Lehto Group Plc: Lehto Updates the Financial Outlook for Year 2017
Lehto Group Plc
Stock Exchange Release
May 24, 2017 at 6:30 p.m. EEST
Lehto Updates the Financial Outlook for Year 2017
Updated outlook May 24, 2017:
In 2017 Lehto’s net sales is expected to grow 40-50% from previous year (EUR 361.8 million in 2016) and operating profit is expected to be above 10% (11.2% in 2016) of the net sales.
The main reason behind the improved outlook is better than estimated progress in Business Premises, Housing and Social Care and Educational premises service areas. Lehto has received more new orders and the projects have been started earlier than estimated. The outlook is based on information available to the company on the progress of ongoing construction projects and the company’s estimate of construction projects to be started and sold in 2017.
The most significant risks related to 2017 net sales and operating profit are availability of labour force, sufficiency of the manufacturing capacity and possible delay in start of new projects that are still in negotiation phase. Failures in recruitment of new labor force and in increasing of manufacturing capacity could delay the progress of the construction projects and the development of net sales and operating profit.
Previous outlook reported in January-March 2017 business review report (May 11, 2017):
In 2017 Lehto’s net sales is expected to grow at minimum 30% (31.3% in 2016) and operating profit is expected to be above 10% (11.2% in 2016) of the net sales.
Veli-Pekka Paloranta, Chief Financial Officer
+358 400 944 074
Lehto Group in brief
Lehto is the fastest growing construction and real estate group in Finland. We operate in four service areas: Business Premises, Housing, Social Care and Educational Premises, and Building Renovation. We are the innovator and pioneer of the construction sector. Our economically driven operating model makes construction more profitable, ensures the quality of construction and brings significant time and cost savings to the customer. We employ 889 people (Q1 2017) and our net sales for 2016 amounted to EUR 362 million.