SRV Yhtiöt Oyj

SRV Group Plc released its half-year financial report for January to June 2024, highlighting an increase in operative operating profit driven by strong revenue growth and a robust order backlog. Despite low demand among consumers and investors, SRV's revenue rose by around 30% year-on-year, and the order backlog increased by 8% to EUR 1,067 million. The company faces challenges such as high interest rates and weaker financing availability, which impact demand for housing and business premises. SRV's revenue for 2024 is expected to come mainly from low-margin cooperative contracting, with minimal contribution from developer-contracted housing projects. Significant events include lawsuits filed against SRV Construction Ltd related to a 2020 apartment building fire, with claims totaling around 8 million euros. SRV disputes these claims, citing strong legal grounds for rejection. CEO Saku Sipola noted the challenging market environment but expressed optimism about future demand due to declining interest rates, population growth in major cities, and reduced construction costs. SRV's operational business, financial health, and project controllability remain strong, with recognition for occupational safety efforts. SRV's strategy focuses on lifecycle wisdom, emphasizing sustainable construction. The completion of WithSecure’s headquarters in Wood City, Helsinki, exemplifies this approach. The company is prepared for market recovery and aims to pursue growth through developer-contracted and development projects when conditions improve. A briefing for analysts, investors, and media representatives will be held via webcast on 18 July 2024. Further information can be obtained from SRV's key executives. SRV is a Finnish construction industry developer listed on the Helsinki Stock Exchange, operating primarily in Finland's growth centers.

SRV Group Plc's subsidiary, SRV Construction Ltd, is facing lawsuits in the District Court of Central Finland related to a 2020 fire at an apartment building in Palokka, Jyväskylä, which SRV built. The lawsuits, filed by project clients and insurance companies, total around 8 million euros. SRV disputes the claims, citing external legal assessments that support rejecting the lawsuits. The company attributes the fire's cause and spread to inadequate building plans made by the clients. No schedule for handling the lawsuits is currently available. SRV Group, established in 1987 and listed on the Helsinki Stock Exchange, focuses on sustainable urban development and reported a revenue of 610 million euros in 2023.

SRV Group Plc announced that Anu Tuomola, SVP, General Counsel, and a member of the Corporate Executive Team, has resigned and will leave the company by November. President and CEO Saku Sipola expressed gratitude for her contributions and wished her success in her future role. SRV will begin searching for a new General Counsel immediately. SRV is a Finnish construction industry developer focused on sustainable urban development, listed on the Helsinki Stock Exchange, with a 2023 revenue of EUR 610 million and approximately 800 in-house staff.