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Annual Review 2023 cover

Annual Review 2023 contains financial statements, the report of the Board of Directors and the auditor’s report as well as remuneration report and the corporate governance statement for 2023.

ESEF xHTML-file (available in Finnish only)

Annual Review 2023 ESEF xHTML -file (in Finnish only)

 

Analysts following Kreate

  • Mika Karppinen, Danske Bank
  • Olli Koponen, Inderes
Read all Inderes' analyses

Result guidance for 2024

(Published on 31 January 2024)

Kreate estimates that its revenue in 2024 will decline and be in the range of EUR 270–300 million (2023: EUR 320.0 million) and EBITA will increase and be in the range of EUR 8–11 million (2023: EUR 7.8 million).

Justifications: The company’s guidance is based on the order backlog expected to be realised in 2024 at the turn of the year. The company sees stable continuity in Kreate’s characteristic demanding infrastructure construction due to the countercyclical nature of the business, despite the prevailing level of interest rate and cost inflation and the general market outlook. The company offers projects more selectively, which is expected to decrease revenue and improve profitability.

Result guidances for 2023

 

Last update 25 Oct 2023: No changes to Guidance

Result guidance for 2023 (published on 6 July 2023)

Kreate estimates that its revenue (2022: EUR 273.9 million) will be EUR 300–325 million. EBITA (2022: EUR 8.8 million) is estimated to be at the level of EUR 7.0–8.5 million.

Justifications:

A strong order backlog and the planned and partly faster than expected execution of projects have increased Kreate’s revenue in the first half of the year. The same trend is expected to continue in the second half of the year, leading to a higher level of revenue than previously estimated.

At the same time, the high level of inflation and wage development in the industry during the early part of the year, as well as changes in the overall construction market, have impacted profitability. In addition, contrary to previous estimates, projects without indexation terms from previous years have caused negative margin effects, thereby weakening the profitability for the year 2023. In the railway construction business, the postponement of projects initially expected to start in the early part of the year has tightened the market and had a negative impact on the estimated volume and profitability of this business.

Previous result guidance for 2023 (published on 31 January 2023)

Kreate estimates that its revenue is at the level of 2022 (2022: EUR 273.9 million) and EBITA (2022: EUR 8.8 million) will grow compared to the year 2022.

Justifications:

Kreate’s high order backlog at the beginning of 2023 supports the positive development of turnover, but the general economic situation may affect the accumulation of new order backlog during the year. In addition to the order backlog, Kreate’s specialisation in demanding construction and the stable infrastructure construction market will support EBITA growth in 2023.

Vuosikatsaus 2022

Annual Review 2022 contains financial statements, the report of the Board of Directors and the auditor’s report as well as the sustainability report, remuneration report and the corporate governance statement for 2022

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Result guidances for 2022
Preliminary information on Kreate’s financial performance in 2022 (published on 11 January 2023)

Kreate Group Plc (“Kreate”) publishes preliminary information on the company’s financial performance in Q4 and for the entire year. According to preliminary, unaudited information, Kreate’s revenue in 2022 grew to EUR 273.9 million, with EBITA at EUR 8.8 million.

The result guidance for 2022, issued on 30 September 2022:
Kreate estimates that the company’s revenue (2021: EUR 237.6 million) will grow compared to 2021 and will be approximately EUR 250–260 million. EBITA (2021: EUR 10.5 million) will decrease to a level of EUR 8.5–9.5 million.

Kreate’s stronger order backlog, new projects started in Q4, efficient execution of projects and strategic specialisation in demanding construction contributed to the company’s Q4 revenue growing more than previously estimated. The development of the company’s EBITA were impacted by long-term projects not bound to an index as well as the general cost inflation and increase in interest rates.

Read the Inside Information bulletin.

Previous result guidance for 2022 (published on 30 September 2022)

Kreate estimates that the company revenue (2021: EUR 237.6 million) will grow compared to 2021 to approximately EUR 250–260 million. EBITA (2021: EUR 10.5 million) will decrease to a level of EUR 8.5–9.5 million.

Justifications:

Kreate’s strong order backlog and specialisation in demanding construction as well as the stable infrastructure construction market have supported the company’s revenue and order backlog as expected. The 120 million euros project “Highway 180 Kirjalansalmi and Hessundinsalmi bridge renovation”, which will launch in Q4, is already increasing the revenue for 2022 and is an excellent example of Kreate’s strong expertise and competitiveness.

The changes in the operating environment due to cost inflation, which are particularly reflected in increased fuel costs and energy prices, as well as the earlier long-term projects that are not bound to an index will impact the development of EBITA and relative profitability more than estimated during the 2022 financial year. Long-term projects or general cost inflation are not expected to impact the profitability in year 2023. In the contracts signed in 2022, attempts have been made to take the changes in the cost level into account better than before through contractual means.

Furthermore, the company’s accelerated strategic expansion to the electric railway and safety device business, which was announced in September, will result in one-time costs in 2022. However, the investments made at this time will enable the more effective implementation of growth plans in railway construction in the coming years.

Previous result guidance for 2022 (published on 26 January 2022)

Kreate estimates that the company revenue (2021: EUR 237.6 million) and EBITA (2021: EUR 10.5 million) will grow compared to 2021.

Justifications:

Kreate’s strong order backlog and specialisation in demanding construction as well as the stable infrastructure construction market support the company’s strategic growth forecast.

Vuosikatsaus 2021

Annual Review 2021 contains financial statements, the report of the Board of Directors and the auditor’s report as well as the remuneration report and the corporate governance statement for 2021

ESEF xHTML-file is available only in Finnish

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Result guidances for 2021
Result guidance for 2021 (published on 23 November 2021)

Kreate estimates that its revenue and EBITA will remain at the 2020 level (2020: revenue EUR 235.3 million and EBITA EUR 10.5 million).

Justifications:

The changes in the revenue guidance are due to the positive development of the order backlog in the current year and significant projects being kicked off in Q4.

Kreate has not previously published the EBITA guidance for 2021. In the future Kreate is going to publish a guidance concerning revenue and EBITA.

Previous result guidance for 2021 (published on 8 February 2021)

Kreate estimates that the company revenue (2020: EUR 235.3 million) will decrease in 2021 compared to 2020.

On 31 Dec 2020, Kreate’s order backlog amounted to EUR 134.9 million (31 Dec 2019: EUR 177.2 million). Of this sum, approximately EUR 111 million was expected to be realised during 2021 (31 Dec 2019: EUR 130.3 million during 2020). In the past three years (2018–2020), Kreate has generated, on average, a revenue of EUR 107 million during the financial year in addition to the order backlog at the beginning of the financial year. Kreate estimates on 8 February 2020 that the expected order backlog profitability was at a normal level on 31 December 2020.

Vuosikatsaus 2020

Annual Review 2020 contains financial statements, the report of the Board of Directors and the auditor’s report as well as the remuneration report and the corporate governance statement for 2020

Annual review

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