Implenia back in the black

Implenia generated an operating profit (Ebit) of CHF 114.8 million in 2021, following a loss of CHF 146.8 million in the previous year. The construction company announced that it had thus significantly exceeded its target of achieving an EBIT of more than CHF 100 million. All divisions and relevant markets contributed to the increase. The result was also positively influenced by one-off effects amounting to 38.3 million in the course of the company's transformation. Implenia now focuses on construction and real estate services in Switzerland and Germany and offers tunneling and related infrastructure projects in other markets.

The order backlog reportedly reached 6.88 billion, compared with 6.38 billion a year earlier. Revenue fell less than expected despite portfolio adjustments and longer project durations, Implenia added: It declined from 3.98 billion to 3.76 billion. Net profit amounted to 64.0 million; in 2020, it was still a minus of 132.1 million. "Following portfolio adjustments, with a strategic focus on profitable, complex projects and thanks to Value Assurance, all divisions are well positioned to further increase profitability," says CEO André Wyss.

Once again no dividend in sight

As in the previous year, there will be no dividend despite the good figures. The board of directors intends to propose to the annual general meeting on March 29 that no distribution be made in order to strengthen equity by at least 80 million in the current year, Implenia said. The equity ratio as of Dec. 31, 2021, was 11.6% (2020: 10.3%). In the medium term, the company is aiming for a value of over 20%, it said. This is to be achieved through improved operating business including rising service revenues and the expected dividends from investments.

For 2022, Implenia expects an Ebit of over 120m, and in the medium term the company aims to achieve an Ebit margin of 3.5%. In the long term, it should be 4.5%.

Changes in the Board of Directors and Group Management

As Implenia announced together with its annual results, there will be changes to the Board of Directors and the Executive Committee. Board member Ines Pöschel will not stand for re-election; she has been a member and Chair of the Nomination and Compensation Committee since 2016. Judith Bischof, a lawyer and member of the Executive Committee of Ruag International Holding since 2018, is to be elected as her successor. She has extensive expertise and leadership skills in law and compliance as well as business transformation, Implenia said.

Chief Financial Officer (CFO) Marco Dirren will leave Implenia at his own request at the end of June following a handover period, the company adds. As of May 1, Stefan Baumgärtner will take over the position of CFO and thus also become a member of the Executive Committee. Baumgärtner has been CFO and a member of the Executive Committee of the EMS Group since 2017.

As Head Buildings and Country President Germany, Matthias Jacob will focus on the development of the strategically important German market. He will step down from the Executive Committee on March 1, 2022, but will remain a member of the Group's senior management team. (ah)