | 239,682 |
Number of employees at the end of the period | 403 | 383 | 403 | 383 | 403 | 383 |
CEO
NYAB accomplished great progress during 2023. We developed both our core business and our support functions, which included preparations for a future as a company listed in
Our reported growth was 10.7 percent and growth in constant currencies amounted to 16.6 percent. We maintained a healthy EBIT-margin of 5.4 percent and achieved a significant improvement in our free cash flow that amounted to
Our positive development should also be seen in the context that year 2023 was full of macroeconomic headwinds. Our customers were especially affected by inflation and uncertainties regarding interest rates. Hence, investments in our markets were practically frozen during our seasonally highest period between May and October. Several contracts that were expected to be signed during the first half of the year were delayed. It is satisfying to see that, despite these challenges, we stayed committed to our most important supporting pillar, not to grow with increased risk. Therefore, our growth was modest in NYAB measures, and we decided not to complete any M&A’s due to uncertainties in the market.
Stabilization of the macroeconomic environment towards the end of the year restored confidence among our customers, which resulted in a significant order intake during the fourth quarter. We signed our largest contracts ever regarding the construction of
Since the fourth quarter, we have noticed that all our markets are improving, and we currently see a strong demand in all our sectors. The most relevant global megatrends – green transition, de-globalization, and urbanization – heavily drive investments in the energy sector, where our growth is the fastest, as well as infrastructure and industry sectors.
To summarize, we achieved good growth and cash flow, as well as a strong margin in relation to our industry. Together with an all-time high backlog at the end of the year, we proved the scalability in our business model for the tenth consecutive year. To achieve all this in an extremely challenging environment says a lot about us and our favorable position in the market. We will continue to build value for our customers, employees, and shareholders in accordance with our new strategic plan, thus enabling the progress of society for future generations.
Finally, I want to thank NYAB’s employees who are working diligently to make us a better company every day. I am proud of the accomplishments that have been demonstrated throughout the year through your competence, dedication, and teamwork. Together, as one team, I am confident that we will continue to achieve even more in the coming years.
Future outlook
NYAB sees its record-high year-end order backlog together with its exposure to growing sectors and geographical markets as a basis for a positive outlook. NYAB gives a financial guidance where its revenue and operating profit for 2024 are expected to increase from 2023.
Global megatrends, such as green transition and urbanization, also provide robust demand for NYAB’s business areas. The transition of volumes to 2024 from 2023 due to late year winter conditions, as well as the stabilization of inflation and interest rate development at the end of the year, further support the solid foundation for the 2024 outlook.
Key uncertainties impacting the business and financial performance include the development of inflation, interest rates, and value of the Swedish krona, weather conditions, as well as the functionality of supply chains and other typical project risks.
The long-term outlook is positive for all business areas and NYAB is well positioned to deliver in accordance with its long-term financial targets.
Green transition accelerates the construction of renewable energy and power networks, as fossil fuels are being replaced and demand for energy increases with the electrification of industrial processes. Besides the rapidly growing wind power, an increasing number of industrial-scale solar farm projects is proceeding to the construction phase, and investment plans of main grid companies amount to several billions of euros.
Regarding infrastructure, there are large investment needs in the public sector for both transportation and water treatment, and urbanization increases demand especially in the Stockholm-Mälardalen region. Significant opportunities within industrial clients are expected, among others, in the mining industry that is essential for rapidly growing clean energy technologies especially in NYAB’s key market in
Invitation to a management webcast
NYAB will arrange a webcast regarding financial statement release on Wednesday, 28 February at
Contacts
Aku Väliaho , CFO, NYAB Oyj, +358 (0)40 559 2772, aku.valiaho@nyabgroup.comJohan Larsson , CEO, NYAB Oyj, +46 (0)70 182 5070, johan.larsson@nyabab.se
About NYAB Oyj
NYAB enables the progress of society for future generations with decades of experience from complex and challenging projects. We facilitate the green transition in the Nordics by offering engineering, construction and maintenance services in renewable energy and sustainable infrastructure to customers in the public and private sector. NYAB is headquartered in Oulu and has more than 400 employees at different locations in
Attachments
- Download announcement as PDF.pdf
- NYAB_financial statement release 2023.pdf
© STT Info Finland, source
