MT Højgaard Holding:- Strong order intake and guidance for 2023 - ABG

Good Q4 despite one-off'sStrong order intake. Order book in-lineGuidance 5 -16% above our expectationsGoodwill write down of DKK 44m in InternationalMTH Holding provded pre-liminary headline FY22 results alongside its 22 December company announcement regarding the sales process for its troubles ScandByg division. Realized Q4 sales came in at DKK 2,344m (+10%), 1% above our forecast while EBIT of DKK 72m was marginally (7%) below our forecast. This was despite a DKK 44m goodwill write-down in its International Division relating to non inflation-indexed contracts. As such, the underlying performance in Q4 (after adjusting for ScandiByg which has been classified as discontinued operations) was actually better than expected. Furthermore, the Q4 order intake of DKK 3,513m was better than our DKK 2,901m forecast, while the order backlog for the year ended on a record high note in-line with our DKK 14bn forecast. In addition, the company has DKK 1.4m in non-booked orders and collaborations valued at up to DKK 5.5bnStrong guidance encouraing guidanceParticularly positive, however, was the guidance for 2023. MTHH expects revenues between DKK 9 - 9.5bn which is 5% higher than our DKK 8.8bn estimate while EBIT (before special items) is expected between DKK 300 - 325m with a midpoint that is 16% higher than our DKK 270m forecast.Updated strategy with focus on qualityAs speculated in our preview, the company announces an updated strategy extending to 2025. While the previous strategy had a strong turn-around focus, the new strategy is more directional in nature and focuses on improving the overall quality of the company across all dimensions. From a financial point of view, the focusing is on improving the quality of investment decisions and the return on capital employed. MTH Holding deviation tableSource: ABG Sundal CollierLäs mer på ABG Sundal Collier