NYAB, time for a new chapter of growth.
We have recently closed the books for the previous year, ie 2016. The first year without a growth target that consequently went in the sign of consolidation, this after three years with extreme growth. We have also managed that challenge very well and closed last year with a growth at group level of shy 5 %. and a profit margin that was already well above the industry average in 2015, which further improved by about 2.5 percentage points to just over 10 %.
The purpose of the consolidation was to build an even stronger foundation, to develop our employees and our way of working, and to build a fund that can handle risks and cash flow at a future doubled volume.
We are now leaving the low season and doing so with a good result and with a diversified and healthy order backlog. The order backlog is larger than ever and when full production is achieved after our recently started growth journey, NYAB will be about twice as large. Slightly simplified, it can be said that the volume for the first half of 2017 is equivalent to the first half of 2016, although at the end of the second half we are almost twice as large, so the full year should lead to a volume increase of up to 30%. Full effect will not be seen until 2018 regarding production and sales.
This is of course possible because the people in NYAB continue to grow, we are clearly better now than we were just a year ago. Talented people choose to come to us and they contribute with their vision, their thoughts, experiences and their energy and we perform and then grow together.
All business areas are growing. Johan Rahkola, Business Area Manager Construction, has recently begun his work, which will soon lead to us being one of the county's sharpest companies in major new construction. Construction is the business area where I track the biggest development over the next 2-3 years. Johan is driven, knowledgeable, sees opportunities and comes to a company that is in order, with an already well-functioning and competent small construction business. Together with those already active in construction, corporate culture, synergies and those who are on their way in, it will be fun and challenging for me to help and contribute as far as I can and allowed.
It is possible that the managers and employees in the larger business areas today want to prove the opposite, regarding the highest rate of development, and they are welcome to do so. Because at NYAB we still do everything together, are conservative and think new, lose and win, mourn and celebrate, fight and develop. We have fun when we do it and together we have achieved something that I call collective intelligence.
I recently received an award as the entrepreneur of the year in Luleå. This is a personal price, but in a company of this size, the role of the individual is clearly limited and subordinate. For me, it is a prize for and for NYAB's employees, and a consequence of the performance we have performed.
I would also like to take this opportunity to thank our subcontractors, suppliers and partners. I am pleased to see that many of the sharpest and sharpest there are want to work with us and for us. And that it does not matter much if it is a shaft contractor, electrical installer, machine owner, supplier of water and sewerage materials or building materials, insurance intermediary, communications agency or bank. From day one, when we were a company that was insignificantly small in size, but with big plans, these have been on their toes and assisted with their expertise. They have accepted our challenges and have had fun, achieved success and created added value and growth for each company, NYAB and society together with us.
Here we go!
Johan Larsson, CEO NYAB