Nordstern comes out of 2023 with a solid order book

In 2023, Nordstern reached a revenue of DKK 5.19 billion against DKK 5.90 billion in 2022, marking the previous revenue record for the company. Revenue for 2023 thus falls by 12 percent and ends at the low end of expectations. Inflation and higher costs have particularly affected the construction industry in recent years, and this is also reflected in Nordstern's falling earnings. Despite a challenging 2023, Nordstern still manages to deliver a profit of 54 million before tax.

"We had expected 2023, like 2022, to be a challenging year, but it should be no secret that it was more than that. The high costs and inflation have put pressure on earnings, while there has been a need for write-downs on a number of projects, challenges with recruitment and generally a wet year in Denmark. So it must be said to be the perfect storm for us", says Torben Modvig, CEO of Nordstern and continues:

"During a challenging year, we have focused on the core of Nordstern, namely our skilled and dedicated employees as well as our close cooperation with our partners and customers. We are in a strong financial position and our growth ambitions remain unchanged. During 2023, we have reorganized and welcomed several new employees to management, so that we will have a strong team when market conditions improve this year and the next few years. That way, we get back on the growth track again."

Billions added to order book

Nordstern sees several bright spots in the coming years. In the second half of 2023, Nordstern saw an improvement in order intake. At the turn of the year, the total order book amounted to DKK 7 billion, and with a good start to the new year, Nordstern has a solid foundation for 2024 and the years ahead:

"We expect the market to slowly improve during 2024, but do not expect to see a real stabilization in revenue until 2025. However, we have already seen several signs of improvement at the end of 2023, when we saw a faster conversion from pipeline to order book. In the first two months of 2024, we have already received new orders worth more than DKK 1.5 billion.", says Torben Modvig.

In 2024, Nordstern expects an increase in profit before tax (EBITDA), which is expected to land between DKK 170-185 million.

The annual report for 2023 marks the first official annual report for the entire Nordstern, created through the merger of CASA and KPC. In 2023, Nordstern had more than 1 million square meters of construction under construction, handing over more than 2,500 private homes (renovation and new construction) as well as 135,000 square meters of commercial properties (renovation and new construction).