ININ Group today reports estimated net asset value (NAV) of NOK 780 million, up from NOK 755 million at the beginning of the quarter. The group delivered revenue of NOK 479 million (198) and adjusted EBITDA of NOK 47 million (19), which, respectively correspond to increases of 142 and 150 percent versus the same quarter last year.
ININ Group is an industrial owner with investments in companies within infrastructure services niches in the Nordics.
“The third quarter is high activity season for outdoor maintenance work and our solid results reflect this. We are pleased with the production level in our platform companies, their respective growth and improved profitability,” says Øivind Horpestad, CEO of ININ Group.
ININ Group’s order intake in the third quarter was NOK 482 million, from growth in existing contracts and several smaller and medium-sized awards. The group’s order backlog stood at NOK 996 million at the end of the quarter, compared to NOK 1,039 million at the beginning of the period.
INVESTMENT PLATFORM UPDATE
Currently, ININ Group consists of three investment platforms:
ININ Rail Infrastructure -ININ Power – ININ Inspekt (testing, inspection and certification – TIC).
ININ Rail Infrastructure continues to deliver solid organic growth and stable EBITDA margins. The segment delivered revenue of NOK 265 million and EBITDA of NOK 22.6 million, equivalent to a margin of 8.5 percent, in the third quarter.
ININ Power’s performance improvement program continues to yield results. In the third quarter, the segment delivered revenue of NOK 209 million with EBITDA of NOK 16.5 million, equivalent to an EBTIDA margin of 7.9 percent on a pro-forma basis. ININ Power completed the acquisition of 100 percent of the shares in site preparation contractor Skyttermoen Anlegg during the third quarter.
“We are starting to see the impact of the ongoing performance improvement program and are happy to have Skyttermoen onboard, further strengthening the operations and results of ININ Power,” adds Øivind Horpestad.
ININ Inspekt delivered revenue of NOK 25.7 million and EBITDA of NOK -1.9 million in this year’s third quarter. The business continues to recruit top talent from within the industry, but at lower quantity levels than previous quarters. Its main focus is on winning new contracts and thereby further improving staff utilization rate going forward. Activity in Norway has picked up significantly in the third quarter.
VOLUNTARY SHARE EXCHANGE OFFER
Qben Infra is progressing to complete the offer to all ININ Group shareholders to acquire the shares in ININ Group with payment in shares in Qben Infra Ab, to be listed on First North Premier in Stockholm. Shareholders representing a total of 91,516,417 shares have accepted the share exchange offer from Qben Infra, directed at ININ Group’s 140 largest shareholders. The acceptance rate amounts to 77% of the share capital in ININ Group on a fully diluted basis. As soon as Qben Infra has completed the offer prospectus, the offer will be presented to the remaining shareholders of ININ Group. Qben Infra expects to list Qben Infra on First North Premier in Stockholm in Q4 2024.
OUTLOOK
Activity in ININ Group’s primary markets remains high, and the group’s outlook therefore remains positive. Growth is expected in the rail infrastructure market in both Norway and Sweden due to wide-spread political backing for national railway system enhancement. Within power distribution, urbanization, industrialization, growth in adoption of electric vehicles, and growth in renewable energy drives demand for electrical infrastructure. ININ Group has announced the intention to acquire Trasé AS (28 May 2024) and Nordnes Narvik (29 May 2024). Including the two planned acquisitions, ININ Group forecasts ININ Group forecasts NOK 2.0 billion in revenue and NOK 190 million in adjusted EBITDA for full-year 2024, on pro-forma, fully consolidated, basis. In addition, ININ Group forecasts adjusted EBITA on proforma basis to be in the range of NOK 85-95 million for the full-year 2024. The planned acquisitions are subject to customary closing conditions, satisfactory due diligence, and final transaction documentation.
