Pre-tax margin up despite continued weak market

MT Højgaard’s focus on profitability resulted in a satisfactory profit before tax of DKK 221 million in the first nine months of the year, and a pre-tax margin of 3.4% versus 3.1% in the same period in 2008.

Profit for the period January-September was DKK 221 million before tax, corresponding to a pre-tax margin of 3.4% versus 3.1% in the same period last year. The improvement was the result of the Group’s continuous focus on profitability in all areas – a focal point of the Group’s strategy.

Revenue was DKK 6.5 billion compared with DKK 8.3 billion in January-September of last year, down 21%. The decline reflected a general downturn in the market and, in particular, in the market for private housing construction.

- We managed, in time, to shift the emphasis from private housing construction to commercial and public sector projects, and refurbishment. We have been focusing our efforts on securing more projects in these areas, and we are now reaping the rewards of our efforts, says CEO Kristian May, commenting on the financial statements.

- Especially in uncertain times, customers, suppliers and other business partners consider it particularly important that we immerse ourselves fully in their projects, that we carry out our work properly and in a timely manner, and that we have a sound financial base, says Kristian May.

Consolidated equity was DKK 1.6 billion at the end of September, corresponding to an equity ratio of 29%, and financial resources were DKK 1.3 billion.

The operating margin (EBIT) increased from 2.9% last year to 3.3% this year. The cash flow generated by operating activities more than doubled, increasing from DKK 192 million to DKK 460 million.

Outlook for 2009 reaffirmed

MT Højgaard still expects full-year 2009 revenue of approx. DKK 9 billion and a pre-tax margin of approx. 3%.

- We are well positioned to undertake the many public sector building and civil engineering projects that are currently winding their way through decision-making processes and design stages and are consequently expected to be put out to tender in the coming months. This will provide new opportunities, says Kristian May, continuing, but I expect competition to intensify in 2010.

In order to benefit from the opportunities in both Denmark and abroad and to further sharpen the focus on sub-markets, capabilities and customer groups, MT Højgaard has restructured the organisation with effect from 1 October. The Group now consists of five business areas: Construction, Civil Engineering, Major Projects, Project Development and Utility Services, and subsidiaries.

Financial highlights from financial statements