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Imtech in the first half of 2006: well on track with double digit growth


15 August 2006


* Double digit growth in 2006:
- EBITA: 45.1 million euro (+25%)
- Net profit: 26.9 million euro (+31%)
- Revenue: 1,290 million euro (+21%)
- Order portfolio: 2,978 million euro (+12%)
* The beginnings of a recovery in the Benelux, continuing growth in Germany, robust growth in the UK & Spain and in ICT & Technology, strengthening through good acquisitions
* Maintaining outlook: higher organic EBITA growth

Mr. R.J.A. (René) van der Bruggen, Chairman Imtech Board of Management: ’ With double digit growth, achieved through both a substantial organic EBITA growth and through a good contribution by acquired companies, we are well on track. Imtech is performing better than expected. In addition, our order portfolio has almost reached the 3 billion euro level and Imtech has again been strengthened by the acquisition of several high-performance companies that fit well within our strategic portfolio. This creates confidence for the future, all the growth lights are on green.’
Double digit growth

Imtech N.V. (technical services provision in Europe) can look back on a strong first half of 2006. It booked double digit growth for the net result, EBITA, revenue and order portfolio. Organic EBITA growth is substantial and the acquired companies are making a good contribution.

EBITA (after deduction of Holding company costs) rose by 25% from 36.2 million euro to 45.1 million euro. In the first half of 2006 net profit rose by 6.4 million euro to 26.9 million

euro – an increase of 31%. Revenue rose to 1,290 million euro (first half of 2005: 1,063 million euro), an increase of 21%. The order portfolio grew by 12% and reached the high, for Imtech, level of nearly 3 billion euro (2,978 million euro) – 318 million higher than the 2,660 million euro achieved in the first half of 2005. The operating margin (before deduction of Holding company costs) rose to 4.0% (first half of 2005: 3.9%). This relatively modest margin increase reflects the fact that the conditions in various markets (segments) can still not be called ’normal’. In view of the quality of the order portfolio, this means further margin improvement will be expected in the future.

In the Benelux the anticipated initial recovery of the result (EBITA) after the difficult market conditions of recent years became apparent (+16%). Germany (including the activities in Eastern Europe) showed continuing growth (+10%). In the UK and Spain the activities generated a robust increase in result (+33%). The strongest result growth (42%) was achieved by the activities in the ICT & Technology cluster.

The strategic portfolio of activities in various European countries and technology markets proves that Imtech can develop well in improving market conditions. The combination of technologies (electrical engineering, ICT and mechanical engineering), geographical spread, acquired positions in the various markets (segments) and scale enables Imtech to make robust growth.

With a view to strengthening the strategic portfolio and further growth in the future, so far this year Imtech has made the following acquisitions:

* Strengthening of the marine activities through the acquisition of Radio Holland Group – an international specialist in marine satellite and radio communications, automation, observation and navigation systems (annual revenue: 150 million euro, around 700 employees) and acquisition of a majority interest in Tess – a small maintenance and services company for luxury (mega) yachts in Florida, the USA (annual revenue: 2 million euro, 15 employees);
* Strengthening of the ICT activities through the acquisition of Fritz & Macziol – a fast-growing ICT company in Germany (annual revenue: 115 million euro, around 300 employees);
* Strengthening of the mechanical engineering competence in the Dutch industrial market through the acquisition of the Industrial Maintenance unit of Emmtec Services (part of NUON) and the Dutch industrial maintenance activities of A. Hak Industrie (combined annual revenue of 32 million euro and 285 employees).

The combined annual revenue of all these acquisitions amounts to around 300 million euro and, in total, they employ around 1,300 staff. The total purchase price (including earn-out) was 109 million euro. Annual EBITA is expected to be around 17 million euro. The 2006 half-year figures do not include the results of Fritz & Macziol or the maintenance activities of A. Hak Industrie (envisaged acquisitions) or Emmtec Services (concluded acquisition).

As of 2006 the information regarding the business development of the, until now, combined cluster Germany / the UK / Spain will be given in more detail. Here follows an explanation of business development in four separate clusters:

* Geographical clusters:
o Benelux;
o Germany (including Eastern Europe);
o UK & Spain;
* Technological cluster:
o ICT & Technology.


Imtech developed positively in the Benelux. In the first half of last year the revenue had already shown an increase, but the EBITA still dropped. In the first half of this year revenue rose by 20% (74 million euro) to 439 million euro (first half of 2005: 365 million euro) and EBITA rose by 16% (1.7 million euro) to 12.1 million euro (first half of 2005: 10.4 million euro). The order portfolio showed a healthy development and increased by 7% to 1,015 million euro. In Belgium and Luxembourg continuing growth was achieved in a market that was more or less stable. By contrast, in the Netherlands, where market conditions have been difficult in recent years, a turning point was reached and the volume of work on offer began to increase. Although prices here continued to lag behind they were better than in 2005. Progress in both the buildings and industry markets was satisfactory, but business development in the infrastructure market was disappointing. Which is why the EBITA margin was the same as for the first half of 2005 (2.8%). The number of employees rose by 7% to 6,127 (first half of 2005 5,746).

In the Dutch buildings market there is a growing demand for a total approach – an area in which Imtech is ahead of the competition. Imtech is, for example, responsible for a multi-disciplinary expansion and upgrading, which included the security, for British Telecom in Amsterdam. The scale of the Dutch maintenance market is increasing. Imtech is well prepared for this and is participating in several (including some European) tenders. An umbrella contract for all its Dutch offices has been signed with ABN AMRO. The Care & Cure and Security competence centres develop well. To date orders worth over 40 million euro have been acquired in the care sector and innovative projects have been set-up, for example in the field of automation, security and the digital storage of medical data. In the area of security, the National Institute of Public Health and the Environment has been equipped with state-of-the-art security.

In Belgium too Imtech is more and more frequently being involved as a technology partner in the care sector. Customers included the Psychiatric Hospital in Velzeke. In the office market Imtech was responsible for the technology in Toyota’s new head-office. Imtech is also active in the leisure market. Further growth was achieved in the Belgian maintenance market. A ten-year maintenance contract has been signed with the Leuven Catholic University.

In Luxembourg public sector investment is increasing, especially in the education segment. New contracts have been acquired for large school buildings.

In the Dutch industry market Imtech focusses on strengthening the mechanical engineering competence, both organically through utilising expertise acquired in the buildings market and through acquisitions (a unit of Emmtec Services and the industrial mechanical engineering activities of A. Hak Industrie). By combining this competence with the decades-long expertise gained in the fields of electrical engineering, instrumentation and automation Imtech is responding to the growing market demand for the industrial contracting of complete projects. With the volume of work in this field also at a record high, faster growth can be achieved. Imtech has acquired maintenance contracts from, among others, Solvay Chemicals, Alsthom and Cargill. The Food & Feed competence centre develops well. The international oil and gas market is improving significantly – a situation from which Imtech has been able to make good progress. At Nerefco (joint venture BP and Texaco) Imtech is replacing the complete automatic control systems related to oil processing and transportation. The export of technology to countries with oil and gas resources increased substantially.

Industrial investment is also rising in Belgium and Imtech has strengthened its industrial position. Projects were executed for General Motors, Volvo, Rendec and Tale & Lyle. Imtech’s excellent reputation in the pharmaceutical industry has led to orders from Janssens Pharma and GlaxoSmithKline.

In the Benelux Imtech is increasingly developing into a stronger player in the energy market. Imtech is working on biomass power stations, including Belgium’s largest biomass power station, and innovative combined power & heat power stations. Imtech also measures energy usage for the Dutch Railways.


The infrastructure market is also improving with a higher volume of work. Due to the quality of the orders acquired in the past, the result development lags behind.

In the Netherlands the position in the lighting market is strengthened through various maintenance contracts and an extension to the activities for the NUON and Westland energy companies. Imtech is also working at Maastricht-Aachen Airport. The traffic technology market is improving, but prices are still under pressure. Imtech is responsible for the renovation of the technology in and around the bridges on various motorways. Last year Imtech acquired the multi-year maintenance contract for the Oudenrijn Traffic Management Centre. Imtech has now acquired the contract for the Geldrop Traffic Management Centre. Good progress has been made in the market for the automatic management of pumping- stations and sewage systems, for example with the renovation of the control technology in the Emmen sewage and water treatment plant. Imtech has strengthened its position in the railway market with the installation of EMC measures (Electro Magnetic Compatibility) along the High-Speed line. This will eliminate the negative effects of electromagnetic disruptions on train security.

In Belgium the maintenance contract has been, later than expected, extended for the public lighting in the province of Flanders.
Germany (including Eastern Europe)

Imtech has developed well in Germany where its size and composition of its portfolio enable consistent growth to be achieved. Revenue rose by 9% (31 million euro) to 389 million euro (first half of 2005: 358 million euro) and EBITA rose by 10% (1.2 million euro) to 13.1 million euro (first half of 2005: 11.9 million euro). This meant the EBITA margin increased from 3.3% in the first half of 2005 to 3.4% in the first half of 2006. The order portfolio showed a slight growth and increased by 2% to 984 million euro. The number of employees rose by 5% to 4,031 (first half of 2005 3,841).

Imtech targets, with success, profitable niche markets, such as health care, in which good progress has been made with orders from, among others, Diaconie Mannheim (hospital) and the Eppendorf University Hospital. Major buildings projects include an extension for IKEA and a new office for the Commerzbank in Frankfurt. Another niche market – one in which Imtech has built-up a good track record - is the execution of technological renovations whilst exploitation continues. One new project is the renovation of Alcatel in Stuttgart.

Imtech’s industrial customer base is extensive and growing. A growing domestic demand and, primarily, more exports have resulted in a substantial increase in activities, for example, technological expansions for chemicals manufacturer BASF Coatings and washing power manufacturer Henkel. In the pharmaceutical sector Imtech carried out the upgrading of Sanofi-Aventis’ high-tech laboratory. The German automotive industry forms a major customer group. Imtech is responsible for equipping technological testing centres for advanced engine, emissions and bodywork testing under extreme climate conditions at Audi in Ingolstadt. This Imtech speciality is now renowned world-wide and this has resulted in exports to a number of countries including the USA.

In the energy management market Imtech has attained the position of a strong market player and takes total responsibility for all a customer’s strategically important energy provisions. In the first half of 2006 Imtech has been very successful and the acquired orders include a multi-year contract for energy management and contracting from the cigarette manufacturer Reemtsma (Imperial Tobacco Group). Imtech also provides the technical solutions for the expansion of the Flensburg power station.

Imtech’s activities in various Eastern European countries are growing. In order to build-up positions via existing customer contacts Imtech has support centres in Poland, the Czech Republic and Romania. Orders from German customers have been acquired in both the buildings and industry sectors. The order portfolio has grown yet again, for example with an order for Lauris Seafood in Poland.

The German passenger liner market continues to improve and various large projects are ’in the pipeline’. The market for luxury (mega) yachts also showed further growth.
UK & Spain

In the UK and Spain Imtech developed positively both organically and through the 2005 acquisitions of Goodmarriott & Hursthouse (the UK) and Mavisa (Spain). Revenue rose by 55% (56 million euro) to 157 million euro (first half of 2005: 101 million euro). EBITA rose by 33% (2.8 million euro) to 11.3 million euro (first half of 2005: 8.5 million euro). The order portfolio developed positively increasing by 33% to 305 million euro. The EBITA margin was 7.2% (first half of 2005: 8.4%). The lower margin was due to Mavisa: only the (traditionally strong) second quarter results were included in the 2005 half-year report, which made the 2005 figures artificially high. The number of employees rose by 9% to 1,786 (first half of 2005 1,639).


The market for technical re-development in the Greater London area is growing. Existing monuments are being converted for different uses and luxury department stores are being technologically readied for the future. Imtech takes responsibility for the technological infrastructure. One example is the conversion of the old London Stock Exchange Building into offices. In Oxford Street, home of many prestigious shops, Imtech carries out the technological renovation of the Selfridges and John Lewis department stores. The successful execution and delivery of the Arsenal Emirates Stadium and the Wembley Arena music venue have enhanced Imtech’s reputation.

In the Midlands both the market and Imtech’s market position are stable. A combined project comprising the Dakota Office and the Eurocentral Hotel is executed in Nottingham. Imtech’s involvement with the new Wealstun Prison in Leeds helped towards Imtech being awarded the order for the Doncaster Moorland Prison.

In Spain Imtech is concentrating more and more on shopping centres, hotels, museums, exhibition centres and laboratories. Imtech has received the order for a 100.000 m² shopping centre in Cartagena and is also active for CIDAUT – Spanish automotive industry’s R&D centre.


In de UK the focus is on existing customers many of which are in the health care and pharmacy markets. A new project is the upgrading of a medical development centre for AstraZeneca.

In Spain growth is being achieved via the office in Valladolid (north-west Spain). The extension of a research and manufacturing facility for Renault is a major project.

Mavisa, acquired in 2005, appears successful in its core business: maintenance, shut-downs and revamping services. The focus is on existing large customers, such as Repsol-YPF, Cepsa and Acerinox. Several projects are in the preparation or execution phase.

Imtech has a substantial backlog in the UK (waste) water treatment market thanks to long-term performance contracts with, for example, Welsh Water and South Staffordshire Water.
ICT & Technology

Imtech has developed very well in this cluster and achieved robust growth: revenue rose by 28% (66 million euro) to 305 million euro (first half of 2005: 239 million euro) and EBITA rose by 42% (4.4 million euro) to 15.0 million euro (first half of 2005: 10.6 million euro). As a result, the margin rose from 4.4% in the first half of 2005 to 4.9%. The order portfolio also showed a healthy growth and increased by 32% to 675 million euro. The number of employees rose by 17% to 3,304 (first half of 2005 2,831).

The most important development is the envisaged acquisition of Fritz & Macziol which will create a domestic ICT market for Imtech in Germany. The German Competition Authority is expected to approve the acquisition within the next few weeks. Fritz & Macziol is a strong (top-10) and fast-growing player in the German ICT market. This acquisition is a major step for Imtech, for one reason because ICT is rapidly developing into the core of the technical services offered by Imtech. More and more often total technological solutions are being dominated by ERP, Business Intelligence and ICT applications. The partnerships with IBM and Microsoft are being strengthened substantially.

Although prices in the Dutch ICT infrastructure market are under some pressure, Imtech is able to maintain its good position. Imtech is responding to and is active in current themes such as the total out-sourcing of ICT management, for example for Daimler Chrysler. Imtech, together with the Willem I College in Den Bosch, is also equipping the ’school of the future’ with an advanced ICT environment. In the IT market Imtech performs very well and is making a strong recovery compared with the first half of 2005. Prices in this market have risen slightly. Imtech is involved in tens of challenging projects, for example in-product software for Philips and in complex migration management for the Dutch Police. Two additional Gold Certified Partner Awards have been received from Microsoft. Growth is continuing in the field of project management and consultancy.

The most important development has been the acquisition of Radio Holland Group, which specialises in satellite and radio communications, automation and navigation and has a network of over fifty international offices along all the major global shipping routes. This acquisition has doubled both marine revenue (to around 350 million euro) and the number of employees (to over 1,700 marine specialists) and has gained Imtech a position in the global top-5.

Imtech has acquired a majority interest in Tess Electrical Marine Inc. in Florida, the USA. This has strengthened its position in the fast-growing luxury (mega) yacht maintenance and services market.

In the marine market the workload has increased considerably. Imtech is active in virtually every international concentration centre including Europe and China. New projects include various luxury (mega) yachts in the Netherlands and Germany, the technology on board a wide variety of vessels in Germany and China, corvettes in the Far East and Poland and the automation of various dredgers. The improving international oil and gas market has generated additional growth, for example through the 40 million euro order for the automation of the ’Audacia’ pipeline layer.

The Technology activities, which comprise international niche activities, show an on balance further net growth. Imtech achieves good progress in the field of access technology and, in cooperation with Philips, has launched the innovative IM-Tag® access system. The Imtech solutions in the field of process technology (Fluid Bed Technology) achieve record sales. The activities in the field of fire protection decrease slightly. The international parking activities show a stable picture. In Liverpool Imtech is responsible for the parking technology for 3,000 parking spaces in the Paradise Street shopping area.

The secondment activities of Imtech Telecom have been transferred to a third party. In Western Europe Imtech Telecom is concentrating on its core business – high-value network solutions for the telecommunications and broadcasting market – and, working in close co‑operation with international system suppliers, is offering customers added-value. The success of this strategy has been sustained by the improving results. Imtech has been successful with Wireless Indoor projects (optimum coverage and broadband within large buildings). Imtech, in co-operation with Juniper and Lucent, is responsible for an advanced knowledge network for Lancaster University in the UK.
Capital and financing

On 30 June 2006 the equity : total equity and liabilities ratio was 21% (end of 2005: 22%). Interest coverage was 10 (end of 2005: 7). The debt/equity ratio amounted to 24% (end of 2005 there was a net cash position) and indicates there is ample room for borrowing.

The total equity remained the same. Net profit was 27 million euro whilst the dividend pay-out for 2005 amounted to 29 million euro. During the first half of 2006 the Company sold 327,000 shares. This sale was related to the exercise of employee option rights. To cover newly awarded options 133,575 shares were repurchased. The net balance of shares purchased and options exercised amounted to 3 million euro positive. There was also an exchange rate loss on foreign participations amounting to 1 million euro.

The balance sheet total rose by 55 million euro, mainly due to an increase in the balance of the work in progress and the intangible assets. The net cash position amounted to 69 million euro negative (June 2005: 28 million euro negative). At the start of the financial year this position was 102 million euro positive. Net cash flow from operating activities amounted to 54.3 million euro negative and was 23.0 million euro lower than last year, mainly due to an increase in the working capital used. Net cash flow from investment activities amounted to 64.4 million euro negative, primarily as a result of the acquisitions and an increase in non-current assets. Net cash flow from financing activities amounted to 45.0 million euro negative, primarily due to the pay out of the dividend to shareholders and the repayment of outstanding loans. On balance the cash resources decreased by 163.7 million euro, which meant that at the end of the period under review cash and bank overdrafts on balance amounted to 28.1 million euro negative.

The number of employees on 30 June 2006 was 15,279 compared with 14,519 at the end of 2005 – an increase of 5.2%. This increase was caused mainly by the acquired companies. The main concern for the future is the availability of qualified and experienced employees.

Imtech’s growth strategy is aimed at achieving higher added-value with a further European expansion. This will be achieved through both the acquisition of high-value services with corresponding high margins in ICT, design & consultancy, and technical maintenance & management, and through strengthening its position, particularly in the UK, Spain and Eastern Europe. The combination of a wide range of high-tech skills, a horizontal and flexible organisation that is ’close’ to the market, and strong market positions means that in an improving economy Imtech is well positioned for further growth – both organic and through acquisitions.

Concrete action points for implementing this strategy are:

* A focus on growth markets, such as health care, energy and integrated security;
* Strengthening of the industrial activities in the Netherlands;
* Strengthening its base position in UK and Spain;
* Acquisitions in the field of ICT in Belgium, UK, Spain and Germany;
* Expansion of the activities in Eastern Europe;
* Strengthening of the infrastructure activities (geographically and technologically);
* Further internationalisation and strengthening of the international marine position.

As announced, good progress has been made on a number of points.

Imtech is well positioned for further growth – both organic and through acquisitions. We look forward to the second half of 2006 with confidence. The quality of the order portfolio improves. Imtech has a well-proven strong strategic portfolio of cohesive activities in Europe. High-quality acquisitions have strengthened its European position still further. The current view is that market conditions will continue to improve in the countries and technology segments in which Imtech is active.
According to its current views and based on developments in the first half of 2006, the Board of Management maintains its outlook of February 2006 of an increase in organic EBITA growth over the whole of 2006.

Half-year figures 2006 (pdf):
Press release complete (pdf):


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