This week, Morten Raugstad, managing director of A Bygg Entreprenør, was able to present the best annual result in the company’s history. Photo: Paul Paiewonsky
The accounts show turnover growth of over 60 per cent from NOK 775 million in 2022 to NOK 1.26 billion in 2023. The profit before tax increased from NOK 21.3 million in 2022 to NOK 60 million in 2023.
– In 2023, we worked exclusively with production, and exclusively with large projects, with the new main warehouse for IKEA being the very largest. 2023 has been a good year, says CEO Morten Raugstad via a press release.
The general contractor has exclusively chosen to work according to the construction management model.
– We have chosen not to have our own craftsmen. We have a core of permanently employed specialists in project development and project implementation, and a business model where we exclusively contract craftsmen through subcontracting contracts. This gives us a flexibility that makes us more robust against fluctuations in the market, says Raugstad.
But A Bygg’s customers are also starting to feel the effect of higher interest rates.
– We are by no means immune to downturns, in 2024 we expect a significant decline in turnover. Although we see signs that the number of orders is starting to increase, we are prepared that turnover this year may end up 50-60 per cent below last year’s. But with our business model we are better equipped than most others, we are aiming for a positive result in 2024 as well, says Raugstad.
