Cramo’s Half Year Financial Report January-June 2018

Cramo Plc    Half Year Financial Report 26 July 2018, at 9.00 am (EET)

Cramo’s Half Year Financial Report January-June 2018

Good result driven by Modular Space and ER Scandinavia






KEY FIGURES AND RATIOS (MEUR)4-6/184-6/17Change %1-6/181-6/17Change %2017
Comparable EBITA*31.027.811.5%54.147.513.9%120.0
% of sales16.4%15.6% 14.8%13.9% 16.5%
% of sales15.9%15.6% 14.4%13.9% 16.5%
Comparable profit for the period*21.618.814.6%37.231.418.6%83.3
Profit for the period20.718.810.2%35.531.413.2%84.2
Comparable earnings per share (EPS), EUR*0.480.4212.4%0.830.7117.2%1.87
Earnings per share (EPS), EUR0.470.4210.0%0.800.7113.0%1.89
Comparable ROCE, %*   11.9%11.9% 11.9%
ROCE, %   11.8%11.1% 11.9%
Comparable ROE, %*   17.0%16.6% 15.4%
ROE, %   16.8%15.1% 15.6%
Net debt / EBITDA   1.941.86 1.65
Net interest-bearing liabilities   463.3427.98.3%382.3
Gross capital expenditure (incl. acquisitions)72.568.65.7%149.0104.143.2%213.9
of which acquisitions/business combinations2.18.7-75.7%43.29.4360.5%9.4
Cash flow from operating activities53.227.196.7%
Cash flow after investments5.4-14.0 -25.2-8.6 33.1
Average number of personnel (FTE)   2,6662,5823.3%2,538

* Items affecting comparability, see pages 22-23


We delivered a good first half year result with organic sales growth of 8.6% and comparable EBITA increasing by 13.9% to EUR 54.1 million. The market environment has remained solid in both of our business divisions, being particularly favourable in the Modular Space business and in several Eastern and Central European countries in Equipment Rental. We were able to continue the positive trend in Group’s profitability improvement and the comparable EBITA margin increased from 13.9% to 14.8%.

The good first half year result for Equipment Rental division was again driven by the Scandinavia segment. Despite the gradual growth slowdown in the new residential construction market in the Stockholm area, sales increased by 9.3% in local currency in Sweden supported by large on-going industry construction projects. We have also been capturing the good market momentum in several Eastern European and Central European countries, which showed double-digit sales growth and improved profitability. Germany and Finland did not meet our targets, as modest sales performance impacted negatively on the result. Actions are taken to improve profitability going forward.

Followed by the performance improvement actions, Modular Space division continued to improve its result in the second quarter. In the first half of the year, the division delivered strong 15.7% organic rental sales growth and a 34.0% increase in EBITA with a margin of 26.3%. Performance improved in all Modular Space countries.

On 26 June 2018, we announced the agreement to acquire the Nordic Modular Group Holding AB (NMG). NMG is an ideal complement to our current modular space business operations, strengthening our competitiveness in the Nordics and creating a platform for further international expansion. The transaction is expected to be concluded by the end of the year. As announced in December 2017, we are also investigating the separation and potential demerger of the Modular Space (Cramo Adapteo) business division. This assessment continues and will be carried out during 2018. The acquisition of NMG further increases Cramo’s latitude in exploring strategic alternatives for the Modular Space business.

According to the current equipment rental market outlook, I expect stabilising growth for the second part of the year. However, the country-specific variances in the equipment rental market are large; slowing growth pace is anticipated for Sweden and Finland, offset by brisk growth in the Eastern European countries. The outlook for the modular space market remains positive.


The construction market outlook for the year 2018 is mainly positive in Cramo’s operating countries. Growth is expected to continue although the country-specific variances are considerable. In many countries, the growth that accelerated in 2017 is predicted to slow down. According to Euroconstruct June estimates, the construction market will grow by 4.5% in Norway, 3.4% in Finland and 2.5% in Sweden in 2018. In Austria and Germany, growth is forecasted to be 0.8-1.6%. Growth is rapid in the Czech Republic, Slovakia, Hungary and Poland, where Euroconstruct estimates on average 10.4% market growth. Forecon’s construction market growth estimate for Estonia, Lithuania and Russia is 4-5%. The local Sverige’s Byggindustrier is projecting 1.6% growth for the Swedish construction market in 2018, according to their March estimate. The Confederation of the Finnish Construction Industries kept their forecast in March unchanged, indicating that the construction market in Finland will grow by approximately 2% in 2018, supported by new residential construction and renovation construction.

The European Rental Association (ERA) forecasts that the equipment rental market will grow in 2018 in all of Cramo’s operating countries within the scope of ERA’s forecast. Forecon estimates that the equipment rental market will grow by approximately 5% in Finland, 3% in Sweden and 2% in Estonia and Lithuania in 2018.



Cramo Group’s consolidated sales for January–June totalled EUR 364.3 (340.9) million, showing an increase of 6.9% (10.3% in local currencies). Sales growth was positively affected by acquisitions, particularly KBS Infra, that increased sales in total by EUR 11.6 million. In addition, the adoption of IFRS 15 standard on 1 January 2018 increased sales by EUR 7.4 million. The divestment of the Danish equipment rental operations and Latvian and Kaliningrad operations in 2017 decreased sales by EUR 12.2 million compared to previous year, while the impact of the exchange rate changes on sales was EUR -10.6 million. Group organic sales growth came to a solid 8.6% and was particularly supported by Equipment Rental Scandinavia and Modular Space delivering strong sales during the first half of the year.

Sales in the second quarter increased by 6.2% (9.7% in local currencies) and amounted to EUR 189.0 (178.0) million. The adoption of IFRS 15 standard on 1 January 2018 increased sales by EUR 3.6 million in the second quarter. Group organic sales growth for the quarter stood at 6.9%. From the business segments, Equipment Rental Scandinavia, Equipment Rental Finland and Eastern Europe and Modular Space contributed positively to the Group’s organic sales growth.


Cramo Group’s comparable EBITA for January–June came to EUR 54.1 (47.5) million, showing an increase of 13.9%. Comparable EBITA margin was 14.8% (13.9%) of sales. Profitability improved mainly due to organic sales growth in the Modular Space and Equipment Rental Scandinavia segments. Performance improvement actions carried out in Modular Space are also showing positive results. The adoption of the IFRS 15 standard increased the portion of rental related sales in the Group’s and Modular Space’s sales and, therefore, had a negative impact of 1.3 percentage points on Group’s gross margin and 0.2 percentage points on Group’s EBITA-margin. In January–June, items affecting comparability amounted to EUR -1.7 million and were mainly related to the advisory and transaction costs of the KBS Infra and NMG acquisitions.

January–June EBIT was EUR 50.4 (45.8) million. Net financial expenses were EUR 6.0 (6.1) million. Profit before taxes totalled EUR 44.4 (39.7) million and profit for the period was EUR 35.5 (31.4) million.

Comparable EBITA for the second quarter increased by 11.5%, totalling EUR 31.0 (27.8) million or 16.4% (15.6%) of sales. Profitability improvement was driven by ER Scandinavia and Modular Space segments. Additionally, non-allocated IFRS 2 costs were higher during the second quarter of last year. The adoption of the IFRS 15 standard’s earlier recognition of assembly services increased the portion of rental related sales in the Group’s and Modular Space’s sales and, therefore, had a negative impact of 1.4 percentage points on Group’s gross margin and 0.3 percentage points on Group’s EBITA margin. In April–June, items affecting comparability of EBITA amounted to EUR -0.8 million and were related to the advisory and transaction costs of the NMG acquisition. Second-quarter EBIT increased by 8.1% to EUR 29.1 (26.9) million. Net financial expenses were EUR 3.2 (3.1) million. April–June profit before taxes totalled EUR 25.9 (23.8) million and profit for the period EUR 20.7 (18.8) million. 

Comparable earnings per share for January–June improved to EUR 0.83 (0.71) and earnings per share to EUR 0.80 (0.71). The corresponding figures for the second quarter were EUR 0.48 (0.42) and EUR 0.47 (0.42) respectively. Return on equity (rolling 12 months) improved and stood at 16.8% (15.1%). The comparable return on equity (rolling 12 months) was 17.0% (16.6%).


A press conference for analysts and media will be held on Thursday 26 July 2018 at 11.00 am (EET) at Kämp Kansallissali, Aleksanterinkatu 44 A, 2nd floor, Helsinki. The news conference can be viewed live on the internet at


Cramo will publish its Q3 Business Review on 26 October 2018.


Leif Gustafsson
President and CEO

Further information:

Mr Leif Gustafsson, President and CEO, tel: +358 10 661 10, email:
Mr Aku Rumpunen, CFO, tel: +358 40 556 3546, email:
Mr Mattias Rådström, SVP, Communication, Marketing and Investor Relations, tel: +46 70 868 7045, email:


Nasdaq Helsinki Ltd.
Main media

Cramo is Europe’s second largest rental services company specialising in construction machinery and equipment rental and rental-related services as well as the rental of modular space. Cramo operates in about 300 depots in fourteen countries. With a group staff around 2,500, Cramo's consolidated sales in 2017 was EUR 729.5 million. Cramo shares are listed on Nasdaq Helsinki Ltd.

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Cramo Q2 2018_English.pdf