Implenia with strong growth in the first half of the year

Implenia generated sales of CHF 2.124 billion in the first half of this year (previous year: CHF 1.692 billion), with purely organic growth reportedly amounting to 22 percent (adjusted for foreign currency effects: 18%). According to the company, around 70 percent of this organic growth (adjusted for foreign currency effects: a good 60%) is attributable to activities outside Switzerland.

At EBITDA level, the Group achieved a result of 56.0 million after 34.5 million in the previous year. Excluding the amortization costs for the intangible assets acquired as part of the takeovers in Germany (PPA), EBIT for the divisions amounted to 29.5 million (previous year: 0.1 million). The operating result (incl. PPA) rose to 18.1 million, following a loss of 9.6 million in the previous year. Below the line, Implenia achieved a net profit of 8.9 million (previous year: -11.9 million). At the end of June 2018, the order backlog stood at 6.234 billion, still above the previous year's high of 6.077 billion.

Record figure in the Development segment

With EBIT of 22.7 million in the first half of the year (previous year: 20.4 million), the Development segment achieved a new record figure and a year-on-year increase of twelve percent. The focus of activities remains on the strong growth regions in the greater Zurich area and along the Arc lémanique. "The full pipeline and the high quality of the development projects give us confidence for the future," says Implenia.

In the Switzerland segment, which includes building construction and civil engineering, sales increased by 13% to 1.202 billion compared to the previous year. EBIT improved to 1.6 million, following a loss of 15.6 million in the previous year. In road construction and civil engineering, the effect of the optimization measures introduced in German-speaking Switzerland is not yet apparent as hoped, Implenia reports. The adjustment of the structural challenges in the Swiss surface business is progressing less quickly than expected. At 3.278 billion on the reporting date, the order backlog was significantly higher than the previous year's figure of 2.941 billion.

However, Implenia is satisfied with the performance of the Infrastructure segment. Sales rose by 41 percent to 361.5 million (previous year: 257.0 million) and EBIT (excl. PPA) by 36 percent to 10.6 million (previous year: 7.8 million).

International segment closes first half-year with loss

The International segment, on the other hand, is not yet meeting expectations, according to Implenia. The hoped-for break-even point will not yet be reached in the current year. The Norwegian business and the fact that the seasonally weak months of January and February have been consolidated for the first time in Building Construction Germany are having a negative impact. Sales in the segment rose by 35% to 732.3 million (previous year: 541.1 million) and EBIT (excl. PPA) improved year-on-year to -5.5 million (previous year: -12.5 million). At the end of June 2018, the order backlog amounted to 1.769 billion, compared to 1.683 billion in the previous year.

Implenia is optimistic for the year as a whole and expects EBIT (excl. PPA) to be well above the previous record figure. However, the original target of 140 million will probably not be achieved in the current year. Instead, Implenia expects EBIT for the divisions to be around 130 million, which is also a new record in the company's history. However, the company confirmed its medium-term targets of a top line volume of around five billion and an EBITDA margin of between 5.25 and 5.75 percent. (ah)