Du är här


GRONTMIJ N.V.: Financial press release - Grontmij improves operating margin in first half 2014; Cost reductions and French divestment process progressing well

De Bilt, 4 August 2014 - Grontmij N.V. a listed consulting&engineering company
with strong European presence, today announces its results for the second
quarter and first half of 2014. In the second quarter, markets across Europe
on average developed moderately positive, thereby continuing the first signs
of recovery reported in the first quarter. EBITA margin excluding exceptional
items improved in the first half of 2014 to 3.5% (HY 2013: 2.4%), despite a
slightly lower operating margin in the second quarter. Margin increase is
mainly driven by improved performance in the Netherlands and cost savings.
Good progress is made on the divestment process of the French activities,
with interest from both financial and strategic parties. In the second
quarter, € 19.5 million of convertible cumulative preference shares
('Cumprefs') were issued, further strengthening Grontmij's financial

Key points Q2 2014&HY 2014(1)

* Total revenue Q2 2014 € 168.5 million (Q2 2013: € 180.7 million), with
organic decline of 5.7%. Net revenue Q2 2014 below last year at € 140.5
million (Q2 2013: € 147.4 million), with organic decline of 3.6%, impacted
as expected by the decline in the Dutch market and less working days. For
HY 2014, organic decline on net revenue was modest at 1.3%
* EBITA excluding exceptional items Q2 2014 € 4.7 million (Q2 2013: € 5.7
million). Good developments in a number of countries, and in particular in
the Netherlands, were offset by lower results in Denmark and Sweden; EBITA
margin excluding exceptional items was 2.8% in Q2 2014, compared to 3.1%
last year; For HY 2014, the EBITA margin improvement was primarily driven
by cost reductions and developed in line with internal expectations, from
2.4% in 2013 to 3.5% this year
* Exceptional items in the second quarter of - € 5.1 million, increased
compared to last year (Q2 2013: - € 0.5 million) resulting mainly from the
additional restructuring measures
* Net result from continuing operations(2) in Q2 2014 was - € 10.0 million
(Q2 2013: - € 1.3 million), impacted by increased exceptional items (€ 5.1
million) and an increase in finance expenses as a result of the IFRS
treatment of the (non-cash) fair value fluctuations of the convertible
cumulative preference shares of € 5.0 million. Net result from continuing
and discontinued operations in Q2 2014 was - € 14.6 million (Q2 2013: - €
1.7 million) including the result in France (- € 4.6 million)
* Trade working capital (TWC) at the end of Q2 2014 was 17.1% (Q2 2013:
16.4%) due to higher TWC levels in Belgium and Germany
* Net debt(2) based on continuing operations per 30 June 2014 was € 67.4
million (Q2 2013: € 138.5 million)

Highlights Rebalanced 'Back on Track' strategy 2014 - 2016:

* Cost reduction programme is proceeding well. Measures taken in the first
half year represent an annual run rate of € 11 million against the 2013
actual cost base (excluding 2015 - 2016 inflation)
* OPEX improvements: in the second quarter, Grontmij continued to embed the
five processes in all operating countries. Internal audits have been
performed in Sweden, Turkey and Poland
* Portfolio optimisation: The divestment process of the French activities is
progressing according to schedule: an Information Memorandum has been sent
out to interested parties, both financial and strategic. Grontmij has
terminated the sale agreement for the Naarderbos Golfcourse and is seeking
discussions with other interested parties
* Accelerate improvements NL: Good progress is being made in the Netherlands,
with implementation of the strategic plan to reduce costs, improve OPEX and
grow the Dutch business in a sustainable manner. In the first half of 2014,
EBITA margin excluding exceptional items in the Netherlands improved from
3.3% to 4.9%

Realising profitable growth
Grontmij's strategy is aimed at restructuring the business and realising
profitable growth, focusing on five Group Growth Segments: Energy, Water,
Highways&Roads, Sustainable Buildings and Light Rail.

Within these segments, a notable number of projects have been won in the
second quarter of 2014 such as three major wind farm assignments in Denmark,
Belgium and the Netherlands (Energy), the Alliance contract with Anglian
Water that was signed in the UK as part of AMP6 (Water), the management
contract for the Niels Bohr Building (Sustainable Buildings), and the design
for the International Financial&Technology Centre in Wuhan, China
(Sustainable Buildings).

Michiel Jaski, CEO Grontmij N.V.: 'With the improvement of our profit margin
as Grontmij's most important long term strategic target, we are pleased to
report on the trend in the first half of 2014. Excluding exceptional items
our EBITA-margin of 3.5%, compared to 2.4% in the first six months last year,
indicates Grontmij is making progress to get back on track. Although the
margin in Q2 was slightly lower than last year, continued operations were in
line with our internal expectations. The decisions announced earlier this
year to implement an additional round of restructuring and to start the
process to divest our remaining French activities strongly influenced net
income in Q2. The good news is that the restructuring and strategic
turn-around of the Netherlands is showing its early results. The divestment
process in France is running on schedule with interest from both strategic
and financial parties. We are pleased with the interest for our French
activities and look forward to bring the divestment process to a positive

As per 30 June 2014, the French Engineering&Consultancy business is classified
as asset held for sale and is qualified as discontinued operations, in
accordance with the requirements of IFRS 5. For more details please refer to
Note 6 of the interim financial statements 2014.

Under IFRS, the convertible cumulative preference shares ('Cumprefs') are
classified as a liability. Under Dutch law and for the covenant calculations
the Cumprefs are classified as equity. For more details please refer to the
Refinancing paragraph in this press release.

To the full financial press release including the Interim Financial Statements
on our website.

For more information please contact:
Grontmij N.V., Michèle Negen, Investor Relations Manager, T +31 30 220 78 31



Note to editors
Grontmij is a leading European company in the Consulting&Engineering industry
with world-class expertise in the fields of energy, highways&roads, light
rail, sustainable buildings and water. Our leading principle is
Sustainability by Design. This enables our professionals to support clients
in developing the built and natural environment. Established in 1915,
Grontmij is listed on the NYSE Euronext stock exchange.

Financial press release Q2 2014 - excl. Interim Financial Statements


This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX 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: GRONTMIJ N.V. via Globenewswire


Författare Hugin

Tala om vad ni tycker

Tala om vad ni tycker

Ni är just nu inne på en betaversion av nya aktiespararna. Lämna gärna feedback på vad ni tycker i formuläret nedan.