Slump in profits at Implenia
Implenia reports a consolidated result of CHF 0.5 million for the first half of 2019, compared with CHF 8.9 million in the previous year. Sales and Ebitda, however, increased.
According to Implenia, sales increased by 2.8% to 2.18 billion. Ebitda reached 72.9 million.
The Group's operating result of 11.4 million is significantly below the previous year's figure of 27.2 million. Implenia attributes the decline to the effects of the corrections made at the end of 2018 and to the implementation of the new strategy. Costs of around 10 million had been incurred to date for the transformation of the company. The bottom line is a consolidated result of 0.5 million.
Implenia reports that the result for the first half of the year confirms expectations. The company is on track with the implementation of its new strategy: the new organization with the four divisions Development, Building Construction, Civil Engineering and Specialties, the global functions (Finance, HR, Legal, Strategy, Group IT, Marketing/Communications) and the competence center "Project Excellence & Services" as well as the country presidents have established themselves in a very short time and are showing results.
In view of a high order backlog, Implenia confirms the Ebitda target for 2019 of over 150 million before strategy implementation costs of around 20 million. In the medium term, the Ebitda margin is expected to be between 5.25% and 5.75%. (ah)
