16 Mar 2015
- Significant improvement of net result to €6.3 million
- Operating earnings (recurring EBITA) stable at €14.7 million
- Slight decline in operating income to €649 million (-3%)
- Positive free cash flow of €26 million
- EBITA margin of 2.3% (2.2% in 2013)
- Historically high client satisfaction score of 8.2 (on a scale of 1-10)
Royal HaskoningDHV has achieved a net result of €6.3 million for 2014, a significant improvement compared to a €3.4 million net loss in 2013. The company's goal of profitability before growth has been achieved through a strong focus on developing and maintaining leading market positions in a selected number of geographies and services. Operating income showed a slight decline as a result of difficult market conditions in South Africa and currency deviations. Strong growth was delivered in the Aviation, Maritime & Waterways and Rivers, Deltas & Coasts businesses.
Erik Oostwegel, Chairman, commented: "Royal HaskoningDHV is well on the way to achieving its long term objective of sustainable, profitable operations. The 2014 results demonstrate the success of our stronger focus on where and how we operate. Two years after the merger we are truly able to bring together the best teams that offer integrated solutions. I am extremely proud of our historically high client satisfaction score of 8.2. Next to this, our ability to design sustainable solutions is a core asset. Our clients - public and private - are faced with complicated challenges such as water security and safety, urbanisation, pressure on traffic and transport, resource availability, waste and demand for energy. These challenges require a creative, integrated and collaborative approach developed with key stakeholders associated with a project. Although the full impact of these global challenges may only become fully visible in a few years’ time, our company is being asked to design and develop interventions now to ensure industries, cities and societies are prepared for the future."
Financial performanceRoyal HaskoningDHV's financial performance is underpinned by a strong reduction in restructuring and integration costs. The company is on track with its goal to reduce overheads and leverage scale. The order portfolio with key clients shows a significant growth. All this has allowed the company to share more profit with all its employees.
Financial key figures
|(€ million unless otherwise mentioned)||2014||2013|
|Free cash flow||26||-17|
2013 is restated for results in participating interests previously recognized
as EBITA recurring.
PortfolioRoyal HaskoningDHV is continuously evaluating the market and focussing its business on the company's strengths. The South African operations were integrated into the eight worldwide operating Business Lines in support of the strategy to further strengthen the company’s position in the region. The Shanghai based industrial business was transferred to China based engineering company Century3. The new office in Jeddah, Saudi Arabia, was opened to house the company's growing and diversified Saudi business.
OutlookRoyal HaskoningDHV has a strong foundation for moving forward in 2015 despite the continuing uncertain market outlook. Project execution results, utilisation rates and working capital management need further improvement. The company will continue to invest in developing leading market positions to build and maintain competitive advantage. In addition, the focus will remain on servicing key clients and directing particular efforts towards large-scale projects that will benefit from Royal HaskoningDHV's breadth of expertise and integrated multidisciplinary teams.
|June 2015 Royal HaskoningDHV will complete the 5-year consultancy project for the Indonesian government's national sanitation development program aimed at accelerated implementation of waste water treatment and safe solid waste disposal. In total 444 cities and districts are taking part in the program, covering about 90 percent of the national total. Read more.|
|With two major cycling project wins, one for London and the other for the city of Noida in India, the company is gaining ground with this typically 'Dutch' expertise. Both projects bring benefits for society through increased mobility using a sustainable method of transport. Read more.|
|EcoProFabrics for the textile industry; Recover-E for ICT equipment and Take Back Chemicals for closing material cycles in the chemicals industry are just a few clever solutions the company has initiated for the responsible (re)use of resources. Read more.|
|Heineken contracted Royal HaskoningDHV for a new brewery in Addis Ababa, Ethiopia. The project is one of many carried out during 60 years of partnership. Read more.|
|More than 15 new Nereda® wastewater treatment projects and a Cooperation Agreement to introduce Nereda to India and Switzerland was achieved. Read more.|
|The planning study commissioned by the Venice Port Authority for the new onshore and offshore container terminal was completed. Read more. |
|Royal HaskoningDHV submitted the final report of a 25 year master plan for the transformation of Musandam, Oman. The aim is to diversify the oil-driven economy and promote eco-tourism.|
|For chemical company Yara, Royal HaskoningDHV was appointed as managing agent for the non-core assets on their largest site in the Netherlands at Sluiskil. The project introduces a completely new approach to asset management. Read more.|
|Rijkswaterstaat, a part of the Dutch Ministry of Infrastructure and the Environment, is expanding the highways between Schiphol Airport and the cities of Amsterdam and Almere. As a sub consultant to VolkerWessels, Royal HaskoningDHV is part of the team to design and engineer the expansion of the A1 and A6 between Diemen and Almere Havendreef. |
|For the award-winning 'Markthal' in Rotterdam, the Netherlands, the company carried out the structural design. The big arch-shaped market hall contains more than 200 apartments, as well as restaurants and shops overlooking a 100-stall public market on top of a 1,200 car parking garage. Read more.|