The strong growth of 2017 continued in 2018. In 2017, DEN Group doubled its staff to nearly 500 people, and exceeded this figure in 2018.
Turnover grew to EUR 194,4 million in 2018, after posing a turnover of EUR 146,4 million the year before. Factors behind the growth in turnover are both organic growth, and, to a significant degree, positive development of turnover from the premises business area. Also, the growth of turnover in the home business area distinctly exceeded the average level of the market.
In January 2018, the group further expanded its service offering by acquiring PohjanTeko and PohjanGeo that provide earthworks construction and planning services. Due to the acquisitions of 2017 and 2018, DEN can now offer, under one roof, all services related to building a home, from planning to site preparation, and every step of the way until a completed turnkey single-family home is ready. In addition to services related to building single-family homes, the group also provides services related to leisure homes, and multifunctional premises for both businesses and private customers. In 2018, the group also expanded its Talliosake business and began to offer rental and real estate management services, making the service even more comprehensive.
Adjusted EBITDA was EUR 8.5 million, or 4.4 percent of the company’s turnover. Non-recurring items resulting from transaction costs related to acquisitions and their fair value allocation amounted to EUR 3.7 million. In 2018, reported EBITDA was EUR 4.9 million, or 2.5 percent of the turnover.
DEN Group also took further steps in its internationalization process, and the first construction projects in Sweden based on the Talliosake concept were launched in March 2018. At Finnlamelli, the share of exports was 29 % of the turnover in 2018. Finnlamelli’s main markets are 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).
Financial position and financing
The equity ratio at the end of the accounting period was 55,8 % (12/2017: 59,3 %). Gearing was 53,5 % (12/2017: 33,7%).
On February 15, 2018, DEN made public a EUR 1.2 million investment in revamping the production at its Alajärvi laminated log factory. As part of the investment, the finger-joint machine and the production line of the factory will be replaced, and the production building will also be renovated. The investment is going to raise the production capacity of the factory by tens of percent.
The reasons behind the investment are market trends of sustainability, ecological construction, and healthy living, and the purpose of the investment is to ensure the operational reliability and capacity of the production line, with future business growth in mind.
In September 2017, the group launched an expansion of its production, warehouse, and office space, which also meant a significant increase in the number of employees in Nivala. This raised the production capacity of the factory from approximately 600 houses to 1,000 houses a year. The size of the factory investment is one million euros.
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 also significant shareholders.