CEO’s greeting


“In the third quarter, the Group’s performance was fair considering some challenges across the segments. The Group’s net sales and EBITDA grew by 2% from the previous year, but on a comparable basis the net sales contracted -4% and EBITDA -8%, respectively.

The demand for Industrial Cleaning Services and our performance in the third quarter was fair. However, the business was negatively impacted by an overtime ban enforced by the labour unions in Finland, resulting in postponed and cancelled work assignments.

The third quarter of 2018 turned out two-folded for Demolition Services. Profitability improved, but the lack of sizable projects in Sweden continued to supress consolidated net sales. Currently and going forward, the improvement programme in Demolition Services continues to emphasise the strengthening of our sales efforts and a pan-Nordic cooperation to secure targeted sales development.

Recycling Services’ net sales grew modestly compared to the previous year, but EBITDA was adversely impacted by the continuing low demand for recycled fuel (REF), resulting in increased processing and logistics costs. We expect that the REF cost pressure will gradually ease as a result of our recent investments in the processing efficiency and REF quality, and Recycling Services’ profitability is expected to gradually normalise after a challenging third quarter.

We made two important strategic add-ons in Sweden in September by acquiring Waterjet Stockholm AB and W-Tech AB, both of which serve mainly Demolition Services’ customers with supporting functions also for Industrial Cleaning Services. These were important acquisitions for us and they will bring forward our ambition to enter the Stockholm region and to establish a strong presence in a growing infrastructure maintenance market.

Our strategy execution is progressing well. We have continued to take actions to drive strong and profitable long-term growth both organically and through add-on acquisitions. We will continue to invest in growth and efficiency improvements across all three business areas and to harvest the synergies between the Finnish and Swedish operations.

Delete announced on August 16th, 2018, that it has decided to initiate a strategic assessment of options to support the company’s future growth. One of the options is listing the company’s shares on Nasdaq Helsinki Ltd. The results of the evaluation, as well as the execution and timing of a potential listing, will be announced when the assessment has been completed.”