Trading update: Heijmans on track for recovery
(Thomson Reuters ONE) -
Highlights
* Revenues Dutch activities in first quarter of 2017 in line with
expectations;
* Number of homes sold through April: 440 (first four months of 2016: 489);
* Divestments in Belgium and Germany completed, significant contribution to
debt reduction; improvement in solvency;
* Settlement agreement N23 signed, work resumed in full;
* Completion loss-making projects continues to demand attention, impact
declines;
* Dutch order book ? 2.2 billion at the end of March, up from year-end 2016 (?
1.9 billion).
Ton Hillen, CEO Heijmans NV:
'The first quarter progressed in line with our expectations. Heijmans considers
2017 a year of transition. We completed the sale of our foreign companies in
Belgium and Germany. We reached a final agreement on the N23 Westfrisiaweg
project and work has resumed. The completion of loss-making projects is taking
some time: the impact of that is still visible in the results for the first
months of this year, but the impact is declining. Our focus remains firmly on a
selective acquisition policy. In tenders, Heijmans shows a good hit rate in
tenders that are awarded on the basis of differentiating quality, without making
any compromises on our stringent tender policy. The size of our order book has
increased and includes high quality projects. Various segments are benefitting
from a tailwind of improved market conditions. In short: we are on track."
Property development, residential building
The housing market continues to develop positively. Property development
recorded higher revenues compared to the first quarter of 2016. In the first
four months of the year, Heijmans sold 440 homes (same period of 2016: 489
homes). 392 homes were sold to private buyers, equal to the number sold to
private buyers in 2016. Heijmans closed a realisation agreement with housing
corporation Elan Wonen for the design and construction of 117 Heijmans Huismerk
homes in the Boerhaave neighbourhood of Haarlem. In the town of America in the
province of Limburg, Heijmans built 12 Heijmans ONE homes for the Wonen Limburg
housing corporation. Heijmans previously placed 30 of these homes in the town of
Weert and 10 in the town of Panningen, both in Limburg. In the first quarter of
the year, we sold part of the Fenixloods I project in Rotterdam to investment
firm APF International. This sale relates to around 6,000 m(2) of commercial
space on the ground floor and first floor of the former warehouse. Heijmans very
recently won several tenders on the basis of differentiating quality, such as
the development of the Sloterdijk-Centrum area in Amsterdam. This development
comprises around 150 owner-occupier homes and 650 m(2) of commercial space in
the immediate environment of the Amsterdam Sloterdijk rail and metro station.
Non-Residential
As expected, revenues at non-residential were lower in the first quarter when
compared to the same period of the previous year. This was due to the
stabilisation of the market for non-residential new-build projects and Heijmans'
own selective acquisition policy. The status of the RIVM project is unchanged.
Heijmans (37.5% interest) and its partners in the consortium are in talks with
the client and will start work as soon as definitive agreements have been
reached. In the first quarter, Heijmans won a contract from the Dutch Central
Government Real Estate Agency (Rijksvastgoedbedrijf) for the realisation of the
new premises of the NIFP Pieter Baan Centrum (Netherlands Institute of Forensic
Psychiatry and Psychology) in Almere. Heijmans is responsible for all structural
and technical engineering facilities for the new city centre, as well as for the
realisation of outdoor spaces, a parking area and access road. In Alkmaar,
Heijmans is renovating three buildings under a contract from the Dutch National
Police Force. In addition, Heijmans has started work on the electro-technical
maintenance at the Schiphol, Rotterdam and Eelde and Beek airports under
contract from Air Traffic Control the Netherlands (Luchtverkeersleiding
Nederland). March saw the delivery of the new premises for Eurojust in The
Hague.
Infrastructure
Infrastructure performed in line with expectations. The focus on cost
optimisation has a positive impact on the performance. The completion of a
number of loss-making projects continued to demand attention but the impact of
these projects on the overall performance is declining. Heijmans reached a final
agreement on the N23 Westfrisiaweg project and work has resumed in full. In
February, the contract for the design and realisation of the Zuidasdok was
definitively awarded to ZuidPlus, the consortium comprising Fluor, Hochtief and
Heijmans (15% share). The project includes the widening and underground
construction of part of the A10 Zuid section of the Amsterdam ring road and the
expansion and modernisation of the Amsterdam Zuid rail and metro station. Also
in the first quarter, the Heijmans/Europoles consortium was definitively granted
the contract for the design and realisation of the new Wintrack II high voltage
line connection NW/SW for TenneT. Both projects are in line with Heijmans'
selective acquisition policy, which prioritises the granting of contracts on the
basis of quality. Heijmans has also started maintenance work on the Kaagbaan
runway at Schiphol Airport, a project that concerns a wide range of activities,
to be completed in just over nine weeks. The realisation of the A9
Gaasperdammerweg is progressing steadily, but does require considerable effort.
Progress transition
Based on the strategic plan 'Focus, Discipline, Excellence' for the period 2017
- 2019, Heijmans is focusing on the sustainable recovery of the company and its
profitability, debt reduction and the structural strengthening of its financial
ratios. Heijmans is making steady progress in the implementation of this plan.
We completed the sale of our foreign companies in Belgium and Germany. These
divestments made a considerable contribution to our debt reduction and the
improvement of our solvency ratio. This process results in the transformation of
Heijmans into a Dutch company with revenues of around ? 1.5 billion. The focal
point of the strategy is the acquisition of new contracts in the property
development, construction and infrastructural disciplines that Heijmans has
expertise in, as well as developing Heijmans' role as contractor/manager and the
development of long-term client relationships through service, management and
maintenance contracts. Heijmans is focused on achieving an optimal cost
structure that is in line with the changed scale of the company.
About Heijmans
Heijmans is a listed company that combines activities related to property
development, residential building, non-residential building, roads and civil
engineering in the fields living, working and connecting. 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 and, in partnership with its clients, is
building the spatial contours of tomorrow. You will find additional information
on www.heijmans.nl
For more information:
Media
Marieke Swinkels-Verstappen
Communications
+31 73 543 52 17
mswinkels-verstappen(at)heijmans.nl
Analysts
Guido Peters
Investor Relations
+ 31 73 543 52 17
gpeters(at)heijmans.nl
Press release:
http://hugin.info/130707/R/2102929/797833.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Heijmans NV via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 10.05.2017 - 07:15 Uhr
Sprache: Deutsch
News-ID 541395
Anzahl Zeichen: 8713
contact information:
Town:
Rosmalen
Kategorie:
Business News
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