Multiconsult fourth quarter and full year 2022 - good profitability, revenue growth, record high sales

08 Feb 2023 07:00 CET

Multiconsult ASA (OSE: MULTI)
The positive trend and strong market development continued in the last quarter
of 2022. Multiconsult ended the year with a solid quarter with an EBITA of NOK
96.8 million, a margin of 8.6 per cent. EBITA for the year came in at NOK 408.5
million, a margin of 9.8 per cent. Net operating revenues grew by 5.5 per cent
year-on-year to NOK 1 126.7 in the quarter, and by 10.1 per cent to NOK  4 189.2
for the year. The organic revenue growth for the quarter was 5.5 per cent. The
result is impacted by a weak result in LINK Arkitektur.

The board of directors proposes a dividend of NOK 9.00 per share to be paid as
ordinary dividend for 2022.

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An all-time high order intake of NOK 1 559 million in the fourth quarter
provides a strong and diversified order backlog going into 2023. Higher
operating expenses compared to last year is driven by an increase in employees
from acquisitions and other operating expenses as business activities return to
a normal post Covid-19 situation. The acquisition of Roar Jørgensen AS was
successfully completed in the quarter and strengthens Multiconsult's competence
and market position in a new geographical area.

"We can look back at a solid quarter with good profitability, revenue growth,
record high sales and a record high order backlog. I am satisfied that we have
stabilised at a good and sustainable profitability level over time. Strong sales
in the quarter indicates that our employees' expertise is in demand and that our
services are attractive for our clients. Our solid and diversified portfolio of
ongoing projects gives a good foundation for further business and growth, in a
somewhat more challenging market. I am grateful to our skilled and dedicated
employees for their contribution to this result", says Grethe Bergly, CEO
Multiconsult.

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FOURTH QUARTER 2022
Net operating revenues came in at NOK 1 126.7 million (1 068.3), an increase of
5.5 per cent compared to the same quarter last year. The increase in net
operating revenues is driven by an increase in the number of employees and
higher billing rate. The growth in net operating revenues was offset by a
slightly lower billing ratio of 0.2pp, which came in at 70.3 per cent (70.5).

Operating expenses consist of employee benefit expenses and other operating
expenses. Operating expenses increased by 5.6 per cent to NOK 980.3 million
(928.5) compared to the same quarter in 2021. Employee benefit expenses
increased by 5.5 per cent due to ordinary salary adjustment, increased manning
level from acquisitions and net recruitment. Other operating expenses increased
to NOK 147.2 million (139.1) an increase of 5.8 per cent compared to fourth
quarter 2021. Business activities were somewhat influenced with the Covid-19
situation in the comparable quarter 2021.

EBITDA was NOK 146.4 million (139.8), an increase of 4.7 per cent compared to
the same period last year, reflecting an EBITDA margin of 13.0 per cent (13.1)
in the quarter.

EBITA was NOK 96.8 million (91.0), reflecting an EBITA margin of 8.6 per cent
(8.5) in the quarter.

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PRELIMINARY FULL YEAR 2022
Net operating revenues increased by 10.1 per cent to NOK 4 189.2 million (3
803.7). The growth in net operating revenues is driven by increase in billing
rates, revenue from acquired companies and increase in manning level. Organic
growth in net operating revenues is estimated to 4.4 per cent after adjusting
for the calendar effect and acquisitions.

Operating expenses came in at NOK 3 579.1 million (3 260.9), an increase of 9.8
per cent compared to last year. Employee benefit expenses increased by 8.5 per
cent. The increase is mainly due to increased manning level from acquisitions,
net recruitment, and regular salary adjustment. Other operating expenses
increased by 17.5 per cent to NOK 528.1 million (449.5), mainly an effect of
added operating expenses from prior acquisitions such as office expenses. In
addition, other operating expenses including sales, marketing and travel
expenses increased as business activities return to a normal post Covid-19
situation.

EBITDA was NOK 610.2 million (542.8), reflecting an EBITDA margin of 14.6 per
cent (14.3).
EBITA was NOK 408.5 million (350.5), an increase of 16.5 per cent y-o-y,
reflecting an EBITA margin of 9.8 per cent (9.2).

Reported profit for the period was NOK 303.0 million (234.7). Profit for the
period is positively impacted by share of profit from the associated company
Norplan Tanzania Ltd. Earnings per share for the period were NOK 11.06 (8.67).

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OUTLOOK
Opportunities in the pipeline are at a high level and the overall market outlook
in Multiconsult's four business areas remains generally strong.

Multiconsult has not been negatively affected by the revised Norwegian National
Budget for 2022 and Multiconsult is well positioned in several of the large
projects granted in the National Budget for 2023.
Multiconsult expects to benefit from the growing market for long-term
sustainable transformation within all business areas. This is driven by ongoing
initiatives led by the industry and political initiatives both in Norway and
abroad.

The recent acquisitions, strong portfolio of ongoing projects and a solid order
backlog provides Multiconsult with an overall good foundation going into 2023.
Multiconsult have experienced good sales in the beginning of 2023.

For a full review of outlook and report, please refer to our fourth quarter 2022
report.
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Presentations today 8 February 2023:
Participants are invited to attend the Norwegian presentation that will be held
at Felix Conference Centre, Bryggetorget 3, Oslo, at 08:30 (CET). The results
will also be presented through a live webcast: In Norwegian at 08:30 (CET) and
in English presentation at 09:30 (CET). Participants will have the opportunity
to submit questions online throughout the webcast sessions.

The Norwegian presentation at 08:30 can be accessed at:
https://channel.royalcast.com/landingpage/hegnarmedia/20230208_1/

The English presentation at 09:30 can be accessed at:
https://channel.royalcast.com/landingpage/hegnarmedia/20230208_2/ (https://chann
e
l.royalcast.com/landingpage/hegnarmedia/20230208_1/)

Live webcasts, complete report, presentation and a recording of the webcast will
be available on https://www.multiconsult-ir.com and https://newsweb.oslobors.no/

For further information, please contact:

   Investor relations:
      Ove B. Haupberg, CFO
      Phone: +47 401 00 900
      E-mail: oveb.haupberg@multiconsult.no

   Media:
      Gaute Christensen, VP Communications
      Phone: +47 911 70 188
      E-mail: gaute.christensen@multiconsult.no

Multiconsult is one of the leading firms of consulting engineers and designers
in Norway. The company delivers multidisciplinary consulting and design, project
engineering and management, verification, inspection and supervision - to
customers in Norway and abroad, focusing on the following sectors: buildings &
properties, industry, oil & gas, transportation & infrastructure, energy,
environment & natural resources. Visit www.multiconsultgroup.com for more
information.

More information:
Access the news on Oslo Bors NewsWeb site

581594_Multi_Q422_report_print.pdf
581594_Multi_Q422_presentation.pdf
581594_Multi_Q422_Stock_market_announcement.pdf