Royal HaskoningDHV has seen another year on year improvement in operational performance delivering a net profit of €12.1m in 2016. The company’s strategy to focus and build on its leading positions and increase efficiency in operations has helped to further improve profitability to 4.1%.
Chief executive Erik Oostwegel commented: “We are pleased to report a solid performance in 2016, an improvement of our net result and a healthy order book of €281m. Our company continues to drive positive change, helping clients use resources more efficiently and creating solutions which connect with people to make their lives easier, happier and safer.”
Royal HaskoningDHV has focused on achieving leading positions in selected markets, geographies and clients, improving project management and building strong teams to deliver services across the world. The global themes of urbanisation, water, mobility, resource scarcity and technology linked to the company’s key 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 €12.1m compared to €11.8m in 2015. The results were delivered on the back of significant growth and margins in maritime and aviation and strong margins in transport and 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 UK showed a clear recovery and grew its revenue again after a challenging 2015.
The net result was negatively impacted by €2.5m restructuring costs, which were 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 its 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.
Looking forward, Royal HaskoningDHV is embracing technology and digitalisation and creating a culture to foster innovation, collaboration and meaningful work.
Chief finance officer Nynke Dalstra said: “Our achievements during 2016 give us optimism for the years ahead. Our business has inherent strengths – great clients, people and projects – which create a sound and stable base.”