DEN Group experiences strong growth – doubles turnover and staff

DEN Group nearly doubled its turnover in 2017 to EUR 146.4 million, and it also took further steps in its internationalization process.

– 2017 was a year of strong growth at DEN. We revamped and improved our organization and processes. We currently offer a comprehensive range of services from new homes to holiday homes and various space solutions. We strive to continue to be the trendsetter in our industry, bringing new ways of thinking and increasingly more customer-oriented solutions to the market. The name change from Pohjolan Design-Talo to DEN Group represents this development, says CEO Jaakko Taivalkoski.

DEN is publishing preliminary figures for its 2017 financial development (unaudited). DEN Group’s turnover in 2017 amounted to EUR 146.4 million (EUR 74.2 million in 2016). The group employed 469 (209) people at the end of 2017. The adjusted EBITDA almost doubled and rose to EUR 14.4 million, or 9.8 percent of the company’s turnover. Non-recurring items resulting from transaction costs related to acquisitions and their fair value allocation amounted to EUR 9.4 million. In 2017, the reported EBITDA was EUR 5.0 million (7.4), or 3.4 percent (10.0) of the turnover.

Factors behind the growth in turnover are both organic growth, and, to a significant degree, growth through acquisitions. During 2017, DEN acquired the business operations of log house manufacturer Finnlamelli Oy and Talliosake, provider of flexible multifunctional premises for storage, work, and leisure. Immediately following the end of the accounting period, in January 2018, the group further expanded its service offering by acquiring PohjanTeko and PohjanGeo that provide earthworks construction and planning services. This makes it possible for DEN to offer, under one roof, all the services related to building your own home, starting with planning, followed by earthworks and site preparation, and every step of the way until the completed turnkey single-family home is ready.

– Our brands Designtalo and Ainoakoti make us the market leader in the segment of turnkey single-family homes. Our aim is to make it as easy and risk-free as possible for buyers of a home or another space to realize their dreams of a unique space which has been tailor-made for them. In practice, this means increasingly more complete delivery contents, several brands responding to various individual needs and preferences, and service and product offering ranging from plot acquisition to building maintenance, describes CEO Jaakko Taivalkoski.

Construction projects based on the Talliosake concept experienced strong growth during the year 2017. Talliosake offers flexible multifunctional premises and solutions for work, hobby, and leisure purposes to consumers and small businesses. These premises can be flexibly modified according to users’ needs. In addition to serving end users, Talliosake strengthened its position as a provider of real estate investment objects. The first construction projects in Sweden based on the Talliosake concept were launched in March 2018.

Finnlamelli, a developer of log technology and a pioneer in manufacturing of ecological single-family homes, revamped both its organization and business concept during 2017, and is expanding its offering to turnkey deliveries of log houses. The rise in the market share of log houses as well as the trend favoring ecological and healthy building, in both the domestic and international markets, are giving a boost to Finnlamelli’s goals. Finnlamelli is a strong international player, and in 2017 the share of exports was approximately 32 % of the turnover of Finnlamelli. The company’s main markets are in Finland, Japan, Russia, and the United States.

DEN Group’s consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS).

Additional information

DEN Group Oy
Jaakko Taivalkoski, CEO
+358 50 376 7426

DEN Group Oy is a leading manufacturer of turnkey single-family homes and multifunctional premises, as well as a service provider. The group employed 469 persons at the beginning of 2018. Funds managed by private equity firm CapMan are the main owners of DEN. In addition, Finnish government-owned investment company Tesi (Finnish Industry Investment Ltd) and the personnel of DEN are significant shareholders. DEN Group consists of Designtalo, pioneer in turnkey single-family homes; Ainoakoti brand, owned by DEN and K-Rauta together; log manufacturer Finnlamelli; Talliosake, a provider of multifunctional premises for work and hobby; earthworks service provider PohjanTeko; PohjanGeo which specializes in the planning of earth and building construction and foundation engineering; and Designtalo Tekniikka, a provider of technical building systems services.