Trading update Imtech Q3 2011: further growth of order book, maintaining 2011 outlook, good progress in 2015 strategic growth plan
René van der Bruggen, CEO Imtech: 'Although market conditions are not ideal due to economic slowdown and financial uncertainty around the euro and the position of the banks, Imtech is characterized by a further growth of its order book. This is because the demand for technology - in particular energy-efficient and other sustainable solutions - continues to grow across a broad front. With our wide range of high-tech technical services, we are well-placed to capitalise on this situation.'
'Overall, Imtech again performs well in 2011. The order book continues to grow in Germany & Eastern Europe, the Nordic region (Sweden, Norway and Finland) and in the European markets for ICT and Traffic in particular. Imtech has substantially strengthened its position in the UK through two acquisitions, also having a positive effect on the existing business. Partly for this reason, but also through organic growth, Imtech is also progressing well in the UK and Ireland. In Spain, orders are at a lower level, mainly because the buildings market is at a virtual standstill. In the Benelux, although we are performing reasonably well in the industrial and infra markets, there has been a further decline in orders in the buildings market. In the global marine market, the new-build market for oil and gas remains hesitant, partly offset by participation in international marine programmes and growth in the services market.'
'Thus far in 2011 there have been fourteen acquisitions in Europe and beyond, resulting in annual revenue of approximately 430 million euro. Imtech's acquisition policy is distinguished by its focus on high-performance acquisition candidates. When these are integrated into the Imtech portfolio, they will exhibit additional growth while at the same time ensuring further organic growth of the existing portfolio.'
Further growth of order book
In Germany, Imtech is the leading technology partner for energy efficiency in a rapidly growing energy market. Orders include an assignment of 400 million euro for making 800 buildings energy efficient. Besides 'green' buildings, other areas include decentralised power plants, waste to energy and bio-energy. High-value technological competencies in segments such as airports, the automotive industry, the market for ('green') data centres and the care sector are also leading to organic growth. The position in Eastern Europe is also developing successfully. Poland and Hungary in particular have seen a healthy growth in the order book.
In the Benelux, declining government investment is causing a slight decline in the infra market, with the exception of the energy market. In spite of this, Imtech is managing to perform well, particularly with high-tech solutions for smart grids, in traffic tunnels, in the rail market and in the high-voltage segment. Orders continue to decline in the buildings market and competition increases. This is partially offset by maintenance, export, activities in the care sector and, in particular, by energy-related projects ('green' buildings, aquifer thermal energy storage, bio-energy, etc.) and ('green') data centres. One large order (100 million euro) is for the technological fitting-out of the North/South metro line in Amsterdam. The industrial market is progressing slowly. Imtech is performing quite well in this area and was able to obtain several new maintenance contracts. Luxembourg remains on level. Overall, the order book is decreasing again.
In the UK, the recovery in the London region is continuing. Imtech is managing to capitalise on this substantially, mainly in the energy segment. Imtech focuses on 'green' innovation in buildings, the education sector and in multidisciplinary projects. Substantial progress was made through the acquisition of both Inviron (specialising in technical maintenance and management) and Smith Group UK (an outperformer in the North West of the UK focussing on energy). Cooperation with existing Imtech businesses will lead to further growth. Successful efforts have been made for technology exports from Ireland to Kazakhstan and the Middle East, for example. Overall, Imtech is performing well in the UK & Ireland.
In Spain, Imtech is increasingly feeling the effects of the challenging market conditions. The buildings market is virtually at a standstill. This is partially offset by growth in the markets of energy efficiency, ('green') data centres, maintenance and the care sector. Imtech is performing reasonably well in industry, in the face of increasing competition. Overall, the order book is decreasing.
In the Nordic region (Sweden, Norway and Finland), the (energy) market is also improving, and Imtech is managing to capitalise on this. Examples of this include substantial energy savings for housing corporations and the creation of sustainable schools and care complexes. Imtech is working on the integration of its companies NVS (mechanical services) and NEA (electrical services). The aim is to offer their 2,000 customers multidisciplinary services (a combination of electrical and mechanical services) based on the Imtech approach. A start has been made on this. Energy activities have received a further boost through the acquisition of Swedish energy and climate specialist Sydtotal. Imtech is also performing well in the care sector in Sweden. The position in Norway - in the Oslo area - has been strengthened by the acquisition of an electrical services company.
In the European ICT market, Imtech is managing to perform excellently across a broad front. This applies particularly in Germany, Switzerland, the Netherlands and Austria, with large orders from customers such as pharmaceutical company Merck Pharma, the university of Wageningen and Exapaq (a French Post company). Imtech's foothold in France is strengthened by the last order. Order intake in Belgium and Romania remains at level. The UK is lagging behind slightly. Positions in South East Asia and Austria are strengthened by acquisitions. A strong position is achieved in Sweden with the acquisition of QBranch, market leader in IT services for the medium-sized business segment; an excellent springboard for further growth.
The position in the European traffic market remains at level. Breakthroughs have been achieved for high-tech traffic solutions in Russia, Lithuania and Romania and the existing traffic positions in Poland and Croatia has been strengthened with new orders. Here, the intensity of traffic is so great that high-tech traffic solutions make an important contribution to improving traffic circulation. For instance, Imtech is working on a new traffic management system in St Petersburg. In the Netherlands and the UK, performance remains at level. Further growth is achieved in Sweden and Finland. Good progress is also made with the export of traffic technology beyond traditional Imtech countries.
In the global marine market, new-build activities in the oil and gas market are lagging behind, despite a wealth of prospects. This has been partially offset by participation in international marine programmes and growth in the services market. Luxury yachts continue to perform reasonably well. The position in Canada has been strengthened by an acquisition. This has helped Imtech to qualify to participate in an extensive long term new-build programme for the Canadian government, substantially strengthening Imtech's position in the marine market in Canada and neighbouring regions. A second acquisition and the opening of a service branch have brought the global number of service branches to 75. Imtech now also has a strong service network in Spain, France, Morocco and other parts of North Africa.
Solid financial position
Imtech has a solid financial position and has remained well within the financial governance agreed with the banks.
Maintaining outlook for 2011 and long-term growth objectives for 2015
According to its current views Imtech expects a further increase in EBITA in 2011 through organic growth and acquisitions. Imtech also remains unimpaired in carrying out its long-term strategic plan to achieve revenue of 8 billion euro in 2015 with an operational EBITA margin between 6% and 7%. Imtech is well on track to achieve these long-term growth objectives. Besides the acquisitions completed, Imtech has also made good progress in the European energy market, strengthened its existing positions and taken further steps towards the internationalisation of its activities. Imtech therefore looks forward to the future with confidence.
Imtech Deutschland GmbH & Co. KG
Imtech N.V. is a European technical services provider in the fields of electrical solutions, ICT (information and communication technology) and mechanical solutions. With more than 27,000 employees, Imtech achieves annual revenue of around 4.5 billion euro. Imtech holds strong 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 21,000 customers. Imtech offers added value with 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 mobility. Imtech shares are listed on the NYSE Euronext Amsterdam, where Imtech is included in the Midkap Index. Imtech shares are also included in the Dow Jones STOXX 600 index. Per February 2011 Imtech has granted the designation Royal.