Per Aarsleff has said that restructuring of its UK business in autumn last year has had a negative impact on the business’s results for the 1 October to 31 December period last year.
During this period, which falls within Per Aarsleff’s first financial quarter, Aarsleff Ground Engineering manging director Chris Primett was replaced by former general manager Kevin Hague and a new business strategy was announced.
“The new strategy that focuses on minor projects and sale of reinforced concrete piles to third parties is being implemented, and a gradual improvement of results is expected in the course of the year,” said Per Aarsleff in its financial statement. “As expected, this has caused a negative impact on Q1 results.”
The UK was not the only ground engineering division within Per Aarsleff to experience market challenges with the overall revenues down 11% at DKK390M (£46.3M) compared to the same period in 2016. Profitability and margins were also down with an EBIT of DKK1M (£118,710) for the period with a margin of just 0.3% compared to an EBIT of DKK10M (£1.1M) and margin of 2.3% for the Q1 period in 2016.
Per Aarsleff said that a decline in basement scheme impacted its business in Denmark and in Germany there was a fall in demand for onshore wind turbine foundations. Nonetheless, the business reported a high level of activity in Sweden and Poland.
The company has said that expectations for the full 2017/18 financial year remain unchanged with an expectation of revenue growth in the region of 3% and EBIT rising 5%.