Net profit for the year and Q4 2019: Norconsult’s revenue growth continues

09.March 2020

In the fourth quarter of 2019, Norconsult generated a turnover of NOK 1 814 million, which represents an increase of 17 per cent on the same period in 2018. The operating profit for the quarter shrunk somewhat in relation to the previous year, coming in at NOK 93 million in 2019 compared with NOK 104 million in 2018. Underlying organic growth in gross revenues amounted to approximately 11 per cent for the quarter.

CEO at Norconsult, Per Kristian Jacobsen. Photo: Thomas Brun / NTB
CEO at Norconsult, Per Kristian Jacobsen. Photo: Thomas Brun / NTB

Gross consolidated turnover for 2019 came in at NOK 6,285 million, compared with NOK 5,326 million in 2018. This constitutes an increase of NOK 960 million, corresponding to 18 per cent. Organic growth, adjusted for acquisitions, was approximately 11 per cent. Operating profit increased from NOK 402 million in 2018 to NOK 460 million in 2019, and the operating margin came in at 7.3 per cent – compared with 7.5 per cent in 2018. The Group’s numerous acquisitions over the past two years, and consequent amortisation of goodwill, resulted in the slight reduction in operating margin. The underlying operating margin before goodwill amortisation for 2019 was equivalent to the previous year.

“We are very pleased with the revenue growth and profit generation for the period. We deliver interdisciplinary consultancy throughout Norway, and we appear to be achieving our strategy of creating customer value through sustainability, digitalisation and collaboration. One of our key goals is to expand our Nordic footprint, which makes the ongoing growth in both revenue and profit across all the Nordic countries particularly satisfying,” said Group CEO of Norconsult, Per Kristian Jakobsen.

HIGH LEVELS OF ACTIVITY AND FASCINATING PROJECTS

In Norway, Norconsult has worked on a wide range of exciting projects throughout 2019. In collaboration with Nordic, Norconsult has developed a new urban development proposal for Bragernes in Drammen. In November, Norconsult signed two framework agreements with the Norwegian Directorate of Public Construction and Property (Statsbygg) to provide technical condition analyses for all Statsbygg’s buildings in Central Norway and Oslo. In September, Norconsult Information Systems signed an agreement with the Norwegian Public Road Administration (Statens Vegvesen) to deliver a cloud-based solution for managing project finances. The company has a solid foothold in the design of hydropower projects and is involved in designing the hydropower plants in Nedre Otta, Tolga and Nedre Fiskumfoss, among others. The company plays a key role in providing engineering design for the new Bodø Airport, the Intercity rail section between Drammen and Kobbervikdalen, and not least the development of the E39 section from Kristiansand West to Mandal East. Norconsult has a solid position within healthcare construction, and has played a central role in designing the new clinic and proton building at the Norwegian Radium Hospital in Oslo. In relation to school buildings, Norconsult is involved in developing Eikeli upper secondary school at Hosle in Bærum, as well as Midsund school in Møre og Romsdal. Norconsult was recently awarded the contract to provide the engineering design for a new water treatment facility for the Asker og Bærum waterworks in Kattås in Bærum.

In Denmark, Norconsult has recently entered into an important strategic school-construction project with Copenhagen municipality. Part of the project, the building of Holberg School, won the “School building of the year” award in 2019.

In Sweden, Norconsult has won a prestigious contract to design the acoustics for a stage that will host international guest performances in Stockholm. The stage will be the largest of its kind in Sweden. In December, the new “Knivsta Centrum för Idrott och Kultur” sports and cultural centre was officially opened. This extremely energy-efficient building is one of Sweden’s largest wooden constructions. Norconsult has played a central role in the design and planning of this project, as well as coordinating the BIM.

VARIOUS IMPORTANT ACQUISITIONS

The Group acquired a number of companies during 2019. In early 2019, Norconsult bought Kjeller Vindteknikk AS and thus strengthened its position in wind power and wind analyses in the Nordic region. In the field of architecture, Norconsult strengthened its position in 2019 through the acquisition of Johnels & Moberg Arkitekter AB in Sweden, KHS Arkitekter in Denmark, and Heyerdahl Arkitekter and Borealis Arkitekter in Norway. With the acquisition of SG Arkitektur, Norconsult has strengthened its presence in Hønefoss and enhanced its already strong position in the schools and care centre market. The takeover of Øvre Romerike Prosjektering AS has further strengthened the company’s capacity to deliver interdisciplinary consultancy in Romerike. The acquisition of ECT AS has also significantly strengthened the company’s position within project implementation and electrical engineering, in both the Buildings and Transport market areas.

ATTRACTIVE EMPLOYER

During 2019, Norconsult recruited 807 new graduates and experienced employees as a result of organic growth and acquisitions. As of the beginning of 2020, the Group has 4,400 employees. In Norway, Norconsult recruits approximately 150 graduates every year, in addition to taking on more than 100 interns over the summer holidays. The Group is working systematically to recruit students from educational establishments throughout the Nordic region. In May 2019, Norconsult was once again voted one of Norway’s most attractive employers by Universum and Karrierebarometeret (the Career Barometer), which lists the company among the top five employers for both technology and engineering students.

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.

The figures stated in this press release are unaudited.

 

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Kjetil Ekkeren
Senior communications advisor