The sales revenue of Nordecon AS amounted to €27.1 million in the 1st quarter of 2013, which is 20% more than in the same period the year before. The Group’s gross profit in the 1st quarter was €593,000, increasing by more than half a million euros compared to the quarter a year ago.
“The first quarter ended with a positive result first and foremost due to the fact that we had more projects than usually, where work could also be continued during wintertime, e.g. the moving of earth in the frames of large road construction projects and the construction of structures,” explained Jaano Vink, Chairman of the Management Board of Nordecon AS. “Our sales profit in the segment of structures increased thereby by 30%. This in turn had a positive effect on our profitability, as during wintertime, the sphere of structures usually generates fixed costs that need to be covered.”
This year, the total sales revenue in the segment of buildings and structures as of the end of Q1 stood at €12.7 million and €13.2 million respectively (a year ago, these figures were €11.7 million and €10 million). “Compared to the period a year ago, the percentage of contracts related to the segment of buildings has increased in the work portfolio and this has mostly to do with private customers,” noted Jaano Vink. “All signs indicate that private customers will be returning to the construction market.”
The volume of work-in-progress covered by construction contracts entered into by the companies of the Nordecon Group amounted to €125.7 million as of the end of March. If the balance of the work portfolio is compared to that from the end of the previous financial year, the situation has remained the same and the Group has managed to win contracts in the same value as it had performed over the period. It’s a good figure for the first quarter of the year.”
The Group’s overhead costs in the 1st quarter made up €1.23 million and compared to the quarter a year ago, had dropped to 4.6% of the sales revenue. The Group has continually managed to keep its overheads low and the moving average of the 12 months as of the end of March was 3.3% of the sales revenue.
The Group’s loan liabilities were to a significant extent refinanced in cooperation with the banks. The terms of loan agreements were extended and the schedules of repayments adjusted in order to improve the liquidity position. As a consequence, the repayment of €13.4 million initially scheduled to this year has been transferred to the next year. Banks have also satisfied Nordecon’s requests for additional overdraft facilities, which will help better manage the Group’s cash flow on the market, where big gaps still prevail for main contractors with regard to the deadlines set for customers and for subcontractors.
