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Growth and investments in internationalisation, sustainability and integration characterize NIRAS' accounts for 2018

In 2018, NIRAS achieved a 20 percent increase in profits and solid international growth. Continued significant focus on sustainable solutions is to contribute to future growth.

21. Mar 2019

In 2018, NIRAS achieved a revenue of DKK 2.2 bn, a growth of four percent. Our focus this year was partly to complete the integration with ALECTIA in 2017, partly to develop our international business. 2018 featured an increase in profits from DKK 50 to DKK 61m. (EBITA) and growth in our international business.

“In 2018, we utilized many resources on developing the organisation and the systems across our business. In the short term, it inhibited our earnings and growth, but it also means that we have what it takes to develop our business significantly in both Denmark and internationally in the coming years”, says Chief Executive Officer Carsten Toft Boesen.

Strengthened position in Scandinavia

NIRAS’ strategy is to expand in our neighbouring markets in Scandinavia and to strengthen our company’s international business areas. As a result, our revenue in Sweden and Norway was increased by DKK 44 m in 2018 and now comprises 14 percent of our total business.

“In recent years, we have invested in developing new business areas in Scandinavia. Specifically in Norway, we succeeded in gaining a stronger foothold in the market, i.a. through several large road and railroad projects. At present, we are represented in Scandinavia within all our business areas. It is a clear advantage in terms of attracting the right employees and helping our customers across their activities in Scandinavia and internationally”, says Carsten Toft Boesen.

From Scandinavian to international

Our CEO emphasizes that investments have also been made within NIRAS’ international business areas; development consulting, wind energy, harbours and food production. He continues:

“We invested in a global organisation for our international business areas. It was expensive and resulted in a decrease in our result in 2018. In return, we now reap the benefits of our investments in the form of new customers. Unlike before, where we built our international business areas around Scandinavian customers' international businesses, we now work more extensively with international customers such as global food producers and global development funds. This indicates that there is a more substantial growth potential in our international business.”

Tools for sustainable solutions

Sustainable reorganisation of cities, communities and companies influences our company’s dialogue with customers, and it is an area in which NIRAS expects growth. According to NIRAS CEO, there is a strong demand among many of our customers for assistance towards a sustainable reorganisation:

”After discussing sustainability with many of our customers, it is clear to us, that there is a strong demand for investing in sustainable solutions in all types of companies, organisations and public authorities. In 2018, we therefore developed and introduced concepts and tools – such as SDG Capture – which assist our customers in identifying sustainable solutions that realize the UN’s 17 sustainable development goals.

Maintaining a high investment level

NIRAS is experiencing an increasing demand in most of its markets and will be growing in the coming years.

”With our investments, we are well positioned for growth. However, we will maintain a high investment level, as we anticipate a significantly increasing demand for innovation and new technologies, so that we can stay at the forefront in relation to developing competitive and sustainable solutions”, says Carsten Toft Boesen

Key figures

 DKK

2014

2015

2016

2017

2018

Revenue

1,255

1,317

1,474

2,125

2,204

From own production

962

1,006

1,106

1,647

1,743

EBITA

45

51

56

50

61

EBITA margin

4.6%

5.1%

5.1%

3.1%

3.5%

EBITA excl. merger costs

 

 

 

73

65

Earnings after taxes

33.2

36.2

39.2

20.3

33.3

Number of employees (avg.)

1,370

1,404

1,475

2,206

2,355

 

Annual Result 2018 (iPaper)