The development continues
NYAB's first half of 2018 is marked by development. The growth rate in terms of sales volume is clearly higher than previously forecast. We can revise the forecast for the Group's annual sales and now say with certainty that it will exceed SEK 800 million, possibly reaching SEK 900 million.
In 2017, the NYAB Group had sales of SEK 480 million.
The conditions are good for managing an operating profit in 2018 that exceeds 7% EBITDA by a margin.
Since NYAB began its journey in the spring of 2013, we have never performed as well in terms of results in the first half of the year as we did this year, this calculated in both SEK and %.
NYAB's investment in sustainability continues, during the year we carried out extensive work managed by Group management, which includes KMA & the Head of Sustainability. It has already borne fruit, we have carried out audits with a couple of subcontractors and suppliers. And we are well aware that NYAB's lowest level is never higher than our subcontractors' lowest level. Consequently, in the future we must work even harder to develop together with our suppliers and subcontractors.
We have won a contract where the customer in connection with contract writing emphasized that a strong contributing reason why they chose to work with NYAB is our sustainability work. The future, which I talked about in my previous CEO speech, is already here. We have thus been able to use our sustainability work as a means of competition. It feels very good to me to see working methods and attitudes within sustainability issues implemented, systematized and prioritized in our operations. I expected nothing but that it would go well and fast. That assumption has proven to be correct and NYAB's employees have not been reluctant in the usual way when it feels good and concerns development. And to think new and bigger. The work and development in sustainability issues continues.
The subsidiary also the business area NYAB Infrastructure, which was formed in September 2017, is developing very well, and they will already this year account for an estimated 20% of the Group's total sales volume. It is worth mentioning here that NYAB Infrastructure, in line with the Group's strategy, has won a number of ongoing agreements, in various forms to have a basis for other operations and not be completely dependent on winning project procurements. The Group's first land and occupancy agreement with a municipality, Kalix municipality, is a fact. Two ranking agreements with the Swedish Transport Administration, one for "Järnväg" and one for "Väg" have recently been awarded and refer to geographically large parts of Stockholm / Mälardalen and Norra Norrland.
Other business areas are also developing and growing, in the future we strongly believe in railway-specific projects and fiber / opto. We have signed a number of smaller contracts within these segments and the intention is to continue to develop within them. Both construction and civil engineering have good years behind them and the market supply looks very good today and in the coming years.
NYAB's development and good results are based on us taking the right strategies and ideas to action and execution, and we execute well. We respect each other and our differences. Our four business areas complement each other and carry group management and support functions, and this gives us competitiveness. We do it together and we do it well. We navigate according to customer satisfaction, and we are not afraid to say to the times we think our customer has or makes mistakes. We see it as our responsibility and our duty.
Overall, we do more right than wrong, and the times we make mistakes, we take responsibility and learn.
Simplified, it can be said that our "model" stimulates development and greatly reduces the risk of becoming "fat and lazy", which is one of a construction company's biggest enemies.
As a Norrbotten resident, I am particularly pleased that we have signed our first contract with Kaunis Iron. The joy is clearly greater over the fact that they now increasingly dare to believe in a long-term mining operation in Pajala than over the fact that Kaunis Iron has the good judgment to want to do business with NYAB.
The investment in Pajala, in case it turns out well, means as much to the local community as LKAB does for Kiruna and Gällivare. It creates a belief in the future that in the long run provides the necessary vitality to the local community and is positive for the entire county.
This autumn, Sweden will vote, mainly parliamentary and municipal elections will be followed with great interest.
A new world in many respects with increased polarization, increased influence and influence via social media and freer market forces.
I hope that we iaf partly vote with the heart, that values such as solidarity and sustainability which build a society, are important and are reflected in the election results. I hope that now in the election sprint we will see deeper reasoning and ideologies emerge. That we get to see a credible picture of how welfare is to be financed in a healthy and sustainable as well as cost-effective way. With the tax pressure we have, Sweden must be able to afford but world-class welfare. Then reforms within county councils, police and schools are required.
I wish less of the populist whims that both opposition and government parties have engaged in far too much in recent years.
The election result in the parliamentary election will have a greater significance for society's development in the coming term of office than any election I have participated in.
The future for NYAB, you, me, Norrbotten and Sweden will to a large extent be what we make it!
The future is exciting, and believe me, development is the future!
-Johan Larsson, CEO NYAB