First-quarter result 2019: Strong growth for Norconsult
In the first quarter of 2019, Norconsult posted sales of NOK 1.621 billion, an increase of about 28 per cent over the same period in 2018. The company made an operating profit of NOK 126.7 million, compared with NOK 90.4 million for the first quarter of 2018. This growth includes activities in Norway, Sweden and Denmark.
In the first quarter of 2019, Norconsult posted a strong set of results, based on both organic growth and acquisitions. This remains the case even when taking into account the lateness of this year’s Easter holidays, which last year fell in the first quarter. Underlying organic growth is at 11 per cent for the quarter.
“We are particularly pleased that we have been able to continue our strong growth, both organically and through acquisitions,” reports Norconsult’s CEO Per Kristian Jacobsen. “In the first quarter, Norconsult delivered profitable growth in Norway, Sweden and Denmark, in line with the company’s strategy for an expanded Nordic footprint. It is important for our success that we remain able to combine good project execution with increased activity and growth in a market characterised by strong competition,” he continues.
Among the various business areas, Head Office has shown the greatest growth in sales. The Nordic business area demonstrates strong growth and improved profits in almost all areas. Within the business area Regions Norway, a clear growth in sales can also be seen, particularly in the Central and Western regions. There is good growth within all market areas.
During the first quarter, the company acquired Kjeller Vindteknikk AS, Geovest AS, Heyerdahl Arkitekter AS and Ildne AS, along with Johnels & Moberg Arkitekter AB in Sweden. These acquisitions helped to reinforce the company’s position as one of the leading interdisciplinary consultancy companies in the Nordic market, opening the way for the company to be able to handle more and increasingly complex assignments for the benefit of society.
High level of activity and more new contracts in the first quarter
Norconsult has maintained a high level of activity, as exemplified in the first quarter of 2019. In Norway, Norconsult won the contract for the project planning of a new clinic and proton building at the Norwegian Radium Hospital. The company is also part of the team project planning the new University Hospital of North Norway (UNN) in Narvik. Within transport, during this period Norconsult won three train stabling contracts, while in the construction and property market area the company won the project planning contracts for St Olav College and Fjellhamar School, among others.
Norconsult is central to a number of important ongoing assignments in Norway, including the project planning work for the E39 Kristiansand vest – Mandal øst and E39 Rogfast projects. Bergen Light Rail, the new Bodø Airport, the new production line for Hydro in Husnes and the project planning of carbon capture facilities for Norcem are some of the other important ongoing project planning assignments for Norconsult. Norconsult is also central to the project planning work of Nedre Otta Power Plant, currently Norway’s largest hydropower construction project. In Narvik, the company is currently involved in project planning for a 105 m long quay for cruise ships.
In Sweden, Norconsult AB have won an assignment to increase the capacity of the Uppsala water treatment facilities in the short term, as well as carrying out a study for the location of Uppsala’s third water treatment plant.
Additionally, Norconsult AB have been awarded the contract to carry out a pre-study for the construction of three new Kaplan generators for Skelleftekraft.
In Denmark, Norconsult is part of the team that has won the framework agreement with the cooperative housing association KAB for renovation and new builds. Norconsult already has a similar agreement with the Municipality of Copenhagen.
Norconsult took on about 800 new employees last year, and at the start of 2019 the company employed a total of approximately 3,800 staff.
During the Byggedagene event at the start of April, LHL Hospital Gardermoen was named Building of the Year 2018. In this project, Norconsult was responsible for detailed electrical, ICT, automation, HVAC and sanitation project planning, and was also an adviser on fire safety, water and sewerage for the new hospital.
Norconsult is the largest interdisciplinary consultancy company in Norway, and one of the leading players in its field in the Nordic region. The company is well positioned to continue achieving profitable growth in the years ahead.