Heijmans: annual results 2016, adjustment strategy
Post# of 301275
Highlights
- Revenues 2016 € 1.9 billion (2015: € 2 billion)
- Growth number of homes sold to 1,962 homes (2015: 1,791 homes)
- Significant impact project losses € 90 million, clear improvement risk profile loss-making projects
- Underlying operating result 2016 € 66 million negative (2015: € 5 million negative)
- Net loss € 110 million in 2016 (2015: net loss € 27 million)
- Strategy adjusted: fully focused on Dutch market, tightened focus on core competencies in property development, residential building, non-residential, infrastructure
- Dutch order book at year-end 2016: € 1.9 billion (year-end 2015: € 1.7 billion)
- New agreements with financiers, including extension of financing to 1 July 2019: phased reduction of credit facility to € 122 million
- Solvency ratio approximately 18%, >20% after planned divestment foreign operations
Ton Hillen, CEO Heijmans: "With a loss of € 110 million, we are reporting a dramatic result for 2016. This is largely due to settlements we have agreed and provisions we have taken on a number of loss-making projects. At the same time, the agreement we have reached with the relevant clients regarding these projects have led to a clear improvement in the company's risk profile going forward. In addition, we were also able to reach agreements with our banking consortium about an extension of the financing agreements through to 1 July 2019. This has secured our financing and safeguards the company's continuity. We have also adjusted our strategy, to the effect that we will now focus exclusively on the Dutch market, with a tightened focus on our core competencies in property development, residential building, non-residential and infrastructure. The divestment of our foreign operations is in line with this strategy and will make a significant contribution to the reduction of our debts. In the years ahead, we will focus on returning to profitability, the reduction of our debts and the structural improvement of our financial leverage ratios, with a commercial focus on market segments in which we are strong and where we can realise healthy margins. On top of this, we will be able to build on our solid position in the Dutch residential market and the enormous growth opportunities this offers and a well-filled order book that is in line with our strategy. This is how we will work on a sustainable recovery of our company." About Heijmans Heijmans is a listed company that combines activities related to property development, residential building, non-residential building, roads and civil engineering in the fields living, working and connecting. Our constant focus on quality improvements, innovation and integrated solutions enables us to generate added value for our clients. Heijmans realises projects for private consumers, companies and public sector bodies and, in partnership with its clients, is building the spatial contours of tomorrow. You will find additional information on www.heijmans.nl
For more information/not for publication:
Media: Marieke Swinkels-Verstappen +31 73 543 52 17 mswinkelsverstappen@heijmans.nl
Analysts: Guido Peters +31 73 543 52 17 gpeters@heijmans.nl
The Executive Board will explain the published results for 2016 today, 23 February 2017, at a press conference and analyst meeting. The agenda and the registration form for the General Meeting of Shareholders of 12 April of this year will be available on the Heijmans website from 1 March 2017 onwards.
Heijmans will publish its annual report and financial statements on 24 February 2017.
This press release was also published in Dutch. In the event of any discrepancies between the original press release and the English-language version of same, the Dutch version shall prevail.
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