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Lassila & Tikanoja plc: Financial Statements 1 January–31 December 2021

Lassila & Tikanoja plc
Stock exchange release
27 January 2022 at 8:00 a.m.

Lassila & Tikanoja plc: Financial Statements 1 January–31 December 2021

STRONG ORGANIC GROWTH

Unless otherwise mentioned, the figures in brackets refer to the corresponding period in the previous year.

  • Net sales for the final quarter were EUR 223.5 million (199.6). Net sales increased by 12.0 per cent, of which 8.7 percentage points was organic growth. Adjusted operating profit was EUR 10.1 million (9.9), and operating profit was EUR 9.9 million (9.9). Earnings per share were EUR 0.26 (0.20).

  • Net sales for 2021 amounted to EUR 812.5 million (751.9). Adjusted operating profit, including a negative impact of EUR 1.0 million due to the change in the accounting principles for cloud computing arrangements, was EUR 42.4 million (39.7), operating profit was EUR 42.2 million (28.2), and earnings per share were EUR 0.90 (0.50).

  • Earnings per share were positively influenced by a reduction in net financial expenses to EUR -3.3 million (-4.9). Exchange differences amounted to EUR 0.3 million (-1.4).

  • The Board of Directors proposes a dividend of EUR 0.46 per share.

Outlook for the year 2022

The company estimates that the impact of the Omicron variant of COVID-19 will have a negative effect on the Group’s result in the first quarter, as customer sites reduce their operations due to the government restrictions and increased sickness-related absence of personnel.

Net sales and adjusted operating profit in 2022 are estimated to be at the same level as in the previous year.

PRESIDENT AND CEO EERO HAUTANIEMI:

“The year 2021 was characterised by the COVID-19 pandemic, and there were many uncertainties in the operating environment. The demand for Lassila & Tikanoja’s services began to recover during the second quarter, and strong development continued during the second half of the year. However, the costs of service production were increased by the substantial increase in diesel prices, as well as a worsening labour shortage.

Full-year net sales grew by 8.1% year-on-year. Organic growth was 6.6%. Adjusted operating profit, including a negative impact of EUR 1.0 million due to the change in the accounting principles for cloud computing arrangements, improved year-on-year and totalled EUR 42.4 million (39.7).

All divisions grew organically in 2021, and the growth was also accelerated by three acquisitions in accordance with our strategy. The Environmental Services and Industrial Services divisions achieved a strong result. Performance was weak in the property maintenance and technical services business lines in Facility Services Finland. Measures to simplify the organisational structure and improve cost-efficiency were successfully implemented during the fourth quarter. The measures aim to achieve annual cost savings of a minimum of EUR 3 million starting from 2022.