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MeldingsID: 427062
Dato/tid 11.05.2017 07:00
Utsteder NRC Group ASA
UtstederID NRC
Instrument NRC
Marked OB
Informasjonspliktig   Informasjonspliktige opplysninger   Lagringspliktig melding
Acquisitions strengthened position
Today, 11 May 2017, NRC Group has released its financial results for 
the first quarter of 2017.
Below you will find a summary and highlights from the report.

The company will present the results at 12.00 CET at Hotel 
Continental in Stortingsgaten 24/26 in Oslo. The presentation will 
be held by CEO Øivind Horpestad and CFO Dag Fladby.

Key events:
-	Adding core competencies by acquiring Norwegian construction 
company HAG Anlegg AS
-	Strengthened position in Sweden by acquiring Swedish railway 
infrastructure company SBB AB
-	Historically high NTP for Norway proposing NOK 319 billion 
in rail investments over next 12 years  
-	Increase in tender size in Norwegian market

Key figures (Reported figures ex. HAG and SBB):
-	Revenues of NOK 340.9 million in Q1 2017 vs NOK 319.8 
million in Q1 2016
-	EBITDA of NOK 6.0 million in Q1 2017 vs NOK 0.9 million in 
Q1 2016
-	EBITDA margin of 1.8% Q1 2017 vs. 0.3% in Q1 2016
-	Order backlog of NOK 1,548 billion

Contract wins:
-	Appointed to NOK 202 million contract for catenary work at 
MOI - Egersund rail track
-	Appointed to SEK 89 million contract for ground and track 
related work at Hamnbanan
-	Unannounced orders of NOK 189 million

Comments on first quarter 2017 results:

NRC Group delivered a satisfying quarter with revenue reflecting the 
normal seasonal fluctuation. Revenue was NOK 340.9 million in the 
quarter, which is an increase of 6.6% compared with the first 
quarter of 2016. EBITDA was NOK 6.0 million, compared with NOK 0.9 
million in same period last year. This equalled an EBITDA margin of 
1.8% (0.3%). 

Order intake for the first quarter amounted to NOK 487 million and 
the backlog was NOK 1,548 million at the end of March. 

NRC Group has initiated an adjustment to the workforce in NRC Rail 
AS to increase focus on project management capabilities, and 
harmonise the group's organisational and business structure. 

Two acquisitions were announced late in the quarter, in line with 
NRC Group's strategy of building competencies as a turnkey railway 
entrepreneur and to consolidate the market for rail, tram and metro 
construction services. 

In Norway, NRC Group agreed to acquire HAG Anlegg AS. HAG provides 
construction work and project- and site management within transport 
and infrastructure, specializing in surface work and concrete 
constructions. HAG's project management expertise will complement 
NRC Group and enable the group to undertake larger and more complex 
projects also simultaneously. The acquisition strengthens NRC 
Group's tendering position towards Oslo's NOK 3 billion road and 
tram upgrade program. In April, Geir Nilsen, the current CEO of HAG, 
has been appointed Managing Director for NRC Norway.

In Sweden, NRC Group agreed to take over the railway infrastructure 
and signal company Signal & Banbyggarna i Dalarna Aktiebolag (SBB). 
The acquisition improves the competitiveness of the Swedish 
operations and widens the geographical footprint to include 
Stockholm, Skåne and Northern Sweden, adding to NRC Group's already 
established position in the regions of Karlstad and Gothenburg. The 
combined NRC Group and SBB will be well positioned to participate in 
the new transport package for the central Stockholm requiring about 
SEK 25 billion of investments. The CEO of SBB, Pär Opard, will 
become a member of the Swedish management. 

The full-year 2017 revenue of the two acquisitions is estimated to 
approximately NOK 500 million.

NRC Group initiated a share buy-back program of up to NOK 10 million 
to be executed in accordance with the mandate provided by the 2016 
AGM over the period from 31 March to 30 June 2017. The acquired 
treasury shares may be used as consideration shares for acquisitions 
and for the company's employee share program. 
It is NRC Group's ambition over time to distribute a dividend of 
minimum 30% of the profit for the year, subject to a satisfactory 
underlying financial performance. A dividend of NOK 0.80 per share 
for 2016 was approved at the Annual General Meeting 3 May 2017.
The positive investment outlook for the Nordic railway is supported 
by strong macro trends and political commitment. The National 
Transport Plan for the next 12-year period in Sweden and Norway 
reaffirms the political commitment to increased spending on railway 
investments. NRC Group remains committed to its strategy to 
consolidate the market and deliver organic and acquired growth in 
coming years.

The first quarter 2017 result report and result presentation can be 
found attached and will be made available on the company's homepage: 

For further information, please contact Dag Fladby, Chief Financial 
Officer, NRC Group ASA on tel: +47 90 89 19 35.

About NRC Group: 

NRC Group is a leading contractor within railway infrastructure in 
Norway and Sweden. The company is a supplier of all track-related 
infrastructure services, including groundworks, specialized track 
work, safety, electro, telecom- and signalling systems. The company 
works within rail, metro, tram segments and close related 

NRC Group has experienced significant growth since its inception in 
2011 and has a vision of becoming the leading Nordic entrepreneur 
within railway infrastructure. 

For more information: www.nrcgroup.no

This information is subject of the disclosure requirements pursuant 
to section 5-12 of the Norwegian Securities Trading Act.

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