Royal HaskoningDHV has focused on achieving leading positions in selected markets, geographies and clients, improving project management and building the best teams to deliver services across the world. The global themes of urbanisation, water, mobility, resource scarcity and technology linked to the company's leading services enabled it to bring future-proof solutions to its clients. During 2016, the company increased business with leading clients and maintained high scores in client satisfaction.
The company's operational performance further improved in 2016 which continues the solid progress of the past three years. The net result ended at €12.1 million compared to €11.8 million in 2015, profitability (EBITA margin, recurring) improved to 4.1%. The results were delivered on the back of significant growth and margins in Maritime & Aviation and strong margins in Transport & Planning. Overall Royal HaskoningDHV recorded an 8% reduction in revenue of which 3% was caused by exchange rate differences and 5% was caused by less work subcontracted out. The company's added value remained equal to 2015 adjusted for exchange rate differences. The company recorded a negative growth in the Netherlands but the country remains by far its largest region. The United Kingdom showed a clear recovery and grew its revenue again after a challenging 2015.
The net result was negatively impacted by €2.5 million restructuring costs – well below 2015. Divestments in 2016 were in line with the company’s strategy to focus on leading market positions and included the sale of small operations in Asia and the Middle East to strategic local partners with healthy growth ambitions.
Working capital management continued to require attention, the work in progress positions improved whereas outstanding debtors increased. Together with relatively high income tax payments as an effect of the sale of our office buildings in 2015, a slightly negative free cash-flow resulted. With a very strong balance sheet, the financial position of the company remains healthy.
(€ million unless otherwise mentioned)
|Operating income (Revenue)
|EBITA recurring *||24.5||26.1|
|EBITA margin, recurring||4.1%||4.0%|
*EBITA recurring excludes integration and restructuring costs.
**2015 including €31.5 million from sale-leaseback transaction for office buildings in the Netherlands.
Looking forward, Royal HaskoningDHV intends to accelerate growth, building on innovative and future-proof solutions that enhance society. The company is embracing technology and digitalisation and creating a culture to foster innovation, collaboration and meaningful work.