2022 IV quarter and 12 months consolidated interim report
(unaudited)
Despite the continuing turbulence of the
economic environment and the significant impact of the war in
Ukraine on the construction sector, the group achieved a positive
result in its core business.The year 2022 is characterized by a 12%
increase in sales revenue of the group compared to the previous
financial year, reaching the highest sales revenue in history,
322,860 thousand euros. 81% of the sales revenue was related to the
Buildings segment. The gross margin was 2.6% (1.4% in 2021). Also,
in 2022 the group returned to operating profit, which amounted to
2,305 thousand euros.Gross profitability increased in the Buildings
segment, the Infrastructure segment remained in loss. Profitability
was affected by the continued increase in input prices – the
construction price index increased by 17% compared to the previous
financial year. Problems with the supply of materials extended the
terms of several construction contracts, which caused additional
costs for projects under construction. The result of the high fixed
cost Infrastructure segment and the decrease in its sales revenue
are directly affected by the decision made by the main customer,
the Transport Administration, in the spring of 2022 to
significantly reduce investments in infrastructure construction. To
manage the impact of this decision, the group has reorganized its
road construction sub-segment in order to ensure a more efficient
use of resources and return to profit through the elimination of
duplicative activities.Russia’s invasion of Ukraine in February
2022 had a strong effect on the exchange rate of the Ukrainian
hryvnia – the group has recorded a total extraordinary loss of
2,353 thousand euros from the exchange rate changes of the
Ukrainian hryvnia and the write-off of the group's previous
investments in Ukraine. Being a non-cash expense, it has still
significant impact, resulting in net loss for the financial year of
1,441 thousand euros.The group's order book as of 31.12.2022
decreased by 44% year-on-year, amounting to 149,799 thousand euros.
The decrease in the contract portfolio reflects the general state
of the construction industry and the caution of the clients. The
rise in the prices of materials, energy carriers and other inputs
and the rise in interest rates due to the increase in the Euribor
have caused a significant increase in the cost of development
projects and the postponement of the start of new projects. In
2023, the group has additionally signed new construction contracts
worth around 73,280 thousand euros.
Condensed consolidated interim statement
of financial position
€’000 |
31 December 2022 |
31 December 2021 |
ASSETS |
|
|
Current assets |
|
|
Cash and cash equivalents |
7,238 |
9,031 |
Trade and other receivables |
48,084 |
48,091 |
Prepayments |
6,728 |
4,947 |
Inventories |
25,454 |
25,637 |
Total current assets |
87,504 |
87,706 |
Non-current assets |
|
|
Other investments |
76 |
76 |
Trade and other receivables |
8,604 |
9,206 |
Investment property |
8,347 |
5,599 |
Property, plant and equipment |
17,669 |
17,433 |
Intangible assets |
15,134 |
15,051 |
Total non-current assets |
49,830 |
47,365 |
TOTAL ASSETS |
137,334 |
135,071 |
|
|
|
LIABILITIES |
|
|
Current liabilities |
|
|
Borrowings |
17,193 |
16,289 |
Trade payables |
65,109 |
57,287 |
Other payables |
8,359 |
7,496 |
Deferred income |
6,996 |
11,539 |
Provisions |
1,288 |
707 |
Total current liabilities |
98,945 |
93,318 |
Non-current liabilities |
|
|
Borrowings |
6,311 |
7,405 |
Trade payables |
2,769 |
4,178 |
Provisions |
2,049 |
2,044 |
Total non-current liabilities |
11,129 |
13,627 |
TOTAL LIABILITIES |
110,074 |
106,945 |
|
|
|
EQUITY |
|
|
Share capital |
14,379 |
14,379 |
Own (treasury) shares |
(660) |
(660) |
Share premium |
635 |
635 |
Statutory capital reserve |
2,554 |
2,554 |
Translation reserve |
3,316 |
1,948 |
Retained earnings |
2,691 |
6,341 |
Total equity attributable to owners of the
parent |
22,915 |
25,197 |
Non-controlling interests |
4,345 |
2,929 |
TOTAL EQUITY |
27,260 |
28,126 |
TOTAL LIABILITIES AND EQUITY |
137,334 |
135,071 |
Condensed consolidated interim statement
of comprehensive income
€’000 |
Q4 2022 |
12M 2022 |
Q4 2021 |
12M 2021 |
Revenue |
83,685 |
322,860 |
79,640 |
288,534 |
Cost of sales |
(80,454) |
(314,365) |
(80,514) |
(284,513) |
Gross profit (loss) |
3,231 |
8,495 |
(874) |
4,021 |
|
|
|
|
|
Marketing and distribution expenses |
(177) |
(490) |
(165) |
(559) |
Administrative expenses |
(2,148) |
(7,287) |
(1,786) |
(6,053) |
Other operating income |
129 |
2,049 |
321 |
519 |
Other operating expenses |
(70) |
(462) |
(2,171) |
(2,264) |
Operating profit (loss) |
965 |
2,305 |
(4,675) |
(4,336) |
|
|
|
|
|
Finance income |
84 |
258 |
81 |
958 |
Finance costs |
(1,037) |
(3,740) |
(378) |
(1,320) |
Net finance costs |
(953) |
(3,482) |
(297) |
(362) |
|
|
|
|
|
Profit (loss) before income tax |
12 |
(1,177) |
(4,972) |
(4,698) |
Income tax expense |
(64) |
(264) |
(166) |
(808) |
Loss for the period |
(52) |
(1,441) |
(5,138) |
(5,506) |
|
|
|
|
|
Other comprehensive income (expense)Items
that may be reclassified subsequently to profit or
loss |
|
|
|
|
Exchange differences on translating foreign operations |
606 |
1,368 |
85 |
(475) |
Total other comprehensive income (expense) |
606 |
1,368 |
85 |
(475) |
TOTAL COMPREHENSIVE INCOME (EXPENSE) |
554 |
(73) |
(5,053) |
(5,981) |
|
|
|
|
|
Profit (loss) attributable to: |
|
|
|
|
- Owners of the parent |
(998) |
(3,650) |
(5,514) |
(6,310) |
- Non-controlling interests |
946 |
2,209 |
376 |
804 |
Loss for the period |
(52) |
(1,441) |
(5,138) |
(5,506) |
|
|
|
|
|
Comprehensive income (expense)
attributable to: |
|
|
|
|
- Owners of the parent |
(392) |
(2,282) |
(5,429) |
(6,785) |
- Non-controlling interests |
946 |
2,209 |
376 |
804 |
Comprehensive income (expense) for the period |
554 |
(73) |
(5,053) |
(5,981) |
|
|
|
|
|
Earnings per share attributable to owners of the
parent: |
|
|
|
|
Basic earnings per share (€) |
(0.03) |
(0.12) |
(0.17) |
(0.20) |
Diluted earnings per share (€) |
(0.03) |
(0.12) |
(0.17) |
(0.20) |
Condensed consolidated interim statement
of cash flows
€’000 |
12M 2022 |
12M 2021 |
Cash flows from operating activities |
|
|
Cash receipts from customers |
389,548 |
352,378 |
Cash paid to suppliers |
(351,682) |
(310,183) |
VAT paid |
(8,880) |
(8,140) |
Cash paid to and for employees |
(26,075) |
(25,893) |
Income tax paid |
(291) |
(797) |
Net cash from operating activities |
2,620 |
7,365 |
|
|
|
Cash flows from investing activities |
|
|
Paid on acquisition of property, plant and equipment |
(688) |
(232) |
Paid on acquisition of intangible assets |
(122) |
(19) |
Proceeds from sale of property, plant and equipment |
816 |
489 |
Loans provided |
(25) |
(34) |
Repayments of loans provided |
25 |
96 |
Dividends received |
6 |
0 |
Interest received |
9 |
12 |
Net cash from investing activities |
21 |
312 |
|
|
|
Cash flows from financing activities |
|
|
Proceeds from loans received |
4,631 |
1,922 |
Repayments of loans received |
(4,231) |
(3,766) |
Lease payments made |
(3,333) |
(3,318) |
Interest paid |
(984) |
(1,051) |
Dividends paid |
(488) |
(5,000) |
Other payments made |
(8) |
(12) |
Net cash used in financing activities |
(4,413) |
(11,225) |
|
|
|
Net cash flow |
(1,772) |
(3,548) |
|
|
|
Cash and cash equivalents at beginning of
period |
9,031 |
12,576 |
Effect of movements in foreign exchange rates |
(21) |
3 |
Decrease in cash and cash equivalents |
(1,772) |
(3,548) |
Cash and cash equivalents at end of period |
7,238 |
9,031 |
Financial review
Financial performance
Nordecon ended 2022 with a gross profit of
€8,495 thousand (2021: €4,021 thousand) and a gross margin of 2.6%
(2021: 1.4%). Margin improvement was due to the Buildings segment,
which strongly improved its gross margin. However, the performance
of the Infrastructure segment, which ended both the fourth quarter
and the year with a loss, was less than satisfactory. The gross
margins of the Buildings segment were 4.1% for the full year and
6.7% for the fourth quarter of 2022 compared with 2.0% for the full
year and (0.7)% for the fourth quarter in 2021. The gross margins
of the Infrastructure segment, on the other hand, were (2.4)% for
the full year and (12.1)% for the fourth quarter compared with 1.0%
for the full year and (1.4)% in 2021. The key factors, which
affected the performance of both segments were as follows:
- rampantly rising input prices (the
construction price index increased by 17.8% year on year), which
had a particularly strong impact on large and long-term
construction contracts secured before 2022;
- persisting difficulties with the
supply of materials, which make it difficult to complete
construction projects on time but contract extensions involve
additional costs.
The largest customer, the Transport
Administration, cancelled several announced procurements and made
significant cutbacks in its investments in 2022. This has had a
significant effect on the performance of the Infrastructure segment
whose fixed costs are high. In response to a sharp decrease in road
construction investments, we have reorganised our road construction
operations and eliminated duplication of activities to ensure more
efficient use of resources and profitability.The group’s
administrative expenses for 2022 amounted to €7,287 thousand.
Compared with a year earlier, administrative expenses grew by 20%
(2021: €6,053 thousand) due to a general uptrend in the cost of
goods and services and growth in personnel expenses. The ratio of
administrative expenses to revenue (12 months rolling) was 2.3%
(2021: 2.1%). The group earned an operating profit of €2,305
thousand in 2022 (2021: an operating loss of €4,336 thousand).
EBITDA for the period amounted to €5,766 thousand and the EBITDA
margin was 1.8% (2021: EBITDA was negative at €797 thousand and the
EBITDA margin was (0.3)%). The group’s finance costs were strongly
affected by the events in Ukraine. Russia’s invasion of Ukraine in
February 2022 had a strong effect on the exchange rate of the
Ukrainian hryvnia, which was already unstable. The hryvnia, which
was devalued in July, weakened against the euro by approximately
21% and the Swedish krona weakened against the euro by
approximately 8% in 2022. The translation of the loans provided to
the group’s subsidiaries in euros into the local currency gave rise
to an exchange loss of €1,416 thousand on movements in the exchange
rate of the Ukrainian hryvnia and an exchange loss of €112 thousand
on movements in the exchange rate of Swedish krona (2021: an
exchange gain of €711 thousand on movements in the exchange rate of
the Ukrainian hryvnia and an exchange gain of €16 thousand on
movements in the exchange rate of Swedish krona). The same
movements in foreign exchange rates increased the translation
reserve in equity by €1,368 thousand (2021: reduced by €475
thousand) and the net effect of the exchange differences on the
group’s net assets was negative at €160 thousand (2021: positive at
€256 thousand). In addition, the group wrote down the loans
provided to the Ukrainian associate V.I. Center TOV by €825
thousand. Due to the lack of more recent reliable data, the fair
value of the loan was measured using the inputs of the valuation
reports issued at the end of 2021 by an internationally recognised
independent appraiser. The asset had to be written down due to the
time factor, i.e. the deferral of the completion of the development
projects. The foreign exchange loss and the impairment loss on the
loan were non-cash transactions with a total effect of €2,353
thousand on the net result for 2022. The group ended the year with
a net loss of €1,441 thousand (2021: a net loss of €5,506
thousand). The net loss attributable to owners of the parent,
Nordecon AS, was €3,650 thousand (2021: a net loss of €6,310
thousand).
Cash flows
Operating activities produced a net cash inflow
of €2,620 thousand in 2022 (2021: an inflow of €7,365 thousand).
Operating cash flow is increasingly affected by the need to make
prepayments to materials suppliers, which have grown due to spikes
in materials prices and continuing supply disruptions, in a
situation where the contracts signed with both public and private
sector customers do not require them to make advance payments. Cash
inflow is also reduced by contractual retentions, which extend from
5 to 10% of the contract price and are released at the end of the
construction period only.Investing activities of the period
resulted in a net cash inflow of €21 thousand (2021: an inflow of
€312 thousand). Payments made to acquire property, plant and
equipment and intangible assets amounted to €810 thousand (2021:
€251 thousand) and proceeds from the sale of property, plant and
equipment totalled €816 thousand (2021: €489 thousand).Financing
activities generated a net cash outflow of €4,413 thousand (2021:
an outflow of €11,225 thousand). The largest items were cash flows
related to loans and leases. Proceeds from loans received totalled
€4,631 thousand, consisting of the use of the overdraft facility
and development loans (2021: €1,922 thousand). Repayments of loans
received amounted to €4,231 thousand, consisting of regular
repayments of long-term investment and development loans (2021:
€3,766 thousand). Lease payments totalled €3,333 thousand (2021:
€3,318 thousand). Dividends paid in 2022 amounted to €488 thousand
(2021: €5,000 thousand).The group’s cash and cash equivalents at 31
December 2022 totalled €7,238 thousand (31 December 2021: €9,031
thousand).
Key financial figures and
ratios
Figure/ratio |
2022 |
2021 |
2020 |
Revenue (€’000) |
322,860 |
288,534 |
296,082 |
Revenue change |
11.9% |
(2.5)% |
26.5% |
Net profit (loss) (€’000) |
(1,441) |
(5,506) |
4,118 |
Net profit (loss) attributable to owners of the parent (€’000) |
(3,650) |
(6,310) |
2,466 |
Average number of shares |
31,528,585 |
31,528,585 |
31,528,585 |
Earnings per share (€) |
(0.12) |
(0.20) |
0.08 |
Administrative expenses to revenue |
2.3% |
2.1% |
2.4% |
EBITDA (€’000) |
5,766 |
(797) |
7,003 |
EBITDA margin |
1.8% |
(0.3)% |
2.4% |
Gross margin |
2.6% |
1.4% |
3.7% |
Operating margin |
0.7% |
(1.5)% |
1.2% |
Operating margin excluding gain on asset sales |
0.6% |
(1.6)% |
1.1% |
Net margin |
(0.4)% |
(1.9)% |
1.4% |
Return on invested capital |
(0.5)% |
(6.5)% |
9.3% |
Return on equity |
(5.2)% |
(16.8)% |
11.8% |
Equity ratio |
19.8% |
20.8% |
27.6% |
Return on assets |
(1.1)% |
(4.1)% |
3.3% |
Gearing |
32.0% |
28.3% |
21.1% |
Current ratio |
0.88 |
0.94 |
1.01 |
|
|
|
|
At 31 December |
2022 |
2021 |
2020 |
Order book (€’000) |
149,799 |
266,856 |
215,796 |
Performance by geographical
market
The revenue contribution of foreign markets
decreased substantially year on year, dropping to 4% of the group’s
total revenue for 2022. Due to Russia’s military invasion of
Ukraine, the business volumes of our Ukrainian subsidiary Eurocon
Ukraine TOV have plummeted. The subsidiary halted its operations
during the first months of the war but in the second quarter
resumed work on a previously started building project in Kiev and
is now also restoring an administrative building of the Kiev TV
tower, which was damaged in the war. At the end of the year, we
signed a contract for the construction of concrete structures for a
modular kindergarten, a bomb shelter and outdoor infrastructure in
the city of Ovruch. Ukrainian revenues for the reporting period
amounted to €1,202 thousand. Nordecon did not generate any revenue
and had no ongoing construction contracts in the Swedish market.
The group operates on a project basis in Latvia and Lithuania where
it was building two wind farms in the reporting period. Finnish
revenues mainly consist of subcontracting revenue from concrete
works.
|
2022 |
2021 |
2020 |
Estonia |
96% |
94% |
82% |
Finland |
2% |
3% |
6% |
Lithuania |
1% |
0% |
0% |
Latvia |
1% |
1% |
0% |
Ukraine |
0% |
2% |
1% |
Sweden |
0% |
0% |
11% |
Performance by business
line
Segment revenues
We strive to maintain the revenues of our two
main operating segments (Buildings and Infrastructure) as balanced
as possible because this helps diversify risks and provides better
opportunities for continuing construction operations in more
challenging market conditions where the volumes of one or several
subsegments may substantially decline. The group’s revenue for 2022
was €322,860 thousand, roughly 12% larger than in 2021 when the
group generated revenue of €288,543 thousand. The revenue of the
Buildings segment grew by 21% while the revenue of the
Infrastructure segment decreased by 14%. Revenue decline in the
Infrastructure segment is attributable to cutbacks in the
investments of the largest customer, the Transport Administration,
made due to the effects of the war in Ukraine that have caused a
rampant surge in input prices. The growth delivered by the
Buildings segment is mainly underpinned by large contracts secured
in 2021. The low volumes of infrastructure construction that
continue to affect the entire construction market also influence
the group’s revenue structure. In 2022, the Buildings segment and
the Infrastructure segment generated revenue of €260,585 thousand
and €62,048 thousand, respectively. The corresponding figures for
2021 were €216,070 thousand and €72,115 thousand.
Revenue by operating segment |
2022 |
2021 |
2020 |
Buildings |
81% |
75% |
72% |
Infrastructure |
19% |
25% |
28% |
Subsegment revenues
The revenue of the commercial buildings
subsegment remained essentially stable while the revenues of other
subsegments grew compared with 2021. The largest revenue
contributors in the Buildings segment were the public buildings and
the apartment buildings subsegments, which increased their revenue
by 31% and 21%, respectively. The strongest revenue growth (57%)
was delivered by the industrial and warehouse facilities
subsegment, which contributed 18% to the revenue of the Buildings
segment. The revenue of the public buildings subsegment grew
significantly compared with a year earlier. The largest projects in
progress during the period were construction works in the Medical
Campus of the Tartu University Hospital in Tartu, the construction
of the main building of the Estonian Internal Security Service in
Tallinn, the design and construction of storage facilities and
utility networks for the Centre for Defence Investment in Harju
county and the design and renovation of the Ülenurme upper
secondary school in Kambja rural municipality near Tartu.The
apartment buildings subsegment earns most of its revenue from the
construction of apartment buildings for third parties. In the
reporting period, the largest of them were the design and
construction of the Tiskreoja and the Luccaranna housing estates on
the western border of Tallinn. The volume of our own development
operations (reported in the apartment buildings subsegment),
however, has grown as well. We have development projects in both
Tallinn and Tartu. During the period, work continued on the
construction of the Mõisavahe Kodu housing estate in Tartu
(https://moisavahe.ee) and the development of plots for Kivimäe
Süda, a new housing estate in the Nõmme district in Tallinn, where
we have started preparations for phase II – the construction of an
apartment building (https://www.kivimaesuda.ee/en). We have also
started the design of the Seiler Quarter housing estate in Pärnu
(https://seileri.ee). The period’s revenue from own development
projects amounted to €11,459 thousand (2021: €3,097 thousand). In
carrying out our own development activities, we carefully monitor
potential risks in the housing development market. The largest
projects of the commercial buildings subsegment were the commercial
and residential complex Vektor in Tallinn, the LEED Gold compliant
Alma Tomingas office building in Ülemiste City and an IKEA store in
Rae rural municipality near Tallinn. The latter two have been
completed and delivered to the customer on time. The largest
ongoing project in the industrial and warehouse facilities
subsegment is the construction of a factory complex for the dairy
company E-Piim in Paide but there are also smaller projects such as
the construction of a production building at Kurna tee in Harju
county and the design and construction of an extension to the
production building of Viljandi Aken ja Uks AS.
Buildings segment |
2022 |
2021 |
2020 |
Public buildings |
30% |
28% |
37% |
Apartment buildings |
28% |
29% |
28% |
Commercial buildings |
24% |
29% |
23% |
Industrial and warehouse facilities |
18% |
14% |
12% |
In the Infrastructure segment, the largest
revenue contributor is still road construction and maintenance
although its revenue has decreased year on year by roughly 28%.
During the period, a major share of its revenue resulted from the
performance of contracts secured in 2021, the largest of which were
the construction of 2+2 passing lanes on the Kärevere–Kardla
section of the Tallinn–Tartu–Võru–Luhamaa road and the design and
construction of the outdoor area near Terminal D in Old City
Harbour in Tallinn, as well as smaller contracts of €2–3 million
each signed in 2022. The group continued to deliver road
maintenance services in Järva county. The revenue contribution of
other engineering, which is currently generating most of its
revenue from the construction of wind farms in Estonia, Latvia and
Lithuania, increased year on year.
Infrastructure segment |
2022 |
2021 |
2020 |
Road construction and maintenance |
78% |
87% |
74% |
Other engineering |
20% |
10% |
21% |
Specialist engineering |
2% |
0% |
4% |
Environmental engineering |
0% |
3% |
1% |
Order book
The group’s order book (backlog of contracts
signed but not yet performed) stood at €149,799 thousand at
31 December 2022, reflecting a roughly 44% decrease year on
year. In 2022, we signed new contracts of €163,498 thousand, of
which contracts of €25,381 thousand in the fourth quarter. The
corresponding figures for 2021 were €314,758 thousand and €37,612
thousand. The surge in materials prices and a rise in interest
rates due to the increase in EURIBOR have substantially increased
the costs of development projects as well as the postponement of
new projects. As mentioned in the previous chapters, the volume of
investments made by the Transport Administration has decreased
significantly. This has affected the group’s order book through a
decline in the order book of the Infrastructure segment. On the
other hand, the volume of procurements for the Rail Baltica project
has increased and this has partly counterbalanced the decline in
the investments of the Transport Administration. While public
investments in the buildings construction segment have also
decreased, investments in national defence infrastructure are going
to increase according to currently available information and this a
subsegment where Nordecon has traditionally been very
successful.
At 31 December |
2022 |
2021 |
2021 |
Order book (€’000) |
149,799 |
266,856 |
215,796 |
The proportions of the two main operating
segments in the group’s order book have not changed substantially:
the Buildings segment continues to dominate with 88% while the
share of the Infrastructure segment is 12% (31 December 2021: 87%
and 13%, respectively). The order books of both the Buildings
segment and the Infrastructure segment have decreased compared with
31 December 2021: by 45% and 32%, respectively. A major share of
contracts secured in the fourth quarter were attributable to the
Buildings segment. The largest of them were:
- the construction of a biological
pharmaceuticals manufacturing facility for Icosagen AS in Kambja
rural municipality in Tartu county with an approximate cost of
€4,000 thousand;
- the construction of the building and
outdoor premises for the Karlsson kindergarten in Viljandi city
with an approximate cost of €5,100 thousand;
- the construction of the Tagadi ecoduct
on the route of Rail Baltica in Harju county with an approximate
cost of €5,300 thousand;
- the construction of the Viljandi
Rescue Station building with an approximate cost of €3,900
thousand.
Between the end of the financial year (31
December 2022) and the date this report is authorised for issue,
group companies have secured additional construction contracts of
approximately €73,280 thousand. The new contracts include, for
example, the design and construction of the Sopi-Tootsi wind farm
in the northern part of Pärnu County with an approximate cost of
€67,300 thousand, which was won in a joint bid. The group’s share
of the cost of the contract is 50%. Based on the size of the
group’s order book, management forecasts that in 2023 the group’s
revenue will decrease compared with 2022. The uptrend in the prices
of materials, energy carriers and labour costs will continue to
drive up input prices, which will increase pressure on profit
margins. In an environment of stiff competition, we have avoided
taking unjustified risks whose realisation in the contract
performance phase would have an adverse impact on the group’s
results. Our focus remains on cost control as well as
pre-construction and design activities, where we can deploy our
professional competitive advantages.
People
Employees and personnel
expenses
The group’s average number of employees in 2022
was 658, including 432 engineers and technical personnel (ETP).
Headcount decreased by around 4% year on year.
Average number of employees at group
entities (including the parent and the subsidiaries):
|
2022 |
2021 |
2020 |
ETP |
432 |
434 |
450 |
Workers |
226 |
251 |
258 |
Total average |
658 |
685 |
708 |
The group’s personnel expenses for 2022,
including all taxes, totalled €27,248 thousand compared with
€25,054 thousand in 2021. Personnel expense have increased by
around 9% in connection with growth in wages and salaries. The
service fees of the members of the council of Nordecon AS for 2022
amounted to €150 thousand and associated social security charges
totalled €50 thousand (2021: €150 thousand and €50 thousand,
respectively).The service fees of the members of the board of
Nordecon AS amounted to €417 thousand and associated social
security charges totalled €138 thousand (2021: €369 thousand and
€122 thousand, respectively).
Labour productivity and labour cost
efficiency
We measure the efficiency of our operating
activities using the following productivity and efficiency
indicators, which are based on the number of employees and
personnel expenses incurred:
|
2022 |
2021 |
2020 |
Nominal labour productivity (th. €) |
490.4 |
420.8 |
422.9 |
Change against the comparative period, % |
16.5% |
(0.5)% |
24.2% |
|
|
|
|
Nominal labour cost efficiency (€) |
11.8 |
11.5 |
10.9 |
Change against the comparative period, % |
2.9% |
5.5% |
18.0% |
The group’s nominal labour productivity and
nominal labour cost efficiency improved year on year, mainly due to
revenue growth. Nominal labour productivity was also influenced by
a decrease in the number of staff.
Andri HõbemägiNordecon ASHead of Investor
RelationsTel: +372 6272 022Email: andri.hobemagi@nordecon.com
www.nordecon.com
- Nordecon_Interim_report_Q4_2022
- NCN investor presentation Q4_2022
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