VolkerWessels’ net result from continuing operations € 36 million (+112%), expects
FY EBITDA and net result to increase
Koninklijke VolkerWessels N.V. (“VolkerWessels” or the “Company”), a listed market-leading, multi-branded construction company based in the Netherlands, today publishes its semi-annual results for the first time after its listing on 12 May 2017.
Highlights H1 2017
- Net result from continuing operations € 36 million (+112%)
- EBITDA up from € 75 million to € 90 million* (+20%)
- ROCE up 530 basis points to 15.0%
- Solvency ratio up 370 basis points to 30.0%
- Net debt improved by € 174 million to € 103 million
- Revenue up € 96 million to € 2,668 million (+4%)
- Order book up € 644 million to € 8,423 million (+8%)
- Confident that full year EBITDA and net result from continuing operations will increase; full year EBITDA margin in line with medium term objectives
(compared to H1 2016 or 30 June 2016)
Jan de Ruiter, Chairman of the Management Board
“The first half of 2017 was an important period for VolkerWessels as we floated successfully on Euronext Amsterdam. We are grateful to the many investors who showed confidence in our company.
I am very pleased to report that our net result from continuing operations increased by 112% to € 36 million over the reporting period. Of the € 19 million improvement versus the same period in 2016, € 7 million is the result of the change in our capital structure (resulting in lower interest charges) and € 12 million is the result of improved operational performance.
Our EBITDA improved to € 90 million (up 20% from € 75 million), the semi-annual EBITDA margin increased 50 basis points to 3.4%. Despite upward pressure on the cost of sub-contractors and certain raw materials in our Construction & Real Estate Development segment, rising housing prices continue to have a positive effect on our real estate development business and as such mitigates the impact of the increased cost of construction. As highlighted during our IPO, competition remains fierce in our Infrastructure segment in the Netherlands. Our strong backbone of smaller projects remains, however, a key differentiator. Energy & Telecom Infrastructure as well as our international businesses show a stable development.
Our net debt position at 30 June improved by € 174 million to € 103 million. This improvement is the net result of (i) the sale of the off-shore division in 2016 (payment received on 4 July 2016), (ii) the continued profitability of the company in H2 2016 and H1 2017, (iii) the acquisition of KWH at the end of 2016, (iv) our continued focus on working capital and (v) dividend payment of € 83 million on 4 May 2017. Our solvency improved by 370 basis points to 30.0%.
Focus continues to be on winning profitable new business, reducing our failure costs and making selective bolt-on acquisitions to strengthen our local leadership positions. We are confident that our EBITDA and net result from continuing operations for the full year will increase.”