SRV

SRV GROUP PLC     INTERIM REPORT      24 OCTOBER 2024    AT 08.30 EEST
SRV Interim Report 1-9/2024: Operative operating profit remains unchanged, order backlog and revenue grow

• Revenue amounted to EUR 183.5 (146.9) million (+24.9%). Revenue from alliance and project management contracts increased in business and infrastructure construction.
• Operative operating profit amounted to EUR 4.5 (4.6) million with an operating profit of EUR 4.5 (-4.9) million. The increased volume of business and infrastructure construction on the comparison period had a positive effect on the operative operating profit. The still low volume of housing construction, which was also emphasised for lower-margin competitive and negotiated contracting, in turn had a negative effect on the operative operating profit. The operating profit for the comparison period was weakened by a capital loss arising from the sale of SRV Russia Oy and its subsidiaries.
• The result before taxes was EUR 1.7 (-6.5) million.
• The equity ratio stood at 34.5 per cent (34.9% 9/2023) and gearing was 69.7 per cent (84.8% 9/2023). Excluding the impact of IFRS 16, the equity ratio was 48.2 (49.5) per cent and gearing was -6.0 (5.1) per cent.
• At period-end, the order backlog stood at EUR 1,179.6 (995.6) million. The sold share of the order backlog was 93.5 (92.1) per cent.
• New agreements valued at EUR 273.9 (132.5) million were signed in July-September.
• Emission intensity (scope 1 and 2, rolling 12 months) decreased to 3.0 (3.1) tCO2 per million euros of revenue at the end of September. SRV's emission intensity has stabilised, but varies moderately in relation to revenue and project phases.  

• Revenue amounted to EUR 536.7 (428.3) million (+25.3%).
• Operative operating profit amounted to EUR 7.3 (-1.3) million with an operating profit of EUR 7.3 (-9.9) million.
• The result before taxes was EUR 2.3 (-16.4) million.
• Earnings per share were EUR -0.0 (-1.0).
• New agreements valued at EUR 625.2 (528.3) million were signed in January-September.

Specified outlook for 2024

During 2024, SRV's revenue and result will be affected by several factors in addition to general economic trends, such as: the margin of the order backlog and its development; the start-up of new contracts and development projects; geopolitical risks, including their related direct and indirect effects, such as material costs and the availability of materials and labour; and changes in demand. Higher interest rates and weaker availability of financing have a negative impact on demand for housing and business premises among consumers and investors, and thus pose uncertainty with respect to the estimated start-ups of new projects.

• The Group's revenue for 2024 is expected to increase on 2023, and will amount to EUR 720-750 million (revenue in 2023: EUR 610.0 million). (previously: The Group's revenue for 2024 is expected to increase on 2023)
• Operative operating profit is expected to improve on 2023, and will amount to EUR 7-12 million (operative operating profit in 2023: EUR 1.1 million). (previously: Operative operating profit is expected to improve on 2023)

Significant events after the period

On 1 October 2024, SRV announced that SRV Group Plc had appointed Liisa Krogerus (LL.M), 46, as its new General Counsel and a member of the Corporate Executive Team. She will start in her new role by 2 January 2025 at the latest. Anu Tuomola, SRV's current General Counsel and a member of the Corporate Executive Team, is transferring to another employer and will leave the company by the end of November.
President & CEO's review

"Market conditions continued to be challenging during the third quarter of 2024 and there were still no signs of a turn for the better. When it comes to demand, the only bright spots are a few startups of public-sector and industrial projects. Consumers and real estate investors are still practically absent from the market for new construction. An upswing in demand for new residential construction is being delayed by the relatively large supply of new units, both owner-occupied and rental. However, this oversupply is already beginning to diminish. The market for business premises is also repositioning, as many operators are actively considering what kind of premises will be right for them. Factors that predict a change for the better are, however, gradually emerging. Although falling interest rates, a reduction in the oversupply of housing, advantageous construction costs and relatively strong urban population growth are revitalising private demand, a sharper upswing will probably not occur for another year or two.

Our business developed favourably in many respects during the review period. Our revenue and operative operating profit were reasonable considering the market. During the third quarter, our revenue rose by about 25 per cent on the corresponding period of the previous year and amounted to EUR 183.5 million. Our operative operating profit remained stable at EUR 4.5 million (Q3/2023: 4.6). Increased volumes of alliance and project management contracting in business premises and infrastructure construction had a favourable impact on our operative operating profit. Volumes in housing construction remained low and were still weighted towards competitive and negotiated contracting, which reduced operative operating profit.

Our balance sheet remained strong, and our IFRS 16 adjusted gearing stood at -6.0 per cent. At 95, the total number of unsold completed residential units is low and the company does not have a lot of capital tied up in unsold housing. We have not therefore attempted to sell apartments at huge discounts during this period of very low demand.
Our order backlog, which consists almost entirely of cooperative and competitive contracts, increased during the third quarter and stood at EUR 1,180 million at the end of the review period. The southern section of Laakso Joint Hospital's main building was one of the items that was transferred to our order backlog during the third quarter. It is part of an approximately EUR 800 million agreement for the Laakso Joint Hospital project, of which about EUR 670 million has been entered into our order backlog to date. We also have projects valued at about EUR 711 million that have been won or committed to with preliminary contracts, but which have not yet been entered into our order backlog.

In addition to these purely financial results, I am particularly delighted by the development of two closely linked key indicators that have risen to record-breaking levels. Our NPS (B2B), which measures customer satisfaction, stood at 74 at the end of September, and I consider this to be an exceptional achievement. Our customer promise - "By listening, we build wisely" - has clearly become an integral part of our operations. I would like to thank our highly skilled personnel for this outstanding level of customer satisfaction and for retaining their motivation throughout these difficult times and tough measures. In August, our employee net promoter score (eNPS) reached the highest in our company's history: 30.

Cooperative contracting is a relatively low-margin - yet also low-risk - business, and having both expertise and a leading position in this area will be important for many reasons, both now and in the future. In the prevailing market, a strong order backlog and good performance in cooperative contracting will help us through this difficult market situation. In line with our strategy, we are seeking strong growth in projects that have better profitability and higher added value, that is, business premises development projects, housing development projects, and developer-contracted housing projects. However, due to the current lack of consumer and investor demand, we have not been able to start any of our planned development projects in 2024, and the development of our strategic project portfolio has been delayed. It is now already clear that developer-contracted projects, which are recognised as income on completion, will not be recognised as income in 2025. However, we are still aiming to start some developer-contracted housing projects and some of our own development projects before the end of the year, but the preconditions for success have significantly decreased.

The market's delayed recovery will therefore slow down any significant improvements in profitability. Yet thanks to favourable developments in many other areas, we will still come out relatively stronger. Our strong balance sheet and order backlog, improvements in both the controllability of construction and project-specific results strengthens faith in the future. A high level of customer satisfaction, our skilled personnel, growth in our project development portfolio and good relations with financiers will provide us with a strong foundation for the structural change in project portfolio and improved profitability that we are seeking, and also for rapid growth and an increased market share when demand gradually recovers and picks up again."
Saku Sipola

Group Key Figures

[][][][]
7-9/ 7-9/ change change 1-9/ 1-9/ change change 1-12/
(IFRS, EUR 2024 2023  % 2024 2023 % 2023
million)
Revenue                183.5                                 24.9               536.7                              25.3                610.0
146.9 36.5 428.3 108.4
Operative                                                           -1.9                                                                                 
operating 4.5 4.6 -0.1 7.3 -1.3 8.6 1.1
profit
Operative 2.5 3.1 -0.7 1.4 -0.3 1.7 0.2
operating
profit, %
Operating                                                                                                                                    
profit 4.5 -4.9 9.5 7.3 -9.9 17.2 -6.8
Operating 2.5 -3.4 5.8 1.4 -2.3 3.7 -1.1
profit, %
Profit before                                                                                                                                  
taxes 1.7 -6.5 8.2 2.3 -16.4 18.8 -15.7
Net profit for                                                                                                                                    
the 1.0 -6.6 7.5 1.7 -14.4 16.0 -15.1
period
Net profit for 0.5 -4.5 5.0 0.3 -3.4 3.7 -2.5
the
period, %
Earnings per 0.04 -0.51 0.56 -0.00 -0.98 0.98 -1.02
share,
eur [1)]
Order backlog               1179.6               995.6                18.5             1048.6
(unrecognised) 184.0
Equity ratio, 34.5 34.9 -0.4 34.4
%
Equity ratio, 48.2 49.5 -1.4 48.0
%, excl.
IFRS 16 [2)]
Net interest                                                    -18.1                  99.4
-bearing 96.4 117.7 -21.3
debt
Net interest                                                                        
-bearing -8.8 7.5 -16.3 -6.3
debt, excl.
IFRS 16
[2)]
Net gearing 69.7 84.8 -15.1 71.7
ratio, %
Net gearing -6.0 5.1 -11.1 -4.3
ratio, %,
excl. IFRS 16
[2)]
Financing                                                      23.9                  78.6
reserves 79.1 63.9 15.2

1. The figure has been calculated excluding the hybrid bond interest, tax adjusted

2. The figure has been adjusted to remove the impacts of IFRS 16

Espoo, 24 October 2024
Board of Directors
All forward-looking statements in this interim report are based on management's current expectations and beliefs about future events. The company's actual results and financial position may differ materially from the expectations and beliefs such statements contain due to a number of factors that have been presented in this interim report.
Briefing, webcast and presentation materials

A briefing for analysts, investors and media representatives will be held as a webcast on 24 October 2024, starting at 11:00 EEST. The webcast can be followed live at www.srv.fi/en/investors. The recording will be available on the website after the presentation. The materials will also be made available on the website.
For further information, please contact:

Saku Sipola, President & CEO, tel. +358 (0)40 551 5953, saku.sipola@srv.fi
Jarkko Rantala, CFO, tel. +358 (0)40 674 1949, jarkko.rantala@srv.fi
Miia Eloranta, Senior Vice President, Communications and Marketing, tel. +358 (0)50 441 4221, miia.eloranta@srv.fi 

Distribution:
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www.srv.fi

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SRV in brief

SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes the wellbeing of both the environment and people into consideration. We call this approach lifecycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter - and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.

Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in Finland. In 2023, our revenue totalled EUR 610 million. In addition to approximately 800 in-house staff, we had a network of around 3,300 partners.

SRV - Building for life

SRV GROUP PLC      STOCK EXCHANGE RELEASE     1 OCTOBER 2024   08:30 EEST

Liisa Krogerus appointed SRV Group Plc's new SVP, General Councel, and a member of Corporate Executive Team

Liisa Krogerus, LL.M., 46, has been appointed Senior Vice President, General Counsel and a member of Corporate Executive Team of SRV Group Plc. She shall take up her position on 2 January 2025 at the latest. Most recently, Liisa Krogerus has served as General Counsel in Purmo Group Plc. 

"Liisa Krogerus has diverse experience in legal management, the governance of a listed company, and international energy plants projects. I look forward to getting Liisa involved in developing SRV," says Saku Sipola, President and CEO of SRV Group Plc.

"I look forward to participating in the development of SRV in the challenging construction industry market and in certainly interesting legal matters," says Liisa Krogerus.

Anu Tuomola, current SVP, General Counsel and a member of Corporate Executive Team will leave SRV at the end of November at the latest to join another employer.

For further information, please contact:
Saku Sipola, President & CEO, tel. +358 (0)40 551 5953, saku.sipola@srv.fi
Miia Eloranta, SVP Communications and Marketing, tel. +358 (0)50 441 4221, miia.eloranta@srv.fi

Distribution:
Nasdaq Helsinki
Media
www.srv.fi (https://publish.ne.cision.com/l/fhteveeje/www.srv.fi)
You can also find us on the social media:

Facebook (https://www.facebook.com/srv.fi)   LinkedIn (https://www.linkedin.com/company/srv)  X (https://twitter.com/SRVYhtiot)  Instagram (https://instagram.com/srvfinland/)
 
SRV in brief

SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes the wellbeing of both the environment and people into consideration. We call this approach life-cycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter - and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.
Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in Finland. In 2023, our revenue totalled EUR 610 million. In addition to approximately 800 in-house staff, we had a network of around 3,300 partners.
SRV - Building for life

SRV GROUP PLC     STOCK EXCHANGE RELEASE     11 SEPTEMBER 2024    17:15 EEST
Composition of SRV Group Plc's Shareholders' Nomination Board

• Ilpo Kokkila, Chair of the Board of Directors, Pontos Oy
• Mikko Mursula, Chief Investment Officer, Ilmarinen Mutual Pension Insurance Company
• Vesa Aho, Executive Vice President, OP Financial Group

The Chair of the Board of Directors Ari Lehtoranta shall act as the fourth member of the Board.

The right to appoint a member to the Shareholders' Nomination Board lies with those three shareholders whose share of the votes of all shares in the company is largest, based on the company's shareholders' register held by Euroclear Finland Ltd as of August 31 of the preceding calendar year of the Annual General Meeting.

Ilpo Kokkila has been appointed as the Chair of the Nomination Board.  

The Nomination Board, established by the General Meeting, prepares annual proposals concerning the composition and remuneration of the Board of Directors to the Annual General Meeting.

For further information, please contact:
Anu Tuomola, Senior Vice President, General Counsel, tel. +358 50 414 3280, anu.tuomola@srv.fi
 

Distribution:
Nasdaq Helsinki
Media
www.srv.fi (https://publish.ne.cision.com/l/fhteveeje/www.srv.fi)

You can also find us on the social media:

Facebook (https://www.facebook.com/srv.fi)   LinkedIn (https://www.linkedin.com/company/srv)  X (https://twitter.com/SRVYhtiot)  Instagram (https://instagram.com/srvfinland/)
 

SRV in brief

SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes the wellbeing of both the environment and people into consideration. We call this approach life-cycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter - and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.

Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in Finland. In 2023, our revenue totalled EUR 610 million. In addition to approximately 800 in-house staff, we had a network of around 3,300 partners.

SRV - Building for life

SRV GROUP PLC     STOCK EXCHANGE RELEASE     21 AUGUST 2024     13:45 EEST
 

SRV Group Plc's financial reporting in 2025

SRV Group Plc's Financial Statements Bulletin for the year 2024 will be published on Thursday 6 February 2025 at 8:30 a.m. SRV's Annual Report for 2024 will be published on Tuesday 4 March 2025.
 

• January-March on Wednesday 30 April 2025 at 8:30 a.m.
• January-June on Friday 8 August 2025 at 8:30 a.m.
• January-September on Thursday 23 October 2025 at 8:30 a.m.

SRV Group Plc's Annual General Meeting 2025 is planned to be held on Thursday 27 March 2025 at 4:00 p.m. SRV's Board of Directors will summon the Annual General Meeting at a later date.  

For further information, please contact:

Miia Eloranta, Senior Vice President, Communications and Marketing, tel. +358 (0)50 441 4221, miia.eloranta@srv.fi  (miia.eloranta@srv.fi%C2%A0)
 

Distribution:
Nasdaq Helsinki
Media
www.srv.fi (https://publish.ne.cision.com/l/fhteveeje/www.srv.fi)
 

You can also find us on the social media:

Facebook (https://www.facebook.com/srv.fi)   LinkedIn (https://www.linkedin.com/company/srv)  X (https://twitter.com/SRVYhtiot)  Instagram (https://instagram.com/srvfinland/)
 

SRV in brief
 

SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes the wellbeing of both the environment and people into consideration. We call this approach life-cycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter - and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.

Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in Finland. In 2023, our revenue totalled EUR 610 million. In addition to approximately 800 in-house staff, we had a network of around 3,300 partners.

SRV - Building for life

SRV GROUP PLC     HALF-YEAR FINANCIAL REPORT      18 JULY 2024    AT 08.30 EEST
SRV Half-year Report 1-6/2024: Operative operating profit increased driven by strong growth in revenue, the order backlog remains strong
 

• Revenue amounted to EUR 186.3 (143.1) million (+30.2%). Revenue increased especially in alliance and project management contracts in business construction. Revenue from housing construction declined.
• Operative operating profit amounted to EUR 1.5 (-3.9) million with an operating profit of EUR 1.5 (-3.0) million. Operative operating profit improved on the back of strong growth in volume and increased operational controllability, even though the project portfolio was focused on lower-margin cooperative contracting.
• The result before taxes was EUR 0.1 (-5.5) million. The result before taxes was positive because the volume grew and financial expenses were lower than in the comparison period.
• Equity ratio was 33.6 per cent (34.3% 6/2023) and gearing was 70.9 per cent (83.3% 6/2023). Excluding the impact of IFRS 16, the equity ratio was 46.9 (48.8) per cent and gearing was -6.2 (1.6) per cent.
• At period-end, the order backlog stood at EUR 1,067.3 (993.1) million. The sold share of the order backlog was 92.8 (92.1) per cent.
• New agreements valued at EUR 215.0 (245.9) million were signed in April-June.
• Emission intensity (scope 1 and 2, rolling 12 months) declined and was at the end of June 3.4 (4.6) tCO2/million euros of revenue. Two of the factors contributing to the decrease in emission intensity were the greater use of biofuels as a percentage of all fuels used and better availability of zero-emission district heating.

• Revenue amounted to EUR 353.2 (281.4) million (+25.5%).
• Operative operating profit amounted to EUR 2.7 (-5.9) million with an operating profit of EUR 2.7 (-5.0) million.
• The result before taxes was EUR 0.6 (-9.9) million.
• Earnings per share were EUR -0.0 (-0.5).
• New agreements valued at EUR 351.4 (395.8) million were signed in January-June.

Outlook for 2024 (unchanged)

During 2024, SRV's revenue and result will be affected by several factors in addition to general economic trends, such as: the margin of the order backlog and its development; the start-up of new contracts and development projects; geopolitical risks, including their related direct and indirect effects, such as material costs and the availability of materials and labour; and changes in demand. Higher interest rates and weaker availability of financing have a negative impact on demand for housing and business premises among consumers and investors, and thus pose uncertainty with respect to the estimated start-ups of new projects.

• Full-year consolidated revenue for 2024 is expected to grow compared with 2023 (revenue in 2023: EUR 610.0 million).
• Operative operating profit is expected to improve compared with 2023 (operative operating profit in 2023: EUR 1.1 million).

Significant events after the period

On 17 July 2024, SRV announced that lawsuits have been filed against SRV Construction Ltd, a subsidiary of SRV Group Plc, in the District Court of Central Finland, relating to the fire of the apartment building in Palokka, Jyväskylä, that took place in 2020. The apartment building is built by SRV. The total amount of lawsuits initiated by clients of the project and insurance companies is around 8 million euros.

The company does not agree with the lawsuits. Based on external legal assessments, there are strong grounds for rejecting the lawsuits. SRV has built the apartment building as a turnkey project according to the plans made by the clients of the project, and the reason behind the 2020 fire and its spreading has been the building's inadequate plans.
President & CEO's review

"In the first half of 2024, the market environment remained unchanged, with very low demand among consumers and investors. Despite this challenging situation, we maintained a robust order backlog in the second quarter, and both our revenue and operative operating profit were higher than last year.  

The interest rate is still relatively high, and there are plenty of new owner-occupied and rental units available on the market, so demand for new units remains weak among consumers and real estate investors. However, interest rates have begun to decline cautiously, population growth in the largest cities is relatively strong and construction costs have dropped substantially - this will lead to an upswing in demand over the next quarters, although a stronger increase will be seen only a year or two from now. At the moment, the market offers good opportunities for real estate investors, as the projects that are currently being started up will be completed when the market is favourable. 

In the second quarter, our business operations developed in line with our expectations. Our revenue increased by around 30 per cent year-on-year. Our operative operating profit also outperformed the comparison year on the back of strong volume growth and increased operational controllability, even though the project portfolio was focused on lower-margin cooperative contracting. However, the operating profit remained modest.

At the end of the review period, our order backlog was EUR 1,067 million, up around 8 per cent year-on-year. In the second quarter, we transferred several projects into our order backlog, among them the Research Hub in the Sähkötalo building in Tampere, the Suutarila multipurpose building in Helsinki, and the Ohkola hospital building at Laakso Joint Hospital. The latter order is part of an approximately EUR 800 million agreement for the Laakso Joint Hospital project, of which about EUR 500 million has been entered into our order backlog to date. The remaining phases will be entered into our order backlog in stages during the years ahead. In addition, previously won contracts and projects under preliminary contracts will be recognised in our order backlog, with a value of around EUR 934 million.

It is important that our balance sheet is healthy and our financing is in good shape so that we are prepared for the expected recovery of the market. The total number of unsold completed residential units is low at 96, and the company has not committed a significant amount of its own capital into unsold housing. Our operational business and thus the controllability of our projects are also at a good level, which is reflected in, among other things, occupational safety, customer satisfaction and achievement of budgeted margins. We were recognised for our occupational safety efforts during the current review period as well - in May, the underground works carried out by SRV Infra in the Laakso Joint Hospital project were awarded the title of best site of 2023 in the Uusimaa Occupational Safety Competition.

 Lifecycle wisdom, i.e. construction that is sustainable from an environmental, human and financial perspective, is at the heart of SRV's strategy. The headquarters of cybersecurity company WithSecure - completed in July in the Wood City quarter, which we developed in Jätkäsaari, Helsinki - is an excellent example of SRV's strong expertise in developing, designing and constructing lifecycle-wise buildings and strongly supporting the development of cities towards their carbon-neutrality targets. WithSecure's headquarters has a large carbon handprint and is one of the first projects in Finland to comply with the new EU taxonomy. With the completion of this building, we also wrapped up the construction of the Wood City quarter with flying colours. This flagship of Finnish wood construction has attracted international interest.

The market is still in a wait-and-see mode. However, a change for the better is already on the horizon, although it is difficult to predict accurately when it will occur. Thanks to our healthy balance sheet, favourable risk position and strong project development portfolio, SRV is poised to pursue growth as soon as the market offers opportunities to restructure the project portfolio towards developer-contracted and development projects in line with our strategy. Until then, our robust order backlog in cooperative contracting will carry us over this difficult period. In addition, we believe that it will be possible to start up selected developer-contracted or development projects during the second half of the year, especially when investors estimate that the time is right to launch investments."
Saku Sipola
 

Key Figures

[][][][]
4-6/ 4-6/ change change, 1-6/ 1-6/ change change, 1-12/
(IFRS, EUR 2024 2023  % 2024 2023 % 2023
million)
Revenue                186.3                                   30.2               353.2                                  25.5                610.0
143.1 43.2 281.4 71.9
Operative                                                                                                                                           
operating 1.5 -3.9 5.4 2.7 -5.9 8.7 1.1
profit
Operative 0.8 -2.8 3.6 0.8 -2.1 2.9 0.2
operating
profit, %
Operating                                                                                                                                      
profit 1.5 -3.0 4.5 2.7 -5.0 7.7 -6.8
Operating 0.8 -2.1 2.9 0.8 -1.8 2.6 -1.1
profit, %
Profit before                                                                                                                                  
taxes 0.1 -5.5 5.6 0.6 -9.9 10.6 -15.7
Net profit for                                                                                                                                    
the 0.2 -4.7 4.9 0.7 -7.9 8.6 -15.1
period
Net profit for 0.1 -3.3 3.4 0.2 -2.8 3.0 -2.5
the
period, %
Earnings per -0.03 -0.36 0.33 -0.04 -0.55 0.51 -1.02
share,
eur [1)]
Order backlog              1067.3                                 7.5             1048.6
(unrecognised) 993.1 74.2
Equity ratio, 33.6 34.3 -0.6 34.4
%
Equity ratio, 46.9 48.8 -1.9 48.0
%, excl.
IFRS 16 [2)]
Net interest                                                    -14.3                  99.4
-bearing 96.8 113.1 -16.2
debt
Net interest                                                                         
-bearing -9.0 2.2 -11.2 -6.3
debt, excl.
IFRS
16[2)]
Net gearing 70.9 83.3 -12.4 71.7
ratio, %
Net gearing -6.2 1.6 -7.8 -4.3
ratio, %,
excl. IFRS 16
[2)]
Financing                 80.4                                   18.4                  78.6
reserves 68.0 12.5

1. The figure has been calculated excluding the hybrid bond interest, tax adjusted

2. The figure has been adjusted to remove the impacts of IFRS 16

Espoo, 18 July 2024
Board of Directors
All forward-looking statements in this half-year report are based on management's current expectations and beliefs about future events. The company's actual results and financial position may differ materially from the expectations and beliefs such statements contain due to a number of factors that have been presented in this half-year report.
Briefing, webcast and presentation materials

A briefing for analysts, investors and media representatives will be held as a webcast on 18 July 2024, starting at 11:00 EEST. The webcast can be followed live at www.srv.fi/en/investors. The recording will be available on the website after the presentation. The materials will also be made available on the website.
For further information, please contact:

Saku Sipola, President & CEO, tel. +358 (0)40 551 5953, saku.sipola@srv.fi
Jarkko Rantala, CFO, tel. +358 (0)40 674 1949, jarkko.rantala@srv.fi
Miia Eloranta, Senior Vice President, Communications and Marketing, tel. +358 (0)50 441 4221, miia.eloranta@srv.fi 

Distribution:
Media
www.srv.fi

You can also find us on the social media:

Facebook (https://www.facebook.com/srv.fi)   LinkedIn (https://www.linkedin.com/company/srv)   X (https://twitter.com/SRVYhtiot)   Instagram (https://instagram.com/srvfinland/)

SRV in brief

SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes the wellbeing of both the environment and people into consideration. We call this approach lifecycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter - and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.

Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in Finland. In 2023, our revenue totalled EUR 610 million. In addition to approximately 800 in-house staff, we had a network of around 3,300 partners.

SRV - Building for life

SRV GROUP PLC    INSIDE INFORMATION    17 JULY 2024   AT 12:30 EEST
 

INSIDE INFORMATION: Lawsuits filed against SRV Group Plc's subsidiary SRV Construction Ltd relating to fire in Palokka, Jyväskylä, in 2020

Lawsuits have been filed against SRV Construction Ltd, a subsidiary of SRV Group Plc, in the District Court of Central Finland, relating to the fire of the apartment building in Palokka, Jyväskylä, that took place in 2020. The apartment building is built by SRV. The total amount of lawsuits initiated by clients of the project and insurance companies is around 8 million euros.

The company does not agree with the lawsuits. Based on external legal assessments, there are strong grounds for rejecting the lawsuits. SRV has built the apartment building as a turnkey project according to the plans made by the clients of the project, and the reason behind the 2020 fire and its spreading has been the building's inadequate plans.

SRV has currently no information on the schedule for handling the lawsuits.

For further information, please contact:
Miia Eloranta, SVP, Communications and Marketing, tel. +358 (0)50 441 4221, miia.eloranta@srv.fi

Distribution:
Nasdaq Helsinki

Media
www.srv.fi

You can also find us on the social media:

Facebook (https://www.facebook.com/srv.fi)   LinkedIn (https://www.linkedin.com/company/srv)   X (https://twitter.com/SRVYhtiot)   Instagram (https://instagram.com/srvfinland/)

SRV in brief

SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes the wellbeing of both the environment and people into consideration. We call this approach lifecycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter - and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.

Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in Finland. In 2023, our revenue totalled EUR 610 million. In addition to approximately 800 in-house staff, we had a network of around 3,300 partners.

SRV - Building for life

SRV GROUP PLC      STOCK EXCHANGE RELEASE     29 MAY 2024   13:00 EEST

Change in SRV Group Plc's Corporate Executive Team

SRV Group Plc's SVP, General Counsel and a member of Corporate Executive Team Anu Tuomola has resigned. She will take on a position outside the company on November, at the latest.

"I thank Anu Tuomola warmly for her work for the company. Anu has had important role in many of the company's central and strategic turning points. I wish her the best of success in her future role," says SRV's President and CEO Saku Sipola.

SRV will commence a search to recruit a new General Counsel without delay.

For further information, please contact:
Saku Sipola, President & CEO, tel. +358 (0)40 551 5953, saku.sipola@srv.fi
 

Distribution:
Media
www.srv.fi

You can also find us on social media: 
Facebook (https://www.facebook.com/srv.fi)   LinkedIn (https://www.linkedin.com/company/srv)  X (https://twitter.com/SRVYhtiot)  Instagram (https://instagram.com/srvfinland/)

SRV in brief

SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes the well-being of both the environment and people into consideration. We call this approach life-cycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter - and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.

Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in Finland. In 2023, our revenue totalled EUR 610 million. In addition to approximately 800 in-house staff, we had a network of around 3,300 partners.

SRV - Building for Life

SRV GROUP PLC    MANAGERS' TRANSACTIONS    17 MAY 2024   AT 11:30 EEST
SRV Group Plc: Managers' Transactions - Tuomas Kokkila
 

Notification under the EU Market Abuse Regulation, article 19

SRV Group Plc - Managers' Transactions

____________________________________________

Person subject to the notification requirement

Name: Pontos Oy

Position: Closely associated person

(X) Legal person (1):Person Discharging Managerial Responsibilities In Issuer
Name: Tuomas Kokkila

Position: Member of the Board
Issuer: SRV Yhtiöt Oyj

LEI: 743700GB29FXC0VXF414

Notification type: INITIAL NOTIFICATION

Reference number: 63007/16/8

____________________________________________

Transaction date: 2024-05-15

Outside a trading venue

Instrument type: DEBT INSTRUMENT

ISIN: FI4000315395

Nature of transaction: ACQUISITION

Transaction details

(1): Volume: 605500 Unit price: 71 PCT

Aggregated transactions (1):

Volume: 605500 Volume weighted average price: 71 PCT

For further information, please contact:
Anu Tuomola, Senior Vice President, General Counsel, tel. +358 50 414 3280, anu.tuomola@srv.fi 

Distribution:
Media
www.srv.fi

You can also find us on the social media:

Facebook (https://www.facebook.com/srv.fi)   LinkedIn (https://www.linkedin.com/company/srv)   X (https://twitter.com/SRVYhtiot)   Instagram (https://instagram.com/srvfinland/)

SRV in brief

SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes the wellbeing of both the environment and people into consideration. We call this approach lifecycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter - and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.

Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in Finland. In 2023, our revenue totalled EUR 610 million. In addition to approximately 800 in-house staff, we had a network of around 3,300 partners.

SRV - Building for life

SRV GROUP PLC    MANAGERS' TRANSACTIONS    13 MAY 2024   AT 15:30 EEST
SRV Group Plc: Managers' Transactions - Ari Lehtoranta
 

Notification under the EU Market Abuse Regulation, article 19

SRV Group Plc - Managers' Transactions

____________________________________________

Person subject to the notification requirement

Name: Ari Lehtoranta

Position: Member of the Board/Deputy member

 Issuer: SRV Yhtiöt Oyj

LEI: 743700GB29FXC0VXF414

Notification type: INITIAL NOTIFICATION

Reference number: 62533/5/4

____________________________________________

Transaction date: 2024-05-10

Venue: OFF-EXCHANGE LIIKETOIMET (XOFF)

Instrument type: SHARE

ISIN: FI4000523675

Nature of transaction: RECEIPT OF A SHARE-BASED INCENTIVE

Transaction details

(1): Volume: 5834 Unit price: 4.937 EUR

Aggregated transactions (1):

Volume: 5834 Volume weighted average price: 4.937 EUR

For further information, please contact:
Anu Tuomola, Senior Vice President, General Counsel, tel. +358 50 414 3280, anu.tuomola@srv.fi 

Distribution:
Media
www.srv.fi

You can also find us on the social media:

Facebook (https://www.facebook.com/srv.fi)   LinkedIn (https://www.linkedin.com/company/srv)   X (https://twitter.com/SRVYhtiot)   Instagram (https://instagram.com/srvfinland/)

SRV in brief

SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes the wellbeing of both the environment and people into consideration. We call this approach lifecycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter - and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.

Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in Finland. In 2023, our revenue totalled EUR 610 million. In addition to approximately 800 in-house staff, we had a network of around 3,300 partners.

SRV - Building for life

SRV GROUP PLC    MANAGERS' TRANSACTIONS    13 MAY 2024   AT 15:30 EEST
SRV Group Plc: Managers' Transactions - Hannu Leinonen
 

Notification under the EU Market Abuse Regulation, article 19

SRV Group Plc - Managers' Transactions

____________________________________________

Person subject to the notification requirement

Name: Hannu Leinonen

Position: Member of the Board/Deputy member

 Issuer: SRV Yhtiöt Oyj

LEI: 743700GB29FXC0VXF414

Notification type: INITIAL NOTIFICATION

Reference number: 62538/5/4

____________________________________________

Transaction date: 2024-05-10

Venue: OFF-EXCHANGE LIIKETOIMET (XOFF)

Instrument type: SHARE

ISIN: FI4000523675

Nature of transaction: RECEIPT OF A SHARE-BASED INCENTIVE
 

Transaction details

(1): Volume: 2916 Unit price: 4.937 EUR

Aggregated transactions (1):

Volume: 2916 Volume weighted average price: 4.937 EUR

For further information, please contact:
Anu Tuomola, Senior Vice President, General Counsel, tel. +358 50 414 3280, anu.tuomola@srv.fi 

Distribution:
Media
www.srv.fi

You can also find us on the social media:

Facebook (https://www.facebook.com/srv.fi)   LinkedIn (https://www.linkedin.com/company/srv)   X (https://twitter.com/SRVYhtiot)   Instagram (https://instagram.com/srvfinland/)
 

SRV in brief

SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes the wellbeing of both the environment and people into consideration. We call this approach lifecycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter - and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.

Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in Finland. In 2023, our revenue totalled EUR 610 million. In addition to approximately 800 in-house staff, we had a network of around 3,300 partners.

SRV - Building for life

SRV GROUP PLC    MANAGERS' TRANSACTIONS    13 MAY 2024   AT 15:30 EEST
SRV Group Plc: Managers' Transactions - Heli Iisakka
 

Notification under the EU Market Abuse Regulation, article 19

SRV Group Plc - Managers' Transactions

____________________________________________

Person subject to the notification requirement

Name: Heli Iisakka

Position: Member of the Board/Deputy member

 Issuer: SRV Yhtiöt Oyj

LEI: 743700GB29FXC0VXF414

Notification type: INITIAL NOTIFICATION

Reference number: 62536/5/4

____________________________________________

Transaction date: 2024-05-10

Venue: OFF-EXCHANGE LIIKETOIMET (XOFF)

Instrument type: SHARE

ISIN: FI4000523675

Nature of transaction: RECEIPT OF A SHARE-BASED INCENTIVE

Transaction details

(1): Volume: 3890 Unit price: 4.937 EUR

Aggregated transactions (1):

Volume: 3890 Volume weighted average price: 4.937 EUR

For further information, please contact:
Anu Tuomola, Senior Vice President, General Counsel, tel. +358 50 414 3280, anu.tuomola@srv.fi 

Distribution:
Media
www.srv.fi

You can also find us on the social media:

Facebook (https://www.facebook.com/srv.fi)   LinkedIn (https://www.linkedin.com/company/srv)   X (https://twitter.com/SRVYhtiot)   Instagram (https://instagram.com/srvfinland/)
 

SRV in brief

SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes the wellbeing of both the environment and people into consideration. We call this approach lifecycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter - and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.

Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in Finland. In 2023, our revenue totalled EUR 610 million. In addition to approximately 800 in-house staff, we had a network of around 3,300 partners.

SRV - Building for life

SRV GROUP PLC    MANAGERS' TRANSACTIONS    13 MAY 2024   AT 15:30 EEST
SRV Group Plc: Managers' Transactions - Tuomas Kokkila
 

Notification under the EU Market Abuse Regulation, article 19

SRV Group Plc - Managers' Transactions

____________________________________________

Person subject to the notification requirement

Name: Tuomas Kokkila

Position: Member of the Board/Deputy member

Issuer: SRV Yhtiöt Oyj

LEI: 743700GB29FXC0VXF414

Notification type: INITIAL NOTIFICATION

Reference number: 62542/4/4

____________________________________________

Transaction date: 2024-05-10

Venue: OFF-EXCHANGE LIIKETOIMET (XOFF)

Instrument type: SHARE

ISIN: FI4000523675

Nature of transaction: RECEIPT OF A SHARE-BASED INCENTIVE

Transaction details

(1): Volume: 2916 Unit price: 4.937 EUR

Aggregated transactions (1):

Volume: 2916 Volume weighted average price: 4.937 EUR

For further information, please contact:
Anu Tuomola, Senior Vice President, General Counsel, tel. +358 50 414 3280, anu.tuomola@srv.fi 

Distribution:
Media
www.srv.fi

You can also find us on the social media:

Facebook (https://www.facebook.com/srv.fi)   LinkedIn (https://www.linkedin.com/company/srv)   X (https://twitter.com/SRVYhtiot)   Instagram (https://instagram.com/srvfinland/)

SRV in brief

SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes the wellbeing of both the environment and people into consideration. We call this approach lifecycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter - and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.

Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in Finland. In 2023, our revenue totalled EUR 610 million. In addition to approximately 800 in-house staff, we had a network of around 3,300 partners.

SRV - Building for life

SRV GROUP PLC    MANAGERS' TRANSACTIONS    13 MAY 2024   AT 15:30 EEST
SRV Group Plc: Managers' Transactions - Matti Ahokas
 

Notification under the EU Market Abuse Regulation, article 19

SRV Group Plc - Managers' Transactions

____________________________________________

Person subject to the notification requirement

Name: Matti Ahokas

Position: Member of the Board/Deputy member

 Issuer: SRV Yhtiöt Oyj

LEI: 743700GB29FXC0VXF414

Notification type: INITIAL NOTIFICATION

Reference number: 62545/5/4

____________________________________________

Transaction date: 2024-05-10

Venue: OFF-EXCHANGE LIIKETOIMET (XOFF)

Instrument type: SHARE

ISIN: FI4000523675

Nature of transaction: RECEIPT OF A SHARE-BASED INCENTIVE

Transaction details

(1): Volume: 2916 Unit price: 4.937 EUR

Aggregated transactions (1):

Volume: 2916 Volume weighted average price: 4.937 EUR

For further information, please contact:
Anu Tuomola, Senior Vice President, General Counsel, tel. +358 50 414 3280, anu.tuomola@srv.fi 

Distribution:
Media
www.srv.fi

You can also find us on the social media:

Facebook (https://www.facebook.com/srv.fi)   LinkedIn (https://www.linkedin.com/company/srv)   X (https://twitter.com/SRVYhtiot)   Instagram (https://instagram.com/srvfinland/)

SRV in brief

SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes the wellbeing of both the environment and people into consideration. We call this approach lifecycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter - and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.

Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in Finland. In 2023, our revenue totalled EUR 610 million. In addition to approximately 800 in-house staff, we had a network of around 3,300 partners.

SRV - Building for life

SRV GROUP PLC    MANAGERS' TRANSACTIONS    6 MAY 2024   AT 14:40 EEST
SRV Group Plc: Managers' Transactions - Hannu Leinonen

Notification under the EU Market Abuse Regulation, article 19

SRV Group Plc - Managers' Transactions

____________________________________________

Person subject to the notification requirement

Name: Hannu Leinonen

Position: Member of the Board/Deputy member

 Issuer: SRV Yhtiöt Oyj

LEI: 743700GB29FXC0VXF414

Notification type: INITIAL NOTIFICATION

Reference number: 61734/6/8

____________________________________________

Transaction date: 2024-05-02

Venue: NASDAQ HELSINKI LTD (XHEL)

Instrument type: SHARE

ISIN: FI4000523675

Nature of transaction: ACQUISITION

Transaction details

(1): Volume: 500 Unit price: 4.8 EUR

(2): Volume: 170 Unit price: 4.8 EUR

(3): Volume: 559 Unit price: 4.8 EUR

(4): Volume: 120 Unit price: 4.8 EUR

(5): Volume: 210 Unit price: 4.8 EUR

Aggregated transactions (5):

Volume: 1559 Volume weighted average price: 4.8 EUR

____________________________________________

Transaction date: 2024-05-03

Venue: NASDAQ HELSINKI LTD (XHEL)

Instrument type: SHARE

ISIN: FI4000523675

Nature of transaction: ACQUISITION

Transaction details

(1): Volume: 491 Unit price: 4.8 EUR

Aggregated transactions (1):

Volume: 491 Volume weighted average price: 4.8 EUR

For further information, please contact:
Anu Tuomola, Senior Vice President, General Counsel, tel. +358 50 414 3280, anu.tuomola@srv.fi 

Distribution:
Media
www.srv.fi

You can also find us on the social media:

Facebook (https://www.facebook.com/srv.fi)   LinkedIn (https://www.linkedin.com/company/srv)   X (https://twitter.com/SRVYhtiot)   Instagram (https://instagram.com/srvfinland/)

SRV in brief

SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes the wellbeing of both the environment and people into consideration. We call this approach lifecycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter - and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.

Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in Finland. In 2023, our revenue totalled EUR 610 million. In addition to approximately 800 in-house staff, we had a network of around 3,300 partners.

SRV - Building for life

SRV GROUP PLC     INTERIM REPORT      25 APRIL 2024    AT 08.30 EEST
SRV Interim Report 1-3/2024: Revenue and operative operating profit increased, the order backlog remains strong
 

• Revenue amounted to EUR 167.0 (138.3) million (+20.7%). Revenue increased due to growth in business construction revenue. Revenue declined correspondingly in housing construction.
• Operative operating profit amounted to EUR 1.3 (-2.0) million with an operating profit of EUR 1.3 (-2.0) million. Operative operating profit improved thanks to the higher volume in business construction.
• The result before taxes was EUR 0.5 (-4.4) million. The result was positive because the volume grew and financial expenses were lower than in the comparison period.
• Earnings per share were EUR -0.0 (-0.2).
• Equity ratio was 33.9 per cent (35.0% 3/2023) and gearing was 80.5 per cent (82.2% 3/2023). Excluding the impact of IFRS 16, the equity ratio was 47.5 (49.2) per cent and gearing was 2.4 (4.1) per cent.
• At period-end, the order backlog stood at EUR 1,020.4 (871.0) million. New agreements valued at EUR 136.4 (149.9) million were signed in January-March. The sold share of the order backlog was 92.5 (91.0) per cent.
• At the end of March, emission intensity (scope 1 and 2) was 2.6 (4.6) tCO2/million euros of revenue. One of the factors contributing to the decrease in emission intensity was the greater use of biofuels.

Outlook 2024
During 2024, SRV's revenue and result will be affected by several factors in addition to general economic trends, such as: the margin of the order backlog and its development; the start-up of new contracts and development projects; geopolitical risks, including their related direct and indirect effects, such as material costs and the availability of materials and labour; and changes in demand. Higher interest rates and weaker availability of financing have a negative impact on demand for housing and business premises among consumers and investors, and thus pose uncertainty with respect to the estimated start-ups of new projects. 

• Full-year consolidated revenue for 2024 is expected to grow compared with 2023 (revenue in 2023: EUR 610.0 million).
• Operative operating profit is expected to improve compared with 2023 (operative operating profit in 2023: EUR 1.1 million).

Significant events after the period

There were no significant events after the end of the review period.

President & CEO's review

"In the early months of 2024, the economy has remained in a recession and no significant changes have occurred in the general market situation. However, even in this challenging business environment, we have been able to systematically forge ahead with strong growth in business construction, especially in cooperative contracting. Due to the prevailing high interest levels, demand for the new properties in both the consumer and real estate investor markets is currently at a low level, which has a substantial impact on our opportunities to start new projects. The controllability of our production is robust and our realised project margins are in line with plans in both housing and business construction. We believe that strong development will begin immediately once the market provides opportunities to restructure our project portfolio in accordance with our strategy. 

In spite of the economic climate in the construction industry, our business developed in a favourable direction in the first quarter, as expected. Our stronger order backlog is starting to show in our revenue, which saw year-on-year growth of around 20 per cent. Our operative operating profit also outperformed the comparison period thanks to the higher volume in business construction. 

At the end of the review period, our order backlog was EUR 1,020.4 million, up 17 per cent year-on-year. The order backlog will lead to increased revenue when projects get up to full speed. In the first quarter, we transferred several projects into our order backlog, among them the Käkikellokortteli residential block in Nihti, Kalasatama for the City of Helsinki's housing production service as well as underground facilities and the second stage of infrastructure work for Laakso Joint Hospital. This order is part of an approximately EUR 800 million agreement for the Laakso Joint Hospital project, of which about half has been entered into our order backlog to date. The remaining phases will be entered into our order backlog in stages during 2024-2030. In addition, previously won contracts and projects under preliminary contracts will be recognised in our order backlog, with a value of around EUR 933 million. 

In the current market situation, it is extremely important that our balance sheet is strong and our financing is in good shape. The total number of unsold completed residential units is low at 96, and the company has not committed a significant amount of its own capital into unsold housing. With respect to financing, in April, after the review period, we agreed with our main financier banks to exercise the one-year extension option of our current EUR 40 million committed revolving credit facility, which is tied to sustainability targets. In accordance with the exercised extension option, the revolving credit facility is valid until April 2026. 

In February, we concluded the change negotiations we had initiated in January with a view to adjusting our costs to the ongoing challenging market situation. These negotiations resulted in slightly smaller personnel cuts and layoffs than anticipated, a total of 19 person-years. We managed to transfer roles and personnel from housing construction to business premises projects, and thereby retained solid expertise within the company.  

We do not expect any changes in the market situation - a significant improvement is not foreseen until towards the end of the year at the earliest. Nevertheless, we expect that our revenue and earnings will improve in 2024 thanks to our strong order backlog in cooperative contracting. In addition, we believe that it will be possible to start up selected development or developer-contracted projects in the latter part of the year - the contributing factors are lower construction costs, forecast reductions in interest rates and gradual rent inflation, which support the investment decisions of our customers."
Saku Sipola
 

Key Figures

[][][][]
1-3/ 1-3/ 1-12/
(IFRS, milj. 2024 2023 change change, 2023
eur) %
Revenue                            167.0                                                          20.7                            610.0
138.3 28.7
Operative                                                                                                                                 
operating 1.3 -2.0 3.2 1.1
profit
Operative 0.8 -1.4 2.2 0.2
operating
profit, %
Operating                                                                                                                             
profit 1.3 -2.0 3.2 -6.8
Operating 0.8 -1.4 2.2 -1.1
profit, %
Profit before                                                                                                                         
taxes 0.5 -4.4 5.0 -15.7
Net profit for                                                                                                                            
the 0.5 -3.1 3.6 -15.1
period
Net profit for 0.3 -2.3 2.6 -2.5
the
period, %
Earnings per -0.0 -0.2 0.2 -1.0
share
[1)]
Order backlog                         1020.4                            871.0                            17.2                         1048.6
(unrecognised) 149.5
Equity ratio, 33.9 35.0 -1.1 34.4
%
Equity ratio, 47.5 49.2 -1.7 48.0
%, excl.
IFRS 16 [2)]
Net interest                                                                                                                       99.4
-bearing 112.1 117.4 -5.3
debt
Net interest                                                                                                                             
-bearing 3.5 6.1 -2.7 -6.3
debt, excl.
IFRS 16
[2)]
Net gearing 80.5 82.2 -1.7 71.7
ratio, %
Net gearing 2.4 4.1 -1.7 -4.3
ratio, %,
excl. IFRS 16
[2)]
Financing                                                                                         29.8                              78.6
reserves 68.2 52.6 15.7

1. The figure has been calculated excluding the hybrid bond interest, tax adjusted

2. The figure has been adjusted to remove the impacts of IFRS 16

Espoo, 25 April 2024
Board of Directors
All forward-looking statements in this interim report are based on management's current expectations and beliefs about future events. The company's actual results and financial position may differ materially from the expectations and beliefs such statements contain due to a number of factors that have been presented in this interim report. 
Briefing, webcast and presentation materials

A briefing for analysts, investors and media representatives will be held as a webcast on 25 April 2024, starting at 11:00 EEST. The webcast can be followed live at www.srv.fi/en/investors. The recording will be available on the website after the presentation. The materials will also be made available on the website.
For further information, please contact:

Saku Sipola, President & CEO, tel. +358 (0)40 551 5953, saku.sipola@srv.fi
Jarkko Rantala, CFO, tel. +358 (0)40 674 1949, jarkko.rantala@srv.fi
Miia Eloranta, Senior Vice President, Communications and Marketing, tel. +358 (0)50 441 4221, miia.eloranta@srv.fi 

Distribution:
Media
www.srv.fi

You can also find us on the social media:

Facebook (https://www.facebook.com/srv.fi)   LinkedIn (https://www.linkedin.com/company/srv)   X (https://twitter.com/SRVYhtiot)   Instagram (https://instagram.com/srvfinland/)
 

SRV in brief

SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes the wellbeing of both the environment and people into consideration. We call this approach lifecycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter - and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.

Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in Finland. In 2023, our revenue totalled EUR 610 million. In addition to approximately 800 in-house staff, we had a network of around 3,300 partners.

SRV - Building for life