SRV

SRV GROUP PLC     STOCK EXCHANGE RELEASE     11 SEPTEMBER 2024    17:15 EEST
Composition of SRV Group Plc's Shareholders' Nomination Board

• Ilpo Kokkila, Chair of the Board of Directors, Pontos Oy
• Mikko Mursula, Chief Investment Officer, Ilmarinen Mutual Pension Insurance Company
• Vesa Aho, Executive Vice President, OP Financial Group

The Chair of the Board of Directors Ari Lehtoranta shall act as the fourth member of the Board.

The right to appoint a member to the Shareholders' Nomination Board lies with those three shareholders whose share of the votes of all shares in the company is largest, based on the company's shareholders' register held by Euroclear Finland Ltd as of August 31 of the preceding calendar year of the Annual General Meeting.

Ilpo Kokkila has been appointed as the Chair of the Nomination Board.  

The Nomination Board, established by the General Meeting, prepares annual proposals concerning the composition and remuneration of the Board of Directors to the Annual General Meeting.

For further information, please contact:
Anu Tuomola, Senior Vice President, General Counsel, tel. +358 50 414 3280, anu.tuomola@srv.fi
 

Distribution:
Nasdaq Helsinki
Media
www.srv.fi (https://publish.ne.cision.com/l/fhteveeje/www.srv.fi)

You can also find us on the social media:

Facebook (https://www.facebook.com/srv.fi)   LinkedIn (https://www.linkedin.com/company/srv)  X (https://twitter.com/SRVYhtiot)  Instagram (https://instagram.com/srvfinland/)
 

SRV in brief

SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes the wellbeing of both the environment and people into consideration. We call this approach life-cycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter - and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.

Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in Finland. In 2023, our revenue totalled EUR 610 million. In addition to approximately 800 in-house staff, we had a network of around 3,300 partners.

SRV - Building for life

SRV GROUP PLC     STOCK EXCHANGE RELEASE     21 AUGUST 2024     13:45 EEST
 

SRV Group Plc's financial reporting in 2025

SRV Group Plc's Financial Statements Bulletin for the year 2024 will be published on Thursday 6 February 2025 at 8:30 a.m. SRV's Annual Report for 2024 will be published on Tuesday 4 March 2025.
 

• January-March on Wednesday 30 April 2025 at 8:30 a.m.
• January-June on Friday 8 August 2025 at 8:30 a.m.
• January-September on Thursday 23 October 2025 at 8:30 a.m.

SRV Group Plc's Annual General Meeting 2025 is planned to be held on Thursday 27 March 2025 at 4:00 p.m. SRV's Board of Directors will summon the Annual General Meeting at a later date.  

For further information, please contact:

Miia Eloranta, Senior Vice President, Communications and Marketing, tel. +358 (0)50 441 4221, miia.eloranta@srv.fi  (miia.eloranta@srv.fi%C2%A0)
 

Distribution:
Nasdaq Helsinki
Media
www.srv.fi (https://publish.ne.cision.com/l/fhteveeje/www.srv.fi)
 

You can also find us on the social media:

Facebook (https://www.facebook.com/srv.fi)   LinkedIn (https://www.linkedin.com/company/srv)  X (https://twitter.com/SRVYhtiot)  Instagram (https://instagram.com/srvfinland/)
 

SRV in brief
 

SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes the wellbeing of both the environment and people into consideration. We call this approach life-cycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter - and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.

Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in Finland. In 2023, our revenue totalled EUR 610 million. In addition to approximately 800 in-house staff, we had a network of around 3,300 partners.

SRV - Building for life

SRV GROUP PLC     HALF-YEAR FINANCIAL REPORT      18 JULY 2024    AT 08.30 EEST
SRV Half-year Report 1-6/2024: Operative operating profit increased driven by strong growth in revenue, the order backlog remains strong
 

• Revenue amounted to EUR 186.3 (143.1) million (+30.2%). Revenue increased especially in alliance and project management contracts in business construction. Revenue from housing construction declined.
• Operative operating profit amounted to EUR 1.5 (-3.9) million with an operating profit of EUR 1.5 (-3.0) million. Operative operating profit improved on the back of strong growth in volume and increased operational controllability, even though the project portfolio was focused on lower-margin cooperative contracting.
• The result before taxes was EUR 0.1 (-5.5) million. The result before taxes was positive because the volume grew and financial expenses were lower than in the comparison period.
• Equity ratio was 33.6 per cent (34.3% 6/2023) and gearing was 70.9 per cent (83.3% 6/2023). Excluding the impact of IFRS 16, the equity ratio was 46.9 (48.8) per cent and gearing was -6.2 (1.6) per cent.
• At period-end, the order backlog stood at EUR 1,067.3 (993.1) million. The sold share of the order backlog was 92.8 (92.1) per cent.
• New agreements valued at EUR 215.0 (245.9) million were signed in April-June.
• Emission intensity (scope 1 and 2, rolling 12 months) declined and was at the end of June 3.4 (4.6) tCO2/million euros of revenue. Two of the factors contributing to the decrease in emission intensity were the greater use of biofuels as a percentage of all fuels used and better availability of zero-emission district heating.

• Revenue amounted to EUR 353.2 (281.4) million (+25.5%).
• Operative operating profit amounted to EUR 2.7 (-5.9) million with an operating profit of EUR 2.7 (-5.0) million.
• The result before taxes was EUR 0.6 (-9.9) million.
• Earnings per share were EUR -0.0 (-0.5).
• New agreements valued at EUR 351.4 (395.8) million were signed in January-June.

Outlook for 2024 (unchanged)

During 2024, SRV's revenue and result will be affected by several factors in addition to general economic trends, such as: the margin of the order backlog and its development; the start-up of new contracts and development projects; geopolitical risks, including their related direct and indirect effects, such as material costs and the availability of materials and labour; and changes in demand. Higher interest rates and weaker availability of financing have a negative impact on demand for housing and business premises among consumers and investors, and thus pose uncertainty with respect to the estimated start-ups of new projects.

• Full-year consolidated revenue for 2024 is expected to grow compared with 2023 (revenue in 2023: EUR 610.0 million).
• Operative operating profit is expected to improve compared with 2023 (operative operating profit in 2023: EUR 1.1 million).

Significant events after the period

On 17 July 2024, SRV announced that lawsuits have been filed against SRV Construction Ltd, a subsidiary of SRV Group Plc, in the District Court of Central Finland, relating to the fire of the apartment building in Palokka, Jyväskylä, that took place in 2020. The apartment building is built by SRV. The total amount of lawsuits initiated by clients of the project and insurance companies is around 8 million euros.

The company does not agree with the lawsuits. Based on external legal assessments, there are strong grounds for rejecting the lawsuits. SRV has built the apartment building as a turnkey project according to the plans made by the clients of the project, and the reason behind the 2020 fire and its spreading has been the building's inadequate plans.
President & CEO's review

"In the first half of 2024, the market environment remained unchanged, with very low demand among consumers and investors. Despite this challenging situation, we maintained a robust order backlog in the second quarter, and both our revenue and operative operating profit were higher than last year.  

The interest rate is still relatively high, and there are plenty of new owner-occupied and rental units available on the market, so demand for new units remains weak among consumers and real estate investors. However, interest rates have begun to decline cautiously, population growth in the largest cities is relatively strong and construction costs have dropped substantially - this will lead to an upswing in demand over the next quarters, although a stronger increase will be seen only a year or two from now. At the moment, the market offers good opportunities for real estate investors, as the projects that are currently being started up will be completed when the market is favourable. 

In the second quarter, our business operations developed in line with our expectations. Our revenue increased by around 30 per cent year-on-year. Our operative operating profit also outperformed the comparison year on the back of strong volume growth and increased operational controllability, even though the project portfolio was focused on lower-margin cooperative contracting. However, the operating profit remained modest.

At the end of the review period, our order backlog was EUR 1,067 million, up around 8 per cent year-on-year. In the second quarter, we transferred several projects into our order backlog, among them the Research Hub in the Sähkötalo building in Tampere, the Suutarila multipurpose building in Helsinki, and the Ohkola hospital building at Laakso Joint Hospital. The latter order is part of an approximately EUR 800 million agreement for the Laakso Joint Hospital project, of which about EUR 500 million has been entered into our order backlog to date. The remaining phases will be entered into our order backlog in stages during the years ahead. In addition, previously won contracts and projects under preliminary contracts will be recognised in our order backlog, with a value of around EUR 934 million.

It is important that our balance sheet is healthy and our financing is in good shape so that we are prepared for the expected recovery of the market. The total number of unsold completed residential units is low at 96, and the company has not committed a significant amount of its own capital into unsold housing. Our operational business and thus the controllability of our projects are also at a good level, which is reflected in, among other things, occupational safety, customer satisfaction and achievement of budgeted margins. We were recognised for our occupational safety efforts during the current review period as well - in May, the underground works carried out by SRV Infra in the Laakso Joint Hospital project were awarded the title of best site of 2023 in the Uusimaa Occupational Safety Competition.

 Lifecycle wisdom, i.e. construction that is sustainable from an environmental, human and financial perspective, is at the heart of SRV's strategy. The headquarters of cybersecurity company WithSecure - completed in July in the Wood City quarter, which we developed in Jätkäsaari, Helsinki - is an excellent example of SRV's strong expertise in developing, designing and constructing lifecycle-wise buildings and strongly supporting the development of cities towards their carbon-neutrality targets. WithSecure's headquarters has a large carbon handprint and is one of the first projects in Finland to comply with the new EU taxonomy. With the completion of this building, we also wrapped up the construction of the Wood City quarter with flying colours. This flagship of Finnish wood construction has attracted international interest.

The market is still in a wait-and-see mode. However, a change for the better is already on the horizon, although it is difficult to predict accurately when it will occur. Thanks to our healthy balance sheet, favourable risk position and strong project development portfolio, SRV is poised to pursue growth as soon as the market offers opportunities to restructure the project portfolio towards developer-contracted and development projects in line with our strategy. Until then, our robust order backlog in cooperative contracting will carry us over this difficult period. In addition, we believe that it will be possible to start up selected developer-contracted or development projects during the second half of the year, especially when investors estimate that the time is right to launch investments."
Saku Sipola
 

Key Figures

[][][][]
4-6/ 4-6/ change change, 1-6/ 1-6/ change change, 1-12/
(IFRS, EUR 2024 2023  % 2024 2023 % 2023
million)
Revenue                186.3                                   30.2               353.2                                  25.5                610.0
143.1 43.2 281.4 71.9
Operative                                                                                                                                           
operating 1.5 -3.9 5.4 2.7 -5.9 8.7 1.1
profit
Operative 0.8 -2.8 3.6 0.8 -2.1 2.9 0.2
operating
profit, %
Operating                                                                                                                                      
profit 1.5 -3.0 4.5 2.7 -5.0 7.7 -6.8
Operating 0.8 -2.1 2.9 0.8 -1.8 2.6 -1.1
profit, %
Profit before                                                                                                                                  
taxes 0.1 -5.5 5.6 0.6 -9.9 10.6 -15.7
Net profit for                                                                                                                                    
the 0.2 -4.7 4.9 0.7 -7.9 8.6 -15.1
period
Net profit for 0.1 -3.3 3.4 0.2 -2.8 3.0 -2.5
the
period, %
Earnings per -0.03 -0.36 0.33 -0.04 -0.55 0.51 -1.02
share,
eur [1)]
Order backlog              1067.3                                 7.5             1048.6
(unrecognised) 993.1 74.2
Equity ratio, 33.6 34.3 -0.6 34.4
%
Equity ratio, 46.9 48.8 -1.9 48.0
%, excl.
IFRS 16 [2)]
Net interest                                                    -14.3                  99.4
-bearing 96.8 113.1 -16.2
debt
Net interest                                                                         
-bearing -9.0 2.2 -11.2 -6.3
debt, excl.
IFRS
16[2)]
Net gearing 70.9 83.3 -12.4 71.7
ratio, %
Net gearing -6.2 1.6 -7.8 -4.3
ratio, %,
excl. IFRS 16
[2)]
Financing                 80.4                                   18.4                  78.6
reserves 68.0 12.5

1. The figure has been calculated excluding the hybrid bond interest, tax adjusted

2. The figure has been adjusted to remove the impacts of IFRS 16

Espoo, 18 July 2024
Board of Directors
All forward-looking statements in this half-year report are based on management's current expectations and beliefs about future events. The company's actual results and financial position may differ materially from the expectations and beliefs such statements contain due to a number of factors that have been presented in this half-year report.
Briefing, webcast and presentation materials

A briefing for analysts, investors and media representatives will be held as a webcast on 18 July 2024, starting at 11:00 EEST. The webcast can be followed live at www.srv.fi/en/investors. The recording will be available on the website after the presentation. The materials will also be made available on the website.
For further information, please contact:

Saku Sipola, President & CEO, tel. +358 (0)40 551 5953, saku.sipola@srv.fi
Jarkko Rantala, CFO, tel. +358 (0)40 674 1949, jarkko.rantala@srv.fi
Miia Eloranta, Senior Vice President, Communications and Marketing, tel. +358 (0)50 441 4221, miia.eloranta@srv.fi 

Distribution:
Media
www.srv.fi

You can also find us on the social media:

Facebook (https://www.facebook.com/srv.fi)   LinkedIn (https://www.linkedin.com/company/srv)   X (https://twitter.com/SRVYhtiot)   Instagram (https://instagram.com/srvfinland/)

SRV in brief

SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes the wellbeing of both the environment and people into consideration. We call this approach lifecycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter - and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.

Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in Finland. In 2023, our revenue totalled EUR 610 million. In addition to approximately 800 in-house staff, we had a network of around 3,300 partners.

SRV - Building for life

SRV GROUP PLC    INSIDE INFORMATION    17 JULY 2024   AT 12:30 EEST
 

INSIDE INFORMATION: Lawsuits filed against SRV Group Plc's subsidiary SRV Construction Ltd relating to fire in Palokka, Jyväskylä, in 2020

Lawsuits have been filed against SRV Construction Ltd, a subsidiary of SRV Group Plc, in the District Court of Central Finland, relating to the fire of the apartment building in Palokka, Jyväskylä, that took place in 2020. The apartment building is built by SRV. The total amount of lawsuits initiated by clients of the project and insurance companies is around 8 million euros.

The company does not agree with the lawsuits. Based on external legal assessments, there are strong grounds for rejecting the lawsuits. SRV has built the apartment building as a turnkey project according to the plans made by the clients of the project, and the reason behind the 2020 fire and its spreading has been the building's inadequate plans.

SRV has currently no information on the schedule for handling the lawsuits.

For further information, please contact:
Miia Eloranta, SVP, Communications and Marketing, tel. +358 (0)50 441 4221, miia.eloranta@srv.fi

Distribution:
Nasdaq Helsinki

Media
www.srv.fi

You can also find us on the social media:

Facebook (https://www.facebook.com/srv.fi)   LinkedIn (https://www.linkedin.com/company/srv)   X (https://twitter.com/SRVYhtiot)   Instagram (https://instagram.com/srvfinland/)

SRV in brief

SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes the wellbeing of both the environment and people into consideration. We call this approach lifecycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter - and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.

Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in Finland. In 2023, our revenue totalled EUR 610 million. In addition to approximately 800 in-house staff, we had a network of around 3,300 partners.

SRV - Building for life

SRV GROUP PLC      STOCK EXCHANGE RELEASE     29 MAY 2024   13:00 EEST

Change in SRV Group Plc's Corporate Executive Team

SRV Group Plc's SVP, General Counsel and a member of Corporate Executive Team Anu Tuomola has resigned. She will take on a position outside the company on November, at the latest.

"I thank Anu Tuomola warmly for her work for the company. Anu has had important role in many of the company's central and strategic turning points. I wish her the best of success in her future role," says SRV's President and CEO Saku Sipola.

SRV will commence a search to recruit a new General Counsel without delay.

For further information, please contact:
Saku Sipola, President & CEO, tel. +358 (0)40 551 5953, saku.sipola@srv.fi
 

Distribution:
Media
www.srv.fi

You can also find us on social media: 
Facebook (https://www.facebook.com/srv.fi)   LinkedIn (https://www.linkedin.com/company/srv)  X (https://twitter.com/SRVYhtiot)  Instagram (https://instagram.com/srvfinland/)

SRV in brief

SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes the well-being of both the environment and people into consideration. We call this approach life-cycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter - and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.

Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in Finland. In 2023, our revenue totalled EUR 610 million. In addition to approximately 800 in-house staff, we had a network of around 3,300 partners.

SRV - Building for Life

SRV GROUP PLC    MANAGERS' TRANSACTIONS    17 MAY 2024   AT 11:30 EEST
SRV Group Plc: Managers' Transactions - Tuomas Kokkila
 

Notification under the EU Market Abuse Regulation, article 19

SRV Group Plc - Managers' Transactions

____________________________________________

Person subject to the notification requirement

Name: Pontos Oy

Position: Closely associated person

(X) Legal person (1):Person Discharging Managerial Responsibilities In Issuer
Name: Tuomas Kokkila

Position: Member of the Board
Issuer: SRV Yhtiöt Oyj

LEI: 743700GB29FXC0VXF414

Notification type: INITIAL NOTIFICATION

Reference number: 63007/16/8

____________________________________________

Transaction date: 2024-05-15

Outside a trading venue

Instrument type: DEBT INSTRUMENT

ISIN: FI4000315395

Nature of transaction: ACQUISITION

Transaction details

(1): Volume: 605500 Unit price: 71 PCT

Aggregated transactions (1):

Volume: 605500 Volume weighted average price: 71 PCT

For further information, please contact:
Anu Tuomola, Senior Vice President, General Counsel, tel. +358 50 414 3280, anu.tuomola@srv.fi 

Distribution:
Media
www.srv.fi

You can also find us on the social media:

Facebook (https://www.facebook.com/srv.fi)   LinkedIn (https://www.linkedin.com/company/srv)   X (https://twitter.com/SRVYhtiot)   Instagram (https://instagram.com/srvfinland/)

SRV in brief

SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes the wellbeing of both the environment and people into consideration. We call this approach lifecycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter - and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.

Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in Finland. In 2023, our revenue totalled EUR 610 million. In addition to approximately 800 in-house staff, we had a network of around 3,300 partners.

SRV - Building for life

SRV GROUP PLC    MANAGERS' TRANSACTIONS    13 MAY 2024   AT 15:30 EEST
SRV Group Plc: Managers' Transactions - Ari Lehtoranta
 

Notification under the EU Market Abuse Regulation, article 19

SRV Group Plc - Managers' Transactions

____________________________________________

Person subject to the notification requirement

Name: Ari Lehtoranta

Position: Member of the Board/Deputy member

 Issuer: SRV Yhtiöt Oyj

LEI: 743700GB29FXC0VXF414

Notification type: INITIAL NOTIFICATION

Reference number: 62533/5/4

____________________________________________

Transaction date: 2024-05-10

Venue: OFF-EXCHANGE LIIKETOIMET (XOFF)

Instrument type: SHARE

ISIN: FI4000523675

Nature of transaction: RECEIPT OF A SHARE-BASED INCENTIVE

Transaction details

(1): Volume: 5834 Unit price: 4.937 EUR

Aggregated transactions (1):

Volume: 5834 Volume weighted average price: 4.937 EUR

For further information, please contact:
Anu Tuomola, Senior Vice President, General Counsel, tel. +358 50 414 3280, anu.tuomola@srv.fi 

Distribution:
Media
www.srv.fi

You can also find us on the social media:

Facebook (https://www.facebook.com/srv.fi)   LinkedIn (https://www.linkedin.com/company/srv)   X (https://twitter.com/SRVYhtiot)   Instagram (https://instagram.com/srvfinland/)

SRV in brief

SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes the wellbeing of both the environment and people into consideration. We call this approach lifecycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter - and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.

Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in Finland. In 2023, our revenue totalled EUR 610 million. In addition to approximately 800 in-house staff, we had a network of around 3,300 partners.

SRV - Building for life

SRV GROUP PLC    MANAGERS' TRANSACTIONS    13 MAY 2024   AT 15:30 EEST
SRV Group Plc: Managers' Transactions - Hannu Leinonen
 

Notification under the EU Market Abuse Regulation, article 19

SRV Group Plc - Managers' Transactions

____________________________________________

Person subject to the notification requirement

Name: Hannu Leinonen

Position: Member of the Board/Deputy member

 Issuer: SRV Yhtiöt Oyj

LEI: 743700GB29FXC0VXF414

Notification type: INITIAL NOTIFICATION

Reference number: 62538/5/4

____________________________________________

Transaction date: 2024-05-10

Venue: OFF-EXCHANGE LIIKETOIMET (XOFF)

Instrument type: SHARE

ISIN: FI4000523675

Nature of transaction: RECEIPT OF A SHARE-BASED INCENTIVE
 

Transaction details

(1): Volume: 2916 Unit price: 4.937 EUR

Aggregated transactions (1):

Volume: 2916 Volume weighted average price: 4.937 EUR

For further information, please contact:
Anu Tuomola, Senior Vice President, General Counsel, tel. +358 50 414 3280, anu.tuomola@srv.fi 

Distribution:
Media
www.srv.fi

You can also find us on the social media:

Facebook (https://www.facebook.com/srv.fi)   LinkedIn (https://www.linkedin.com/company/srv)   X (https://twitter.com/SRVYhtiot)   Instagram (https://instagram.com/srvfinland/)
 

SRV in brief

SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes the wellbeing of both the environment and people into consideration. We call this approach lifecycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter - and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.

Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in Finland. In 2023, our revenue totalled EUR 610 million. In addition to approximately 800 in-house staff, we had a network of around 3,300 partners.

SRV - Building for life

SRV GROUP PLC    MANAGERS' TRANSACTIONS    13 MAY 2024   AT 15:30 EEST
SRV Group Plc: Managers' Transactions - Heli Iisakka
 

Notification under the EU Market Abuse Regulation, article 19

SRV Group Plc - Managers' Transactions

____________________________________________

Person subject to the notification requirement

Name: Heli Iisakka

Position: Member of the Board/Deputy member

 Issuer: SRV Yhtiöt Oyj

LEI: 743700GB29FXC0VXF414

Notification type: INITIAL NOTIFICATION

Reference number: 62536/5/4

____________________________________________

Transaction date: 2024-05-10

Venue: OFF-EXCHANGE LIIKETOIMET (XOFF)

Instrument type: SHARE

ISIN: FI4000523675

Nature of transaction: RECEIPT OF A SHARE-BASED INCENTIVE

Transaction details

(1): Volume: 3890 Unit price: 4.937 EUR

Aggregated transactions (1):

Volume: 3890 Volume weighted average price: 4.937 EUR

For further information, please contact:
Anu Tuomola, Senior Vice President, General Counsel, tel. +358 50 414 3280, anu.tuomola@srv.fi 

Distribution:
Media
www.srv.fi

You can also find us on the social media:

Facebook (https://www.facebook.com/srv.fi)   LinkedIn (https://www.linkedin.com/company/srv)   X (https://twitter.com/SRVYhtiot)   Instagram (https://instagram.com/srvfinland/)
 

SRV in brief

SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes the wellbeing of both the environment and people into consideration. We call this approach lifecycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter - and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.

Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in Finland. In 2023, our revenue totalled EUR 610 million. In addition to approximately 800 in-house staff, we had a network of around 3,300 partners.

SRV - Building for life

SRV GROUP PLC    MANAGERS' TRANSACTIONS    13 MAY 2024   AT 15:30 EEST
SRV Group Plc: Managers' Transactions - Tuomas Kokkila
 

Notification under the EU Market Abuse Regulation, article 19

SRV Group Plc - Managers' Transactions

____________________________________________

Person subject to the notification requirement

Name: Tuomas Kokkila

Position: Member of the Board/Deputy member

Issuer: SRV Yhtiöt Oyj

LEI: 743700GB29FXC0VXF414

Notification type: INITIAL NOTIFICATION

Reference number: 62542/4/4

____________________________________________

Transaction date: 2024-05-10

Venue: OFF-EXCHANGE LIIKETOIMET (XOFF)

Instrument type: SHARE

ISIN: FI4000523675

Nature of transaction: RECEIPT OF A SHARE-BASED INCENTIVE

Transaction details

(1): Volume: 2916 Unit price: 4.937 EUR

Aggregated transactions (1):

Volume: 2916 Volume weighted average price: 4.937 EUR

For further information, please contact:
Anu Tuomola, Senior Vice President, General Counsel, tel. +358 50 414 3280, anu.tuomola@srv.fi 

Distribution:
Media
www.srv.fi

You can also find us on the social media:

Facebook (https://www.facebook.com/srv.fi)   LinkedIn (https://www.linkedin.com/company/srv)   X (https://twitter.com/SRVYhtiot)   Instagram (https://instagram.com/srvfinland/)

SRV in brief

SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes the wellbeing of both the environment and people into consideration. We call this approach lifecycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter - and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.

Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in Finland. In 2023, our revenue totalled EUR 610 million. In addition to approximately 800 in-house staff, we had a network of around 3,300 partners.

SRV - Building for life

SRV GROUP PLC    MANAGERS' TRANSACTIONS    13 MAY 2024   AT 15:30 EEST
SRV Group Plc: Managers' Transactions - Matti Ahokas
 

Notification under the EU Market Abuse Regulation, article 19

SRV Group Plc - Managers' Transactions

____________________________________________

Person subject to the notification requirement

Name: Matti Ahokas

Position: Member of the Board/Deputy member

 Issuer: SRV Yhtiöt Oyj

LEI: 743700GB29FXC0VXF414

Notification type: INITIAL NOTIFICATION

Reference number: 62545/5/4

____________________________________________

Transaction date: 2024-05-10

Venue: OFF-EXCHANGE LIIKETOIMET (XOFF)

Instrument type: SHARE

ISIN: FI4000523675

Nature of transaction: RECEIPT OF A SHARE-BASED INCENTIVE

Transaction details

(1): Volume: 2916 Unit price: 4.937 EUR

Aggregated transactions (1):

Volume: 2916 Volume weighted average price: 4.937 EUR

For further information, please contact:
Anu Tuomola, Senior Vice President, General Counsel, tel. +358 50 414 3280, anu.tuomola@srv.fi 

Distribution:
Media
www.srv.fi

You can also find us on the social media:

Facebook (https://www.facebook.com/srv.fi)   LinkedIn (https://www.linkedin.com/company/srv)   X (https://twitter.com/SRVYhtiot)   Instagram (https://instagram.com/srvfinland/)

SRV in brief

SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes the wellbeing of both the environment and people into consideration. We call this approach lifecycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter - and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.

Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in Finland. In 2023, our revenue totalled EUR 610 million. In addition to approximately 800 in-house staff, we had a network of around 3,300 partners.

SRV - Building for life

SRV GROUP PLC    MANAGERS' TRANSACTIONS    6 MAY 2024   AT 14:40 EEST
SRV Group Plc: Managers' Transactions - Hannu Leinonen

Notification under the EU Market Abuse Regulation, article 19

SRV Group Plc - Managers' Transactions

____________________________________________

Person subject to the notification requirement

Name: Hannu Leinonen

Position: Member of the Board/Deputy member

 Issuer: SRV Yhtiöt Oyj

LEI: 743700GB29FXC0VXF414

Notification type: INITIAL NOTIFICATION

Reference number: 61734/6/8

____________________________________________

Transaction date: 2024-05-02

Venue: NASDAQ HELSINKI LTD (XHEL)

Instrument type: SHARE

ISIN: FI4000523675

Nature of transaction: ACQUISITION

Transaction details

(1): Volume: 500 Unit price: 4.8 EUR

(2): Volume: 170 Unit price: 4.8 EUR

(3): Volume: 559 Unit price: 4.8 EUR

(4): Volume: 120 Unit price: 4.8 EUR

(5): Volume: 210 Unit price: 4.8 EUR

Aggregated transactions (5):

Volume: 1559 Volume weighted average price: 4.8 EUR

____________________________________________

Transaction date: 2024-05-03

Venue: NASDAQ HELSINKI LTD (XHEL)

Instrument type: SHARE

ISIN: FI4000523675

Nature of transaction: ACQUISITION

Transaction details

(1): Volume: 491 Unit price: 4.8 EUR

Aggregated transactions (1):

Volume: 491 Volume weighted average price: 4.8 EUR

For further information, please contact:
Anu Tuomola, Senior Vice President, General Counsel, tel. +358 50 414 3280, anu.tuomola@srv.fi 

Distribution:
Media
www.srv.fi

You can also find us on the social media:

Facebook (https://www.facebook.com/srv.fi)   LinkedIn (https://www.linkedin.com/company/srv)   X (https://twitter.com/SRVYhtiot)   Instagram (https://instagram.com/srvfinland/)

SRV in brief

SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes the wellbeing of both the environment and people into consideration. We call this approach lifecycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter - and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.

Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in Finland. In 2023, our revenue totalled EUR 610 million. In addition to approximately 800 in-house staff, we had a network of around 3,300 partners.

SRV - Building for life

SRV GROUP PLC     INTERIM REPORT      25 APRIL 2024    AT 08.30 EEST
SRV Interim Report 1-3/2024: Revenue and operative operating profit increased, the order backlog remains strong
 

• Revenue amounted to EUR 167.0 (138.3) million (+20.7%). Revenue increased due to growth in business construction revenue. Revenue declined correspondingly in housing construction.
• Operative operating profit amounted to EUR 1.3 (-2.0) million with an operating profit of EUR 1.3 (-2.0) million. Operative operating profit improved thanks to the higher volume in business construction.
• The result before taxes was EUR 0.5 (-4.4) million. The result was positive because the volume grew and financial expenses were lower than in the comparison period.
• Earnings per share were EUR -0.0 (-0.2).
• Equity ratio was 33.9 per cent (35.0% 3/2023) and gearing was 80.5 per cent (82.2% 3/2023). Excluding the impact of IFRS 16, the equity ratio was 47.5 (49.2) per cent and gearing was 2.4 (4.1) per cent.
• At period-end, the order backlog stood at EUR 1,020.4 (871.0) million. New agreements valued at EUR 136.4 (149.9) million were signed in January-March. The sold share of the order backlog was 92.5 (91.0) per cent.
• At the end of March, emission intensity (scope 1 and 2) was 2.6 (4.6) tCO2/million euros of revenue. One of the factors contributing to the decrease in emission intensity was the greater use of biofuels.

Outlook 2024
During 2024, SRV's revenue and result will be affected by several factors in addition to general economic trends, such as: the margin of the order backlog and its development; the start-up of new contracts and development projects; geopolitical risks, including their related direct and indirect effects, such as material costs and the availability of materials and labour; and changes in demand. Higher interest rates and weaker availability of financing have a negative impact on demand for housing and business premises among consumers and investors, and thus pose uncertainty with respect to the estimated start-ups of new projects. 

• Full-year consolidated revenue for 2024 is expected to grow compared with 2023 (revenue in 2023: EUR 610.0 million).
• Operative operating profit is expected to improve compared with 2023 (operative operating profit in 2023: EUR 1.1 million).

Significant events after the period

There were no significant events after the end of the review period.

President & CEO's review

"In the early months of 2024, the economy has remained in a recession and no significant changes have occurred in the general market situation. However, even in this challenging business environment, we have been able to systematically forge ahead with strong growth in business construction, especially in cooperative contracting. Due to the prevailing high interest levels, demand for the new properties in both the consumer and real estate investor markets is currently at a low level, which has a substantial impact on our opportunities to start new projects. The controllability of our production is robust and our realised project margins are in line with plans in both housing and business construction. We believe that strong development will begin immediately once the market provides opportunities to restructure our project portfolio in accordance with our strategy. 

In spite of the economic climate in the construction industry, our business developed in a favourable direction in the first quarter, as expected. Our stronger order backlog is starting to show in our revenue, which saw year-on-year growth of around 20 per cent. Our operative operating profit also outperformed the comparison period thanks to the higher volume in business construction. 

At the end of the review period, our order backlog was EUR 1,020.4 million, up 17 per cent year-on-year. The order backlog will lead to increased revenue when projects get up to full speed. In the first quarter, we transferred several projects into our order backlog, among them the Käkikellokortteli residential block in Nihti, Kalasatama for the City of Helsinki's housing production service as well as underground facilities and the second stage of infrastructure work for Laakso Joint Hospital. This order is part of an approximately EUR 800 million agreement for the Laakso Joint Hospital project, of which about half has been entered into our order backlog to date. The remaining phases will be entered into our order backlog in stages during 2024-2030. In addition, previously won contracts and projects under preliminary contracts will be recognised in our order backlog, with a value of around EUR 933 million. 

In the current market situation, it is extremely important that our balance sheet is strong and our financing is in good shape. The total number of unsold completed residential units is low at 96, and the company has not committed a significant amount of its own capital into unsold housing. With respect to financing, in April, after the review period, we agreed with our main financier banks to exercise the one-year extension option of our current EUR 40 million committed revolving credit facility, which is tied to sustainability targets. In accordance with the exercised extension option, the revolving credit facility is valid until April 2026. 

In February, we concluded the change negotiations we had initiated in January with a view to adjusting our costs to the ongoing challenging market situation. These negotiations resulted in slightly smaller personnel cuts and layoffs than anticipated, a total of 19 person-years. We managed to transfer roles and personnel from housing construction to business premises projects, and thereby retained solid expertise within the company.  

We do not expect any changes in the market situation - a significant improvement is not foreseen until towards the end of the year at the earliest. Nevertheless, we expect that our revenue and earnings will improve in 2024 thanks to our strong order backlog in cooperative contracting. In addition, we believe that it will be possible to start up selected development or developer-contracted projects in the latter part of the year - the contributing factors are lower construction costs, forecast reductions in interest rates and gradual rent inflation, which support the investment decisions of our customers."
Saku Sipola
 

Key Figures

[][][][]
1-3/ 1-3/ 1-12/
(IFRS, milj. 2024 2023 change change, 2023
eur) %
Revenue                            167.0                                                          20.7                            610.0
138.3 28.7
Operative                                                                                                                                 
operating 1.3 -2.0 3.2 1.1
profit
Operative 0.8 -1.4 2.2 0.2
operating
profit, %
Operating                                                                                                                             
profit 1.3 -2.0 3.2 -6.8
Operating 0.8 -1.4 2.2 -1.1
profit, %
Profit before                                                                                                                         
taxes 0.5 -4.4 5.0 -15.7
Net profit for                                                                                                                            
the 0.5 -3.1 3.6 -15.1
period
Net profit for 0.3 -2.3 2.6 -2.5
the
period, %
Earnings per -0.0 -0.2 0.2 -1.0
share
[1)]
Order backlog                         1020.4                            871.0                            17.2                         1048.6
(unrecognised) 149.5
Equity ratio, 33.9 35.0 -1.1 34.4
%
Equity ratio, 47.5 49.2 -1.7 48.0
%, excl.
IFRS 16 [2)]
Net interest                                                                                                                       99.4
-bearing 112.1 117.4 -5.3
debt
Net interest                                                                                                                             
-bearing 3.5 6.1 -2.7 -6.3
debt, excl.
IFRS 16
[2)]
Net gearing 80.5 82.2 -1.7 71.7
ratio, %
Net gearing 2.4 4.1 -1.7 -4.3
ratio, %,
excl. IFRS 16
[2)]
Financing                                                                                         29.8                              78.6
reserves 68.2 52.6 15.7

1. The figure has been calculated excluding the hybrid bond interest, tax adjusted

2. The figure has been adjusted to remove the impacts of IFRS 16

Espoo, 25 April 2024
Board of Directors
All forward-looking statements in this interim report are based on management's current expectations and beliefs about future events. The company's actual results and financial position may differ materially from the expectations and beliefs such statements contain due to a number of factors that have been presented in this interim report. 
Briefing, webcast and presentation materials

A briefing for analysts, investors and media representatives will be held as a webcast on 25 April 2024, starting at 11:00 EEST. The webcast can be followed live at www.srv.fi/en/investors. The recording will be available on the website after the presentation. The materials will also be made available on the website.
For further information, please contact:

Saku Sipola, President & CEO, tel. +358 (0)40 551 5953, saku.sipola@srv.fi
Jarkko Rantala, CFO, tel. +358 (0)40 674 1949, jarkko.rantala@srv.fi
Miia Eloranta, Senior Vice President, Communications and Marketing, tel. +358 (0)50 441 4221, miia.eloranta@srv.fi 

Distribution:
Media
www.srv.fi

You can also find us on the social media:

Facebook (https://www.facebook.com/srv.fi)   LinkedIn (https://www.linkedin.com/company/srv)   X (https://twitter.com/SRVYhtiot)   Instagram (https://instagram.com/srvfinland/)
 

SRV in brief

SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes the wellbeing of both the environment and people into consideration. We call this approach lifecycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter - and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.

Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in Finland. In 2023, our revenue totalled EUR 610 million. In addition to approximately 800 in-house staff, we had a network of around 3,300 partners.

SRV - Building for life

SRV GROUP PLC     STOCK EXCHANGE RELEASE     25 MARCH 2024    19:45 EET

Organisation of SRV Group Plc's Board of Directors and composition of Board Committees

SRV Group Plc's Annual General Meeting held earlier today elected Ari Lehtoranta as Chair of the Board.

In its organising meeting, SRV Group Plc's Board of Directors has elected a Vice Chair and the members of its Board Committees for a term ending at the closing of the Annual General Meeting in 2025.

Heli Iisakka was elected as Vice Chair of the Board of Directors.

Heli Iisakka was elected as Chair and Matti Ahokas and Hannu Leinonen as members of the Audit Committee.

Ari Lehtoranta was elected as Chair and Hannu Leinonen and Tuomas Kokkila as members of the Personnel and Remuneration Committee.
 

For further information, please contact:
Anu Tuomola, Senior Vice President, General Counsel, tel. +358 50 414 3280, anu.tuomola@srv.fi

Distribution:
Media
www.srv.fi

You can also find us on the social media:

Facebook (https://www.facebook.com/srv.fi)   LinkedIn (https://www.linkedin.com/company/srv)   X (https://twitter.com/SRVYhtiot)   Instagram (https://instagram.com/srvfinland/)
 

SRV in brief

SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes the wellbeing of both the environment and people into consideration. We call this approach lifecycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter - and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.

Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in Finland. In 2023, our revenue totalled EUR 610 million. In addition to approximately 800 in-house staff, we had a network of around 3,300 partners.

SRV - Building for life

SRV GROUP PLC     STOCK EXCHANGE RELEASE          25 MARCH 2024   17:55 EET

Resolutions of SRV Group Plc's Annual General Meeting

SRV Group Plc's Annual General Meeting was held today on 25 March 2024 at the company's headquarters in Espoo. The Annual General Meeting adopted SRV Group Plc's financial statements and discharged the Board of Directors and the President & CEO from liability for the financial period 1 January-31 December 2023. The Annual General Meeting adopted the Remuneration Report 2023 and the Remuneration Policy for the company's governing bodies. The resolutions were advisory. The Annual General Meeting also decided on the dividend distribution, the number of Board of Directors, the composition and Chair of the Board of Directors and their remuneration, the election and remuneration of the auditor as well as authorised the Board of Directors to decide on the repurchase of company shares and share issues/issue of special rights.

Dividend distribution

It was decided that no dividend is distributed for the financial year 2023, as proposed by the Board of Directors.

Members and Chair of the Board of Directors and remuneration

The number of members of the Board of Directors was confirmed to be five (5). Matti Ahokas M.Sc. (Econ.), Hannu Leinonen M.Sc. (Eng.) and Heli Iisakka M.Sc. (Econ.) were re-elected to the Board of Directors. Ari Lehtoranta M.Sc. (Eng.) and Tuomas Kokkila M.Sc. in Real Estate Development were elected as new members of the Board of Directors. Ari Lehtoranta was elected as the Chair of the Board of Directors. The term of office of members of the Board of Directors will end at the close of the Annual General Meeting held in 2025.

The Annual General Meeting confirmed that the following annual fees would be paid for the members of the Board: Board Chair EUR 72,000, Vice Chair EUR 48,000, Board member EUR 36,000 and Chair of the Audit Committee EUR 48,000, if he/she does not simultaneously act as Chair or Vice Chair of the Board of Directors.

In addition, a EUR 700 fee per member per meeting shall be paid for Board and Committee meetings. Travel expenses arising from work for the Board of Directors shall be reimbursed in accordance with the company's travel policy. Meeting fees will be paid in cash.

The aforementioned annual fees will be paid as a combination of SRV Group Plc's shares and cash in such a manner that 40% of the annual remuneration is paid in the company's shares, which will be purchased from the market on behalf of the members of the Board of Directors at a price determined in public trading, and 60% is paid in cash. The company will reimburse the transaction costs and capital transfer tax in connection with the purchase of the remuneration shares. The shares will be purchased within a period of two weeks beginning from the date following the publication of the quarterly result for the period 1 January - 31 March 2024.

Auditor and remuneration

PricewaterhouseCoopers Oy, a firm of authorised public accountants, was elected as the company's Auditor for a term continuing until the close of the Annual General Meeting 2025. PricewaterhouseCoopers Oy has notified that authorised public accountant (APA) Jukka Torkkeli will act as the responsible auditor. The Auditor's remuneration was confirmed as payable as per an approved invoice.

Authorisation to decide on the acquisition of the company's own shares

The Annual General Meeting authorised the Board of Directors to resolve on the acquisition of the company's own shares using the company's unrestricted equity as proposed by the Board of Directors. The authorisation covers the purchasing of a maximum of 1,700,000 shares in the company so that the number of shares acquired on the basis of the authorization, when combined with the shares already owned by the company and its subsidiaries, does not at any given time exceed a total of 10 percent of all shares in the company.

The authorization is valid until 30 June 2025. It revokes the authorization granted to the Board of Directors at the Annual General Meeting on 27 March 2023 to decide on the repurchase of the company's own shares.

Authorisation to decide on a share issue and on the issue of special rights

The Annual General Meeting authorised the Board of Directors to resolve on a share issue and granting of special rights as proposed by the Board of Directors. The authorisation can be used to decide on the issuance of new shares or the reissuance of shares held by the company and/or granting of other special rights entitling to shares as referred to in Chapter 10, Section 1 of the Finnish Companies Act either for consideration or free of consideration in one or several instalments so that the number of shares shall not exceed 1,700,000. The Board of Directors may also decide on the issuance of new shares free of consideration to the company itself in one or more issues.

The authorization shall be in force until 30 June 2025. The authorization revokes the authorization granted to the Board of Directors at the Annual General Meeting on 27 March 2023 to decide on share issues and granting of special rights.

Other information

The minutes of the Annual General Meeting will be available on SRV Group Plc's website at www.srv.fi/agm2024at latest on 8 April 2024.

For further information, please contact:
Anu Tuomola, Senior Vice President, General Counsel, SRV Group Plc, tel. +358 50 414 3280, anu.tuomola@srv.fi

Distribution:
Media
www.srv.fi

You can also find us on the social media:

Facebook (https://www.facebook.com/srv.fi)   LinkedIn (https://www.linkedin.com/company/srv)   X (https://twitter.com/SRVYhtiot)   Instagram (https://instagram.com/srvfinland/)
 

SRV in brief

SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes the wellbeing of both the environment and people into consideration. We call this approach lifecycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter - and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.

Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in Finland. In 2023, our revenue totalled EUR 610 million. In addition to approximately 800 in-house staff, we had a network of around 3,300 partners.

SRV - Building for life