Implenia adjusts outlook for 2018 financial year | Medium-term targets confirmed | Strategy review due for completion by end of February 2019
At the start of October 2018, when André Wyss took on the job as Implenia’s new CEO, he started at the request of the Board of Directors with the further development of the Group's strategy. In the context of this work a review of the Group’s enterprise and commercial risks is also being carried out.
The Development, Switzerland and Infrastructure Segments are progressing in line with expectations. However, the review so far has shown that issues within the International Segment have intensified and accelerated. As a result, Implenia is revising the targets communicated on 21 August 2018, which expected an EBIT of the Business Units for 2018 of around CHF 130 million.
As of today, management expects to make value adjustments totalling CHF 70 to 90 million for the 2018 financial year as a result of one-time write-downs and lower earnings from ongoing business in parts of the International Segment. As a consequence, 2018 cash flow will likely come in below expectations. Based on the information currently available, and in light of the unchanged healthy cash position and the high level of the order book – over CHF 6 billion – Implenia still expects that the 2019 General Meeting of Shareholders can be asked to approve a dividend payment.
Implenia works in attractive markets, and the Company is confident it will achieve the medium-term targets communicated in spring 2017: a top-line volume of around CHF 5 billion and an EBITDA margin between 5.25% and 5.75%.
The Board of Directors and Management are currently working intensively on the further development of the Group’s strategy. Implenia will communicate the results of this work at the media and analysts’ conference on 26 February 2019.
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