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SRV is a Finnish developer and innovator in the construction industry.

SRV

Project management contractor and real estate developer

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Overview

SRV is a Finnish project management contractor that develops and builds commercial and business premises, residential units as well as infrastructure and logistics projects.
SRV's road has been bumpy in the past few years and earnings have been weak despite good demand. The current slower residential construction market presents challenges yet several factors support the company including a healthy balance sheet, low amount of unsold developer contracted units and a solid backlog of lower-risk business construction projects. With the revised strategy, SRV aims towards sustainable profitability driven by increasing the share accounted for by housing construction and especially by housing and business premises construction based on in-house project development in a controlled manner.

Financial overview

Equity research

SRV is a Finnish developer and innovator in the construction industry.
SRV logo
SRV - Stays on the defensive

SRV’s Q4/24 figures largely matched our expectations, yet the 2025 outlook left much to be desired. We were hoping to see a spark of offense, but it seems 2025 is shaping up to be another year of playing full defense for the company as especially the residential market continues to be on a standstill. 

Company update |
SRV is a Finnish developer and innovator in the construction industry.
SRV logo
SRV - 2025 outlook worse than expected

SRV's net sales in Q4 amounted to EUR 209.1m, slightly above our estimate of EUR 196.0m. While volumes beat, operative EBIT matched our estimate at EUR 3.0. Although we anticipated subdued prospects for 2025, the outlook adds additional downward pressure to our estimates.

Earnings Flash |
SRV is a Finnish developer and innovator in the construction industry.
SRV logo
SRV - Prospects remain muted for 2025

SRV reports its Q4 figures on 6th of February. We expect slight improvement in adj. profitability year-on-year for Q4. The year 2025 looks rather similar to 2024 as non-residential remains on the driver’s seat. After incorporating the asset sale and other adjustments to our model we revise our TP to EUR 5.2 and update our recommendation to ACCUMULATE (prev. HOLD) to match the updated rating methodology.

Preview |
SRV is a Finnish developer and innovator in the construction industry.
SRV logo
SRV - The course is set, only missing a tailwind

SRV’s 2025 will still be driven by non-residential volumes while we expect that the residential pick-up will begin to reflect more in the numbers starting from 2026. Valuation is stretched on our estimates for 2024-2025 while the long-term potential remains high.

Company report |
SRV is a Finnish developer and innovator in the construction industry.
SRV logo
SRV - Market outlook remains bleak

SRV’s Q3/24 was broadly in line with our estimates. While we did not anticipate any developer-contracted completions for 2025E, we have now also revised our sales estimates for units sold to investors downwards because of the cautious market outlook. The pricing appears elevated based on our 2024-2025 estimates; however, there is still significant long-term potential, even though it’s currently constrained by market conditions.

Company update |
SRV is a Finnish developer and innovator in the construction industry.
SRV logo
SRV - Fairly well in line with estimates

SRV's net sales in Q3 amounted to EUR 183.5m, slightly above our estimate of EUR 179.5m. Operative EBIT was at a good level yet slightly below our estimate at EUR 4.5m (Evli est. EUR 4.9m). The order backlog remains robust as expected.

Earnings Flash |
SRV is a Finnish developer and innovator in the construction industry.
SRV logo
SRV - Operational controllability remains the key

SRV publishes its Q3/24 figures on Thursday 24th of October. We anticipate a solid quarter, primarily fueled by non-residential growth. Profitability still relies on effective operational control due to the backlog composition. 

Preview |
SRV is a Finnish developer and innovator in the construction industry.
SRV logo
SRV - Ready to capitalize on residential upturn

SRV’s growth was strong in Q2 driven by non-residential construction. Profitability remained modest still as the company continues to await an uptick in residential construction. 

Company update |
SRV is a Finnish developer and innovator in the construction industry.
SRV logo
SRV - Strong growth, modest profitability

SRV's net sales in Q2 amounted to EUR 186.3m, slightly above our estimate of EUR 178.7m. Operative EBIT remained modest at EUR 1.5m, below our estimate of EUR 2.5m. The order backlog remains robust as expected. 

Earnings Flash |
SRV is a Finnish developer and innovator in the construction industry.
SRV logo
SRV - Non-residential momentum continues

SRV reports its Q2 results on Thursday 18th of July. We expect continued y/y revenue and order backlog growth driven by non-residential momentum. Our main interests in the report lie in order development, outlook and profitability of the non-residential project portfolio.

Preview |

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Company news

SRV GROUP PLC     FINANCIAL STATEMENT RELEASE      6 FEBRUARY 2025    AT 08.30 EET

SRV Financial statement release 1-12/2024: Revenue and operative operating profit develop favourably, order backlog remains strong


October-December 2024 in brief:

  • Revenue amounted to EUR 209.1 (181.8) million (+15.1%). Revenue from alliance and project management contracts increased in business and infrastructure construction.
  • Operative operating profit amounted to EUR 3.0 (2.4) million. Operative operating profit rose on the comparison period, thanks to higher revenue in business and infrastructure construction.
  • Operating profit was EUR 4.7 (3.1) million. Operating profit was improved by the recognition of EUR 5.1 million from the sale of the Pearl Plaza shopping centre, of which translation differences accounted for EUR -4.9 million. Operating profit was weakened by a write-down of EUR -3.4 million on the lease agreement for SRV's current head office.
  • The result before taxes was EUR 3.3 (0.7) million.
  • Equity ratio was 35.1 per cent (34.4% 12/2023) and gearing was 65.5 per cent (71.7% 12/2023). Excluding the impact of IFRS 16, the equity ratio was 48.2 (48.0) per cent and gearing was -6.0 (-4.3) per cent.
  • At period-end, the order backlog stood at EUR 1,052.8 (1,048.6) million. The sold share of the order backlog was 92.7 (92.6) per cent.
  • New agreements valued at EUR 66.0 (253.1) million were signed in October-December.
  • Emission intensity (scope 1 and 2, rolling 12 months) decreased to 2.4 (2.9) tCO2 per million euros of revenue at the end of December. SRV's emission intensity has stabilised, but varies moderately in relation to revenue and project phases.
  • The Board of Directors proposes to the General Meeting that no dividend be paid for the 2024 financial year.
     

January-December 2024 in brief:

  • Revenue amounted to EUR 745.8 (610.0) million (+22.3%).
  • Operative operating profit amounted to EUR 10.3 (1.1) million with an operating profit of EUR 12.0 (-6.8) million.
  • The result before taxes was EUR 5.7 (-15.7) million.
  • Earnings per share were EUR 0.2 (-1.0).
  • New agreements valued at EUR 691.2 (781.4) million were signed in January-December.


Outlook for 2025

During 2025, 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. At the beginning of the year, private demand for new construction is very low in several segments. For this reason, there is significant uncertainty about the startup of new projects and their estimated revenue and margin accrual.


In 2025, revenue will mainly consist of relatively low-margin - yet also low-risk - cooperative contracting and, to a lesser extent, of competitive and negotiated contracts. The share accounted for by development projects sold to investors will remain low. The share of revenue accounted for by developer-contracted housing production will be very slight in 2025, as no new developer-contracted projects will be completed during the year.

  • Full-year consolidated revenue for 2025 is expected to decline compared with 2024 and to amount to EUR 630-710 million (revenue in 2024: EUR 745.8 million).
  • Operative operating profit is expected to be positive (operative operating profit in 2024: EUR 10.3 million). Significant events after the period


President & CEO's review

"Our business developed well even though the market remained challenging. Our revenue increased by about 22 per cent year-on-year, totalling EUR 745.8 million. Our operative operating profit improved to EUR 10.3 million. In the fourth quarter, our operative operating profit also increased from the comparison period thanks to higher revenue in both business and infrastructure construction. This trend was driven by our excellent performance in project management across the organisation, which was also reflected in record-high customer satisfaction.

Considering the state of the market, the result is reasonable, although it still falls short of our target due to delays in the development of our strategic project portfolio. Due to the current lack of consumer and investor demand, in 2024 we were not able to launch any of our planned development or developer-contracted projects.

Our order backlog remained robust and was EUR 1,052.8 million at the end of the year. In the fourth quarter, the projects transferred to our order backlog included the service block to be built for the City of Helsinki in Kruunuvuorenranta. This project will be executed as a project management contract with a total value to SRV of approximately EUR 60 million, of which EUR 45 million was recognised in the order backlog in December. In addition, previously won contracts and projects under preliminary contracts that have not as yet been recognised in our order backlog totalled around EUR 689 million at the end of the year. After the review period, we decided to start the building of our first developer-contracted residential project after a break of over two years: Asunto Oy Espoon Niittykummun Neuvokas in Espoo. The reservation rate for its 53 lifecycle-wise residential units has developed well. The startup of a new owner-occupied apartment building is a step towards our strategic objective of stepping up our residential construction. In December, we also signed a deal for a housing company that owns a plot zoned for residential construction in Niittykumpu, Espoo. Market-financed residential units with a total floor area of about 4,600 square metres can be built on this plot.

At the same time as we seek to start up higher-margin projects in line with our strategy, we ensure that the company remains on a strong footing: the balance sheet is in good shape, IFRS 16-adjusted gearing is -6.0 per cent and the company has not committed a significant amount of its own capital into completed but unsold housing units, of which there were few at year's end, a total of 95.

With a transaction carried out in December, we finally concluded our divestment of Russian business operations. Our proactive efforts to exit Russia began in 2022.  After the sale of our last asset in Russia - a 50 per cent stake in the Pearl Plaza shopping centre in St. Petersburg - to CP Invest Limited, SRV no longer has any assets or business in Russia.

The controllability of our projects improved over the course of the year, and this was positively reflected in many of our activities. I'm extremely pleased with our excellent performance in customer satisfaction in the review year. NPS (B2B) for customer satisfaction was 78 at the end of December, testifying to exceptional development: we have succeeded in our goal of including our customer promise - "By listening, we build wisely" - as a guideline in all that we do. One example of our successful customer work during the year comprises the two apartment buildings we completed for eQ in September: As Oy Hippoksenkatu 44, with 52 units in Kissanmaa, Tampere, and Asunto Oy Espoon Anna Sahlsténinkatu 15, with 86 units in Perkkaa, Espoo. In the handover phase, both projects had an NPS of a perfect 100. In addition, these projects were completed as zero-error handovers. The work motivation of our knowledgeable personnel has remained excellent during difficult times. Thanks to interesting projects and well-developed business, the eNPS for our personnel rose to 29.

The company is in a strong position and we are prepared to pursue profitable growth, but the delayed market upswing continues to put the brakes on the strategic restructuring of our project portfolio and thereby on significant improvements in profitability. We do not expect the market to turn around in the first half of the current year, but I believe that the situation will gradually improve and that oversupply will dissolve in the autumn and the last months of the year in the case of both owner-occupied and rental housing. We are constantly on the lookout for new growth opportunities in project development and plot acquisitions. The market is heading in the right direction, but it remains difficult to predict when the turnaround will happen and how vigorous it will be. We are prepared for rapid changes in different customer segments if several market players deem that the time is right to start investing. Building costs are at their lowest in the cycle, the affordability and availability of financing are improving, the oversupply of housing is levelling out and rents are beginning to creep up, which makes this a highly attractive market for property investors who are able to see the potential for return, say, five years down the line. The first signs of this starting to happen are already there.

I want to thank all our customers and stakeholders - and especially our staff - for a productive year in 2024."

Saku Sipola

 

Group Key Figures

10-12/ 10-12/ 1-12/ 1-12/
(IFRS, EUR million) 2024 2023 change change, % 2024 2023 change change, %
Revenue                209.1                  181.8                  27.4 15.1               745.8                610.0                135.8 22.3
Operative operating profit                    3.0                     2.4                    0.6 24.3                   10.3                       1.1                     9.3
Operative operating profit, % 1.5 1.3 0.1 1.4 0.2 1.2
Operating profit                     4.7                      3.1                      1.6 49.6                   12.0                   -6.8                   18.8
Operating profit, % 2.2 1.7 0.5 1.6 -1.1 2.7
Profit before taxes                     3.3                     0.7                     2.7                     5.7                  -15.7                   21.3
Net profit for the period                     3.6                  -0.6                     4.2                     5.3                   -15.1                  20.4
Net profit for the period, % 1.7 -0.4 2.1 0.7 -2.5 3.2
Earnings per share, eur 1) 0.18 -0.05 0.23 0.18 -1.02 1.20
Order backlog (unrecognised)             1052.8             1048.6                     4.3 0.4
Equity ratio, % 35.1 34.4 0.7
Equity ratio, %, excl. IFRS 16 2) 48.2 48.0 0.2
Net interest-bearing debt                  96.2                  99.4                   -3.2 -3.3
Net interest-bearing debt, excl. IFRS 16 2)                   -9.2                   -6.3                   -2.9
Net gearing ratio, % 65.5 71.7 -6.2
Net gearing ratio, %, excl. IFRS 16 2) -6.0 -4.3 -1.7
Financing reserves                  79.6                  78.6                    0.9 1.2

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


Significant events after the period

On 31 January 2025, SRV announced that Minna Korander, M.Sc. (Food Economics), 54 years old, has been appointed Senior Vice President, Human Resources and a member of the Corporate Executive Team of SRV Group Plc.  She will start in her new role by 1 May 2025 at the latest. Kristiina Sotka, the current SVP, Human Resources and a member of the Corporate Executive Team is leaving the company at the end of January to join another employer.

Espoo, 6 February 2025
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 6 February 2025, starting at 11:00 EET. 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  

 

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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     31 JANUARY 2025    09.00 EET

Minna Korander appointed SRV Group Plc's new SVP, Human Resources and a member of Corporate Executive Team

Minna Korander, M. Sc. (Food Economics), 54 has been appointed Senior Vice President, Human Resources and a member of Corporate Executive Team of SRV Group Plc. She shall take up her position on 1 May 2025 at the latest. Most recently, Minna Korander has served as CPO in Fonecta Corporation and previously held several HR leadership positions at YIT Group.

"Minna Korander has extensive experience in different areas of personnel management and valuable industry expertise. I warmly welcome Minna to join the team and to develop SRV", says Saku Sipola, President & CEO of SRV.

"I look forward to working together with SRV's professionals to develop the company's sustainable and people-appreciating work culture even stronger. I feel it is important to be involved in developing and renewing Finnish construction by listening to personnel, customers and stakeholders", says Minna Korander.

Kristiina Sotka current SVP, Human Resources and a member of Corporate Executive Team will leave SRV at the end of January to join another employer.

For further information, please contact:
Saku Sipola, President & CEO, SRV, tel. +358 (0)40 551 5953, saku.sipola@srv.fi
Miia Eloranta, SVP Communications and Marketing, SRV, 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   LinkedIn  X  Instagram
 

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     10 DECEMBER 2024      09:30 EET

SRV Group Plc: Proposals of the Shareholders' Nomination Board to the Annual General Meeting 2025

The Shareholders' Nomination Board of SRV Group Plc submits the following proposals to the Annual General Meeting planned to be held on 27 March 2025:

Board composition and remuneration

The Nomination Board proposes that six members will be elected to the Board of Directors.

The Nomination Board proposes that present members Matti Ahokas, Heli Iisakka, Ari Lehtoranta, Hannu Leinonen and Tuomas Kokkila be re-elected as members of the Board of Directors and Anna Hyvönen be elected as a new member of the Board of Directors. In addition, Nomination Board proposes that Ari Lehtoranta be elected as the Chair of the Board of Directors.

The nominees have given their consent to the position, and they are independent of the company and of the company's significant shareholders except for Tuomas Kokkila who is not independent of the company because he has been employed by SRV Group Plc until 31 July 2023 and not independent of significant shareholders because he is a Board member in Pontos Oy which exercises control in the company's significant shareholder AS Pontos Baltic.

Presentation of the proposed new member Anna Hyvönen is attached to this stock exchange release. The proposed current members of the Board of Directors are presented on SRV's website: www.srv.fi/en/srv-as-a-company/investor/governance/board-directors/members-board-directors/introductions-board.

The Shareholders' Nomination Board proposes that the remuneration of members of the Board of Directors would remain unchanged and that the following annual fees would be paid:

  • Board Chair, an annual fee of EUR 72,000,
  • Vice Chair, an annual fee of EUR 48,000,
  • Board member, an annual fee of EUR 36,000, and
  • Chair of the Audit Committee, an annual fee of EUR 48,000, if he/she does not simultaneously act as Chair or Vice Chair of the Board of Directors.

In addition, the Nomination Board proposes that EUR 700 fee per member per meeting for Board and Committee meetings be paid (year 2024: EUR 700). Travel expenses arising from work for the Board of Directors shall be reimbursed in accordance with the company's travel policy.

In addition, the Nomination Board proposes the annual remuneration of the Board to be paid as a combination of company 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 2025. Meeting fees are proposed to be paid in cash.

Amendment of the Charter for the Shareholder's Nomination Board

The Nomination Board proposes that the Charter for the Shareholder's Nomination Board be amended so that the Nomination Board comprises of three (3) members appointed by the three largest shareholders of the company. The Chair of the Board of Directors participates in the work of the Nomination Board as an expert but is not a member of the Nomination Board (previously a member).

In addition, certain technical amendments are proposed to be made to the Charter of the Nomination Board.

The Charter in the proposed amended form is available on the company's website at www.srv.fi/en/annual-general-meeting-2025.

As Chair of the Shareholders' Nomination Board has acted Ilpo Kokkila (Chair of the Board of Directors, Pontos Oy) and as members Mikko Mursula (Chief Investment Officer, Ilmarinen Mutual Pension Insurance Company), Vesa Aho (Executive Vice President, OP Financial Group) and Ari Lehtoranta (Chair of the Board of Directors, SRV Group Plc).

For further information, please contact:

Ilpo Kokkila, Chair of SRV Group Plc's Shareholders' Nomination Board, tel. +358 (0)400 485 555, ilpo.kokkila@pontos.fi

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

Distribution:
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www.srv.fi

You can also find us on the social media:

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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     30 OCTOBER 2024   12:30 EET 

Change in SRV Group Plc's Corporate Executive Team 

SRV Group Plc's SVP, SVP Human Resources and a member of Corporate Executive Team Kristiina Sotka has resigned. She will take on a position outside the company on April 2025, at the latest. 

"I thank Kristiina Sotka warmly for her work for the company. Kristiina has carried through many essential changes in human resource management, and has taken part in the company's change implementation as a member of Corporate Executive Team. I wish her the best of success in her future role," says SRV's President and CEO Saku Sipola.  
 

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

Distribution: 
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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     INTERIM REPORT      24 OCTOBER 2024    AT 08.30 EEST
SRV Interim Report 1-9/2024: Operative operating profit remains unchanged, order backlog and revenue grow

July-September 2024 in brief:
  • Revenue amounted to EUR 183.5 (146.9) million (+24.9%). Revenue from alliance and project management contracts increased in business and infrastructure construction.
  • Operative operating profit amounted to EUR 4.5 (4.6) million with an operating profit of EUR 4.5 (-4.9) million. The increased volume of business and infrastructure construction on the comparison period had a positive effect on the operative operating profit. The still low volume of housing construction, which was also emphasised for lower-margin competitive and negotiated contracting, in turn had a negative effect on the operative operating profit. The operating profit for the comparison period was weakened by a capital loss arising from the sale of SRV Russia Oy and its subsidiaries.
  • The result before taxes was EUR 1.7 (-6.5) million.
  • The equity ratio stood at 34.5 per cent (34.9% 9/2023) and gearing was 69.7 per cent (84.8% 9/2023). Excluding the impact of IFRS 16, the equity ratio was 48.2 (49.5) per cent and gearing was -6.0 (5.1) per cent.
  • At period-end, the order backlog stood at EUR 1,179.6 (995.6) million. The sold share of the order backlog was 93.5 (92.1) per cent.
  • New agreements valued at EUR 273.9 (132.5) million were signed in July-September.
  • Emission intensity (scope 1 and 2, rolling 12 months) decreased to 3.0 (3.1) tCO2 per million euros of revenue at the end of September. SRV's emission intensity has stabilised, but varies moderately in relation to revenue and project phases.  
January-September 2024 in brief:
  • Revenue amounted to EUR 536.7 (428.3) million (+25.3%).
  • Operative operating profit amounted to EUR 7.3 (-1.3) million with an operating profit of EUR 7.3 (-9.9) million.
  • The result before taxes was EUR 2.3 (-16.4) million.
  • Earnings per share were EUR -0.0 (-1.0).
  • New agreements valued at EUR 625.2 (528.3) million were signed in January-September.

Specified outlook for 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.

In 2024, revenue will mainly consist of relatively low-margin - yet also low-risk - cooperative contracting and, to a lesser extent, of development projects sold to investors as well as competitive and negotiated contracts for housing construction. Developer-contracted housing production will account for only a small percentage of revenue, as no developer-contracted housing projects are scheduled for completion during the year.  
  • The Group's revenue for 2024 is expected to increase on 2023, and will amount to EUR 720-750 million (revenue in 2023: EUR 610.0 million). (previously: The Group's revenue for 2024 is expected to increase on 2023)
  • Operative operating profit is expected to improve on 2023, and will amount to EUR 7-12 million (operative operating profit in 2023: EUR 1.1 million). (previously: Operative operating profit is expected to improve on 2023)

Significant events after the period

On 1 October 2024, SRV announced that SRV Group Plc had appointed Liisa Krogerus (LL.M), 46, as its new General Counsel and a member of the Corporate Executive Team. She will start in her new role by 2 January 2025 at the latest. Anu Tuomola, SRV's current General Counsel and a member of the Corporate Executive Team, is transferring to another employer and will leave the company by the end of November.
President & CEO's review

"Market conditions continued to be challenging during the third quarter of 2024 and there were still no signs of a turn for the better. When it comes to demand, the only bright spots are a few startups of public-sector and industrial projects. Consumers and real estate investors are still practically absent from the market for new construction. An upswing in demand for new residential construction is being delayed by the relatively large supply of new units, both owner-occupied and rental. However, this oversupply is already beginning to diminish. The market for business premises is also repositioning, as many operators are actively considering what kind of premises will be right for them. Factors that predict a change for the better are, however, gradually emerging. Although falling interest rates, a reduction in the oversupply of housing, advantageous construction costs and relatively strong urban population growth are revitalising private demand, a sharper upswing will probably not occur for another year or two.

Our business developed favourably in many respects during the review period. Our revenue and operative operating profit were reasonable considering the market. During the third quarter, our revenue rose by about 25 per cent on the corresponding period of the previous year and amounted to EUR 183.5 million. Our operative operating profit remained stable at EUR 4.5 million (Q3/2023: 4.6). Increased volumes of alliance and project management contracting in business premises and infrastructure construction had a favourable impact on our operative operating profit. Volumes in housing construction remained low and were still weighted towards competitive and negotiated contracting, which reduced operative operating profit.

Our balance sheet remained strong, and our IFRS 16 adjusted gearing stood at -6.0 per cent. At 95, the total number of unsold completed residential units is low and the company does not have a lot of capital tied up in unsold housing. We have not therefore attempted to sell apartments at huge discounts during this period of very low demand.
Our order backlog, which consists almost entirely of cooperative and competitive contracts, increased during the third quarter and stood at EUR 1,180 million at the end of the review period. The southern section of Laakso Joint Hospital's main building was one of the items that was transferred to our order backlog during the third quarter. It is part of an approximately EUR 800 million agreement for the Laakso Joint Hospital project, of which about EUR 670 million has been entered into our order backlog to date. We also have projects valued at about EUR 711 million that have been won or committed to with preliminary contracts, but which have not yet been entered into our order backlog.

In addition to these purely financial results, I am particularly delighted by the development of two closely linked key indicators that have risen to record-breaking levels. Our NPS (B2B), which measures customer satisfaction, stood at 74 at the end of September, and I consider this to be an exceptional achievement. Our customer promise - "By listening, we build wisely" - has clearly become an integral part of our operations. I would like to thank our highly skilled personnel for this outstanding level of customer satisfaction and for retaining their motivation throughout these difficult times and tough measures. In August, our employee net promoter score (eNPS) reached the highest in our company's history: 30.

Cooperative contracting is a relatively low-margin - yet also low-risk - business, and having both expertise and a leading position in this area will be important for many reasons, both now and in the future. In the prevailing market, a strong order backlog and good performance in cooperative contracting will help us through this difficult market situation. In line with our strategy, we are seeking strong growth in projects that have better profitability and higher added value, that is, business premises development projects, housing development projects, and developer-contracted housing projects. However, due to the current lack of consumer and investor demand, we have not been able to start any of our planned development projects in 2024, and the development of our strategic project portfolio has been delayed. It is now already clear that developer-contracted projects, which are recognised as income on completion, will not be recognised as income in 2025. However, we are still aiming to start some developer-contracted housing projects and some of our own development projects before the end of the year, but the preconditions for success have significantly decreased.

The market's delayed recovery will therefore slow down any significant improvements in profitability. Yet thanks to favourable developments in many other areas, we will still come out relatively stronger. Our strong balance sheet and order backlog, improvements in both the controllability of construction and project-specific results strengthens faith in the future. A high level of customer satisfaction, our skilled personnel, growth in our project development portfolio and good relations with financiers will provide us with a strong foundation for the structural change in project portfolio and improved profitability that we are seeking, and also for rapid growth and an increased market share when demand gradually recovers and picks up again."
Saku Sipola

Group Key Figures

[][][][]
7-9/ 7-9/ change change 1-9/ 1-9/ change change 1-12/
(IFRS, EUR 2024 2023  % 2024 2023 % 2023
million)
Revenue                183.5                                 24.9               536.7                              25.3                610.0
146.9 36.5 428.3 108.4
Operative                                                           -1.9                                                                                 
operating 4.5 4.6 -0.1 7.3 -1.3 8.6 1.1
profit
Operative 2.5 3.1 -0.7 1.4 -0.3 1.7 0.2
operating
profit, %
Operating                                                                                                                                    
profit 4.5 -4.9 9.5 7.3 -9.9 17.2 -6.8
Operating 2.5 -3.4 5.8 1.4 -2.3 3.7 -1.1
profit, %
Profit before                                                                                                                                  
taxes 1.7 -6.5 8.2 2.3 -16.4 18.8 -15.7
Net profit for                                                                                                                                    
the 1.0 -6.6 7.5 1.7 -14.4 16.0 -15.1
period
Net profit for 0.5 -4.5 5.0 0.3 -3.4 3.7 -2.5
the
period, %
Earnings per 0.04 -0.51 0.56 -0.00 -0.98 0.98 -1.02
share,
eur [1)]
Order backlog               1179.6               995.6                18.5             1048.6
(unrecognised) 184.0
Equity ratio, 34.5 34.9 -0.4 34.4
%
Equity ratio, 48.2 49.5 -1.4 48.0
%, excl.
IFRS 16 [2)]
Net interest                                                    -18.1                  99.4
-bearing 96.4 117.7 -21.3
debt
Net interest                                                                        
-bearing -8.8 7.5 -16.3 -6.3
debt, excl.
IFRS 16
[2)]
Net gearing 69.7 84.8 -15.1 71.7
ratio, %
Net gearing -6.0 5.1 -11.1 -4.3
ratio, %,
excl. IFRS 16
[2)]
Financing                                                      23.9                  78.6
reserves 79.1 63.9 15.2

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, 24 October 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 24 October 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     1 OCTOBER 2024   08:30 EEST

Liisa Krogerus appointed SRV Group Plc's new SVP, General Councel, and a member of Corporate Executive Team

Liisa Krogerus, LL.M., 46, has been appointed Senior Vice President, General Counsel and a member of Corporate Executive Team of SRV Group Plc. She shall take up her position on 2 January 2025 at the latest. Most recently, Liisa Krogerus has served as General Counsel in Purmo Group Plc. 

"Liisa Krogerus has diverse experience in legal management, the governance of a listed company, and international energy plants projects. I look forward to getting Liisa involved in developing SRV," says Saku Sipola, President and CEO of SRV Group Plc.

"I look forward to participating in the development of SRV in the challenging construction industry market and in certainly interesting legal matters," says Liisa Krogerus.

Anu Tuomola, current SVP, General Counsel and a member of Corporate Executive Team will leave SRV at the end of November at the latest to join another employer.

For further information, please contact:
Saku Sipola, President & CEO, tel. +358 (0)40 551 5953, saku.sipola@srv.fi
Miia Eloranta, SVP Communications and Marketing, tel. +358 (0)50 441 4221, miia.eloranta@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     11 SEPTEMBER 2024    17:15 EEST
Composition of SRV Group Plc's Shareholders' Nomination Board

SRV Group Plc's three largest shareholders have appointed the following members to the 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.
 

In addition, SRV will publish three interim reports in 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
 

April-June 2024 in brief:
  • 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.
January-June 2024 in brief:
  • 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.

In 2024, revenue will mainly consist of relatively low-margin - yet also low-risk - cooperative contracting and, to a lesser extent, of development projects sold to investors as well as competitive and negotiated contracts for housing construction. Developer-contracted housing production will account for only a small percentage of revenue, as no developer-contracted housing projects are scheduled for completion during the year.  
  • 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

Shareholders Date % of Shares % of Votes
AS Pontos Baltic 31.12.2024 17% 17%
Ilmarinen Mutual Pension Insurance Company 31.12.2024 11.4% 11.4%
Kolpi Investments Oy 31.12.2024 8.5% 8.5%
Havu Capital Oy 31.12.2024 5.6% 5.6%
OP Life Assurance Company Ltd 31.12.2024 4.5% 4.5%
Lareale Investments Oy 31.12.2024 3.9% 3.9%
Tungelin Investments Oy 31.12.2024 3.9% 3.9%
Varma Mutual Pension Insurance Company 31.12.2024 2.9% 2.9%
Pohjola Insurance Ltd 31.12.2024 2.3% 2.3%
Nordea Life Assurance Finland Ltd. 31.12.2024 2.2% 2.2%

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Company Facts

CEO Saku Sipola
CFO Jarkko Rantala
Market cap (EURm) 77
Industry Construction & Engineering
Ticker SRV1V

Guidance

Full-year consolidated revenue for 2025 is expected to decline compared with 2024 and to amount to EUR 630-710 million (revenue in 2024: EUR 745.8 million).

Operative operating profit is expected to be positive (operative operating profit in 2024: EUR 10.3 million).

Financial targets

Long-term financial targets (by 2027): Operative operating profit of at least EUR 50 million, revenue > EUR 900 million

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