02/25/2020
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02/25/2020
Implenia recorded in 2019 results below analysts’ expectations, both in terms of turnover and profitability. Nevertheless, the results are in line with the company’s objectives, the latter said on Tuesday.
The construction specialist’s turnover reached 4.43 billion francs, up 1.5% year-on-year and 3.6% at constant exchange rates. The order book showed a slight decline with 6.16 billion, against 6.25 billion a year earlier. It is “well diversified and of improved quality”, specifies the press release.
Operating income (Ebitda) excluding IRFS reached 130.8 million, compared to 89.7 million a year earlier. IFRS included, it reached 186.8 million. About 20 million have been allocated for the implementation of the strategy.
In 2019 Implenia applied, for the first time, the new IFRS 16 accounting standard on leases. According to IFRS 16, the assets and liabilities related to leases must appear on the balance sheet. The inclusion of usage rights in assets and rental obligations in liabilities leads to an expansion of the balance sheet as well as an increase in EBITDA and free cash flow.
Net profit amounted to 33.9 million francs, after only 0.5 million in 2018. The group plans to pay a dividend of 0.75 cents per share, up 50% year on year.
Free cash flow amounted to CHF 84.9 million (excluding IFRS 16: 33.5 million; 2018: -52.6 million).
The results are lower than analysts’ forecasts. The consensus had indeed forecast sales of 4.47 billion, non-IFRS Ebitda of 168.5 million and net profit of 37.5 million. The dividend was expected to average 0.80 francs.
For the future, Implenia wants to grow profitably and sustainably. The group aims for 2020 to increase Ebitda at a single-digit percentage rate in the middle of the range, before costs of implementing its strategy of 10 million. The medium-term Ebitda margin target between 6.25% and 6.75% (including IFRS 16) is confirmed.
Transfer of activities in Ina Invest
The projects in development represent a current market value of more than 600 million, or more than 3 billion at the time of completion. In the second quarter of 2020, Implenia intends to transfer half of its developing portfolio to market value to the newly created real estate company Ina Invest, in which the group plans to hold 40% of the shares.
The other shares of Ina Invest will be held by Ina Invest Holding, a newly created real estate company, whose shares will be listed in June 2020 on the SIX Swiss Exchange.
Implenia plans to distribute all the shares of Ina Invest Holding to the shareholders of Implenia, who will vote at the next general meeting. They may be allocated the shares of Ina Invest Holding in the form of a dividend in kind, in order to allow the creation of the spin-off of the company Ina Invest Holding.
If they approve the transaction, the shareholders will receive one Ina Invest Holding share for five Implenia shares. The net asset value (NAV) of an Ina Invest Holding SA share will amount to approximately 25 francs (or 5 francs per Implenia share).
The transaction will allow Implenia to benefit from recurring revenues as well as a wider diversification of risks.
ats, awp
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