28 Feb 2013 | Press release - Financial press release
Grontmij delivers on full year 2012 outlook in transitional year focused on restructuring
Grontmij N.V. a listed consulting & engineering company with strong European presence, today announces its fourth quarter and full year 2012 results. The year 2012 has been a transitional year for Grontmij in which the main focus has been on restructuring: the first pillar of the ‘Back on Track’ strategy launched on 9 March 2012. During the year, the financial structure of the company was improved by a € 80 million rights offering and the refinancing of € 180 million debt. The announced restructuring plans have been implemented according to schedule and on time. Net debt was reduced by 33% to € 120 million by year end 2012. With a strong focus on restructuring, Grontmij delivered on its full year outlook.
Key points full year 2012:
Total revenue full year 2012 € 890.0 million (FY 2011: € 917.4 million (1) ), with organic decline of 4% on total revenue and 1% on net revenue for the full year
EBITA excluding exceptional items € 27.5 million (FY 2011: € 28.5 million (1)) ;EBITA margin excluding exceptional items of 3.1% (FY 2011: 3.1%)
Exceptional items of – € 25.1 million (FY 2011: – € 31.5 million), predominantly related to the ‘Back on Track’ restructuring plan
Net result from continuing operations – € 28.5 million (FY 2011: – € 61.3 million)
Earnings per share for continuing and discontinued operations in 2012 are – € 0.67 (2011: – € 2.65), Grontmij will not pay dividend over the year 2012 due to the net loss incurred
Net debt per 31 December 2012 is € 120.0 million (YE 2011: € 177.9 million)
Outlook for 2012 achieved: ‘EBITA excluding exceptional items expected to be around the level of full year 2011 (€ 25 million (2) )’
‘Back on Track’ strategy:
Restructuring programme implemented according to schedule and on time; cost savings increased in the fourth quarter to € 5.0 million year to date, representing an annual run-rate of ~ € 8.9 million
Trade working capital (TWC) showing first improvements in 2012, in line with plan to achieve 15% target by 2013
Divestments: Sale of Trett Consulting in the UK (May 2012) and the fieldwork activities in the Netherlands (November 2012)
Intended divestment of French M&T business announced (subsequent event: 21 January 2013)
no operational fit with other activities within Grontmij Group
very limited opportunity for Grontmij to leverage expertise to other European markets
Realising profitable organic growth:
Grontmij announced (21 January 2013) shift towards realising profitable growth
Market leadership envisaged in five European Group Growth segments being Energy, Highways & roads, Light rail, Sustainable buildings, and Water (new)
Significant project wins in the group growth segments like the redevelopment of the Antwerp ringroad in Belgium (Highways & Roads), the design and engineering of a waste-to-energy plant in Poland (Energy) and the preparation of an integrated water and wastewater project in Turkey (Water)
Michiel Jaski, CEO Grontmij N.V: 'For Grontmij the past year has been far from easy. Given the challenges of 2012, we can now look back on our transitional year and everything we have accomplished with a sense of pride. Together with our employees we managed to execute a major restructuring programme, on time and within budget, while continuing to service our clients in the meantime. We have delivered on the outlook for 2012 and have ended the year in better shape, with a lower net debt level. With the support of our shareholders we were able to implement a comprehensive financial solution, making it possible for Grontmij to start working on its 'Back on Track' strategy and to look forward again. We have come to the conclusion that our M&T activities in France are better off outside Grontmij. As announced last month, we have initiated the divestment of these activities in 2013. While 2013 will be the first year in which we intend to make progress in improving our operational and commercial excellence, and shift our focus to create profitable growth in the years to come, we will also continue to closely monitor market circumstances and will not hesitate to take action where and when necessary. With markets in Europe under pressure in the short term and GDP forecasts for 2013 revised downwards, the road ahead is difficult to predict. Our long term strategy and targets remain however unchanged and the hard work that needs to be done is fully justified by the potential of Grontmij and its people.'
(1) Comparable figures FY 2011 have been adjusted as Trett Consulting was restated from continuing operations to discontinued operations and as a result excluded from operating result. Please see the appendix for the reconciliation table.
(2) Reported in 2011 as Underlying EBITA excluding non-recurring costs, impairment losses and results from EAI, see annual report 2011, p19.
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