2022 ‘outlook still positive’ for Delete Group
By Leila Steed30 May 2022
Delete Group has announced its 2022 first quarter financial results, reporting an overall organic growth rate of 3% in revenues.
Between January and March of this year the Finland-based company, whose services include construction and demolition waste recycling, brought in €21 million (US$22.5 m).
While this is down 7% from €22.6 m ($24.1 m) for the same period in 2021, in real terms this represents the company’s divestment of the W-Tech business at the end of 2021, which affected the financials of the group’s Cleaning Services division.
Sirpa Ojala, CEO of Delete Group, said: “I am reasonably satisfied with our performance, considering that the Coronavirus pandemic continued to pose challenges, especially in Sweden, as sick leave reduced our delivery efficiency.”
Delete’s first quarter results also showed a decrease in its debt of €0.8 million ($0.85 m) to €77.8 million ($83.2 m).
While rising fuel prices and general cost inflation have impacted the company’s financial margins in the first quarter, “these effects will be mitigated by a temporary fuel surcharge that will be phased in during the second quarter”.
Much of the company’s resilience has come from its recycling operations, which is forecast to bring in higher returns throughout the rest of the year, as a result of the rising demand being driven the ‘green transition’.
“The profitability of our recycling services business remained very strong and even improved even further, even though waste volumes decreased,” said Sirpa.
“This good development was driven by stable productivity and a favourable demand for recycled fuel and wood materials.”
Although the company admits there is more uncertainty due to the pandemic and the impact of the war in Ukraine, Sirpa said: “The geopolitical developments in Europe have had little impact on our business, at least so far, and we are not directly exposed to the effects of risks associated with sanctions or conflict zones.”
However, Sirpa added that the group will continue to “maintain strict cost and cash flow discipline”, to enable it to act quickly should it need to.