Another record result despite drop in revenue

2021 was another year in the long line of record earnings for the Herning-based KPC Group. 2021 profit before tax landed at DKK 356 million against DKK 333 million in 2020. Revenue decreased from DKK 3.3 billion to DKK 2.3 billion.

"The key figures reflect that KPC continue to focus on profitability rather than revenue growth in a turbulent market. The financial statements show that we have been good at picking profitable projects," says KPC Group CEO Bo Knudsen, and adds that he is particularly pleased with the result considering the generally rising prices for building materials and labour shortage.

"We expect revenue to increase to DKK 2.6-2.9 billion as early as 2022, which is supported by an order pipeline of DKK 8.2 billion," KPC's CEO says.

"In 2021, we made a change of strategy which means increased focus on large and thus more long-term projects. The high level of activity in the construction industry and the ensuing price pressure mean that, in the short term, we will be focusing more on projects that we develop ourselves,” explains Bo Knudsen.

One example of a long-term project that KPC are working on until 2024 is a new urban area on the former site of the Danish postal services at Bernstorffsgade in central Copenhagen. Here, KPC are building an office building, residential units, hotel apartments, retail and a health centre as well as a multi-level basement below ground level – a total of 92,000 square metres. The entire project will be built sustainably according to the DGNB standard.

"Some of our own future projects include the development of Herning+ on the former hospital site in Herning. In the Greater Copenhagen area, we will start our own large housing projects e.g. in Albertslund and Ørestad City, to name a few, says Bo Knudsen.

KPC have also announced a new management structure in which the individual operating companies have their own CEOs.