5 Seasonality of business

Seasonality of certain operations of the company affects the amount and timing of the company’s profits. Paving and mineral aggregates working season takes place mostly in the second and third quarters of a year to which quarters most of the revenues are recognised. Weather conditions influence the lengths of the paving and mineral aggregates working seasons, which also affects the amount and timing of the company’s profits. Other infrastructure projects, e.g., rock engineering and earthworks, are generally less seasonal in nature, but there is some seasonality in foundation engineering due to the timing of building construction projects.

Revenue from own building developments is recognised, for the sold proportion, on completion which causes seasonal fluctuations to the company’s profit. The company seeks to offset this fluctuation by launching new own developed housing projects evenly throughout the year in which case the projects will be completed and revenue from them is recognised as evenly as possible throughout the year.