Sandvika, 24 October 2023: Norconsult ASA (“Norconsult” or the “Company”) announced on 16 October 2023 its intention to launch an offering of shares in the Company and to apply for a listing of its shares on the Oslo Stock Exchange. The Company will publish its financial report for the third quarter 2023 on 29 November 2023. This trading update is provided to give a summary of the preliminary unaudited consolidated income after external project costs and adjusted EBITA for the third quarter and YTD 2023 together with related topics and updates for the quarter.
Norconsult’s income after external project costs for the three-month period ended 30 September 2023 amounts to approximately NOK 1,705 million (Q3 2022: NOK 1,523 million), an increase of about 12 percent compared with the same period last year. Organic growth adjusted for calendar effects amounts to approximately 10 percent. The calendar effect of one less working day compared to the same period last year is estimated to be a negative effect of approximately NOK 27 million. The organic growth in income after external project costs is mainly driven by a higher number of full-time equivalents (FTEs) year over year and an increased average billing rate.
Adjusted EBITA(1) for the three-month period ended 30 September 2023 amounts to approximately NOK 108 million (Q3 2022: NOK 109 million) and is impacted by the abovementioned negative calendar effects, increased billing rate and one-off positive effects of NOK 13 million related to earn-outs from acquisitions. The adjusted EBITA margin(2) adjusted for calendar effects amounts to approximately 7.8 percent (Q3 2022: 7.2 percent). The adjusted EBITA margin unadjusted for calendar effects amounts to approximately 6.4 percent.
Income after external project costs for the nine-month period ended 30 September 2023 amounts to approximately NOK 6,160 million (Q3 YTD 2022: NOK 5,383 million), an increase of about 14 percent compared with the same period last year. Organic growth adjusted for calendar effects amounts to approximately 11 percent. The calendar effect of one less working day compared with the same period last year is estimated to be a negative effect of approximately NOK 34 million. An overall solid billing rate development and an increased number of FTEs(3) have been the main drivers for organic growth in 2023.
Adjusted EBITA for the nine-month period ended 30 September 2023 amounts to approximately NOK 601 million (Q3 YTD 2022: NOK 534 million). The adjusted EBITA margin adjusted for calendar effects amounts to approximately 10.3 percent (Q3 YTD 2022: 9.9 percent). The adjusted EBITA margin unadjusted for calendar effects amounts to approximately 9.8 percent.
The net order backlog (4) amounts to approximately NOK 6.1 billion at the end of the third quarter 2023, up from NOK 5.8 billion as per end of the second quarter 2023.
“We are pleased with the development in revenue and results, during a period when markets are affected by increased interest rates and continued high inflation. Order backlog is solid, and we are experiencing a solid activity level in our core markets. Norconsult will publish its final results for the third quarter at the end of November, where we will also provide further details on developments in the quarter,” says Egil Hogna, CEO of Norconsult.
The information above is based on a preliminary assessment of the Company's third quarter 2023 financial results and may be subject to change until the financial statements have been finally approved and published by the Company.
The overall outlook for the remainder of 2023 as presented in the external earnings report for Q2 2023 remains unchanged.
The Company will release its third quarter 2023 report on Wednesday 29 November 2023 at 07:00 CET.
For further information, please contact:
Dag Fladby, CFO Norconsult ASA, IR@norconsult.com
Norconsult is a leading pan-Nordic interdisciplinary consulting firm combining engineering, architecture and digital expertise across projects of all sizes, for private and public customers in infrastructure, energy and industry, buildings and architecture. Through innovation and creativity, and with our purpose «Every day we improve everyday life», we are constantly seeking more sustainable and efficient solutions which are beneficial to society. Headquartered in Sandvika, Norway, Norconsult’s delivery model is centered around knowledge hubs and local presence through approximately 6,000 employees across more than 130 offices in Norway, Sweden, Denmark, Iceland, Poland and Finland. (Figures as of 30.06.2023)
(1) Adj. EBITA is defined as earnings before amortisation and impairment losses of intangible assets, share-based compensation expenses for the employee share programs for 2022 and 2023, expenses related to the IPO process, financial items and taxes. The new discounted and bonus share programs starting in 2024, is to be included in adj. EBITA.
(2) Adj. EBITA margin is defined as adj. EBITA (as defined above) as a percentage of operating revenue and other income after external project costs.
(3) Number of full-time equivalents (FTEs) is a mathematical calculation of employees with regards to percentage of a full-time position. The term includes all staff on pay-roll including staff on temporary leave excluding temporary personnel.
(4) Order backlog is defined as expected remaining operating revenues on new and existing contracts. Group internal contracts are excluded. Call-offs on frame agreements are included in the order backlog when signed.
This announcement is for informational purposes only and does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities to any person in Australia, New Zealand, Canada, Japan or the United States, including its territories and possessions, any state of the United States and the District of Columbia (the “United States”) or to any person to whom, or in any jurisdiction in which, such offer or solicitation is unlawful. The securities referred to herein may not be offered, subscribed, used, pledged, sold, resold, allotted, delivered or transferred, directly or indirectly, in or into the United States absent registration under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act. The offer and sale of the securities referred to herein has not been and will not be registered under the U.S. Securities Act or under the applicable securities laws of Australia, New Zealand, Canada or Japan. There will be no public offer of the securities in the United States. Subject to certain exceptions, the securities referred to herein may not be offered or sold in Australia, New Zealand, Canada or Japan or to, or for the account or benefit of, any national, resident or citizen of Australia, New Zealand, Canada or Japan.
Any offering of the securities referred to in this announcement will be made by means of a prospectus. This announcement is an advertisement and is not a prospectus for the purposes of Regulation (EU) 2017/1129 on prospectuses to be published when securities are offered to the public or admitted to trading on a regulated market, and repealing Directive 2003/71/EC (as amended) as implemented in any member state of the European Economic Area (the “EEA”) (the “EU Prospectus Regulation”). Investors should not subscribe for any securities referred to in this announcement except on the basis of information contained in the aforementioned prospectus, if a prospectus is published. Copies of any such prospectus will, following publication, be available from the Company's registered office and, subject to certain exceptions, on the website of the Company.
In any member state of the EEA, other than Norway, Sweden, Denmark and Finland, this communication is only address to and is only directed at persons who are “qualified investors” within the meaning of Article 2(e) of the EU Prospectus Regulation.
This communication does not constitute an offer of the securities referred to herein to the public in the United Kingdom. No prospectus has been or will be approved in the United Kingdom in respect of the securities referred to herein. This communication is being distributed to and is directed only at persons : (A) (i) who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”), (ii) falling within Article 49(2)(a) to (d) of the Order and (iii) to whom it may otherwise lawfully be communicated; and (B) who are “qualified investors” within the meaning of Article 2(e) of the Prospectus Regulation (Regulation (EU) 2017/1129) as it forms part of retained EU law as defined in the European Union (Withdrawal) Act 2018.
Matters discussed in this announcement may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as "believe", "aims", "expect", "anticipate", "intends", "estimate", "will", "may", "continue", "should" and similar expressions. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. Forward-looking statements speak only as of the date they are made and cannot be relied upon as a guide to future performance. The Company and its respective affiliates expressly disclaims any obligation or undertaking to update, review or revise any forward-looking statement contained in this announcement whether as a result of new information, future developments or otherwise.
Certain figures contained in this document, including financial information, have been subject to rounding adjustments. Accordingly, in certain instances, the sum or percentage change of the numbers contained in this document may not conform exactly with the total figure.