Net profit for the year and Q4 2018: Continued strong growth for Norconsult
04. March 2019
In the fourth quarter of 2018, Norconsult generated a turnover of NOK 1,566 million, which represents an increase of 14 per cent on the same period last year. The company made an operating profit of NOK 103 million, a NOK 18 million increase on the same quarter in 2017.
Norconsult generated a turnover of NOK 5,342 million in 2018 as a whole. This represents an increase of 15.5 per cent compared with 2017. Underlying operating profit for the year as a whole totalled NOK 401 million*,compared with NOK 371 million in 2017. The company achieved an operating margin of 7.5 per cent in 2018, compared with 8 per cent in 2017.
“We are very pleased with the way our revenues and profits have developed. Despite a difficult competitive situation, we have maintained a high level of activity. The acquisitions we made in 2018 have been spot on, and we have achieved substantial organic growth. Increased activity, effective project performance and a high level of employee satisfaction all help to reinforce the company’s positive development,” says Norconsult CEO Per Kristian Jacobsen.
HIGH ACTIVITY LEVEL AND INVOLVEMENT IN EXCITING PROJECTS
Norconsult has worked on several exciting projects in 2018. Among these are the Bispevika urban development and project planning assignment in Oslo, the joint Ringerike Railway Line and E16 motorway project, the InterCity Drammen to Kobbervikdalen railway project, and the E18 motorway between Tvedestrand and Arendal. In Sweden, work got underway to draw up a planning overview on behalf of Gothenburg City, as well as prepare geotechnical surveys for the conversion of the current single-track railway line that runs between Kiruna and the Norwegian border into a double-track line. Called the Iron Ore Line, it is the oldest of its kind in the world. In 2018, Norconsult in Denmark started project planning for Scandinavia’s largest airport hotel, Comfort Hotel at Kastrup. Several new and exciting projects are in an early phase. For example, the company is part of the team that will work on the new Bodø airport. It is also working with AF Gruppen on a design and build contract for the construction of the E39 motorway between Kristiansand West and Mandal East. This is currently the largest road construction project in Norway. In addition, Norconsult’s subsidiary Nordic – Office of Architecture is part of a group that is planning the construction of the new government quarter in Oslo.
Norconsult is continuing to grow, particularly in Scandinavia, both through organic growth and acquisitions. In 2018, the company acquired Nordic – Office of Architecture (Nordic). With a shareholding in Nordic of over 90 per cent, as well as the acquisition of Arkitekthuset Monarken AB in Sweden, and the Danish architecture and consulting company KAAI – Kærsgaard & Andersen A/S, Norconsult has now positioned itself as one of the largest and leading players in the Scandinavia’s architectural sector. These acquisitions open up new opportunities for collaboration and help enable the company to successfully undertake increasingly complex, socially important commissions. Norconsult also acquired the IT development company Fundator AS during the year. This is an extremely competent and exciting group of experts, which provide the Group with new skills in areas such as systems development, machine learning, IT architecture and IT consulting.
THE OUTLOOK IS GOOD
Over the course of 2018, almost 600 newly qualified and experienced employees joined Norconsult’s workforce through organic growth or business acquisitions. The company is working systematically to recruit students from educational establishments throughout Scandinavia. According to surveys carried out by Universum, Norconsult is one of the most attractive workplaces for engineers and technology students.
With his presentation on “VR in railway projects”, Norconsult’s Thomas Angeltveit won the “DKTalent” competition at the Norwegian innovation conference Den Kloke Teknologi in 2018. Norconsult was also awarded the GeoBIM Europe’s Leadership Award for Digital Innovation for its innovative work on paperless projects and gaming technology. For the second year running, the company also went through to the final of the AEC Excellence Awards.
Norconsult is the largest interdisciplinary consultancy company in Norway, and one of the leading players in its field in Scandinavia. The company is well positioned to continue achieving profitable growth in the years ahead.
*) In 2018, the company sold Norconsult Eiendom AS, and entered into a long-term leasing agreement for its head office at Vestfjordgaten 4, Sandviken. The gain from this sale is not reflected in the underlying operating profit. The sale made a non-recurring contribution to profit and loss, such that the actual profit for 2018 came to NOK 865 million.
The figures stated in this press release are unaudited.