Denmark’s largest building and civil engineering company delivered a profit of DKK 307 million before tax and a pre-tax margin of 3.4%. The pre-tax margin was ahead of expectations (3%) and better than the previous year (3.2%), in spite of difficult market conditions in the building and civil engineering industry.
MT Højgaard also came out of 2009 in a stronger position financially. At DKK 1.6 billion, the company’s equity is at its highest level since the company was established in 2001.
Due to the downturn in the market, revenue in 2009 was DKK 9.1 billion against DKK 11.2 billion the previous year, a decline of 19%. However, the decline is assessed to be less than the general decline in the company's principal markets.
Profit was DKK 307 million before tax, making 2009 the third year running in which MT Højgaard recorded profit in excess of DKK 300 million. These results were achieved through a constant focus on profitability in all areas, despite falling demand and increased price competition.
- We are still prioritising profitability over volume, says Kristian May, President and CEO, commenting on the financial statements.
- MT Højgaard wishes to be recognised as a professional and competent business partner to our customers and suppliers. They consider it important that we immerse ourselves fully in every single project, and that we carry out our work properly and on time. It is also important – not least in these times – that we are financially robust, says Kristian May.
Group equity reached DKK 1.6 billion at the end of 2009, corresponding to an equity ratio of 29%, and financial resources were DKK 1.3 billion.
The EBIT margin rose again in 2009, continuing recent years’ upward trend, reaching 3.2% compared with 2.9% in 2008.
Given the current economic climate, MT Højgaard’s expectations for 2010 are subdued. MT Højgaard thus expects revenue of approx. DKK 9 billion, largely on a par with 2009. Competition is putting pressure on prices, so despite continued alignment of capacity and costs to a relatively weak demand, the results are not expected to quite reach the 2009 level and the pre-tax margin is expected to be between 2% and 3%.
- Market conditions will continue to present challenges. Profitability will continue to be the key element of our strategy, and we are consequently very careful in terms of selection of projects, effective project management and accurate risk management, says Kristian May.
Financial highlights from financial statements
| DDK million | 2009 | 2008 |
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| Revenue | 9.087 | 11,171 |
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| Operating profit (EBIT) | 290 | 327 |
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| Profit before tax | 307 | 359 |
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| Cash flows from operating activities | 485 | 536 |
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| Equity | 1,610 | 1,442 |
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| Interest-bearing net assets | 824 | 513 |
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| Invested capital | 880 | 1,010 |
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| Operating margin (EBIT margin) | 3.2% | 2.9% |
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| Pre-tax margin | 3.4% | 3.2% |
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| Equity ratio | 29.2% | 27.3% |
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