TK Development A/S reported unaudited consolidated earnings results for the second quarter and six months ended July 31, 2017. For the six months, the company reported net revenue of DKK 184.5 million against DKK 237.1 million a year ago. Profit before financing and depreciation was DKK 29.3 million against DKK 8.9 million a year ago. Operating profit was DKK 29.0 million against DKK 8.7 million a year ago. Profit before tax was DKK 14.0 million against loss before tax of DKK 9.3 million a year ago. Profit for the period was DKK 7.1 million or DKK 0.1 per share against loss for the period of DKK 9.8 million or DKK 0.1 per share a year ago. Cash flows used in operating activities were DKK 54.6 million against DKK 141.0 million a year ago. Investments in equipment, fixtures and fittings were DKK 0.7 million against DKK 0.2 million a year ago.

For the quarter, the company reported net revenue of DKK 124.5 million against DKK 191.4 million a year ago. Profit before financing and depreciation was DKK 21.2 million against DKK 4.1 million a year ago. Operating profit was DKK 21.1 million against DKK 4.0 million a year ago. Profit before tax was DKK 13.9 million against loss before tax of DKK 5.2 million a year ago. Profit for the period was DKK 8.0 million or DKK 0.1 per share against loss for the period of DKK 6.1 million or DKK 0.1 per share a year ago.

Due to extraordinary events in connection with the bankruptcy of a contractor involved in the Strædet project in Køge, including substantial additional costs, combined with the postponed handover of another project, Management at the end of August 2017 lowered the group's profit guidance for financial year 2018 from DKK 100 million to DKK 120 million before tax to DKK 50 million to DKK 60 million before tax. The revised profit guidance assumes a return on equity of 7% to 8% for the Group's development activities, against the previous forecast of about 15%.