Imtech shifting emphasis to
operational and financial recovery
- Revenue in the fourth quarter 1,299 million
euro
- Positive operational EBITDA in the fourth quarter
of 6 million euro
- Order intake in the fourth quarter 1,204 million
euro, slightly lower than revenue
- Earlier announced non-operational items drive
negative net result in the fourth quarter of 370 million euro
- Net negative result for the year 697 million euro
mainly due to earlier announced non-operational items
- Net debt down to 745 million euro (third quarter
2013: 836 million euro)
- Main focus on organic growth, operational
recovery and debt reduction by at least 400 million euro
- Implementation of detailed improvement plan 'Neue
Imtech' in Germany
- New agreement with financiers, including amended
covenants
Key figures
Quarters |
in € million, unless otherwise
indicated |
Full
year |
Q4 2013 |
Q3 2013* |
|
2013 |
2012 |
1,299.0 |
1,222.1 |
Revenue and other income |
4,944.9 |
5,354.9 |
5.6 |
-2.6 |
Operational EBITDA |
-44.4 |
-23.7 |
-247.5 |
-29.8 |
Non-operational costs |
-379.5 |
- |
-241.9 |
-32.4 |
EBITDA |
-423.9 |
-74.3 |
-298.0 |
-56.9 |
Operating result (EBIT) |
-549.3 |
-174.6 |
-324.7 |
-88.6 |
Net result from continuing operations |
-639.6 |
-235.6 |
-370.0 |
-96.1 |
Net result |
-696.6 |
-240.5 |
1,203.9 |
1,117.4 |
Order intake |
4,725.8 |
- |
-9.5 |
335.7 |
Working capital |
-9.5 |
106.2 |
745.0 |
835.7 |
Net interest-bearing debt |
745.0 |
773.0 |
|
|
|
|
|
|
|
Margins |
|
|
0.4% |
-0.2% |
Operational EBITDA margin |
-0.9% |
-0.5% |
-18.6% |
-2.7% |
EBITDA margin |
-8.6% |
-1.4% |
|
|
|
|
|
26,168 |
27,478 |
Number of employees |
26,168 |
28,022 |
* Adjusted for discontinued operation
Gerard van de Aast, CEO: "2013 will be marked as a
very turbulent year in the history of Imtech given the events that
occurred in Poland and Germany with a large impact on our
organization and especially our German business. The net loss for
the year of 697 million euro is the result of all events and
consequences we earlier announced and mainly attributable to
non-operational items such as one-off valuation allowances,
restructuring costs and finance charges.
In the last quarter of the year we saw a sound
operational performance in most of our divisions, with a good
improvement of operational EBITDA margin and good cash collection.
Our German business has not yet improved in the fourth quarter. We
have started a detailed action plan 'Neue Imtech' that will drive
improvement of results in Germany.
The fundamentals of Imtech remain unchanged, with
a skilled and experienced workforce throughout our divisions and
recognized market positions. Based on these fundamentals the focus
will be on an organic growth and operational improvement program to
enhance profitability and cash flow and on a significant debt
reduction program as part of our financial recovery efforts. The
new agreement with our financiers will facilitate and support both
programs. This agreement provides Imtech with sufficient committed
liquidity and guarantee headroom and entails an amendment of
financial covenants in line with the current business plan."
2013 was a year of
transition and resolving legacy items
As communicated before, beginning 2013 we were confronted with
irregularities in Poland and Germany, requiring deep investigations
and an extended auditing and reviewing process of our company. The
investigation resulted in a comprehensive Report to Shareholders,
that we published on 18 June 2013.
In the first quarter, we introduced a company wide
operational excellence program with a strong focus on improving the
profitability and cash generation and strengthening the business
controls. In April, a headcount reduction plan of 1,300 FTEs was
announced to improve the profitability. During the year, this
program was extended to 2,300 FTEs and implemented. In the summer,
we strengthened the balance sheet by an equity issue with net
proceeds of 487 million euro. Management was strengthened
throughout the company.
Non-operational items in
2013 drive negative result of 697 million euro
The net loss for the year of 696.6 million euro includes an
operational EBITDA loss of 44.4 million euro, of which 107.7
million euro is attributable to Germany & Eastern Europe. This
means, the rest of the group realised a positive operational EBITDA
of 63.3 million euro. Previously announced one-off items are the
non-operational costs for 379.5 million euro. Legacy items account
for in total 230.0 million euro of which 195.9 million euro is
included in the aforementioned non-operational costs, 29.3 million
euro relates to impairment of (in)tangibles assets and 4.8 million
euro is included in share results of associates, joint ventures and
other investments. The net finance costs amounted to 105.0 million
euro, mainly driven by higher cost of debt (67.5 million euro) and
refinancing costs (23.9 million euro). The sale of the Turkish
operating company AE Arma-Elektropanç resulted in a net loss of
40.8 million euro, included in result from discontinued
operations.
The restructuring program 2013 has been finalised
with a total costs of 103.8 million euro, of which 33.1 million
euro in the fourth quarter.
Operational and financial
recovery going forward
We now enter the next phase of recovery with focus on enhancing our
organic growth, operational performance and regaining Imtech's
financial health. We have concluded that a further significant debt
reduction is required for our financial recovery efforts. We are
committed to reduce debt by at least 400 million euro. To realise
this, we will review all options in order to intensify the debt
reduction program in 2014.
Good progress on operational
recovery plan
In the second half of the year, we intensified our recovery plan,
including the implementation of the operational excellence program.
Towards the end of the year, this resulted in a good improvement of
operational EBITDA margin, excluding Germany & Eastern Europe,
also helped by the impact of management upgrades and the completed
headcount reduction programs. Our focus on working capital
management and cash management resulted in a good net debt
reduction of 91 million euro in the fourth quarter to 745 million
euro. All businesses, including Germany & Eastern Europe,
contributed to this good result. We can conclude that Imtech's
strong foundations are intact. Every day, our committed employees
serve thousands of customers with technical solutions all over the
world. The order intake during 2013 was satisfactorily and in line
with revenue. As previously communicated, the results in our
businesses provide a platform for recovery. In Germany we
accelerated and intensified our recovery plan, named 'Neue
Imtech'.
German action plan: 'Neue
Imtech'
Management has launched a comprehensive recovery plan to rebuild
the German organisation, named 'Neue Imtech'. This program
prioritizes healthy project margins over volume and is based on a
detailed action plan consisting of eight building blocks: project
execution excellence, procurement, improving sales processes,
prudent spending, streamlining organisation and staff, modern cash
management, closure of unprofitable branches in Eastern Europe, and
establish a sustainable strategy. An important element of the
recovery program is the closure of the legacy items which resulted
in a total valuation allowances of 197.9 million euro as already
announced in February 2014.
New agreement with
financiers including amended covenants
Imtech has reached agreement with its main lenders and guarantee
providers on a comprehensive financing solution that creates a
foundation to stabilize operations and implement the operational
and financial recovery referred to above.
The agreement provides Imtech with access to 1.3
billion euro of committed credit facilities (including senior
notes) and 843 million euro of committed guarantee facilities
(including 50 million euro from drawings under the credit
facilities). The agreement provides Imtech with sufficient
liquidity and guarantee headroom and entails an amendment of
financial covenants in line with the current business plan.
The agreement is structured to harmonise the
maturity of the cash and guarantee facilities to 1 November 2015.
Imtech and its main lenders have committed to extend the maturity
until July 2017. However, this extension is not yet finalised as
one of the financiers under the RCF has not agreed to the financing
solution. However all financiers are bound by it at least until 1
November 2015 under the terms of the RCF.
The new agreement includes:
- Replacement of existing financial covenants by a
minimum EBITDA level and a minimum operational cash flow level over
the last twelve months from 30 September 2014 to 30 September 2016
and (if facilities are extended) a minimum operational cash flow
level, an interest cover ratio, a senior leverage and a total
leverage ratio from 31 December 2016 to 30 June 2017. The minimum
EBITDA level increases over time. The minimum operational cash flow
varies in line with the company's business plan. All covenants are
in line with the company's business plan plus headroom.
- A commitment to delever with 250 million euro by
30 June 2015 and a best effort obligation to further delever with
in total at least 400 million euro by the same date but a reduction
with a substantially higher amount is not excluded. If the company
has not achieved its deleveraging target in full by 30 June 2015,
non-cash fees of an estimated 25 million euro will accrue on both
30 June and 30 September 2015 and semi-annually thereafter for as
long as the deleveraging target is not met. Also, if the
deleveraging target has not been achieved in full by 30 June 2015,
the company will be required to issue warrants to its financiers up
to 10% of the company's then outstanding share capital at an
exercise price equal to the nominal value at the time of issue. The
granting of warrants requires approval of the shareholders. If
shareholders' approval is not obtained a synthetic fee will be
paid.
- Revised interest arrangements resulting in a
margin of 7.5% (of which 3.75% non-cash interest) on RCF and
bilateral credit facilities and interest of 9.8% on senior notes
(of which 2.00% non-cash interest). Guarantee fees range from
3.75-4.5% (of which 1.25-1.50% non-cash). The margin on the RCF and
bilateral credit facilities and the guarantee fees are subject to
reduction based on a leverage ratio grid.
- One-off fees and make-whole amounts payable to
financiers aggregating 53 million euro of which circa 10 million
euro in cash and 32 million euro is contractual make-whole added to
the principal of the senior notes.
Imtech continues to be focused on achieving a long
term sustainable capital structure and is committed to reduce
indebtedness by at least 400 million euro. To realize this debt
reduction Imtech will review all options in order to intensify the
debt reduction program in 2014.
Confirmation of medium term
targets
We maintain our medium term targets to achieve an operational
EBITDA margin of 4-6%, a cash conversion of 90% and a maximum
leverage ratio of 2.0. To achieve these targets we will continue to
focus on organic growth, improvement of our operational performance
by implementing operational excellence programs and debt
reduction.
Comparative figures
2012
Imtech has adopted the revised IAS 19 Employee benefits as per the
financial year 2013. IAS 19 must be applied retrospectively with a
restatement of comparative figures for 2012. For further details
reference is made to note 3 of the 2013 financial statements.
The company has decided to dispose its 80%
shareholding in AE Arma-Elektropanç (Arma). As a result, these
activities are classified as discontinued operations. The
comparative consolidated profit and loss account 2012 has been
restated to show the discontinued operations separately from
continuing operations. In the balance sheet the related assets and
liabilities are classified as held for sale as per 31 December
2013. Reference is made to note 13 of the 2013 financial
statements.
Financial
performance
Income
statement
Quarters |
in € million |
Full
year |
Q4 2013 |
Q3 2013* |
|
2013 |
2012 |
1,299.0 |
1,222.1 |
Revenue and other
income |
4,944.9 |
5,354.9 |
5.6 |
-2.6 |
Operational EBITDA |
-44.4 |
-23.7 |
-247.5 |
-29.8 |
Non-operational costs |
-379.5 |
- |
-241.9 |
-32.4 |
EBITDA |
-423.9 |
-74.3 |
-11.1 |
-9.9 |
Depreciation |
-40.5 |
-39.6 |
-45.0 |
-14.6 |
Amortisation & impairment |
-84.9 |
-60.7 |
-298.0 |
-56.9 |
Operating result
(EBIT) |
-549.3 |
-174.6 |
-23.5 |
-25.8 |
Net finance result |
-105.0 |
-62.0 |
-2.1 |
-3.9 |
Share of results of associates, joint ventures and other
investments |
-5.7 |
2.8 |
-1.1 |
-2.0 |
Income tax expense |
20.4 |
-1.8 |
-324.7 |
-88.6 |
Net result from continuing
operations |
-639.6 |
-235.6 |
-45.3 |
-7.4 |
Result from discontinued operations |
-57.0 |
-4.9 |
-370.0 |
-96.1 |
Net result |
-696.6 |
-240.5 |
* Adjusted for discontinued operation
Fourth quarter
2013
The last quarter of the year is seasonally a better quarter.
Revenue came in at 1,299 million euro, in line with previous
quarters of 2013. Almost all divisions contributed to the revenue
increase in the quarter, particularly ICT (+48%) and Traffic &
Infra (+32%). Exceptions are Germany & Eastern Europe (-31%)
and to a lesser extent UK & Ireland (-7%).
The operational EBITDA ended at 5.6 million euro
in Q4, including an operational EBITDA loss of Germany &
Eastern Europe of 32.8 million euro. Operational EBITDA excluding
Germany & Eastern Europe improved markedly in the quarter from
17.1 million euro to 41.7 million euro in Q4 2013 as a result of
the benefits of restructuring the businesses of Benelux, Marine and
Traffic & Infra, and a strong fourth quarter of ICT. In UK
& Ireland and Nordic, operational EBITDA was lower than in Q3
2013.
The non-operational costs in Q4 2013 amounted to
247.5 million euro and include previously announced costs made for
restructuring for 33.1 million euro (mainly in Germany), 5.5
million euro for financial restructuring, valuation allowances of
195.9 million euro, mainly related to Germany & Eastern Europe
and 13.0 million euro for several other non-operational overhead
costs such as advisory and legal.
Depreciation in Q4 2014 was 11.1 million euro.
Amortisation and impairment was 45.0 million euro, including an
impairment of 29.4 million euro as part of the valuation allowances
of in total 230.0 million euro. The accelerated amortisation of the
brand name NVS in Nordic, as our business in Nordic is implementing
the Imtech brand name, counts for 4.2 million euro in Q4 2013.
In Q4 2013, the net finance result is -23.5
million euro. The net finance result includes amongst other net
interest expenses (Q4 2013: 18.8 million euro, first nine months
2013: 48.7 million euro) and earlier announced financing costs (Q4
2013: 0.9 million euro, first nine months 2013: 27.4 million
euro).
The share of results of associates, joint ventures
and other investments amounted to -2.1 million euro (first nine
months 2013: -3.6 million euro), including 4.8 million euro related
to the valuation allowances.
The effective tax rate for Q4 2013 was 0.3%
negative (first nine months 2013: 5.7% positive). The effective tax
rate is significantly impacted by losses made in 2013. Part of
these losses do not result in a direct tax credit, particularly for
businesses located in the Netherlands, Germany and Eastern
Europe.
Full year
2013
Revenue for the year 2013 came in at 4,945 million euro, a decrease
of 8% primarily due to Germany & Eastern Europe. Also Benelux,
Marine, Spain and UK & Ireland reported a decrease of revenue.
The revenue decrease was partly offset by an increase in Nordic,
ICT and Traffic & Infra.
The operational EBITDA resulted in a loss of 44.4
million euro. Germany & Eastern Europe was the main contributor
of this loss, also Benelux, Marine and Spain reported a loss.
Positive operational EBITDA was realised in ICT, UK & Ireland,
Nordic and Traffic & Infra.
The non-operational costs of 379.5 million euro
include amongst other as previously announced costs made for
restructuring for 103.8 million euro (mainly Benelux, Germany and
Marine), 22.3 million euro for financial restructuring and the
valuation allowances in Benelux and Marine for 40.0 million euro,
the valuation allowances in the fourth quarter of 195.9 million
euro and 17.5 million euro for several other non-operational
overhead costs such as advisory, legal and rebranding.
Depreciation was 40.5 million euro. Amortisation
and impairment amounted to 84.9 million euro, including an
impairment of 29.3 million euro as part of the valuation allowances
in the fourth quarter and 14.2 million euro for the accelerated
amortisation of the brand name NVS in Nordic.
The net finance result is 105.0 million euro. The
net finance result includes amongst other net interest expenses
(67.5 million euro) and earlier announced financing costs (28.5
million euro).
The share of results of associates, joint ventures
and other investments amounted to -5.7 million euro, including 4.8
million euro related to the valuation allowances.
The effective tax rate for the year was 3.1%. The
effective tax rate is significantly impacted by losses made in
2013. Part of these losses do not result in a direct tax credit,
particularly for businesses located in the Netherlands, Germany and
Eastern Europe.
Result for discontinued operations (net of tax)
amounted to -45.3 million euro in Q4 2013 and -57.0 million euro
for the full year, and are related to the divestment of the Turkish
business AE Arma-Elektropanç as announced on 17 January 2014.
Result for the period,
result per share
Quarters |
in € million, unless otherwise
indicated |
Full
year |
Q4 2013 |
Q3 2013 |
|
2013 |
2012 |
-370.0 |
-96.1 |
Net result |
-696.6 |
-240.5 |
1.1 |
0.8 |
Non-controlling interests |
4.6 |
6.7 |
-371.1 |
-96.8 |
Net result for
shareholders |
-701.2 |
-247.2 |
45.0 |
14.6 |
Amortisation & impairment |
84.9 |
60.7 |
-326.1 |
-82.3 |
Adjusted net result for
shareholders |
-616.3 |
-186.5 |
|
|
|
|
|
|
|
Basic result per share from continuing operations |
-2.15 |
-1.26 |
|
|
Diluted result per share from continuing operations |
-2.15 |
-1.26 |
|
|
|
|
|
|
|
Basic result per share |
-2.34 |
-1.29 |
|
|
Diluted result per share |
-2.34 |
-1.29 |
Balance sheet
Selected balance sheet
items
in € million, unless otherwise
indicated |
31 Dec 2013 |
30 Sep 2013 |
31 Dec 2012 |
Property, plant and equipment |
161.0 |
158.0 |
170.8 |
Goodwill & other intangible assets |
1,181.8 |
1,266.1 |
1,299.7 |
Other non-current assets |
44.3 |
75.2 |
66.5 |
Non-current assets |
1,387.1 |
1,499.3 |
1,537.0 |
Working capital |
-9.5 |
335.7 |
106.2 |
Assets held for sale |
79.9 |
25.3 |
27.6 |
Capital employed |
1,457.5 |
1,860.3 |
1,670.8 |
|
|
|
|
Equity |
313.3 |
678.4 |
524.5 |
Net interest-bearing debt |
745.0 |
835.7 |
773.0 |
Other (non-interest bearing) LT liabilities |
11.8 |
19.7 |
24.8 |
Restructuring provisions |
30.9 |
28.4 |
24.0 |
Other liabilities |
296.7 |
273.0 |
299.4 |
Liabilities held for sale |
59.8 |
25.1 |
25.1 |
Funding |
1,457.5 |
1,860.3 |
1,670.8 |
Working capital
in € million, unless otherwise
indicated |
31 Dec 2013 |
30 Sep 2013 |
31 Dec 2012 |
Work in progress |
168.7 |
382.0 |
264.8 |
Trade receivables |
859.3 |
938.1 |
1,132.1 |
Other current assets |
215.7 |
265.7 |
283.8 |
|
1,243.7 |
1,585.8 |
1,680.7 |
|
|
|
|
Trade payables |
756.5 |
708.7 |
890.8 |
Other current liabilities |
496.7 |
541.4 |
683.7 |
|
1,253.2 |
1,250.1 |
1,574.5 |
|
|
|
|
Working capital |
-9.5 |
335.7 |
106.2 |
As % of LTM revenue |
-0.2% |
6.4% |
2.0% |
|
|
|
|
Working capital excluding remaining
legacy items |
-85.2 |
- |
- |
As % of LTM revenue |
-1.7% |
- |
- |
Net amount trade receivables
(aging)
in € million, unless otherwise
indicated |
31 Dec 2013 |
30 Sep 2013 |
31 Dec 2012 |
Not past due |
635.5 |
668.5 |
767.8 |
Past due <180 days |
136.5 |
140.6 |
228.8 |
Past due >180 days |
87.3 |
129.0 |
135.5 |
Total |
859.3 |
938.1 |
1,132.1 |
|
|
|
|
Past due > 180 days excluding remaining legacy
items |
33.6 |
- |
- |
Remaining legacy
items
As announced on 3 February 2014, there are remaining legacy items
on the balance sheet. A dedicated team at Imtech will resolve these
remaining legacy items in a pragmatic and optimized manner. The
vast majority of these remaining legacy items does not have a
direct relation to current operations. At year-end the total amount
of remaining legacy items on the balance sheet amounts to 82.5
million euro. The company will report separately and quarterly on
these remaining legacy items going forward.
Fourth quarter
2013
Capital employed declined by 402.8 million euro to 1,457.5 million
euro per end Q4 2013 as a result of increased focus on cash and
working capital management as well as valuation allowances of 230
million euro, of which 175.7 million euro is related to working
capital, 54.3 million euro to other balance sheet items, mainly
non-current items.
Goodwill and other intangibles decreased by 84.3
million euro to 1,181.8 million euro primarily due to the disposal
of AE Arma-Elektropanç in Turkey and a movement in exchange rates.
Working capital declined by 345.2 million euro to -9.5 million euro
per end of Q4 2013. Within working capital, the decline is
primarily related to the previously announced valuation allowances
of 193.9 million euro as well as an increased focus on working
capital reductions. Most important elements of valuation allowances
in working capital are for work in progress 110.5 million euro and
receivables 66.8 million euro. Assets and liabilities held for sale
both increased in the quarter as a result of the conclusion of the
strategic review to dispose our 80% shareholding in AE
Arma-Elektropanç. The previously reported amounts of assets and
liabilities held for sale (a data centre in Germany) have been
reclassified to property, plant and equipment and interest-bearing
debt as these assets will remain in use.
The equity decreased in Q4 by 365.1 million euro
to 313.3 million euro due to the net loss realized in Q4 2013. The
net interest-bearing debt decreased by 90.7 million euro to 745.0
million euro as a result of the positive cash flow from operational
activities (133.3 million euro) in Q4 2013, pay-out of severance
related to the 2013 restructuring plans (30.7 million euro), costs
associated with the financial restructuring (5.4 million euro),
paid interest, paid tax and reclassification of liabilities held
for sale.
Full year
2013
Capital employed decreased by 213.3 million euro to 1,457.5 million
euro in 2013 as a result of increased focus on cash and working
capital management as well as valuation allowances. Goodwill and
other intangibles decreased by 117.9 million euro to 1,181.8
million euro primarily due to the disposal of AE Arma-Elektropanç
in Turkey, accelerated amortisation of the brand name NVS in Nordic
(14.2 million euro) and a movement in exchange rates (-28.0 million
euro). Working capital decreased by 115.7 million euro to -9.5
million euro per end of Q4 2013.
The equity decreased during the year by 211.2
million euro to 313.3 million euro is due to the net loss realized
in 2013 offset by net proceeds of the equity increase during the
summer of 487.1 million euro. The net interest-bearing debt
decreased by 28.0 million euro to 745.0 million euro as a result of
the negative EBITDA in 2013, pay-out of severance related to the
2013 restructuring plans (73.8 million euro), costs associated with
the financial restructuring (110.6 million euro), paid interest,
paid tax, capital expenditure offset by the gross proceeds of the
equity increase.
Cash flow
statement
Fourth quarter
2013
The net cash flow from operating activities in Q4 2013 amounts to
149.6 million euro positive. The cash flow was impacted by a net
loss of 370.0 million euro in the quarter and good cash collection
from working capital of 101.9 million euro.
The net cash flow from investing activities in Q4
2013 was 0.9 million euro positive. During Q4 2013 2.5 million euro
of earn-outs were paid for previous acquisitions. Net capital
expenditure in Q4 2013 for property, plant & equipment and
intangible assets amounted to 17.7 million euro.
Full year
2013
The net cash flow from operating activities in 2013 amounts to
327.5 million euro negative. The cash flow was impacted by the net
loss of 696.6 million euro.
The net cash flow from investing activities in
2013 was 57.8 million euro negative. During 2013 27.7 million euro
were paid for the acquisitions in Finland and earn-outs of previous
acquisitions. Net capital expenditure in 2013 for property, plant
& equipment and intangible assets amounted to 39.5 million
euro.
Performance by
division
Benelux
Quarters |
in € million, unless otherwise
indicated |
Full
year |
Q4 2013 |
Q3 2013 |
|
2013 |
2012 |
186.2 |
167.7 |
Revenue |
682.8 |
766.1 |
1.3 |
-1.1 |
Operational EBITDA |
-17.6 |
-19.1 |
0.7% |
-0.7% |
Operational EBITDA margin |
-2.6% |
-2.5% |
-8.8 |
-5.0 |
EBITDA |
-63.4 |
-51.2 |
125.9 |
203.5 |
Order intake |
625.5 |
- |
4,120 |
4,284 |
Number of employees |
4,120 |
4,859 |
Markets in Benelux remain challenging, especially
the Dutch buildings market. The industrial businesses remain
stable, with opportunities in the international oil and gas
business. The Belgian market shows first signs of improvement.
Revenue increase of 11% to 186 million euro in Q4
2013 was driven by year-end closing of projects. Operational EBITDA
turned into a positive result of 1.3 million euro after previous
loss making quarters as consequence of year-end closings of
projects as well as the benefits of the restructurings in previous
quarters. The building services unit in the Netherlands is
continuing to address operational efficiency issues and has to deal
with a weak building market. The industrial businesses delivered a
good performance in the fourth quarter. Order intake during the
quarter was lower than revenue, reflecting decreasing volumes in
the buildings market. Interesting projects awarded in Q4 are the
upgrading of 21 operating rooms at the University Medical Centre in
Utrecht and the design and implementation of new security systems
and power supplies at NXP Semiconductors.
For the full year, revenue was 683 million euro
reflecting the challenging market conditions. Operational EBITDA
for the year was a loss of 17.6 million euro due to a negative
results in the Dutch buildings services business which could not be
fully offset by good performance in the industrial businesses.
Order intake for the year was slightly below revenue. The number of
employees decreased by 739 FTEs to 4,120 FTEs and is primarily the
result of the restructurings in the Dutch buildings business.
Germany & Eastern
Europe
Quarters |
in € million, unless otherwise
indicated |
Full
year |
Q4 2013 |
Q3 2013 |
|
2013 |
2012 |
185.8 |
269.3 |
Revenue |
968.6 |
1,372.1 |
-32.8 |
-19.7 |
Operational EBITDA |
-107.7 |
-131.2 |
-17.6% |
-7.3% |
Operational EBITDA margin |
-11.1% |
-9.6% |
-239.7 |
-26.8 |
EBITDA |
-327.7 |
-131.2 |
161.6 |
187.0 |
Order intake |
800.6 |
- |
4,740 |
5,304 |
Number of employees |
4,740 |
5,479 |
The market conditions in Germany remain favourable
and our market position based on our strong technical competences
continues to be solid.
Fourth quarter revenue decreased to 186 million
euro as a result of prioritizing margin over volume and the impact
of valuation allowances for 66.2 million euro. Operational EBITDA
was a loss of 32.8 million euro as a result of the high cost
structure and several weak project results. The headcount
restructuring program 2013 has resulted in a reduction of 564 FTEs.
The order intake for the quarter was lower than revenue and arrives
at 161.6 million euro. Good orders included in the Q4 order book
are the electric, ventilation and sprinkler solutions for the new
headquarter of the German automotive component supplier ZF and the
ventilation systems at the new build hospital of SLK Kliniken
Heilbronn.
Revenue for the year amounted to 969 million euro.
Operational EBITDA was a loss of 107.7 million euro. Order intake
for the year was lower than revenue, which is based on the new
market approach of prioritizing margin over volume. The number of
employees decreased by 739 FTEs to 4,740 FTEs and is the impact of
downsizing our businesses in Germany and Eastern Europe.
UK &
Ireland
Quarters |
in € million, unless otherwise
indicated |
Full
year |
Q4 2013 |
Q3 2013 |
|
2013 |
2012 |
174.7 |
188.6 |
Revenue |
738.0 |
750.6 |
6.7 |
9.3 |
Operational EBITDA |
30.7 |
44.6 |
3.8% |
4.9% |
Operational EBITDA margin |
4.2% |
5.9% |
5.8 |
7.8 |
EBITDA |
28.2 |
44.2 |
207.0 |
127.6 |
Order intake |
673.7 |
- |
3,396 |
3,504 |
Number of employees |
3,396 |
3,598 |
The UK engineering services market is
characterised by tough market conditions resulting in very tight
margins in the marketplace. In the fourth quarter, some
improvements were becoming apparent.
In the fourth quarter, revenue was down 7% to 175
million euro reflecting a downturn in the UK engineering services
market as well as the primary project in Kazakhstan is coming to
conclusion. The operational EBITDA of 6.7 million euro was 28%
lower than Q3 2014 reflecting the margin pressure in UK engineering
services business. This margin pressure was partly offset by other
technical maintenance, system integration and waste, water &
energy. Order intake increased in the quarter to 207.0 million euro
and was higher than revenue. Interesting orders awarded in the Q4
are for the international dairy food company Glanbia Foods for the
installation of HVAC power, fire alarms and emergency lighting and
for the new to be build Kensington and Chelsea Leisure Centre the
design and build of the combined heating and power generation and
ventilation systems. The reduction of 108 FTEs in the fourth
quarter to 3,396 FTE is the result of streamlining the business,
particularly for UK engineering services business.
In 2013, the business environment was considerable
tougher than 2012. Revenue for the year remained stable at 738
million euro, including a negative currency impact of 27.9 million
euro. Operational EBITDA of 30.7 million euro was impacted by
margin pressure in the UK engineering services business and a
currency impact of 1.0 million euro negative. Order intake ended
somewhat below revenue at 673.7 million euro for the year. The
continued focus on streamlining the business to market conditions
and order intake resulted in a decrease of 202 FTEs. Total number
of employees at year-end amounted to 3,396 FTEs.
Nordic
Quarters |
in € million, unless otherwise
indicated |
Full
year |
Q4 2013 |
Q3 2013 |
|
2013 |
2012 |
237.6 |
202.2 |
Revenue |
891.6 |
804.9 |
7.5 |
6.6 |
Operational EBITDA |
29.8 |
59.6 |
3.2% |
3.3% |
Operational EBITDA margin |
3.3% |
7.4% |
7.1 |
6.3 |
EBITDA |
25.0 |
60.4 |
218.6 |
161.9 |
Order intake |
888.1 |
- |
5,406 |
5,549 |
Number of employees |
5,406 |
4,937 |
Market environment in both Sweden and Finland is
difficult with lower volumes and margin pressure. Towards the end
of the year, first signs of a market recovery became visible. The
Norwegian market shows some slowdown.
In the quarter, revenue was 18% higher at 238
million euro. The operational EBITDA increased to 7.5 million euro,
though negatively impacted by inefficiencies on projects in Sweden
and Finland. The NKS project in Sweden realised a significant
loss in 2013. Order intake in the quarter was 35% up to 217.9
million euro. New orders included in the order book are the
upgrading of the ventilation systems and medical gas supply systems
in the University Hospital Linköping and the modernisation of the
heating, sanitation and cooling system at the Lund Institute of
Technology. The reduction of 143 FTEs in the fourth quarter is
related to the integration process of previous acquisitions.
In 2013, revenue increased to 892 million euro as
a result of the consolidation of the Finnish company EMC with 101.8
million euro revenue. Operational EBITDA amounted to 29.8 million
euro due to weak project results and some margin pressure in the
market. Order intake was in line with revenue and amounted to 888.1
million euro. The increase of the number of employees by 469 FTEs
in 2013 is the result of the acquisition of EMC.
Spain
Quarters |
in € million, unless otherwise
indicated |
Full
year |
Q4 2013 |
Q3 2013 |
|
2013 |
2012 |
34.6 |
27.9 |
Revenue |
126.9 |
156.1 |
-0.5 |
-0.7 |
Operational EBITDA |
-2.3 |
-0.8 |
-1.4% |
-2.5% |
Operational EBITDA margin |
-1.8% |
-0.5% |
-0.8 |
-0.7 |
EBITDA |
-3.0 |
-5.3 |
59.8 |
12.0 |
Order intake |
122.6 |
- |
1,560 |
1,733 |
Number of employees |
1,560 |
1,809 |
It looks like that the Spanish markets have now
reached the bottom, but competition is still fierce. For the
maintenance market, conditions improved slightly in the fourth
quarter.
Revenue in the quarter is up 24% to 35 million
euro due to higher production levels in the Spanish building
projects business. Operational EBITDA improvement is related to the
benefits of the restructuring as executed during the year. Good
order intake in Q4 is also due to securing the maintenance business
for 2014. Interesting new orders are the renewal of the five year
maintenance contract at Cepsa's fuel and chemical plants in Huelva
and the three year maintenance contract at the MSC Terminal in the
Port of Valencia. The reduction of 173 FTEs in Q4 is a combination
of restructuring and expiring of labour agreements related to the
closure of specific contracted work.
In 2013, revenue decreased by 19% to 127 million
euro due to challenging economic conditions in the markets for both
building projects as well as industry projects. Operational EBITDA
was a loss of 2.3 million euro. Order intake for the year was in
line with revenue and amounted to 122.6 million euro. The number of
employees decreased by 249 FTEs to 1,560 FTEs.
ICT
Quarters |
in € million, unless otherwise
indicated
|
Full
year |
Q4 2013 |
Q3 2013 |
|
2013 |
2012 |
260.8 |
176.5 |
Revenue |
740.1 |
667.0 |
18.3 |
6.3 |
Operational EBITDA |
36.9 |
43.8 |
7.0% |
3.6% |
Operational EBITDA margin |
5.0% |
6.6% |
16.6 |
4.4 |
EBITDA |
32.7 |
43.8 |
283.6 |
181.2 |
Order intake |
777.6 |
- |
2,380 |
2,432 |
Number of employees |
2,380 |
2,422 |
The fourth quarter is traditionally a strong
quarter for the ICT business. Revenue in Q4 showed a considerable
increase to 261 million euro, strongly driven by one-off deals
initiated by some of our strategic partners at the end of the
quarter. Operational EBITDA increased to 18.3 million euro and
correspondingly margin improved to 7.0%. The higher quarter order
intake of 283.6 million euro is mainly related to the partner
deals. Interesting new contracts are the management and
implementation of a flexible data centre infrastructure of the
Dutch certification company Kiwa and the three years IT outsourcing
contract for the Swedish staffing company Lernia. The number of
employees decreased to 2,380 FTEs and is related of the continuous
streamlining of the ICT portfolio which include also in two small
non-strategic asset disposals in UK and Austria with no financial
impact.
Revenue for the year was 11% up to 740 million
euro, particularly due to a good last quarter. Operational EBITDA
was 36.9 million euro. Order intake at 777.6 million euro was
higher than revenue for the year. The number of employees was
slightly lower than a year ago and amounted to 2,380 FTE.
Traffic &
Infra
Quarters |
in € million, unless otherwise
indicated |
Full
year |
Q4 2013 |
Q3 2013 |
|
2013 |
2012 |
111.1 |
84.3 |
Revenue |
384.6 |
346.0 |
5.9 |
3.9 |
Operational EBITDA |
12.0 |
11.6 |
5.3% |
4.6% |
Operational EBITDA margin |
3.1% |
3.4% |
5.0 |
5.2 |
EBITDA |
-8.4 |
5.8 |
75.6 |
74.1 |
Order intake |
361.5 |
- |
2,072 |
2,042 |
Number of employees |
2,072 |
2,315 |
Revenue in the quarter amounted to 111 million
euro, an increase of 31.8% compared to previous quarter driven by
closing of projects. Operational EBITDA was up 51% to 5.9 million
euro, also reflecting the benefits of the restructuring program in
the Netherlands earlier in the year. Good new orders are the
contract of the design and implementation of a new traffic control
centre in the south of the Netherlands and the installation and
maintenance of the intelligent travel information system at Utrecht
Central Station. The increase of the number of employees is related
to some quality upgrade of the organisation.
Revenue for the year improved by 11% to 385
million euro due to good performance of the businesses in Belgium
and Nordic, partly offset by the Dutch business. Operational EBITDA
was 12.0 million euro. Order intake for the year amounted to 361.5
million euro and was slightly below revenue. The number of
employees decreased by 243 FTEs due to restructuring of the Dutch
infra business in the first half-year.
Marine
Quarters |
in € million, unless otherwise
indicated |
Full
year |
Q4 2013 |
Q3 2013 |
|
2013 |
2012 |
111.8 |
111.4 |
Revenue |
415.9 |
491.7 |
1.0 |
-1.6 |
Operational EBITDA |
-9.9 |
-0.5 |
0.9% |
-1.4% |
Operational EBITDA margin |
-2.4% |
-0.1% |
-15.3 |
-13.3 |
EBITDA |
-61.5 |
-9.3 |
91.1 |
170.1 |
Order intake |
476.2 |
- |
2,410 |
2,541 |
Number of employees |
2,410 |
2,528 |
Revenue for the quarter remained stable at 112
million euro. The operational EBITDA turned in to a positive result
and amounted 1.0 million euro, for the first time benefiting from
restructuring of previous quarters. Order intake of 91.1 million
euro for the quarter is satisfactorily. Good new orders are the
contract for the engineering and installation of electrical power
generation and distribution systems and electrical distribution
systems for a new heavy construction vessel for the offshore energy
contractor Subsea 7. Another project is the design and
commissioning of the electrical installation, automation and
electrical propulsion systems for a river pusher, out of a series
of 8, for the Brazil operator Hidrovias. Reduction of 131 FTEs in
the quarter is the result of the restructuring program.
The full-year revenue of 416 million euro was 15%
down due to low order intake in 2012. Operational EBITDA was a loss
of 9.9 million euro due to weak project results and inefficiencies.
Order intake amounted to 476.2 million euro and was higher than
revenue for the year. The number of employees decreased by 118 FTEs
to 2,410 FTEs as a result of the restructuring.
Group
management
Quarters |
in € million, unless otherwise
indicated |
Full
year |
Q4 2013 |
Q3 2013 |
|
2013 |
2012 |
-3.6 |
-5.8 |
Revenue |
-3.6 |
0.4 |
-1.8 |
-5.5 |
Operational EBITDA |
-16.3 |
-31.7 |
-11.8 |
-10.3 |
EBITDA |
-45.8 |
-31.5 |
84 |
89 |
Number of employees |
84 |
75 |
Operational EBITDA in Q4 amounted to -1.8 million
euro. The reported EBITDA was -11.8 million, primarily due to costs
for the financial restructuring. The number of employees at the end
of the quarter was 84 FTEs. For the full year, the operational
EBITDA was -16.3 million euro divided in -12.5 million euro for
holding and -3.8 million euro for other corporate staff functions.
The reported EBITDA for year was -45.8 million euro, strongly
influenced by the financial restructuring charges of 22.3 million
euro.
Outlook
2014 is a year of further recovery where we enter the next phase
with focus on organic growth, enhancing our operational performance
and recovery of Imtech's financial health. Given the size of this
transition and the challenging market circumstances, no specific
forecasts are being made regarding 2014.
Risks and
uncertainties
In our Annual Report 2013, dated 17 March 2014, we have described
our risk management systems and our major risk factors.
Furthermore, we refer to the notes of the consolidated financial
statements 2013, particularly note 2 and 29.
Gouda, 18 March 2014
Board of Management Royal Imtech N.V.
Financial calendar
2014
- 15 May 2014: first quarter results
- 22 May 2014: Annual General Meeting of
shareholders
- 26 August 2014: second quarter and half-year
results
- 18 November 2014: third quarter results
Press
conference
Today at 9.00 hours (CET) Imtech will organize a press conference
in the Novotel, Europaboulevard 10 in Amsterdam.
Analyst
meeting
Today at 11.00 hours (CET) Imtech will organize a sell-side analyst
meeting in the Novotel, Europaboulevard 10 in Amsterdam. This
meeting will be transmitted live via the internet (www.imtech.com)
and will afterwards also be available on the website as a
replay.
More
information
Media: |
Analysts & investors: |
Dorien Wietsma
Director Corporate Communication & CSR
T: +31 182 54 35 53
E: dorien.wietsma@imtech.com
www.imtech.com |
Jeroen Leenaers
Director Investor Relations
T: +31 182 543 504
E: jeroen.leenaers@imtech.com
www.imtech.com |
Imtech
profile
Royal Imtech N.V. is a European technical
services provider in the fields of electrical solutions, ICT and
mechanical solutions. With approximately 26,000 employees, Imtech
is active attractive positions in the buildings and industry
markets in the Netherlands, Belgium, Luxembourg, Germany, Austria,
Eastern Europe, Sweden, Norway, Finland, the UK, Ireland and Spain,
the European markets of ICT and Traffic as well as in the global
marine market. In total Imtech serves 24,000 customers. Imtech
offers integrated and multidisciplinary total solutions that lead
to better business processes and more efficiency for customers and
the customers they, in their turn, serve. Imtech also offers
solutions that contribute towards a sustainable society - for
example, in the areas of energy, the environment, water and
traffic. Imtech shares are listed on the NYSE Euronext
Amsterdam.
PDF: Press Release including
Appendix
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
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The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Imtech via Globenewswire
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