This release is a summary of
January - March in brief
- Net sales decreased by 8.1% to
EUR 51.5 (56.0) million. In constant currency net sales were down by 8.0%. - Organic net sales growth was negative at -8% (4%).
-
Adjusted EBITA was
EUR 3.4 (6.6) million, or 6.6% (11.8%) of net sales. -
Operating profit decreased to
EUR 2.0 (5.5) million, or 3.8% (9.8%) of net sales. -
The order book stabilized during the quarter. Year-on-year the order book decreased by 8% to 163
(176) million euros . - Leverage (net debt / adjusted EBITDA) was 3.8x (2.4x).
- In the client survey conducted at the beginning of the year, the willingness to recommend remained at a good level and NPS (Net Promoter Score) was 31 (32). In addition, 95% (97%) of respondents would re-select Sitowise as their supplier.
-
The acquisition of
Ahlman Group Oy's expert business was finalized in January.
The figures in the interim report are unaudited. Comparative figures for the corresponding period of the previous year are in brackets. The figures disclosed in the interim report are rounded so the sum of individual figures can deviate from the reported sum. This report has been published in Finnish and English. If there are any differences between the English translation and the original Finnish version, the Finnish report shall prevail.
EUR million | 1-3/2024 | 1-3/2023 | Change, % | 2023 |
Net sales | 51.5 | 56.0 | -8.1 % | 210.9 |
EBITA, adjusted | 3.4 | 6.6 | -49.1 % | 17.0 |
% of net sales | 6.6 % | 11.8 % | 8.1% | |
EBITA | 3.1 | 6.2 | -51.1 % | 15.1 |
Operating profit | 2.0 | 5.5 | -64.4 % | 11.7 |
Result for the period | 0.5 | 3.5 | -84.4 % | 5.5 |
Cash flow from operating activities before financial items and taxes | 5.0 | 5.7 | -11.9 % | 23.9 |
Net debt | 56.7 | 55.5 | 55.3 | |
Net debt / EBITDA, adjusted | 3.8x | 2.4x | 3.0x | |
Equity ratio, % | 43.6 % | 43.6 % | 42.9% | |
Earnings per share (EPS), EUR | 0.02 | 0.10 | -83.3 % | 0.16 |
Number of personnel, average | 2,119 | 2,226 | -4.8 % | 2,211 |
CEO
In the first quarter, Sitowise's market environment offered a few tailwinds. We continued to excel in Infra business area, which grew by 8% year-on-year, and both our Infra and Digital Solutions businesses successfully maintained their profitability levels. At the same time, our business benefited from the increasing demand for green transition and security related services, as well as the expertise gained through the acquisitions completed after the comparison period. During the quarter we focused on proactive sales, with a specific emphasis on further diversification of client base in energy and industrial sectors, and I am very pleased that these initiatives are already resulting in winning new clients and projects.
On a Group level, net sales were down by -8.1 percent to 51.5
In line with our strategy, we continued to focus on innovation, sustainability, and efficiency. In the past year, we have rapidly developed a robust pipeline for new smart and sustainable digital services, initiating go-to-market preparations for two products this quarter. Furthermore, the Digital Solutions business secured its first international deal.
We also strengthened our ties with our customers and created new partnerships during the quarter. Examples of these include a design partnership with the construction company YIT across its Finnish business segments, and a cooperation with the forest machine manufacturer
We expect the market environment to remain mixed throughout 2024. Demand for services related to green transition, security and digitalization of the built environment continues to be the key driver for growth especially in Infra and Digital Solutions. In Buildings and
Improving Sitowise's profitability is our top priority in 2024, with a continued focus on moving our sales culture to the next level, pricing excellence and further actions to mitigate cost inflation and increasing internal efficiencies. The results of these initiatives are expected to materialize in the coming quarters, but I am pleased to see that our increased focus on the growing market segments has already started to bring positive results.
OUTLOOK, GUIDANCE, AND FINANCIAL TARGETS
Outlook for the year 2024
The stable long-term growth in the demand for design, consulting, and digital services to create sustainable societies is supported by megatrends such as urbanization, renovation backlog, sustainability, digitalization and security.
The weakened macro-economic outlook, high interest rates and high inflation have slowed down growth in both
We expect the market environment to remain mixed in 2024. Key driver for growth will be increasing demand for services related to green transition, security, and digitalization of the built environment. In Buildings, the first half of the year will still be challenging due to the difficult construction market in
At the end of
In addition to the market development, cost inflation (e.g. relating to salary increases), higher number of working days in 2024 than in the previous year (+1 day in both Q2 and Q3 and equal number of days in Q4), potential currency fluctuations (EUR/SEK) and high interest expenses are expected to impact Sitowise's financial performance during 2024.
Guidance (repeated, issued on
Long-term financial targets
The Board of Directors of
- Growth: Annual growth in net sales of more than 10 percent, including acquisitions
- Profitability: Adjusted EBITA margin of at least 12 percent
- Leverage: Net debt / adjusted EBITDA should not exceed 2.5x, except temporarily in conjunction with acquisitions
According to its dividend policy, Sitowise's objective is to pay annually a dividend corresponding to 30-50 percent of net profit to its shareholders. When distributing a possible dividend, business acquisitions, the company's financial situation, cash flow and future growth opportunities are taken into account.
SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD
Resolutions of the Annual General Meeting
The Annual General Meeting (AGM) of
The AGM resolved that the remuneration of the Board of Directors would remain unchanged. Eero Heliövaara, Mirel Leino-Haltia,
The AGM authorized the Board of Directors to decide on the repurchase of the Company's own shares and to decide on the issuance of shares as well as the issuance of special rights entitling to shares referred to in chapter 10 section 1 of the Companies Act. The authorizations are described in detail on the stock exchange release published on
Decisions of the constitutive meeting of the Board of Directors
At the constitutive meeting of the Board of Directors of
Espoo,
Board of Directors
Additional information
Heikki Haasmaa, CEO, heikki.haasmaa@sitowise.com, tel. +358 50 304 7765
Financial calendar 2024
The planned publication dates for
Half-year financial report for January-
Interim Report for January-
Webcast for analysts, media and investors
Sitowise's Q1 2024 earnings webcast will be held today,
https://rajucast.tv/sitowise/sitowise-q1-2024-result-webcast/
Distribution:
Key media
www.sitowise.com
SITOWISE IN BRIEF
Sitowise is a Nordic expert in the built environment with strong focus on digitality. We provide design and consulting knowhow to enable more sustainable and smarter urban development as well as smooth transportation. Sitowise offers services related to real estate and buildings, infrastructure, and digital solutions both in Finland and in Sweden. Global megatrends drive huge changes that require a re-evaluation of the smartness in the built environment - therefore we have set our vision to be Redefining Smartness in Cities. The Group's net sales were
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