Increased profits despite challenging market conditions.
VolkerWessels posted 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 company’s 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 our 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.”
Henry Holterman, Supervisory Board Chairman, said: “Because unacceptable risks are still being taken in the construction and infrastructure sector in the Netherlands, we expect the issues faced in the sector to persist in the coming years. VolkerWessels refuses to be dragged into these unhealthy market trends and prefers to distinguish itself through quality and innovation. We are pleased that once again we achieved positive operating results in all divisions. This performance is due, in part, to our willingness to innovate in a sustainable way and make selective investments. VolkerWessels focuses on entrepreneurship combined with financial and operational discipline.”
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