Heijmans trading update Q1 2015: residential business improving, non-residential and infra markets remain challenging
(Thomson Reuters ONE) -
Highlights
* Modest increase in turnover in first three months of the year compared with
the same period of 2014, due to increase in turnover at Residential;
* Number of homes sold up to and including April total 387, with 348 of these
to private buyers (same period last year: 234, with 129 to private buyers);
* Order book ? 2.3 billion at end-March at same level as year-end 2014.
Bert van der Els, CEO Heijmans NV: 'We are seeing a continued gradual
improvement in the residential market, but market conditions in non-residential
and infra remain difficult. We have made a solid start on a complete package of
measures aiming to realise a serious improvement in our operating results. The
organisational adjustments at Non-Residential, Civil and at Oevermann in Germany
are an essential component of these measures. We are making clear moves in the
right direction but do not expect to see improvements in operating results
before the second half of the year. We will continue to follow our strategy to
improve and renew in order to achieve better results after a long period of
time.'
Key operational developments
The recovery in the residential market has continued: home sales in the first
four months of the year were up compared to the same period of 2014, which had a
positive impact on turnover at Property Development and Residential Building.
Heijmans is responding to the demand for affordable homes with a short
construction period with the Heijmans Huismerk for housing corporations and
investors and Heijmans Wenswonen for the private buyers' market. In March,
Heijmans started construction on two Wenswonen projects in Veenendaal and
Culemborg. We also signed an agreement with housing corporation Cascade for the
design and construction of a housing project for senior citizens with a need for
home care in Waalwijk. We saw the successful completion of the test period with
the first test resident for the Heijmans ONE - the temporary, moveable home for
young singles in transition areas, which has been nominated or the international
INDEX: Award. The findings of this pilot will be taken into account in the
upscaling of this innovative concept to serial production. In Non-Residential,
turnover development in a challenging market is increasingly determined by
large, integrated projects in which design and engineering are key components.
The realisation of the Timmerhuis in Rotterdam is on schedule and garnered
considerable attention during the open day. In April the renovations of De
Resident building in The Hague were completed, which meant the Dutch Health,
Welfare and Sports Ministry and the Social Affairs and Employment Ministry can
now move into their new offices.
Current production in the infra activities remains under pressure, with turnover
down slightly in the first quarter compared to the same period of 2014. In the
Energiefabriek project in Tilburg, Heijmans and its client are working hard to
realise delivery as planned in the fourth quarter of this year. New contracts
include a three-year extension of the asset management contract with Schiphol
Airport and the contract for the preparation of the public spaces in the
Greenport Venlo area for construction and habitation. In the field of
innovation, Heijmans closed a contract with the Helmond local council for the
joint development and application of innovative mobility solutions, with Smart
Highway set to be the first of these. And with its Go Light Avenue innovation,
Heijmans presented a vision of the future of bicycle infrastructure development,
which combines infrastructural innovation and interactive communications
technology. Also in line with this vision was the launch of Heijmans' BikeScout
concept, which uses sensor technology to alert drivers to approaching cyclists
at complex road junctions.
Update improvement plan and outlook
In the fourth quarter of 2014, Heijmans launched a far-reaching programme to
realise improvements in its underlying operating result. The organisation wide
roll-out and deployment of internal improvement programmes in the field of
tender and project management, procurement and commerce is now well underway.
These programmes devote specific attention to the start-up stages of projects,
tight control of go/no go moments, the design and preparation process and
contract management. Heijmans has combined the Roads and Civil activities under
a single centralised management.
The reorganisation at Civil's cable and pipeline activities is also progressing
on schedule and Heijmans has received the requested permit for a collective
redundancy plan. The reorganisation at Non-Residential is in progress, we have
successfully reached agreements with almost half of the affected employees. The
employee insurance agency UWV has rejected the application for a collective
redundancy plan. The market conditions and thus the economic necessity for
Heijmans to take organisational measures remain unchanged. In close cooperation
with the works councils, Heijmans is looking into alternative ways to realise
its goals. The reorganisation of the German Oevermann is nearing completion.
Overall, the introduction of the improvement measurements is progressing as
planned. As expected, the results of these changes will not be visible in
Heijmans' statement of profit or loss before the second half of 2015. Project
results in Infra in particular remain under pressure, while the results at
Property Development and Residential Building, as well as in Germany, are
improving slowly. Heijmans continues to prioritise working capital management
and cash flow control.
About Heijmans
Heijmans is a listed company that combines activities in the fields of property
development, residential building, non-residential, roads and civil in living,
working and connecting. Heijmans is active in the Netherlands, Belgium and
Germany and acts as technology partner to provide know-how and concepts in a
wide range of markets. Our focus on constant quality improvement, innovation and
integrated projects enables us to create added value for our clients. Heijmans
realises projects for residential consumers, as well as major corporate and
public sector clients. With more than 7,000 employees and turnover of ? 1.9
billion in 2014, we are building the spatial contours of tomorrow.
For more information / not for publication:
Media
Marieke Swinkels-Verstappen
+31 73 543 52 17
mswinkelsverstappen(at)heijmans.nl
Analysts
Mark van den Biggelaar
+31 73 543 51 31
mbiggelaar(at)heijmans.nl
This announcement is distributed by GlobeNewswire on behalf of
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Heijmans NV via GlobeNewswire
[HUG#1921287]
Unternehmensinformation / Kurzprofil:
Datum: 13.05.2015 - 07:17 Uhr
Sprache: Deutsch
News-ID 392839
Anzahl Zeichen: 7731
contact information:
Town:
Rosmalen
Kategorie:
Business News
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