CONSTI PLC STOCK EXCHANGE RELEASE 11 JUNE 2021, at 8.10 p.m.
Profit warning: Consti Plc lowers its guidance for 2021 as a result of the arbitral tribunal’s award
Consti Plc’s subsidiary Consti Korjausrakentaminen Oy has received an arbitral award from the arbitral tribunal in the dispute between Consti Korjausrakentaminen Oy and Kiinteistö Oy Yrjönkatu 13 which relates to the construction project for Hotel St. George carried out by Consti Korjausrakentaminen Oy between years 2015-2018. The arbitral tribunal ordered Kiinteistö Oy Yrjönkatu 13 to compensate Consti Korjausrakentaminen Oy approximately EUR 0.7 million added with penalty interest for the project work and Consti Korjausrakentaminen Oy to compensate Kiinteistö Oy Yrjönkatu 13 EUR 0.9 million added with penalty interest for delay and other compensations. Furthermore, the arbitral tribunal ordered both parties to bear their own legal costs relating to proceedings.
The net receivable related to the project in Consti’s balance sheet was approximately EUR 3 million at the end of the first quarter of 2021. Consti will record the costs related to the arbitral award in its result of the second quarter of 2021. The positive cash flow impact of the arbitral award for Consti is approximately EUR 2 million.
Consti has issued related stock exchange releases on 17 August 2018, 19 September 2018 and 16 August 2019.
Guidance for 2021 is amended
As a result of the arbitral award, Consti is lowering its guidance for 2021.
New guidance:
”The Company estimates that its operating result for 2021 will be in the range of EUR 4-8 million.”
Previous guidance:
”The Company estimates that its operating result for 2021 will be in the range of EUR 7-11 million. The range for 2021 profit guidance is wide due to the uncertainties related to the Covid-19 pandemic.”
CONSTI PLC
Further information:
Esa Korkeela, CEO, Consti Plc, Tel. +358 40 730 8568
Distribution:
Nasdaq Helsinki Ltd.
Major media
www.consti.fi
Consti is a leading Finnish company concentrating on renovation and technical services. Consti offers comprehensive renovation and building technology services and selected new construction services to housing companies, corporations, investors and the public sector in Finland’s growth centres. Company has four business areas: Housing Companies, Corporations, Public Sector and Building Technology. In 2020, Consti Group’s net sales amounted to 275 million euro. It employs approximately 1000 professionals in renovation construction and building technology.
Consti Plc is listed on Nasdaq Helsinki. The trading code is CONSTI. www.consti.fi