By Announcement No 2, 2013
Monberg & Thorsen lowers 2012 outlook due to lower outlook in MT HøjgaardAs will be seen from the attached announcement from MT Højgaard, the result will be significantly lower than expected. The pre-tax margin for 2012 is now expected to be around -5% compared
with most recently -2% in the interim financial report for the third quarter of 2012.
Højgaard Holding A/S and Monberg & Thorsen A/S have therefore decided to strengthen MT Højgaard's capital base, liquidity and equity ratio by increasing its share capital by DKK 300 million in total, of which Monberg & Thorsen's 46% share represents DKK 138 million. The capital increase will take the form of a cash injection.
Due to the lower outlook, Monberg & Thorsen's profit outlook for 2012 is similarly lowered. Accordingly, Monberg & Thorsen A/S similarly expects a pre-tax margin of around -5% compared with most recently -2% in the interim financial report for the third quarter of 2012. To this should be added any costs in connection with the indemnities and guarantees provided on the divestment
of Dyrup. Revenue for 2012 is still expected to be slightly ahead of 2011.
Monberg & Thorsen A/S still plans to publish its annual report for 2012 on 5 March 2013.
Yours faithfully
Monberg & Thorsen A/S
The announcement can also be viewed at www.monthor.com
This announcement is available in Danish and English. In case of doubt, the Danish version shall prevail.
CVR No 12 61 79 17
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2860 Søborg
Denmark
MT Højgaard downrates the outlook for 2012 and strengthens its capital base by DKK 300 million
The outlook for the Group's financial performance for 2012 is downrated to a pre-tax margin in the region of -5%The Board of MT Højgaard now expects a profit margin of around -5% (pre-tax) adjusted from the previous forecast of -2%.
Reduced financial performance in the fourth quarter of 2012
The Group's new management has reviewed the portfolio of projects, and this has resulted in increased provisions for both ongoing as well as previously handed over projects.
Efforts are made to quickly conclude a few of the handed over projects, and in this connection a settlement has just been made which burdens the performance, but which also means that the cash flow is improved by more than DKK 100 million at the beginning of 2013.
The settlement and the increased provisions do not change the previously made assessments in relation to the grout problem (see previous mention of this). The financial development in the subsidiary undertakings is overall consistent with previous expectations.
The new President and CEO Torben Biilmann about the result:
- Since I took up my position on 1 November, the organisation has been changed and explicit responsibilities and goals have been established which must be fulfilled and met from now on. At the same time, a thorough reconstruction of the whole business has been carried out, which has now led to the performance for the fourth quarter of 2012 being significantly poorer than previously expected.
Revenue in 2012 is expected to end at DKK 9.8 billion. This is consistent with the outlook for a slightly higher revenue than the year before (2011: DKK 9.3 billion).
As part of the current turnaround a new group strategy will be outlined in 2013. The long-term financial ambition is still a pre-tax margin of 5% in three years, which the President and CEO is convinced is possible:
- I have been on this journey before and have proved that it is possible to create this result in the Danish construction and civil engineering market, says Torben Biilmann and continues:
- In addition to the activities in the parent company the Group consists of a well composed and profitable portfolio of subsidiary undertakings, so with the measures and changes now imple- mented I am sure that we can create a well-earning group within the next few years.
The financial performances of 2013 and 2014 will still be negatively affected by previous pro- jects with a weak profitability. In addition to this, the capacity cannot be reduced as quickly as the orders intake.
The latest measures implemented include:
