SRV GROUP PLC INVESTOR NEWS 04 MARCH 2022 16:30 EET
SRV’s statement on business operations in Russia
Russia's invasion of Ukraine has changed the world significantly in a short amount of time. With shock and sadness, we have followed the attack and the human suffering that has already incurred. All our sympathy is with the Ukrainians.
At the same time, we have continually assessed the impact of the war on our business. SRV no longer has any construction business in Russia. We have acted as partial investors in three shopping centres, and our goal has been to gradually reduce our operations in the Russian market by selling our stake in the shopping centres. We are exploring opportunities to accelerate detaching from Russia.
SRV's revenue in Russia in 2021 was approximately EUR 6.8 million, consisting mainly of revenue from the operation of shopping centres and the recognition of sales revenue from one project. The invested capital of the Investments segment was approximately EUR 167 million, the majority of which consisted of investments in Russia.
For the time being, our shopping centres in Russia are in operation. However, it is expected that recent sanctions will affect the shopping centres business. The most important thing for us is to ensure the well-being of our local personnel.
In Finland, a small amount of the building materials used on SRV's construction sites have come from the Russian or Ukrainian markets. As a result of the Russian invasion, we have outlined to stop procurement of building materials from Russia altogether. So far, SRV's construction projects have progressed normally. Due to the prevailing state of war, sanctions and counter-sanctions, the availability of materials is expected to become more challenging and material prices to rise.
Work is carried out normally at our construction sites in Finland. Our sites are workplaces where people of many different nationalities work. It is important for SRV that people of all different nationalities can feel safe at work. The political decisions of states cannot be passed on to individual citizens, and inappropriate behaviour towards any nationality is unacceptable.
We closely monitor the development of sanctions and counter-sanctions and their impact on our business. As a listed company, SRV informs the market about the possible significant financial effects of the war on the company without delay.
Saku Sipola
President & CEO
SRV Group Plc
For further information, please contact:
Saku Sipola, President & CEO, tel. +358 (0)40 551 5953, saku.sipola@srv.fi
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SRV in brief
SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes into consideration the wellbeing of both the environment and people. We call this approach lifecycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter – and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.
Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in both Finland and Russia. In 2021, our revenue totalled EUR 932.6 million. In addition to about 1,000 SRV employees, we have a network of around 3,600 partners.
SRV – Building for life