Heijmans trading update: Developments first months 2016 according to plan
(Thomson Reuters ONE) -
Highlights
* Revenues in the first quarter of 2016 slightly higher compared to the first
quarter of 2015, partly due to higher revenues in Property Development and
the German infrastructure activities;
* Total homes sold: 489 through April, with 391 of these sold to private
buyers (first four months of 2015: 387, of which 348 sold to private
buyers);
* Order book at end-March: ? 2.1 billion, comparable to the end of 2015.
Bert van der Els, CEO Heijmans NV: 'Heijmans developed in line with expectations
in the first quarter of 2016. We are satisfied with the growth in Dutch Housing
and were able to further expand our position in that market. Germany and Belgium
also performed in line with expectations. We remain vigilant in the Non-
residential and Infra segments. The market conditions in these segments remain
poor. We continue to be engaged in the realisation of a number of difficult
projects. These are progressing steadily whereby the risk level remains high.
Our order book is stable, to which we have been able to add two interesting
projects with the recently acquired Amsterdam Courthouse PPP project and the
contract for the realisation and maintenance of the sewage water purification
plant in Utrecht.'
Operational activities
The residential market is growing and this is visible in the development of the
Residential Building and Property Development segment. In Property Development
in particular, revenues showed a clear increase compared to the first quarter of
2015. Heijmans closed a contract with Amvest Investment Management for the
construction of 38 private rental apartments in the 'Perron073' project in 's-
Hertogenbosch. The first 30 Heijmans ONE homes are in production and will be
delivered to the Wonen Limburg housing corporation this spring. The Belgian
construction activities were stable in the period under review.
As expected, revenues in Non-residential decreased considerably compared to the
same period of 2015. The market remains challenging: there are fewer projects in
the market, prices are under pressure and Heijmans has a selective acquisition
policy. In February, Heijmans joined the consortium for the Rotterdam area
development Hart van Zuid. This integrated contract for the renewal and
strengthening of the area around Zuidplein and the Ahoy convention centre and
arena includes the realisation of an international conference centre, music
hall, cinema and hotel, as well as the construction of an arts centre complete
with library and theatre, the renovation of the Zuidplein shopping centre and
improvement of the public transport network. The financing agreement was
completed at the end of April and work on the project has commenced. There is
potential in the market for services, maintenance and management and Heijmans is
steadily expanding its position in that market. We were awarded a five-year
contract from Leiden University for the maintenance and management of all
electro-technical installations. We also delivered the first phase of the new
Science Campus of the Mathematics and Natural sciences division. In Roermond the
new-build project for the Laurentius Hospital was taken into operation. Very
recently, the Amsterdam Courthouse PPP project was awarded by the Dutch Building
Agency to a consortium that includes Heijmans as key partner during the
realisation and operating phase.
Revenues at Infra (Roads and Civil) were slightly higher in the first quarter of
2016 when compared to the same period of 2015. The regional projects and asset
management contracts in the Dutch infrastructure activities continued to develop
positively. The market for large and complex infrastructural works remains
challenging. The risk level of a number of large, ongoing projects remains high.
The Belgian and German infrastructure activities are performing in line with
expectations. Revenues at our German subsidiary Oevermann were substantially
higher in the first quarter of 2016 than in the same period of 2015.
In February, financial close was realised in the PPP project 'Construction 3rd
lock chamber Princess Beatrix Lock and widening Lek canal'. Heijmans recently
signed a contract for the design, realisation and 10-year maintenance of the
sewage water purification plant in Utrecht. The realisation of the A12
Veenendaal - Ede - Grijsoord is progressing well and delivery is scheduled for
the coming summer. In the north of the Netherlands, Heijmans won the contract
for the strengthening of a 13-kilometre stretch of Wadden Sea dykes in the
province of Friesland. In Eindhoven, a pilot project was launched involving the
Bike Scout innovation, a road safety system that warns drivers of approaching
cyclists by means of sensor technology and LED lights in the road surface.
Additionally, this year saw the installation of the world's largest lock doors
made of polymer composite in the new Lock III of the Wilhelmina canal in
Tilburg.
Strategy, outlook and financing
Based on its strategy 'to improve and renew', Heijmans is making targeted
efforts to further strengthen its core processes, and to capitalise on its
innovations and sustainability ambitions. The internal 'Improve the Core'
programme is putting the focus on the tightening, uniformity and centralised
management of tender, project and procurement management and commerce. Heijmans
has implemented a number of measures, from different 'pricing' of design and
staff costs, as well as disciplined application of go/no go-moments to a
different valuation of opportunities and risks.
Heijmans is committed to a 'margin over volume' policy, selective acquisition of
new contracts and risk management. The infrastructure activities are a specific
focal point in this context in view of a number of previously acquired large and
integrated projects that are moving towards completion with difficulty and are
negatively affecting the company's results. The aim is controlled completion of
these works, which are expected to account for almost 10% of the revenues of the
Dutch infrastructure activities this year. The appointment of a fourth member of
the Executive Board with specific responsibility for Infra underlines the
priority the Board places on improving the results of the Dutch infrastructure
operations. The first results of this policy are visible, in particular in the
regional infrastructural projects and asset management contracts, which account
for approximately 40% of the total revenues of the Dutch infrastructure
activities.
In early 2016, we amended the credit facility made available by the syndicate of
banks, which has extended the financing to June 2018. The documentation of the
new agreement has been completed. As of end-March, Heijmans was operating within
the bandwidths of the prevailing financial covenants. In line with the new
agreements, Heijmans has made a structural improvement of the net debt / EBITDA
ratio a high priority for the coming period. Partly in view of the persistent
pressure on the working capital, Heijmans also continues to devote attention to
the optimisation of the cash flow, in part by means of the 'Fit for Cash'
programme.
This overall approach should result in continued recovery in 2016. Heijmans is
developing in line with expectations and is taking clear steps forward to be
able to end the year with a positive underlying operating result.
About Heijmans
Heijmans is a listed company that combines activities related to property
development, residential building, non-residential building and infrastructure
in the working areas living, working and connecting. Heijmans is active in the
Netherlands, Belgium and Germany and as a technology partners delivers know-how
and concepts in various markets. Our constant focus on quality improvements,
innovation and integrated solutions enables us to generate added value for our
clients. Heijmans realises projects for private consumers, companies and public
sector bodies. With over 6,500 employees and almost ? 2.0 billion in revenues in
2015, we are building the spatial contours of tomorrow. You will find additional
information on www.heijmans.nl
For more information:
Media:
Marieke Swinkels-Verstappen
+31 73 543 52 17
mswinkelsverstappen(at)heijmans.nl
Analysts:
Guido Peters
+31 73 543 52 17
gpeters(at)heijmans.nl
Press release:
http://hugin.info/130707/R/2011558/744787.pdf
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originality of the information contained therein.
Source: Heijmans NV via GlobeNewswire
[HUG#2011558]
Unternehmensinformation / Kurzprofil:
Datum: 11.05.2016 - 07:17 Uhr
Sprache: Deutsch
News-ID 470140
Anzahl Zeichen: 9771
contact information:
Town:
Rosmalen
Kategorie:
Business News
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