Finnish contractor Destia is reporting a positive first half to the year, with revenue increasing by 11.4% to €200.1 million, up from €179.6 a year ago.

The company said that the Eurozone economy was showing signs of recovery, although it added that the effect on the development of the economy of the result of the UK vote to leave the European Union was not yet known.

The Finnish economy was also expected to grow this year, the company said, supported by construction investments.

It said that stimulus for the operating environment of the construction sector was being created by an action programme resulting from the Finnish government’s discussion on spending limits in the spring, which contained funding for several key road projects.

Destia said these would have a positive impact on the development of the whole sector this year and over the next two years. In addition to the public sector, some large individual projects have started or are being planned.

It said the market situation would continue to be challenging, with competition remaining fierce.

Destia said the prospects for the infrastructure sector and its order book extending over several years provided “a good basis for the positive development of revenue”.

It added that the measures that had been taken towards improving customer work and project management would help to keep business volumes and cash flow at a moderate level.

The order book stands at €800.2 million, compared to €821.4 million a year ago.

President and CEO Hannu Leinonen said, “Destia’s second quarter proceeded moderately, in spite of intense competition in the sector.

“There have been plenty of invitations to tender and overall demand continues at a moderate level. As a sign of this, both our revenue and operating result increased in comparison with the corresponding period the previous year.”

He said Destia had strengthened its market position as “an expert in the entire life cycle of track maintenance” by winning the contract for the Finnish rail track network maintenance area 6 during the reporting period.

In terms of numbers, more than half of all Finland’s track maintenance contracts are said now to be managed by Destia.

Leinonen said the acquisition of ITS-Vahvistus at the beginning of April strengthened its special expertise in foundation engineering, engineering construction and rock construction.

“Co-operation with our new experts has started well. We have been able to offer solutions more extensively than before,” he said.

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