Third quarter 2018: Strong sales growth and high activity levels
In the third quarter of 2018 Norconsult posted sales of NOK 1.21 billion. This was up 32.3 per cent on the same quarter last year. The operating profit for the quarter came in at NOK 94 million, compared with NOK 101 million in the same quarter of 2017. The operating margin for the third quarter closed on 7.8 per cent.
The increase in sales is partly attributable to synergies from acquisitions, as well as an extra working week compared with the same quarter the previous year. Organic sales growth in the quarter amounted to around 15 per cent. Lower earnings for the quarter compared with the previous year were primarily attributable to slightly lower activity levels in parts of the Nordic business area as well as a reduction in income following the disposal of Norconsult Eiendom earlier in 2018.
Sales for the first nine months of the year totalled NOK 3.78 billion, up 17.8 per cent on the same period last year. The overall operating profit for the same period came in at NOK 297.9 million, up NOK 11.6 million on 2017. This equates to a year-to-date operating margin of 7.9 per cent, compared with 8.9 per cent for the first nine months of 2017.
Norconsult has returned strong sales growth in the year to date. High activity levels, several new contracts, synergies from acquisitions and good recruitment have all contributed to the company’s improved performance. Despite this, the company is continuing to experience strong competition and price pressure. Organic growth for the year to date amounted to around 10 per cent.
Exciting projects and improved position
“Norconsult is encountering a strong market with high activity levels in most business areas. We have many major and exciting projects in progress or about to start. In Norway, these include the new E39 Coastal Highway Route between Kristiansand West and Mandal East, the new Bodø Airport, the E39 fjord crossing at Bjørnafjorden, urban development and project design for the Bispevika project in Oslo and the new Hammerfest hospital. In Denmark, we are busy with the Police Academy West in Vejle while in Sweden we are working on the Centre for Sport and Culture in Knivsta and with Sweden’s marine plans for the area between the Norwegian border and the Finnish border in the Bay of Bothnia, on assignment for the Swedish Agency for Marine and Water Management. On our own or together with competent partners, Norconsult has been awarded several major contracts in recent years. We believe the market and opportunities will remain strong into next year,” confirms Norconsult CEO Per Kristian Jacobsen.
In September, Norconsult strengthened its position in Denmark by acquiring the Danish consultancy firm KAAI – Kærsgaard & Andersen A/S. Other acquisitions during the year include Nordic – Office of Architecture AS, Arkitekthuset Monarken AB and Fundator AS.
Attractive and relevant
In October, Norconsult was elected the third-most attractive employer by professional engineers in the Universum Professional Survey 2018. With the topic “VR in railway projects” Norconsult’s Thomas Angeltveit was named “Talent of the Year” in the “DKTalent” competition during the “Den Kloke Teknologi” (Clever Technology) innovation conference. Norconsult was also awarded the digital innovation prize in the GeoBIM Leadership Awards for its innovative work on paperless projects and gaming technology. The prize was presented during the GeoBIM conference in Amsterdam on 1 November.
At the end of September, Norconsult arranged the 2018 Community Conference in Bærum Cultural Centre. The topic for the year was “Green Horizons – The Way to the Future.” The conference attracted around 300 participants including several key players in the industry.
In the third quarter, Norconsult signed an agreement with Team Norconsult Asker and Bærum cross-country skiing team, and in September entered a partnership with Norway’s first upper and lower secondary schools (NRG/NRG-U) specialising in mathematics, sciences and technology.