NYAB’s Q1/2024: Strong start of the year
08.05.24NYAB Plc’s Interim Report January-March 2024 was published today. The entire report is available at https://nyabgroup.com/en/investors/nyab-as-an-investment/reports-and-presentations/.
January-March in brief
- Revenue amounted to EUR 59.2 (39.2) million, representing a change of 51.1%. In constant currencies, revenue growth was 51.9%.
- EBITDA was EUR 1.7 (-0.6) million, amounting to 2.9% (-1.7%) of revenue.
- Operating profit (EBIT) was EUR 0.4 (-2.1) million, amounting to 0.7% (-5.2%) of revenue
- Free cash flow was EUR 13.5 (0.9) million
- Net debt/EBITDA was -0.8 (0.3)
- Order backlog improved 21.8% and amounted to EUR 286.3 (235.0) million.
Financial guidance for 2024 (unchanged, given on 28 February 2024)
- Revenue and operating profit for 2024 are expected to increase from 2023.
CEO Johan Larsson’s review
We clearly both proved and utilized our favorable position in the market during the first quarter. Our revenue grew 51 percent and our order backlog grew 22 percent whilst our EBIT margin was positive. Together with a strong cashflow, our development is notable given that a significant portion of our operations takes place in northern regions. Therefore, our seasonality is strong, and historically we have always had a negative result for the first quarter and accumulated most revenue and profits in the later parts of the year.
A key factor in our strong performance this quarter is the composition of our order backlog. We were able to increase revenue and somewhat smoothen the seasonality of our operations. This has been ongoing for years by securing perennial and year-around contracts. We also enhanced cross-border and inter-project collaboration, increasingly leveraging our business strengths by utilizing the wide expertise and potential in our organization.
We signed a letter of intent for the acquisition of the marine construction operator Dyk & Anläggning Stockholm AB. This demonstrates a typical M&A target for NYAB, providing us with additional capabilities with which we can strengthen edge competences and unlock future opportunities in sectors where we see potential for growth. We see substantial business opportunities in the growing market of marine and coastal construction, and in our already existing pipeline of projects the acquisition will be utilized to create additional value.
At the end of April, our Extraordinary General Meeting approved the re-domiciliation of our parent company to Sweden. We have seen a lot of positive development in our Swedish markets, including progress in large industrial projects that entail significant potential for NYAB. Transition to a Swedish company supports our position in these markets. During the first quarter, we prepared for further growth with, among other, key recruitments in our Swedish operations. In addition, we have planned a wide range of investor events to prepare for trading on First North Premier in Stockholm.
I can’t be anything but pleased with a decade of profitable growth. And even more so with our performance and strong results for the first quarter. Our operations are developing in line with our strategy, and outcomes of strategy and execution on both sides of the Baltic Sea are satisfying thanks to our skilled employees. Achieving growth without increasing risk is our leading star, as we have a scalable and profitable business model. Our addressable markets have recovered from many of last year’s challenges and are steadily improving, even though there is still slowness in certain areas. This enables NYAB to utilize our advantageous position to both reach and exceed last year’s outcome, as well as execute towards our long-term financial targets.
Management webcast
After the release of the report, NYAB arranged a webcast, where CEO Johan Larsson and CFO Aku Väliaho presented NYAB’s financial information and significant events for the first quarter.
