Royal HaskoningDHV reports a steady income and improved profitability in the first half year of 2017. Recurring operating margin is moving up to 4%. The order portfolio is strong at €335 million, a 19% increase compared to the same period last year. The company’s working capital position slightly increased.
Nynke Dalstra, CFO: "We are satisfied with our performance. Although operating income is lagging slightly, the order portfolio is strong and we are entering the second half of the year with confidence."
Erik Oostwegel, CEO: "In the first half of 2017 we invested significantly in digital transformation and innovation. We intend to invest in and focus even more on innovation in the remainder of the year and beyond to accelerate growth. We work together with clients and partners in developing future-proof solutions."
Digitisation is visible in the development of digital services and products as well as digital engineering. For example, the company launched the first digital Environmental Impact Statement (EIS), which uses accessible, interactive visuals to revolutionise the way the results of an Environmental Impact Assessment are interpreted and shared between all stakeholders. This saves valuable time, accelerating decision-making and advancing stakeholder engagement.
Vitens, the largest drinking water company in the Netherlands, recently signed a contract with Royal HaskoningDHV for the implementation of Aquasuite OPIR® monitoring and control software. This smart solution optimises the operation of water supply systems by predicting future water demand. The intelligent control of the water system leads to reduced water leakage, less energy consumption, improved operation stability, better water quality and less wear and tear of the equipment.
Digital is also revolutionising the process of engineering. Company-wide experts use Building Information Modelling (BIM) for example in airport projects at Schiphol, Aruba and Mexico City. Increasingly, Royal HaskoningDHV uses parametric design for the design of production facilities and bridges, such as recently for the design of a new footbridge in Berlin. This has led to a new way of collaboration across the relevant disciplines, enabling all experts to be involved at an early stage in this dynamic process. Their input and expertise remains crucial but is now fully focussed on making the design choices, whereas the labour intensive actions of modelling, analysing and evaluation are now automated and feedback is instantaneously available. This means more complex concepts can be evaluated at a higher level of accuracy without compromising creativity and efficiency.
Furthermore, Royal HaskoningDHV partnered with tech start-up incubator YES!Delft and The Green Village which is a platform that aims to accelerate sustainable innovations. These partnerships will bring together the best people and will develop radical innovations and digital services to help solve the challenges of the future.
Key figures first half year
|(€ million unless otherwise mentioned)||2017||2016|
|Operating margin (recurring)||4.0%||3.6%|
|Free cash flow||-24||-24|
* EBITA recurring excludes non-operational items which were €0.3 million negative in H1 2017 (H1 2016: €0.6 million negative).
Exchange rate differences had a slight positive impact on operating income and added value. Organically, operating income and added value decreased by 1% compared to the first half year of 2016.
EBITA recurring performance is on track with €12.3 million as a result of better project results and a higher utilisation rate. The net half year result of €6.7 million represents a sharp increase compared to 2016. Recurring operating margin in the first half year is climbing for the third year in a row.
Free cash flow was negative for the first half year of 2017 which is in line with the same period last year and reflects normal seasonality. The company continues to have a very solid balance sheet.
Project highlights first half year
|For a 10,000-home urban development in Wisbech, UK, Royal HaskoningDHV is working with Anglian Water, Deltares and Nelen & Schuurmans to ensure the area is safe from flooding and water-sensitive. The team’s game-changing approach uses rapid flood modelling and an interactive MapTable to develop holistic options together with stakeholders.|
|The RijnlandRoute in the Netherlands is the new road link between Leiden and the Dutch coast at Katwijk that will relieve traffic congestion in the region. Royal HaskoningDHV is supporting contractors combination Comol5 by designing various engineering structures for this route including a 2.5 km tunnel.|
|Aruba Airport Authority awarded a design consultancy contract to NACO, part of Royal HaskoningDHV, for the redevelopment and expansion of Aruba Airport. The centrepiece of the project will be renewed check-in facilities, baggage system and upgrades of the screening process for US-bound passengers.|
|Equinix, one of the world’s largest data centre providers, is open for business in AM4 – its new, state-of-the-art International Business Exchange™ data centre in Amsterdam Science Park. Royal HaskoningDHV designed AM4 in collaboration with Benthem Crouwel architects and has been supporting Equinix during construction of this resilient and energy efficient facility.|
|Royal HaskoningDHV started work on the World Bank-funded Second Ho Chi Minh City Environmental Sanitation Project in Vietnam. The project will greatly improve sanitation in the city and the health of the Saigon River. Royal HaskoningDHV is providing supervision and contract management for the new wastewater treatment plant and the 8km long sewage interceptor tunnel with a 3.2m diameter.|