VolkerWessels Announces Good Results for 2014
VolkerWessels has achieved a good result in 2014: Operating profit (EBITDA) grew by €37 million to €228 million, with fractionally lower operating revenue, net profit rose to €121 million, an increase of €31 million compared to 2013.
Multi-year contracts, mainly in management and maintenance, create a stable foundation for the companies’ future. The liquidity position is also developing well and VolkerWessels has a net positive cash position at the end of 2014.
Despite a slight decrease in volume the quality of the order book has improved, and remains strong. This is due to a good spread of activities combined with a growing number of multi-year contracts. These contracts generate a stable income flow, and are important building blocks for future revenue and results.
Jan van Rooijen, Chief Financial Officer, said: “Our Construction & Property Development Netherlands division is still contending with challenging market conditions. Although we are seeing tentative signs of a recovery in the lower end of the housing market, market conditions remain particularly challenging. The Infrastructure Netherlands division is also operating in tough market conditions. Reduced budgets at local and provincial level are causing overcapacity. This is creating unhealthy pressure on costs, with price differences of more than 25% no longer being unusual in public procurement processes. Heavy losses in the sector therefore come as no surprise.”
Numerous flood alleviation and water management schemes have been delivered for the environment agency and work is underway to deliver Berth 9 at Felixstowe docks.
Significant infrastructure and building projects have also been undertaken for major commercial developments at London Gateway (the UK’s newest container port), in central London and the South East, and a large multi-modal distribution facility at Daventry was completed.