Grontmij financial press release
(Thomson Reuters ONE) -
Grontmij improves operating margin in third quarter
French divestment progressing
De Bilt, 30 October 2014 - Grontmij N.V. a listed consulting & engineering
company with strong European presence, today announces its results for the third
quarter of 2014. Despite the fragile macro environment across Europe, Grontmij's
operating margin improved in the third quarter of 2014 with EBITA excluding
exceptional items of ? 4.8 million (Q3 2013: ? 1.9 million). The increase is
mainly driven by cost savings across the Group and the performance in the
Netherlands. Total revenues showed organic decline of 4.0%, while net revenues
were more in line with last year, showing an organic decline of 0.8%. The
divestment process of the French activities is progressing according to plan,
with bids received in September from both financial and strategic parties.
Key points third quarter[1]
* Total revenue Q3 2014 ? 154.4 million (Q3 2013: ? 161.6 million), with
organic decline of 4.0%. Net revenue Q3 2014 below last year at ? 127.6
million (Q3 2013: ? 129.7 million). Organic decline on net revenue was
0.8%, reflecting the increased focus on own production
* EBITA excluding exceptional items Q3 2014 ? 4.8 million (Q3 2013: ? 1.9
million). Profitability improved in all countries except Sweden; EBITA
margin excluding exceptional items was 3.1% in Q3 2014, compared to 1.2%
last year
* Net result from continuing operations in Q3 2014 was ? 1.2 million (Q3
2013: - ? 7.8 million), mainly due to improved operational performance and
lower finance expenses. Net result from continuing and discontinued
operations in Q3 2014 was - ? 2.7 million (Q3 2013: - ? 8.1 million) and
includes both the net result in France (- ? 1.4 million) and an impairment
on France (- ? 2.4 million) taken in Q3 2014
* Trade working capital (TWC) at the end of Q3 2014 was 17.1% (Q3
2013: 15.0%) due to higher TWC levels in The Netherlands, Belgium and
Germany
* Net debt[2] based on continuing operations per 30 September 2014 was ? 86.9
million and includes the Cumprefs (? 22.3 million) and ? 21.0 million of net
debt previously recorded under discontinued operations. Net debt for
covenants per end of Q3 2014 was ? 65.7 million
Highlights Rebalanced 'Back on Track' strategy 2014 - 2016:
Restructuring:
* Cost reduction programme is on track. Measures taken year to date 2014
represent an annual run rate of ? 13 million against the 2013 actual cost
base (excluding 2015 - 2016 inflation), with a one-off cash out realised of
? 5 million
* OPEX improvements: the implementation of the five processes is work in
progress and on schedule to reach the year-end implementation target of 95%
in all operating countries
* Portfolio optimisation: The divestment process of the French activities is
progressing according to plan: at the end of Q3 non-binding bids have been
received from both financial and strategic parties. Grontmij is now entering
the next phase of the divestments process
* At the end of September, Grontmij announced the intended divestment of the
24% stake in and associated receivables on the 'Ruimte voor Ruimte'
sustainable development partnership for approx. ? 8 million
* Accelerate improvements NL: Despite the fragile market in the Netherlands,
progress continues to be made, with improved results in the third quarter,
mainly as a result of the cost reductions
Realising profitable growth
Grontmij's strategy is aimed at restructuring the business and realising
profitable growth, focusing on five Group Growth Segments: Energy, Water,
Highways & Roads, Sustainable Buildings and Light Rail.
Within these segments, a notable number of projects in which Grontmij provides
tangible solutions for her clients have been won in the third quarter of 2014:
* For DONG Energy, 50 Danish and Swedish Grontmij consultants are converting
the Skearbaeck Power station into a fully sustainable power station for
55,000 households, creating a lasting impact in the Danish environment
* In the Netherlands, a 3-year framework agreement with Grontmij and partners
guarantees TenneT to have the best support in creating a sustainable energy
network
* The span of Grontmij's knowledge on water technology and coastal protection
has been recognised in projects all over the world. Grontmij engineers
support the Laos Provincial Department of Public Works and Transport in
training and project management support for a number of water and road
infrastructure projects
* Grontmij's strong attachment to the rapidly changing hospital sector is
supported with the substantial Danish project win for constructing a
Psychiatric Centre for Region Midt in Aarhus, Denmark, combining sustainable
building solutions whilst creating a comfortable and pleasant environment
for people to recover in, to work in and to visit
Michiel Jaski, CEO Grontmij N.V: 'In the third quarter we have achieved a good
improvement of our profit margin thereby continuing the trend of the first half
of 2014. Margin improvement is Grontmij's most important long term strategic
priority and we are on track to make 2014 a year of progress. We are moving
forward with the process to divest the remaining French activities. With
interest from a number of both strategic and financial parties we have entered
the next phase of the divestment process.'
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[1] As per 30 June 2014, the French Engineering & Consultancy business is
classified as asset held for sale and is qualified as discontinued operations,
in accordance with the requirements of IFRS 5. For more details please refer to
Note 6 of the Interim Financial Statements 2014.
[2] Under IFRS, the convertible cumulative preference shares ('Cumprefs') are
classified as a liability. Under Dutch law and for the covenant calculations the
Cumprefs are classified as equity. For more details please refer to Q2 2014
press release, published on 4 August 2014 and available on our website.
Visit our website for the full press release
For more information please contact:
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
Note to editors
Grontmij is a leading European company in the Consulting & Engineering industry
with world class expertise in the fields of energy, highways & roads, light
rail, sustainable buildings and water. Our leading principle is Sustainability
by Design. This enables our professionals to support clients in developing the
built and natural environment. Established in 1915, Grontmij is listed on the
NYSE Euronext stock exchange.
Grontmij Financial press release Q3 2014:
http://hugin.info/143540/R/1866959/655938.pdf
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Source: GRONTMIJ N.V. via GlobeNewswire
[HUG#1866959]
Unternehmensinformation / Kurzprofil:
Datum: 30.10.2014 - 07:00 Uhr
Sprache: Deutsch
News-ID 348164
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