Lamor Corporation Plc | Stock Exchange Release | March 06, 2025 at 09:00:00 EET
Lamor Financial Statements Release 2024: A strong cash flow during the fourth quarter
Lamor's determined efforts to reduce working capital were reflected in strong cash flow in the fourth quarter. Revenue and profitability increased from the previous quarter, but for the full year, the company still fell short of its targets. In Lamor's updated strategy, operational and sales resources are more rigorously focused on those markets where the greatest opportunities for profitable growth are seen. Investments are primarily directed towards initiating the plastic recycling business, where the company sees significant long-term potential.
This release is a summary of Lamor's Financial Statements Release. The complete report is attached to this release as a pdf file. It is also available on the company website at lamor.com/investors.
October-December 2024 in brief
- Revenue was EUR 32.6 million (34.8), a decrease of 6.3%
- EBIT was EUR 1.7 million (3.0) or 5.1% of revenue (8.7%), a decrease of 45.5%
- Adjusted EBIT was EUR 2.4 million (4.4) or 7.5% of revenue (12.6%), a decrease of 44.1%
- Net cash flow from operating activities was EUR 32.2 million (2.3)
- Net working capital decreased by EUR 28.9 million euros during the quarter, amounting to EUR 54.8 million euros at the end of the period (62.2).
- Earnings per share (basic) was EUR -0.02 (0.01)
- Orders received was EUR 15.9 million (10.0), an increase of 59.2%
- In October-November, Lamor announced a renewal of its management team to strengthen local customer and market understanding
- In December, the company published an updated strategy and long-term financial targets
January-December 2024 in brief
- Revenue was EUR 114.4 million (122.5), a decrease of 6.6%
- EBIT was EUR 5.3 million (8.4) or 4.6% of revenue (6.9%), a decrease of 36.9%
- Adjusted EBIT was EUR 6.4 million (11.3) or 5.6% of revenue (9.2%), a decrease of 43.6%
- Net cash flow from operating activities was EUR 16.6 million (-12.7)
- Net working capital decreased by EUR 7.5 million euros during the financial year, amounting to EUR 54.8 million euros at the end of the period (62.2).
- Earnings per share (basic) was EUR -0.06 (0.09)
- Orders received was EUR 80.9 million (44.0), an increase of 84.2%
- Order backlog at the end of the period amounted to EUR 88.0 million (124.2)
The figures in brackets refer to the comparison period, which is the same period the previous year, unless otherwise stated.
Johan Grön, CEO:
In the fourth quarter, Lamor's determined efforts in the second half of the year to streamline the billing processes in Kuwait yielded results, and we succeeded in turning the company's cash flow for the entire year clearly positive. Overall, the year 2024 was a year of change and renewal for us, during which we laid important groundwork for the development of our business for the new strategic period. During the year, the company's large service projects required attention, temporarily congesting our resources, but we took several steps to improve our operations and sales.
Although we fell short of our growth and profitability targets, total order intake for the year nearly doubled to over 80 million euros from the previous year (44 million euros), despite the postponement of large equipment orders in the last quarter to this year. Environmental protection equipment business continued to develop positively from the previous year but was not sufficient to compensate for the lower revenue recognition from large service projects compared to the comparison period. The lower level of revenue was reflected in profitability below our targets for the entire year and the last quarter.
During the year, Lamor clarified its organizational operating models and renewed the company's management team to strengthen local customer and market understanding. We completed several internal development projects, and updated the company's long-term financial targets. The update particularly took into account the operational and financial lessons learned from large service projects.
After a year of changes, I am confident that the company is heading into the right direction. Reaching our targets will require strong order intake, especially in the first half of the year, and we expect it to be visible in our revenue only in the second half. To strengthen our order backlog, we have now focused our operational and sales resources more rigorously on the markets where we see the greatest growth opportunities. A key objective is to continue increasing equipment sales globally while balancing the company's project portfolio with new soil remediation and material recycling projects. Lamor has strong expertise in solving hydrocarbon-based pollution and environmental challenges, and we can offer this expertise to our customers broadly and scalably based on Lamor's global partner network.
Our view of the significant opportunities in the markets has not changed. One of the significant investments in our strategic period is the plastic recycling business, where we leverage our expertise in hydrocarbons to bring a new innovative circular economy solution to our customers. There is substantial and growing demand for circular oil in the market. We have invested significantly in the completion of the first production line in Kilpilahti, as we see this as a unique opportunity for Lamor to create new continuous and profitable business. Our commitment to the project is evident in our recent agreement to fully acquire Lamor Recycling Oy in March. After the turn of the year, we also updated the project's estimated schedule, postponing initiating production to the third quarter due to delays in process technology deliveries. Otherwise, the installations are largely complete, and the investment needs to complete the concept plant have now been identified.
I would like to conclude by thanking all Lamor employees. The recent oil tanker accident in the Baltic Sea in February was an important reminder that geopolitical risks are real, and the same poorly maintained vessels are a risk at all major maritime traffic hubs worldwide. Lamor operates in these threat situations around the world seven days a week. There is a need for the work we do. And despite working in challenging conditions around the world, we had only one accident leading to an absence for every 3.5 million working hours in 2024.
Key figures
| EUR thousand (unless otherwise noted) | Q4 2024 | Q4 2023 | Change % | 1-12/2024 | 1-12/2023 | Change % |
| Revenue | 32,575 | 34,775 | -6.3% | 114,396 | 122,520 | -6.6% |
| EBITDA | 2,709 | 5,710 | -52.6% | 11,587 | 16,182 | -28.4% |
| EBITDA margin % | 8.3 % | 16.4% | 10.1 % | 13.2% | ||
| Adjusted EBITDA | 3,440 | 6,992* | -50.8% | 12,422 | 18,838* | -34.1% |
| Adjusted EBITDA margin % | 10.6 % | 20.1% | 10.9 % | 15.4% | ||
| Operating profit or loss (EBIT) | 1,658 | 3,039 | -45.5% | 5,315 | 8,426 | -36.9% |
| Operating profit (EBIT) margin % | 5.1 % | 8.7% | 4.6 % | 6.9% | ||
| Adjusted operating Profit (EBIT) | 2,449 | 4,380* | -44.1% | 6,385 | 11,317* | -43.6% |
| Adjusted operating Profit (EBIT) margin % | 7.5 % | 12.6% | 5.6 % | 9.2% | ||
| Profit (loss) for the period | -547 | 382 | -1,273 | 2,679 | ||
| Earnings per share, EPS (basic), euros | -0.02 | 0.01 | -0,06 | 0.09 | ||
| Earnings per share, EPS (diluted), euros | -0.02 | 0.01 | -0,06 | 0.09 | ||
| Return on equity (ROE) % | -0.9% | 0.6% | -2.0% | 4.3% | ||
| Return on investment (ROI) % | 1.3% | 2,8% | 4.5% | 8.7% | ||
| Equity ratio % | 37.5% | 40.0% | 37.5% | 40.0% | ||
| Net gearing % | 62.1% | 60.7% | 62.1% | 60.7% | ||
| Net working capital | 54,751 | 62,245 | -12.0% | 54,751 | 62,245 | -12,0% |
| Orders received | 15,875 | 9,970 | 59.2% | 80,938 | 43,950 | 84,2% |
| Order backlog* | 88,020 | 124,192 | -29.1% | 88,020 | 124,192 | -29,1% |
| Number of employees at the period end | 643 | 840 | -23.5% | 643 | 840 | -23,5% |
| Number of employees on average | 620 | 743 | -16.6% | 636 | 658 | -3,3% |
* Restructuring costs related to adjustments in 2023 have been adjusted to reflect the changed calculation formula in the financial year 2024. Previously reported adjusted operating profits were EUR 10,943 thousand (1-12/2023) and EUR 4,033 thousand (Q4/2023), while adjusted EBITDA was EUR 18,464 thousand (1-12/2023) and EUR 6,645 thousand (Q4/2023).
Guidance for 2025
- Revenue is expected to increase compared to the previous year (2024: EUR 114.4 million).
- Adjusted operating profit is expected to increase compared to the previous year (2024: EUR 6.4 million).
Assumptions
The guidance is based on the existing order backlog and the management's view on market demand and known tenders. The company is currently negotiating several significant equipment sales and medium-sized service contracts in all its market areas.
Revenue is expected to be below the comparison period during the first half of the year and exceed it during the second half of the year. Achieving the revenue guidance requires a strong accumulation of new orders in the first half of the year. In 2025, the revenue from the continuing large service project in Kuwait is expected to be at the same level as the previous year, while the growth of other revenue outside of large service projects is expected to continue. For plastic recycling, the guidance assumes revenue will be limited during 2025.
In terms of profitability, the company estimates that the enhancement of sales and operational activities will lead to improved profitability, but the planned measures will have a more significant impact in 2026.
Long-term financial targets
The company's long-term financial targets (by the end of 2027) are:
- Growth: Increase revenue to EUR €170 million
- Profitability: Adjusted operating profit (EBIT) over 14% of revenue
- Dividend policy: Aim to distribute dividends, considering business development
- Capital structure: Suitable for the company's strategy, targets, and project portfolio by maintaining a strong balance sheet
Events after the reporting period
On 8 January 2025, Lamor announced the company had received an EUR 8 million order for environmental protection technology from Kuwait. The technology will used to protect marine life and the shores of the Arabian Gulf. The order has been entered into Lamor's order backlog in the first quarter of 2025 and will be delivered in the second half of 2025.
On 26 February 2025, Lamor announced the proposals by the Shareholders' Nomination Board to Lamor Corporation Oyj's Annual General Meeting 2025. The Nomination Board proposes that the board's five current members be re-elected. Additionally, the Nomination Board proposes that the board's remuneration remains unchanged and recommends that board members acquire company shares at the price paid in public trading with 40 percent of the board member's gross fixed annual fee until the value of the shares in the company owned by the respective member equals twice their gross fixed annual fee.
Board of Directors' proposal for profit distribution
The parent company's distributable funds on 31 December 2024 EUR were 12,505,566.09 of which net loss for the financial year was EUR -14,022,774.91. The Board of Directors proposes to the Annual General Meeting that no dividend be distributed and that the result for the financial year 2024 be entered in the retained earnings.
Annual General meeting
Lamor's Annual General Meeting is planned to be held on Tuesday 28 April 2025 starting at 1:00 p.m. EET. Lamor will convene the Annual General Meeting with a separate stock exchange release.
Financial calendar for 2025
In 2025, Lamor will publish financial reports as follows:
- Interim report January-March 2025: on 8 May 2025
- Half-year report January-June 2025 on 31 July 2025
- Interim report January-September 2025 on 30 October 2025
The annual report 2024, including financial statements and report by the Board of Directors, is estimated to be published on Lamor's website on 7 April 2025, the latest.
Webcast for shareholders, analysts and media
Webcast for shareholders, analysts and media on the results for the financial period January-December 2024 will be arranged on 6 March 2025 at 12:00 p.m. EET. The webcast includes a Q&A session, and participants can ask questions in English and Finnish via the event chat room. The webcast can be followed at lamor.events.inderes.com/q4-2024.
A recording of the webcast will be available later at the company's website at lamor.com/investors/reports-and-presentations.
Further information
Johan Grön, CEO, Lamor Corporation Plc
+358 40 5464186, johan.gron@lamor.com
Mikko Forsell, CFO, Lamor Corporation Oyj
+358 50 434 2516, mikko.forsell@lamor.com
About Us
Lamor is one of the world's leading providers of environmental solutions. For four decades, we have worked to clean up and prevent environmental incidents on land and at sea.
Environmental protection, soil remediation and material recycling: Our innovative technologies, services and tailored solutions, ranging from oil spill response, waste management and water treatment to soil remediation and plastic recycling, benefit customers and environments all over the world.
We are capable of vast and fast operations thanks to our connected ecosystem of local partners, steered by our experts. We have over 600 employees in more than 20 countries. In 2023, our turnover was 123 million euros. Lamor's share is listed on the Nasdaq Helsinki (ticker: LAMOR). Further information: www.lamor.com
