Sylvo Thijsen, CEO Grontmij N.V.: “The initial signs of recovery in our key markets that we saw in the fourth quarter of 2010 continued into the first quarter of 2011, and the Group achieved modest organic growth in total revenue, compared to the first quarter 2010. Despite encouraging higher sales and stronger market positions, net earnings remained at the same level in Q1 compared to last year because of higher interest.
We gained significant orders during the quarter, notably the appointment by Transport Scotland for the support in the design of the new Forth Replacement Crossing in Scotland, the appointment for the Stockholmporten – intersection in Sweden, the appointment as consultant by Rail Net Denmark to achieve a new fast double-tracked rail section, the request of the City of Paris for the management and supervision of the restructuring of the Les Halles Tunnel in central Paris, the assignment by the French company ATBM (Autoroutes et Tunnel du Mont-Blanc) for the restructuring of the Mont Blanc motorway and the appointment as general engineer by Munich Airport for establishing a Modern Combined Heat and Power Plant. We also won some significant Monitoring & Testing projects in Belgium and the Netherlands.
Although we see a good progress (>15% increase) in our sales in Water & Energy, Transportation & Mobility and Monitoring & Testing in most regions we still face difficult trading conditions in the local markets of Planning & Design (mainly in the UK and The Netherlands). Project delays, spending reduction and fierce price competition in construction related services have lead to some further restructuring measures in Q1. Although we expect much less restructuring in 2011 compared to 2010, there are still some necessary steps to be taken due to these market circumstances. The weak trading conditions in the local markets are also reflected in the higher levels of working capital; the focus to deleverage during 2011 continues.
We are now beginning to see the positive effect of our strategic roadmap 2015, represented by growth in our business lines. We will continue to restructure our portfolio where necessary, as well as our business processes, working methods and our office space footprint. In 2011, we intend to further strengthen our business line focus, with the creation of additional executive board leadership, and the continued development and growth of our fourth business line, Monitoring & Testing.’
- Total Revenue +47% € 273 million (2010: € 185 million)
- Organic growth: Total Revenue 1.7%
- Underlying EBITA +43% € 11.4 million (2010: € 8 million)
- Underlying EBITA margin 4.2% (2010: 4.3%)
- Profit after tax € 3.7 million (2010: € 3.7 million)
- Continued growth in forward orders
- Further restructuring reduces cost base
- Integration Ginger on track