2023 III quarter and 9 months consolidated interim report
(unaudited)
Economic environment
The rapid changes in the construction market due
to the economic environment have continued, complicating the growth
plans of companies and other related industries in the sector, and
limiting their courage to act. Coping with difficult circumstances
and falling construction volumes are keywords for most companies in
the field.In 2022, the construction price index increased by 17.8%
year-on-year and the increase has continued in 2023. The temporary
decrease in construction prices in the second quarter has been
replaced by an increase in the third quarter. In the third quarter
of this year, the construction price index increased 0.3% compared
to the second quarter and 3.2% compared to the same time last
year.2023 will be most affected by the sharp fall in confidence to
make investments because of high inflation and an environment of
soaring interest rates. At the same time, labour costs have
continued to rise rapidly. In an environment of decreased demand,
these factors hold back the decline in construction prices.
Group result
The group's third quarter and 9 months of 2023
are characterised by a decline in sales revenue, improved
profitability, and an increase in the order book. The group's sales
revenue for the 9 months of 2023 amounted to €200,384 thousand,
down about 16% from the previous period. The decrease in sales
revenue in both segments, 15% in the Buildings segment and 20% in
the Infrastructure segment, is expected and is due to the decrease
in construction volumes in the market. Although the group has been
successful in signing new contracts this year, they did not have a
significant impact on the revenue during the reporting period.The
group's profitability has improved despite difficult market
conditions. The restructuring of the Infrastructure segment, which
started in 2022 and was completed in the first half of 2023, will
have a significant impact on profitability. Through the elimination
of duplicative activities, the use of resources has been made more
efficient and thereby the profitability improved. Nordecon group's
gross profit for the 9 months of 2023 was €8,770 thousand,
representing margin of 4.4% (9M 2022: 2.2%) in 9 months and 5.3% in
the third quarter (3Q 2022: 2.3%).As at 30 September 2023, the
order book of the group amounted to €251,155 thousand. Compared to
the same period last year, the volume of unfinished works has
increased by 33%. In the 9 months of 2023, new contracts totalling
€303,761 thousand were signed, including €95,301 thousand in the
third quarter.
Condensed consolidated interim statement
of financial position
€’000 |
30 September 2023 |
31 December 2022 |
ASSETS |
|
|
Current assets |
|
|
Cash and cash equivalents |
13,936 |
7,238 |
Trade and other receivables |
53,052 |
48,084 |
Prepayments |
5,283 |
6,728 |
Inventories |
31,640 |
25,454 |
Total current assets |
103,911 |
87,504 |
Non-current assets |
|
|
Other investments |
76 |
76 |
Trade and other receivables |
8,992 |
8,604 |
Investment property |
5,547 |
8,347 |
Property, plant and equipment |
16,195 |
17,669 |
Intangible assets |
15,160 |
15,134 |
Total non-current assets |
45,970 |
49,830 |
TOTAL ASSETS |
149,881 |
137,334 |
|
|
|
LIABILITIES |
|
|
Current liabilities |
|
|
Borrowings |
16,487 |
17,193 |
Trade payables |
72,220 |
65,144 |
Other payables |
9,505 |
8,324 |
Deferred income |
13,987 |
6,996 |
Provisions |
1,810 |
1,288 |
Total current liabilities |
114,009 |
98,945 |
Non-current liabilities |
|
|
Borrowings |
5,414 |
6,311 |
Trade payables |
2,211 |
2,769 |
Provisions |
2,754 |
2,049 |
Total non-current liabilities |
10,379 |
11,129 |
TOTAL LIABILITIES |
124,388 |
110,074 |
|
|
|
EQUITY |
|
|
Share capital |
14,379 |
14,379 |
Own (treasury) shares |
(660) |
(660) |
Share premium |
635 |
635 |
Statutory capital reserve |
2,554 |
2,554 |
Translation reserve |
3,268 |
3,316 |
Retained earnings |
239 |
2,691 |
Total equity attributable to owners of the
parent |
20,415 |
22,915 |
Non-controlling interests |
5,078 |
4,345 |
TOTAL EQUITY |
25,493 |
27,260 |
TOTAL LIABILITIES AND EQUITY |
149,881 |
137,334 |
Condensed consolidated interim statement
of comprehensive income
€’000 |
9M 2023 |
Q3 2023 |
9M 2022 |
Q3 2022 |
2022 |
Revenue |
200,384 |
76,565 |
239,175 |
89,919 |
322,860 |
Cost of sales |
(191,614) |
(72,526) |
(233,911) |
(87,836) |
(314,365) |
Gross profit |
8,770 |
4,039 |
5,264 |
2,083 |
8,495 |
|
|
|
|
|
|
Marketing and distribution expenses |
(562) |
(245) |
(313) |
(127) |
(490 |
Administrative expenses |
(6,016) |
(2,164) |
(5,139) |
(2,021) |
(7,287) |
Other operating income |
304 |
(9) |
1,920 |
64 |
2,049 |
Other operating expenses |
(212) |
(10) |
(392) |
(116) |
(462) |
Operating profit (loss) |
2,284 |
1,611 |
1,340 |
(117) |
2,305 |
|
|
|
|
|
|
Finance income |
291 |
146 |
174 |
28 |
258 |
Finance costs |
(2,343) |
(531) |
(2,702) |
(1,325) |
(3,740) |
Net finance costs |
(2,052) |
(385) |
(2,528) |
(1,297) |
(3,482) |
|
|
|
|
|
|
Profit (loss) before tax |
232 |
1,226 |
(1,188) |
(1,414) |
(1,177) |
Income tax expense |
(596) |
0 |
(200) |
0 |
(264) |
Profit (loss) for the period |
(364) |
1,226 |
(1,388) |
(1,414) |
(1,441) |
|
|
|
|
|
|
Other comprehensive income (expense)Items
that may be reclassified subsequently to profit or
loss |
|
|
|
|
|
Exchange differences on translating foreign operations |
(48) |
(302) |
762 |
1,021 |
1,368 |
Total other comprehensive income (expense) |
(48) |
(302) |
762 |
1,021 |
1,368 |
TOTAL COMPREHENSIVE INCOME (EXPENSE) |
(412) |
924 |
(626) |
(393) |
(73) |
|
|
|
|
|
|
Profit (loss) attributable to: |
|
|
|
|
|
- Owners of the parent |
(2,452) |
41 |
(2,651) |
(1,723) |
(3,650) |
- Non-controlling interests |
2,088 |
1,185 |
1,263 |
309 |
2,209 |
Profit (loss) for the period |
(364) |
1,226 |
(1,388) |
(1,414) |
(1,441) |
|
|
|
|
|
|
Comprehensive income (expense)
attributable to: |
|
|
|
|
|
- Owners of the parent |
(2,500) |
(261) |
(1,889) |
(702) |
(2,282) |
- Non-controlling interests |
2,088 |
1,185 |
1,263 |
309 |
2,209 |
Comprehensive income (expense) for the period |
(412) |
924 |
(626) |
(393) |
(73) |
|
|
|
|
|
|
Earnings per share attributable to owners of the
parent: |
|
|
|
|
|
Basic earnings per share (€) |
(0.08) |
0.00 |
(0.08) |
(0.05) |
(0.12) |
|
Diluted earnings per share (€) |
(0.08) |
0.00 |
(0.08) |
(0.05) |
(0.12) |
|
Condensed consolidated interim statement
of cash flows
€’000 |
9M 2023 |
9M 2022 |
Cash flows from operating activities |
|
|
Cash receipts from customers |
249,453 |
281,240 |
Cash paid to suppliers |
(211,054) |
(255,661) |
VAT paid |
(8,563) |
(6,348) |
Cash paid to and for employees |
(18,225) |
(19,192) |
Income tax paid |
(574) |
(244) |
Net cash from (used in) operating activities |
11,037 |
(205) |
|
|
|
Cash flows from investing activities |
|
|
Acquisition of property, plant and equipment |
(318) |
(289) |
Proceeds from sale of property, plant and equipment |
384 |
537 |
Loans provided |
(524) |
(18) |
Repayments of loans provided |
12 |
14 |
Dividends received |
12 |
6 |
Interest received |
25 |
5 |
Net cash from (used in) investing activities |
(409) |
255 |
|
|
|
Cash flows from financing activities |
|
|
Proceeds from loans received |
1,344 |
3,264 |
Repayments of loans received |
(799) |
(3,134) |
Lease payments made |
(2,194) |
(2,619) |
Interest paid |
(935) |
(722) |
Dividends paid |
(1,347) |
(792) |
Net cash used in financing activities |
(3,931) |
(4,003) |
|
|
|
Net cash flow |
6,697 |
(3,953) |
|
|
|
Cash and cash equivalents at beginning of
period |
7,238 |
9,031 |
Effect of movements in foreign exchange rates |
1 |
(13) |
Change in cash and cash equivalents |
6,697 |
(3,953) |
Cash and cash equivalents at end of period |
13,936 |
5,065 |
Financial review
Financial performance
The group’s profitability has improved in
challenging market conditions. The restructuring of the group’s
Infrastructure segment, which was started in 2022 and completed in
the first half of 2023, has had a significant positive impact.
Elimination of duplication of work has increased resource
efficiency and thus profitability.Nordecon ended the nine months of
2023 with a gross profit of €8,770 thousand (9M 2022: €5,264
thousand). Profitability improved year on year with the group’s
gross margin rising to 4.4% for the nine months (9M 2022: 2.2%) and
5.3% for the third quarter (Q3 2022: 2.3%). The two main operating
segments earned a profit and improved their profitability in both
the third quarter and nine months. The gross margins of the
Buildings segment were 5.3% for the nine months and 5.9% for the
third quarter (9M 2022: 3.4% and Q3 2022: 2.7%). The gross margins
of the Infrastructure segment were lower: 2.0% for the nine months
and 4.5% for the third quarter (9M 2022: (2.0)% and Q3 2022: 2.0%).
The group’s administrative expenses for the nine-month period were
€6,016 thousand. Compared with a year earlier, administrative
expenses grew by around 17% (9M 2022: €5,139 thousand) due to
growth in staff costs. The ratio of administrative expenses to
revenue (12 months rolling) increased year on year, rising to 2.9%
(9M 2022: 2.2%).The group earned an operating profit of €2,284
thousand in the first nine months of 2023 (9M 2022: €1,340
thousand). EBITDA for the period was €4,854 thousand (9M 2022:
€3,920 thousand). Operating profit and EBITDA for the comparative
period were influenced by other income of €1,560 thousand,
recognised after the approval of the restructuring plan of Swencn
AB. The group’s finance income and finance costs are affected by
exchange rate fluctuations in the group’s foreign markets and the
rise in interest rates as the group’s loan burden is relatively
high. During the nine months of 2023, exchange rate movements were
favourable and the translation of the loans provided to the group’s
Ukrainian and Swedish subsidiaries in euros into the local
currencies gave rise to a net exchange gain of €66 thousand (9M
2022: a loss of €916 thousand).The group ended the period with a
net loss of €364 thousand (9M 2022: €1,388 thousand). The net loss
attributable to owners of the parent, Nordecon AS, was €2,452
thousand (9M 2022: €2,651 thousand).
Cash flows
Operating activities in the nine months of 2023
produced a net cash inflow of €11,037 thousand (9M 2022: an outflow
of €205 thousand). Operating cash flow is strongly influenced by
the fact that the contracts signed with most public and private
sector customers do not require them to make advance payments while
the group has to make prepayments to subcontractors and materials
suppliers. Cash inflow is also reduced by contractual retentions,
which extend from 5 to 10% of the contract price and are released
at the end of the construction period only.Investing
activities of the period resulted in a net cash outflow of €409
thousand (9M 2022: an inflow of €255 thousand). Investments in
property, plant and equipment amounted to €318 thousand (9M 2022:
€289 thousand) and proceeds from the sale of property, plant and
equipment amounted to €384 thousand (9M 2022: €537 thousand). Loans
provided amounted to €524 thousand (9M 2022: €18
thousand).Financing activities of the period generated a net cash
outflow of €3,931 thousand (9M 2022: an outflow of €4,003
thousand). The largest items were cash flows related to loans and
leases. Loans received amounted to €1,344 thousand, consisting of
the use overdrafts and development loans (9M 2022: €3,264
thousand). Repayments of loans received were €799 thousand (9M
2022: €3,134 thousand), consisting of regular repayments of
long-term investment and development loans. Lease payments were
€2,194 thousand (9M 2022: €2,619 thousand). Dividends paid in the
first nine months of 2023 amounted to €1,347 thousand (9M 2022:
€792 thousand).The group’s cash and cash equivalents at 30
September 2023 amounted to €13,936 thousand (30 September 2022:
€5,065 thousand).
Key financial figures and
ratios
Figure/ratio |
9M 2023 |
9M 2022 |
9M 2021 |
2022 |
Revenue (€’000) |
200,384 |
239,175 |
208,894 |
322,860 |
Revenue change |
(16.2)% |
14.5% |
(4)% |
11.9% |
Net loss (€’000) |
(364) |
(1,388) |
(368) |
(1,441) |
Net loss attributable to owners of the parent (€’000) |
(2,452) |
(2,651) |
(796) |
(3,650) |
Weighted average number of shares |
31,528,585 |
31,528,585 |
31,528,585 |
31,528,585 |
Earnings per share (€) |
(0.08) |
(0.08) |
(0.03) |
(0.12) |
Administrative expenses to revenue |
3.0% |
2.1% |
2.0% |
2.3% |
Administrative expenses to revenue (rolling) |
2.9% |
2.2% |
2.1% |
2.3% |
EBITDA (€’000) |
4,854 |
3,920 |
2,961 |
5,766 |
EBITDA margin |
2.4% |
1.6% |
1.4% |
1.8% |
Gross margin |
4.4% |
2.2% |
2.3% |
2.6% |
Operating margin |
1.1% |
0.6% |
0.2% |
0.7% |
Operating margin excluding gain on non-current asset sales |
1.0% |
0.4% |
0.1% |
0.6% |
Net margin |
(0.2)% |
(0.6)% |
(0.2)% |
(0.4)% |
Return on invested capital |
1.9% |
(1.1)% |
1.7% |
(0.5)% |
Return on equity |
(1.4)% |
(5.1)% |
(1.0)% |
(5.2)% |
Equity ratio |
17% |
17.8% |
22.9% |
19.8% |
Return on assets |
0.3% |
(1.0)% |
(0.3)% |
(1.1)% |
Gearing |
16.8% |
36.6% |
32.1% |
32.0% |
Current ratio |
0.91 |
0.90 |
0.98 |
0.88 |
|
30 Sept 2023 |
30 Sept 2022 |
30 Sept 2021 |
31 Dec 2022 |
Order book (€’000) |
|
251,155 188,847 |
293,141 |
149,799 |
Performance by geographical
market
Revenue generated outside Estonia, mostly in
Finland and Ukraine, accounted for 2% of the group’s total revenue
for the nine months of 2023. Despite the war, Nordecon’s
construction volumes in Ukraine have increased year on year. In
June we completed and delivered on time a modular kindergarten with
a bomb shelter in the city of Ovruch and started building phase II
of the kindergarten project. Finnish revenues, which include mainly
subcontracting revenue from the provision of concrete works, have
decreased. Nordecon did not generate any revenue and had no ongoing
construction contracts in the Swedish market. The group operates on
a project basis in Latvia and Lithuania, but in the period under
review Lithuania accounted for less than 1% of the group’s revenue
and the group did not earn any revenue in Latvia.
|
9M 2023 |
9M 2022 |
9M 2021 |
2022 |
Estonia |
98% |
96% |
95% |
96% |
Finland |
1% |
2% |
4% |
2% |
Ukraine |
1% |
0% |
1% |
0% |
Lithuania |
0% |
1% |
0% |
1% |
Latvia |
0% |
1% |
0% |
1% |
Performance by business
line
Segment revenues
We strive to maintain the revenues of our two
main operating segments (Buildings and Infrastructure) in balance,
if this is permitted by market conditions, because this helps
diversify risks and provides better opportunities to continue
construction operations in more challenging market conditions where
the volumes of one subsegment may decline sharply while the volumes
of another may grow more rapidly.The group’s revenue for the nine
months of 2023 was €200,384 thousand, roughly 16% lower than in the
same period last year, when the figure was €239,175 thousand. The
Buildings segment generated revenue of €165,047 thousand and the
Infrastructure segment revenue of €35,295 thousand. The
corresponding figures for the same period in 2022 were €195,157
thousand and €43,845 thousand. Revenue declined by 15% in the
Buildings segment and by20% in the Infrastructure segment. The
decrease in both segments was expected and is attributable to
market contraction. Although the group has been successful in
winning new contracts in 2023, these did not yet affect revenue for
the period. The steep fall in the revenue of the Infrastructure
segment to its practically lowest-ever level is directly related to
cutbacks in the investments of the largest customer, the Transport
Administration. This is counterbalanced to some extent by the
group's success in securing renewable energy projects: the
construction of wind farms and Rail Baltica account for an
increasing share of the revenue of the Infrastructure segment.
Revenue by operating segment |
9M 2023 |
9M 2022 |
9M 2021 |
2022 |
Buildings |
75% |
78% |
72% |
81% |
Infrastructure |
25% |
22% |
28% |
19% |
Subsegment revenues
In the Buildings segment, the revenues of all
subsegments decreased compared with the same period in 2022. The
largest revenue contributors are still the public buildings and the
apartment buildings subsegments whose revenues decreased less. The
revenues of the commercial buildings and the industrial and
warehouse facilities subsegments, however, contracted
significantly, falling by 20% and 41% year on year,
respectively.The period’s largest projects in the public buildings
subsegment were the construction of the main building of the
Estonian Internal Security Service in Tallinn, the design and
construction of storage facilities and utility networks for the
Centre for Defence Investment in Harju county, the construction of
the building and outdoor premises of the Karlsson kindergarten in
Viljandi and the construction of the Viljandi Rescue Station.The
apartment buildings subsegment earns most of its revenue from the
construction of apartment buildings for third parties. During the
period, the largest projects of this kind were the design and
construction of the Luccaranna and the Kastanikodu housing estates
near Tallinn. Revenue generated by the group’s own development
operations amounted to €7,917 thousand (9M 2022: €7,880 thousand).
Nordecon continues the development of the Mõisavahe Kodu housing
estate (https://moisavahe.ee) and the construction of the Emajõe
Residents housing estate, which is situated near the city
centre on the bank of the river Emajõgi
(https://emajoeresidents.ee), in Tartu. The group is moving on with
the design and preconstruction activities of the Seileri Kvartal
housing estate in Pärnu (https://seileri.ee/en). In carrying out
our own development activities, we carefully monitor potential
risks in the housing development market. The largest projects in
the commercial buildings subsegment were the construction of the
commercial and residential complex Vektor and the Ahtri 4 office
building in Tallinn, the design and construction of the Männiku
commercial building in the Kandiküla district in Tartu, and the
construction of a biopharmaceuticals manufacturing facility for
Icosagen AS in Kambja municipality.The largest projects under
construction in the industrial and warehouse facilities subsegment
are a production facility for E-Piim in Paide, a production and
office building for Harju Elekter AS in Hüüru, and a production and
office building in Maardu.
Buildings segment |
9M 2023 |
9M 2022 |
9M 2021 |
2022 |
Commercial buildings |
23% |
23% |
30% |
24% |
Public buildings |
33% |
29% |
29% |
30% |
Apartment buildings |
30% |
29% |
29% |
28% |
Industrial and warehouse facilities |
14% |
19% |
12% |
18% |
The largest revenue contributor in the
Infrastructure segment is still road construction and maintenance
although its revenue has decreased year on year by around 32%.
During the period, a major share of the subsegment’s revenue
resulted from the construction of the Tagadi ecoduct on the Rail
Baltica route, the construction of the Neanurme–Pikknurme 2+1 road
section of the Tallinn–Tartu–Võru–Luhamaa road in Jõgeva county and
the reconstruction of the Hageri–Kohila road section in Harju
county. The group also continues to deliver road maintenance
services in Järva county.The amount and share of revenue generated
by the other engineering subsegment, which is currently involved in
the construction of three wind farms (Saarde, Tootsi-Sopi and Aidu)
in Estonia, have nearly doubled compared with the same period last
year. The revenue of the environmental engineering subsegment
comprises revenue from the design and construction works related to
elimination of residual pollution from the Erra river and the
Kiviõli ditch.
Infrastructure segment |
9M 2023 |
9M 2022 |
9M 2021 |
2022 |
Road construction and maintenance |
60% |
80% |
85% |
75% |
Other engineering |
31% |
16% |
5% |
20% |
Specialist engineering |
0% |
4% |
5% |
5% |
Environmental engineering |
9% |
0% |
5% |
0% |
Order book
The group’s order book (backlog of contracts
signed but not yet performed) stood at €251,155 thousand at
30 September 2023, reflecting 33% growth compared to the same
period last year. In the third quarter, the group signed new
contracts of €95,301 thousand (Q3 2022: €48,408 thousand). High
construction prices (mainly due to labour cost inflation) in
combination with high interest rates and low demand have caused the
postponement of development projects. The time between the
submission of a bid and contract award, also in case of public
procurement, can extend to several months, which has also affected
the group’s order book this year. The volume of investments made by
the Transport Administration has decreased sharply and this has had
a direct impact on the size of the order book of the Infrastructure
segment. The volume of procurements for the Rail Baltica project
has increased and will partly counterbalance the decline in the
investments of the Transport Administration. While public
investments in the buildings construction segment have also
decreased, investments in national defence infrastructure are going
to increase according to currently available information and this
is a subsegment where Nordecon has traditionally been very
successful.
|
30 Sept 2023 |
30 Sept 2022 |
30 Sept 2021 |
31 Dec 2022 |
Order book (€’000) |
251,155 |
188,847 |
293,141 |
149,799 |
The Buildings segment accounts for 87%, and the
Infrastructure segment for 13% of the group’s order book (30
September 2022: 91% and 9%, respectively). Compared with 30
September 2022, both segments have increased their order books: the
Buildings segment by 27% and the Infrastructure segment by 86%. The
order book of the Buildings segment has grown mainly through new
contracts secured by the public buildings subsegment. The order
book of the Infrastructure segment has increased mainly through
contracts awarded to the road construction and maintenance and
other engineering subsegments. Larger contracts secured in the
third quarter include:
- the reconstruction of the building of
the Karlova school at Lina 2 in Tartu with an approximate cost of
€6,800 thousand;
- the construction of a commercial
building at Pirni 7/2 in Tallinn with an approximate cost of €3,250
thousand;
- the design and construction of a
defence forces’ study building in the Tartu Raadi campus under a
contract with the Centre for Defence Investment with an approximate
cost of €13,000 thousand;
- the design and construction of storage
facilities in Luunja and Nõo municipalities (Tartu county) under a
contract with the Centre for Defence Investment with an approximate
cost of €45,000 thousand;
- the construction of a building complex
at Saue (Harju county) with an approximate cost of €3,300
thousand;
- the design and construction of storage
facilities in Ämari under a contract with the Centre for Defence
Investment with an approximate cost of €3,700 thousand;
- the reconstruction of substations with
the installation of physical protection facilities in the Poltava,
Zhytomyr, Volyn and Ivano-Frankivsk regions in Ukraine with an
approximate cost of €7,000 thousand;
- the construction of a building for the
Police and Border Guard Board and the Rescue Board at Kilingi-Nõmme
with an approximate cost of €3,700 thousand;
- the design and construction of storage
facilities in Ida-Viru county under a contract with the Centre for
Defence Investment with an approximate cost of €8,000
thousand.
Based on the size of the group’s order book,
including the share of work to be performed in 2023 and 2024, and
the overall situation in the construction market, management
forecasts that in 2023 the group’s revenue will decrease compared
with 2022. Increasing competition and cost inflation, particularly
the growth in labour costs, will continue to drive up input prices,
which will keep profit margins under pressure. In an environment of
stiff competition, we will avoid taking unjustified risks whose
realisation in the contract performance phase would have an adverse
impact on the group’s results. Our focus remains on cost control as
well as pre-construction and design activities, where we can deploy
our professional competitive advantages.
People
Employees and staff costs
The group’s average number of employees in the
nine months of 2023 was 567, including 382 engineers and technical
professionals (ETP). Headcount decreased by around 15% year on
year, mainly due to the restructuring of the group’s infrastructure
construction business.
Average number of employees at group
entities (incl. the parent and the subsidiaries):
|
9M 2023 |
9M 2022 |
9M 2021 |
2022 |
ETP |
382 |
437 |
432 |
432 |
Workers |
185 |
232 |
258 |
226 |
Total average |
567 |
669 |
690 |
658 |
The group’s staff costs for the nine months of
2023, including all taxes, were €19,900 thousand compared with
€19,932 thousand in the same period last year. Against a backdrop
of continued upward pressure on wages, labour costs have remained
at a level comparable to the same period last year because the
number of employees has decreased. The service fees of the members
of the council of Nordecon AS for the nine months of 2023 were €129
thousand and associated social security charges were €43 thousand
(9M 2022: €112 thousand and €37 thousand, respectively).The service
fees of the members of the board of Nordecon AS were €424 thousand
and associated social security charges were €140 thousand (9M 2022:
€310 thousand and €102 thousand, respectively).
Labour productivity and labour cost
efficiency
We measure the efficiency of our operating
activities using the following productivity and efficiency
indicators, which are based on the number of employees and staff
costs incurred:
|
9M 2023 |
9M 2022 |
9M 2021 |
2022 |
Nominal labour productivity (rolling), (€ ‘000) |
488.4 |
475.7 |
416.5 |
490.4 |
Change against the comparative period, % |
2.7% |
14.2% |
4.0% |
16.5% |
|
|
|
|
|
Nominal labour cost efficiency (rolling), (€) |
10.4 |
12.0 |
11.1 |
11.8 |
Change against the comparative period, % |
(12.8)% |
8.1% |
6.9% |
2.9% |
The group’s nominal labour productivity
increased year on year, mainly due to a decrease in the number of
staff. Revenue decline has lowered nominal labour cost
efficiency.
Andri HõbemägiNordecon ASHead of Investor
RelationsTel: +372 6272 022Email: andri.hobemagi@nordecon.com
www.nordecon.com
- Nordecon_Interim_report_Q3_2023
- NCN investor presentation Q3_2023
Nordecon As (LSE:0NZ8)
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