OHLA - comment

23Q1 results were light vs our expectations, with construction revenue of €602m and total revenue of €638m. This weakness fed into EBITDA, which was €10m below our forecast of €30m, as inflationary pressure crimped margins. We are concerned that the order book in construction is declining (down 6% since Jun-22), reflecting the general sluggishness in European construction (down from 30% to 21% of OHLA’s book). However, OHLA has sufficient liquidity with €355m in cash, €171m of which is held in project companies. In addition working capital will generate cash in Q2. There were no updates on the sale of assets or the litigation that still hangs over OHLA. There is no call with this set of results, but we will speak with management and update our model in the near future.