Grontmij Financial press release third quarter 2013
(Thomson Reuters ONE) -
Grontmij realises significant debt reduction;
focus on operational excellence remains key
De Bilt, 4 November 2013 - Grontmij N.V., a listed consulting & engineering
company with strong European presence, today announces its third quarter 2013
results. Grontmij successfully reached an agreement and finalised the divestment
of the French Monitoring & Testing business in the third quarter. With the
proceeds being used to pay off debt, a significant net debt reduction was
realised in the third quarter, strengthening Grontmij's financial foundation.
The reduction of trade working capital is developing in line with the year-end
target, with a strong focus on cash. Total and net revenue in the third quarter
remained solid, despite challenging market conditions across Europe. Grontmij
reports organic growth on net revenue, driven by growth in Sweden, Germany and
Other markets. Profitability improved slightly, albeit below our internal
expectations, highlighting the necessity of the operational excellence (OPEX)
programme that is currently being implemented across the Group.
Key points third quarter 2013
* Total revenue Q3 2013 ? 179.2 million (Q3 2012: ? 179.7 million), with
organic growth in the third quarter of 1.6% on total revenue and 2.4% on net
revenue, explained by growth in Sweden, Germany and Other markets and
positively influenced by on average one additional working day compared to
last year (effect +1.7%).
* EBITA excluding exceptional items for Q3 2013 of ? 0.3 million (Q3 2012: - ?
1.1 million), with stable to slightly improved profitability in most
countries; EBITA margin excluding exceptional items of 0.2% (Q3 2012: -
0.6%).
* Net result in the third quarter improves to - ? 8.1 million (Q3 2012: - ?
13.0 million), also influenced by the partial hedge ineffectiveness of the
interest rate swaps and the write down of capitalised financing fees (Q3
2013: - ? 3.8 million).
* Significant reduction in net debt per 30 September 2013 with net debt at ?
84.9 million (Q3 2012: ? 147.8 million).
* Trade working capital at the end of Q3 2013 decreased to ? 136.9 million (Q3
2012 ? 143.6 million). Trade working capital as % of total revenue was
17.6% at the end of Q3 2013 (versus 18.3% in Q3 2012).
* Outlook for 2013 reconfirmed.
'Back on Track' strategy
Restructuring programme:
* Cost savings increased in the third quarter to ? 23 million to date,
representing an annual run-rate of ? 26 million; Grontmij raises the cost
savings target to ? 28 - 30 million on an annualised basis.
* Divestments: Divestment of French M&T business successfully agreed and
finalised, proceeds have been used to pay off debt. Sale of Naarderbos golf
course agreed, awaiting mandatory approvals to finalise the divestment.
Realising profitable organic growth:
* Focus on the operational excellence programme remains key within the company
with countries progressing in the third quarter in the final design phases
and implementation stage of the programme.
* Recent project wins in the group growth segments include the technical
design and consultancy for a brand-new teaching and research facility for
Information and Communications Technology (ICT) in Paris (France),
Grontmij's support to the city of Malmö (Sweden), in becoming the world's
most sustainable city, and the work at the wastewater treatment plant (WWTP)
in Amersfoort, the Netherlands.
Michiel Jaski, CEO Grontmij N.V: 'We have reached an important milestone in the
third quarter with the announced agreement and the successful completion of the
divestment of the French Monitoring & Testing business. This makes Grontmij a
stronger company, both strategically and financially. We can now fully focus on
our consulting & engineering activities. The proceeds of the divestment have
been used to reduce debt, thereby strengthening our financial position. With
trade working capital declining we are on track to reach the target we have set
for year-end. Our Group performance in the third quarter showed solid levels of
total and net revenues, with first signs of organic growth. Overall
profitability improved slightly, despite the challenging market conditions in
Europe, particularly in the Dutch and French market. We are taking the right
steps in delivering on our 'Back on Track' strategy. However, our operational
results indicate Grontmij has a road to travel. Operational excellence is on the
top of our agenda for a good reason. We continue our work on the implementation
of the OPEX programme in the remainder of the year. While some of the much
needed structural changes in our operations start to get off the ground, others
continue to require our full attention.'
See our website for the full press release
< ENDS >
For more information please contact:
Grontmij N.V., Frits Vervoort, CFO, T +31 30 220 72 02
Grontmij N.V., Michele Negen, Investor Relations Manager, T +31 30 220 78 31
www.grontmij.com
www.twitter.com/grontmijgroup
www.linkedin.com/company/grontmij
Grontmij financial press release Q3 results 2013:
http://hugin.info/143540/R/1740137/584194.pdf
This announcement is distributed by Thomson Reuters on behalf of
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(i) the releases contained herein are protected by copyright and
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(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: GRONTMIJ N.V. via Thomson Reuters ONE
[HUG#1740137]
Unternehmensinformation / Kurzprofil:
Datum: 04.11.2013 - 07:02 Uhr
Sprache: Deutsch
News-ID 312034
Anzahl Zeichen: 6311
contact information:
Town:
DE BILT
Kategorie:
Business News
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