Interim Results 30 June
€ m |
2009 |
2008 |
Net revenue |
332 |
333 |
Gross Margin |
76 |
80 |
EBITDA* |
29 |
33 |
EBITA* |
23 |
27 |
Profit after Tax |
15.4 |
18.5 |
Working Capital |
203 |
214 |
Net Debt |
-118 |
-131 |
*Before non-recurring restructuring costs of € -2.2 million (HY 2008: € -0.1million), profits from EAI € 2.1 million
(HY 2008: € 2.5 million) & profit from divestment of EAI € 5.2 million (HY 2008 € 0.4 million).
United Kingdom and Ireland
As the international Grontmij Group announces positive results, a number of new assignments see Grontmij UK and Ireland continue its recent success:
- Grontmij has been appointed to consultancy framework to provide design support services for the proposed London Thames Tideway Tunnels.
- As part of the redevelopment project of Blackpool’s town centre and business district, Grontmij | Whitelaw Turkington is the landscape architect for the public realm of Talbot Gateway.
- Grontmij is the client’s engineer role for Griffin wind farm as part of the Scottish & Southern Energy / Airtricity framework agreement.
Comments from Sylvo Thijsen, CEO Grontmij N.V.:
"The Group has produced a resilient financial performance in the first half year. Our strong market position in the transportation, environment, water and energy sectors has helped us, despite considerable currency exchange effects, to deliver these results in an economic challenging climate.
The first half of 2009 saw the recessionary effects in the Netherlands, the United Kingdom and Belgium impacting our margins and volumes in those countries, in particular in the private sector Building and Industry. Recognising the changing markets, we took rapid action to restructure and re-balance our resources by reducing our resources in the affected segments and increasing resources in our chosen profitable activities (transport, environment, water and energy). We increased our focus on operational performance through managing overhead, exiting unprofitable areas of the business and tightening of cash management.
Our strategy aims to achieve a balance between activities in the various geographies, market sectors and the different phases of the project chain. This strategy, together with our growing market position in the transport, environment, water and energy sectors, positions Grontmij well for the coming years.
Profit & loss account Grontmij UK & Ireland |
2009 |
2008 |
2007 |
Total revenue |
50 |
54 |
42 |
Net revenue |
45 |
46 |
36 |
EBITA |
2 |
4 |
3 |
% TR |
4% |
7% |
6% |
% NR |
4% |
8% |
8% |
Adjusted EBITA |
2 |
4 |
3 |
% TR |
4% |
7% |
6% |
% NR |
4% |
8% |
8% |
Total revenue in our United Kingdom business reduced slightly from € 53.5 million to € 50.3 million with a consequential fall in EBITA from € 3.8 million to € 2.0 million, of which € 0.5 million was due to currency exchange differences. Actions are in hand to reduce and re-allocate surplus resources, reduce costs, and manage cash more tightly.
Our United Kingdom building and water sectors’ performance was affected by the declining economy and the current Asset Management Programme (AMP4) spending cycle. Within the water sector, the activity levels are slowing as the current AMP4 spending period is approaching its final close date, alongside some general slowing of expenditure on the back of the financial markets’ funding turmoil. Despite this, the United Kingdom’s new water spending plans (AMP5) show a 23.5% increase on AMP4. AMP5 is due to commence on 1 April next year and activity is projected to pick up strongly at that point with overall five year investment settlement showing a substantial increase on AMP4.
Grontmij, with its existing expertise in the water industry is confident of being well positioned to participate in these tendering processes, and has already been successful in securing the Severn Trent, Anglian and Scottish water framework contracts, that could generate fees for Grontmij in excess of € 100 million over the next five years.
Other key contract wins included:
- Grontmij has secured the consultancy framework to provide design support services for the proposed London Thames Tideway Tunnels. The Lee and Thames tunnels are being designed to substantially reduce the 32 million cubic meters of untreated sewage which, after significant rainfall, overflows to the River Thames each year from London’s Victorian sewers. With a € 2.3 billion price tag (in 2006 figures) the scheme’s 39 km of tunnels will be able to boast that they are the deepest in the capital.
- Whitelaw Turkington (part of the Grontmij group) has been appointed by Muse Developments as landscape architects for the public realm of Talbot Gateway in the redevelopment project of Blackpool’s town centre & business district. The project is due to start construction in 2011 and is valued at € 255 million.
- Grontmij has received a commission to undertake the client’s engineer role for Griffin wind farm as part of the Scottish & Southern Energy / Airtricity framework agreement. This includes the site investigation, geotechnical advice on ground risks and design review of the site and an alternative access route. The construction cost for the whole wind farm is expected to be around € 230 million and it should be completed in 2012.
Outlook
Despite the continuing deterioration of market conditions, mainly affecting the building sector and building and industry related services, our forward order book improved.
Our focus on sustainable design, consultancy and management services delivers growing inflow in our order book in the sectors of transportation, environment, water and energy. We expect this will have a positive effect in most of our countries in the years to come. Current market conditions, however, lead to increased uncertainty and unpredictability with respect to market growth and price setting. We are addressing this by monitoring our costs even more efficiently and increasing our focus on our client’s needs. Based on the forward order book and the current climate we expect that profit after tax for the second half of 2009 will equal profit after tax of the first half year 2009.
A complete overview of the half year results, explanatory notes and risk paragraph can be found in our interim statement 2009, which is published on our website
www.grontmij.com
For further information please contact:
Pamela Weeks
Grontmij
Tel: 0113 262 0000
Email:
pamela.weeks@grontmij.co.uk
Or
James Hickman
Hatch Communications
Tel: 01943 855 624
Email:
jameshickman@hatchpr.co.uk
Notes to Editors
Founded in 1915 and listed on the Euronext Stock Exchange in Amsterdam, Grontmij is a leading engineering consultancy employing over 8000 professional consultants worldwide. The consultancy works across six main disciplines of water, transportation, the built and natural environment, climate and energy, systems and commercial and contract consultancy.
Grontmij was recently honoured in the NCE/ACE Awards by achieving second place in the Major Consultant of the Year award. This recognition followed continued organic growth, bolstered by the three strategic acquisitions in 2008 of Whitelaw Turkington, Trett Consulting and Roger Preston and Partners, which continue to operate under their existing brand names.
The UK and Ireland group employs more than 1,300 people worldwide and has established offices in various locations, including Leeds, Bristol, Dublin, Edinburgh, Glasgow, Manchester, Peterborough, Reading, Solihull, Wrexham, Warrington, Maidenhead and London.