Per Aarsleff, which owns UK-based Aarsleff Ground Engineering, has reported a 9% rise in revenues from its ground engineering segment for the first nine months of its 2017/18 financial year but said the performance was below expectations.
The company’s ground engineering segment recorded revenues of DKK1.37bn (£166.6M), up from DKK1.29bn (£156.8M) for the same period last year.
Losses recorded in Per Aarsleff’s German ground engineering business are the main driver for the below expectation performance.
The company described activity in the German region as “very unsatisfactory”. Per Aarsleff said that the problems in the market stem from low activity in the supply of reinforced concrete piles for onshore wind turbine foundations which had been one of the main markets for its German business.
Per Aarsleff has said that the UK experienced a high level of activity during its third quarter but said that “while there was a positive development of results, however, it will take a while before results are satisfactory”. The company said that there was a focus on selective order acquisition in the UK.
Per Aarsleff said that activity in its home territory of Denmark is increasing, but results were below expectations at the beginning of the year due to a low level of activity in the first six months of the financial year. The company added that the order backlog is satisfactory and said that it expects the level of activity to be high in the last quarter of the financial year.
The company said that activity in Sweden and Poland is also high and performance in these regions has exceeded expectation.
As a result of its nine month results, Per Aarsleff has adjusted its expectations from its ground engineering segment for the full year with profit margins expected to be in the region of 4% instead of 5% and revenues for the full year up 5% from the previous year.