Press Release

Fira’s net sales increased – major investments in the development of smart services

April 8, 2019

Uutiset

The net sales from the construction business increased by 2.6 percent with the operating result showing a loss of EUR 1.8 million. Investments in the development of smart services increased remarkably. The Fira Group’s net sales increased by 3.9 percent, totalling EUR 225,9 million in 2018. The operating result showed a loss of EUR 4,8 million. 

The Fira Group’s net sales increased by 3.9 percent in 2018, totalling EUR 225,9 million (2017: EUR 217,4 million). The operating result was EUR -4,8 million (EUR 5,5 million), falling short of the previous year’s result mainly due to the write-downs of individual residential construction projects. The Group’s financial position and liquidity are at a good level. The Group’s equity ratio was 37 percent (40%) and quick ratio was 1.4 (1.9) at the closing date. The Group’s net sales and number of personnel have been growing since 2009.

The net sales from the construction business increased by 2.6 percent in 2018, totalling EUR 222.7 million (2017 pro forma: EUR 217.0 million). The operating result was EUR -1.8 million (pro forma EUR 9.0 million), falling short of the previous year’s result mainly due to the write-downs of individual residential construction projects.

“The year 2018 was significant in terms of Fira’s future, but at the same time two-sided. Our company’s development was remarkable and our business opportunities are now better than ever. We invested 3.7 million euros in the development of smart services. The development of both modular construction and our digital business progressed rapidly in Finland and internationally. At the same time, the profitability of the residential construction business suffered due to the completion of individual and demanding residential projects launched in the previous years. Write-downs in the residential construction business accumulated during last year and the loss-making situation was temporary. The other lines of the construction business were profitable in 2018,” says the Fira Group’s CEO Jussi Aho.

Fira’s business consists of construction and the commercialisation of new construction and housing-related scalable service concepts and information-based smart services.
The company’s aim is to improve the weak productivity of the construction industry by standardising design, modularising building elements and improving project management.

“The operating environment within the construction industry is becoming more and more digital and new information-based services will take over the market. This will enable a new kind of platform business in the construction industry and in the implementation of building lifecycle services. We will introduce new approaches to ownership, earning revenue and information-based services. We want to create new business models and technologies that benefit people and the environment,” says Jussi Aho.

Fira expects remarkably improved results for 2019

In the construction market, demand is, in particular, based on the growing need for housing in the capital region as well as the growing need for property renovations. The level of demand is expected to remain high. The Group’s net sales are expected to increase to EUR 240 million in 2019.

Fira will continue to develop its smart service business in 2019. The commercialisation and internationalisation of smart services is supported by the Ilmarinen Mutual Pension Insurance Company’s EUR 5 million equity investment in the Group’s parent company.

Further information:

Jussi Aho, CEO
Fira Group Oy
Tel. +358 40 826 1146

Read Fira’s annual report for 2018.

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