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CONSTI GROUP PLC STOCK EXCHANGE RELEASE 7 FEBRUARY 2019, at 8.25 a.m.
Consti is launching a program to improve profitability and renewing its segment reporting
On 6 February 2019, Consti Group Plc's Board of Directors decided to launch a program to improve the company's profitability and competitiveness. The essence of the program is to create a customer-oriented organisation structure, which moves leadership closer to production at the work sites and fosters the efficient organising of internal support services. In addition to clarifying the service offering, the program also enables improving risk management and the organisation's ability to react. The planned actions include structural changes and also developing common processes and operational models. The new organisation will be effective as of 18 February 2019.
The program aims at achieving an approximately 2 million-euro annual cost savings. The sum includes targeted cost savings from actions carried out in the fourth quarter of 2018 to restore the performance of low-profitability units. The cost savings are expected to take effect fully from the beginning of 2020 onwards. The impact of the program will be communicated in more detail as plans are specified. The program's costs are estimated to amount to approximately 0.5 million euro and estimated to be fully expended during 2019.
Consti's new organisational structure has four business areas:
1. Renovation services for housing corporations,
2. Renovation services for corporations and real estate investors,
3. Renovation services for the public sector; and
4. Building technology contracting and maintenance
Consti is altering its segment reporting due to the change in its organisational structure. In future, its operational segments are the four aforementioned business areas, which will be combined into one reportable segment.
Consti will publish information on its net sales based on the new segment reporting for the fiscal year that ended on 31 December 2018 before publishing the first interim report for 2019.
CONSTI GROUP PLC
Esa Korkeela, CEO, Consti Group Plc, Tel. +358 40 730 8568
Joni Sorsanen, CFO, Consti Group Plc, Tel. +358 50 443 3045
Nasdaq Helsinki Ltd.
Consti is a leading Finnish company concentrating on renovation and technical services. Consti offers comprehensive building technology, pipeline renovation, renovation contracting, façade renovation and other demanding construction and maintenance services for residential and commercial buildings. In 2017, Consti Group's net sales amounted to 300 million euro. It employs over 1000 professionals in renovation construction and building technology.
Consti Group Plc is listed on Nasdaq Helsinki. The trading code is CONSTI. www.consti.fi