Sitowise Group Plc, Financial Statements Release January 1 – December 31, 2021, 2 March 2022 at 08.30 am (EET)

 

A STRONG Q4 DRIVEN BY ORGANIC GROWTH

 

October – December in brief

  • Net sales increased by 19% to EUR 50.5 (42.4) million
  • Organic growth of net sales was 6%
  • Adjusted EBITA was EUR 5.6 (3.9) million, or 11.1 (9.2) % of net sales
  • Order book increased by 41% and amounted to EUR 162 (115) million
  • Sitowise acquired Livair Oy and Insinööritoimisto Jorma Jääskeläinen Oy
  • Sitowise set four goals in its sustainability program relating to carbon neutrality, workplace wellbeing, sustainable economic growth, and making the industry more sustainable
  • Sitowise’s number of personnel surpassed 2,000

 

January – December in brief

  • Net sales increased by 12% to EUR 179.3 (160.1) million
  • Organic growth of net sales was 0%
  • Adjusted EBITA was EUR 21.1 (20.6) million, or 11.8 (12.9) % of net sales
  • Net debt/adjusted EBITDA declined to 1.4 (2.6) x
  • Listing on Nasdaq Helsinki Ltd.’s main list in March
  • Eight acquisitions strengthened Sitowise's position in technical consultancy, digital solutions and in sustainability services both in Finland and Sweden
  • Earnings per share EUR 0.22
  • The Board of Directors proposes a dividend of EUR 0.10 per share, which is approximately 30% of net result adjusted with IPO costs recognized in the income statement

 

CEO Pekka Eloholma

In the last quarter of the year, we reached growth both organically and through acquisitions. We had strong organic growth in net sales and our utilization rate remained on a good level. Additionally, we succeeded in our sales work as our order book reached yet another record high at the end of the financial year. Our cash flow was also strong during the fourth quarter.

 

We had three strategically significant acquisitions towards the end of the year. Sitowise acquired HVAC engineering specialist Livair Oy and structural engineering and consultancy specialist Insinööritoimisto Jorma Jääskeläinen Oy. In early 2022, we finalized the acquisition of VRT Finland Oy's business, which covers condition studies of structures below and above the surface of the water.

 

The market for built environment continued to pick up during the rest of the year. The market situation was favourable for every business area of Sitowise – for designing buildings and infrastructure as well as for the digital solutions related to them.

 

Especially rail infrastructure was in key role during the past year. Sitowise is part of designing significant rail projects, such as the Crown Bridges, Vantaa light rail and One-hour Turku Rail Link. The travel time from Helsinki to Tampere should also take an hour, as Sitowise is designing the fast railway line as part of Suomirata.

 

The last quarter of the year was significant for Sitowise also regarding personnel growth. We reached the milestone of over 2,000 employees, which is a result of successful acquisitions as well as our good employer brand. Meaningful work and satisfaction with supervisor work and leadership invite to both join and stay at Sitowise.

 

Our management team was strengthened in November as Jonas Larsson began his duties as the head of Sitowise’s operations in Sweden. Together with the personnel in Sweden, Jonas will focus on driving acquisitions as well as the integration of the acquired companies, developing the business, expanding the clientele, and prepares to launch the Sitowise brand in Sweden during 2022.

 

In January 2022, Sitowise’s Board of Directors appointed Heikki Haasmaa as the new CEO. He takes office in early May 2022. Heikki brings a versatile experience from a global listed company. He brings knowhow of international business development in one of the most successful publicly listed companies in Finland, and a broad understanding of the new possibilities in digital solutions.

 

I am proud of Sitowise, and that I got the opportunity to lead this company forward on its exciting growth journey. As a publicly listed company, Sitowise is now facing a new Nordic growth path, for which we have laid a strong foundation together during recent years.

 

Key figures

EUR million

10–12/2021

10–12/2020

1–12/2021

1–12/2020

Net sales

50.5

42.4

179.3

160.1

EBITA, adjusted

5.6

3.9

21.1

20.6

% of net sales

11.1%

9.2%

11.8%

12.9%

EBITA

5.2

3.0

18.5

19.5

Operating profit

4.6

2.6

16.4

18.3

Cash flow from operating activities before financial items and taxes

14.0

12.2

22.8

31.5

Net debt

 

 

30.9

56.6

Net debt/EBITDA, adjusted

 

 

1.4x

2.6x

Equity ratio, %

 

 

46.0%

30.2%

Earnings per share (EPS), EUR *)

0.08

1.56

0.22

9.69

Number of personnel, average

2,015

1,843

1,969

1,823

 

*) Not comparable because of the changes in number of shares due to the initial public offering.

 

Market outlook

The stable growth in the demand of design and consulting services to create sustainable societies is supported by megatrends such as urbanization, renovation backlog, sustainability, and digitalization.

 

The market began and has continued to pick up since 2021, and Sitowise expects the market to grow in all of the Group’s business areas. However, the exceptional situation in Europe due to Russia’s military action against Ukraine could contribute to uncertainty in European financial markets and lead to decreased economic activity.

 

Guidance

Sitowise Group estimates that both net sales and adjusted EBITA in euros will increase compared to 2021.

 

Long-term financial targets

The Board of Directors of Sitowise Group has set the following long-term financial targets:

 

  • Growth: Annual net sales growth of over 10 percent, including acquisitions;
  • Profitability: Adjusted EBITA margin of at least 12%;
  • Leverage: Net debt / adjusted EBITDA should not exceed 2.5x, except temporarily in conjunction with acquisitions; and
  • Dividend policy: Sitowise targets paying a dividend corresponding to 30–50% of net profit.

 

Board of Directors’ dividend proposal

The Board of Directors of Sitowise Group Plc proposes to the Annual General Meeting to be held on 20 April 2022 that a dividend of EUR 0.10 per share be paid based on the balance sheet to be adopted for the financial year ending 31 December 2021, and that the remaining portion of the distributable funds be retained in non-restricted shareholders’ equity.

 

The dividend will be paid to a shareholder who is registered in the company’s shareholders’ register held by Euroclear Finland Oy on the dividend record date 22 April 2022. The Board of Directors proposes that the dividend will be paid on 29 April 2022.

 

On the date of the dividend proposal 2 March 2022, the registered number of the company’s shares is 35,665,927. The aforementioned number of shares includes 186,145 treasury shares which are not entitled to dividend. As a result, the proposed dividend would total EUR 3,547,978.20.

 

On 31 December 2021, the distributable funds of the parent company Sitowise Group Plc were EUR 109,854,282 including EUR 9,657,719 profit for the period. No material change have taken place in the Group’s financial position after the balance sheet date. In the opinion of the Board of Directors, the proposed distribution of profits does not risk the solvency of the company.

 

Main events after the financial year

Sitowise announced on 4 January 2022 the appointment of a new CEO Heikki Haasmaa who begins in office on 4 May 2022.

 

Sitowise announced on 10 February 2022 that Anne May Asplund, Chief Human Resources Officer and member of the Group Management Team, resigns during February 2022.

 

Financial calendar

Planned publication dates for the Sitowise Group’s financial reports in 2022 are

as follows:  

  • Q1 Interim Report, January-March 2022, 18 May 2022
  • Q2 Half-Year Report, January-June 2022, 17 August 2022
  • Q3 Interim Report, January-September 2022, 2 November 2022

 

Annual Report and Sustainability Report 2021 will be released at the latest during week 13 which begins on 28 March 2022.

 

The Annual General meeting is planned to be held on Wednesday 20 April 2022. Notice to the Annual General Meeting will be given later.

 

Webcast for analysts, media, and investors

Sitowise's CEO Pekka Eloholma and CFO Heidi Karlsson will present the company's results in English in a conference call and live webcast on 2/3/2022 starting at 1:00 pm (EET).

 

Webcast

The briefing will be streamed at https://sitowise.videosync.fi/2021-q4-results. Written questions can be submitted through the webcast. Presentation material and a recording of the event will be available afterwards at www.sitowise.com/investors/reports-and-presentations.

 

Conference call

It is also possible to dial-in to the briefing 5–10 minutes before the start of the event by calling a number below and entering the PIN code 53240149#.

  • Finland Toll-Free: 0800 523 163
  • Finland Toll: +358 9 8171 0310
  • United Kingdom Toll-Free: 0800 358 9473
  • United Kingdom Toll: +44 3333 000 804
  • US Toll-Free: +1 855 85 70686
  • US Toll: +1 631 913 1422
  • Sweden Toll-Free: 0200 883 685
  • Sweden Toll: +46 856 642 651

 

International access numbers and further instructions available at https://events-ftp.arkadin.com/ev/docs/NE_W2_TF_Events_International_Access_List.pdf.

 

Additional information

Pekka Eloholma, CEO, pekka.eloholma@sitowise.com, m +358 50 555 5590

Heidi Karlsson, CFO, heidi.karlsson@sitowise.com, m +358 40 759 3320

Minttu Vilander, Chief Communications and Corporate Responsibility Officer, minttu.vilander@sitowise.com, m +358 40 575 6660

 

About Sitowise

Sitowise is a Nordic specialist and digital expert in the built environment. We offer design and consulting services for smarter and more sustainable urban development as well as smooth transportation. We operate in three business areas in Finland and Sweden: real estate and buildings, infrastructure, and digital solutions.

 

We want to raise the bar of being smart and sustainable, which is why our vision is to be the most responsible partner in developing a prosperous living environment. Sitowise has grown rapidly and profitably in the past years. The group’s net sales were EUR 179 million in 2021 and the company employs over 2,000 experts. Sitowise Group Plc is listed on Nasdaq Helsinki as SITOWS.

 

This release is a summary of Sitowise Group’s financial statements release January–December 2021. The complete financial statements release is attached, and also available on the company’s website at www.sitowise.com/investors/reports-and-presentations

 

The figures in this release are audited. Comparative figures for the corresponding period of the previous year are in brackets. This release has been published in Finnish and English. In the event of any differences between the English translation and the Finnish original, the Finnish release will prevail.