Trading update Royal Imtech
July 28 2015 - 1:31AM
-
Performance in the first half year of 2015
-
Revenue, order intake and operational working
capital satisfactory
-
Operational EBITDA lower compared to prior
year
-
Non-operational costs significantly lower
compared to prior year
-
Net finance result significantly improved
compared to prior year
-
Constructive and advanced dialogue with
financiers
-
Alvarez & Marsal engaged and Chief
Restructuring Officer appointed
-
Return to profitability takes more time than
anticipated; achieving positive operational EBITDA in 2015 will be
very challenging
Royal Imtech provides a trading update on the basis of preliminary
unaudited figures for the first half year 2015 ahead of its final
reviewed half year figures announcement on August 25th, 2015.
Performance in the first half year of
2015
Revenue for the first six months
of 2015 is around a satisfactory €1.8 billion. This revenue is
circa 8% lower than last year, which is largely attributable to the
planned reduction of the German division. The other Imtech
divisions, combined, deliver revenue comparable to the 2014
period.
Order intake for the first six
months of 2015 is around a satisfactory 100% of revenue.
Operational EBITDA for the first
six months of 2015 will be €45-€50 million negative compared to €25
million negative for the comparable period in 2014. The performance
in Germany, the UK, Nordic and Traffic & Infra business have
declined and the performance in Benelux, Spain and Marine business
have improved.
Non-operational costs in the first
half year were significantly lower compared to comparable period in
2014.
Net finance result improved
significantly for the first six months of 2015 compared to 2014.
Net finance result in Q2 2015 remained stable compared to Q1
2015.
Operational working capital came
in at around a satisfactory 0.5% of revenue reflecting a normal
seasonal pattern.
Net interest-bearing debt at the
end of June 2015 was approximately €545 million. Imtech's total
credit facility is around €700 million. Of the total available
liquidity of circa €150 million, €50 million is committed liquidity
in support of joint ventures and guarantees.
Constructive and advanced dialogue with
financiers To address the slower than anticipated return to
profitability, Imtech and its financiers are in a constructive
dialogue about all possible long term structural solutions and are
in a constructive and advanced dialogue about an amendment to the
financing arrangements including an increase in liquidity headroom
for the group and its subsidiaries. A liquidity facility of €75
million, in addition to the existing facility of €700 million, has
been agreed to, subject to credit committee approval of certain
financiers. Imtech agreed with its main financiers, subject to
credit committee approval of certain financiers, to utilise a
portion of its available guarantee headroom to facilitate such
liquidity facility. The liquidity facility will be available until
the end of December 2015 in two tranches of €37.5 million. The
first tranche is expected to become available within the next week.
The second tranche will be available within four weeks, provided
that certain conditions are met. Final processing and signoff on
this amendment of the financing arrangements is expected within a
week and Imtech will update the markets in due course.
Hiring of Alvarez & Marsal and appointment of a Chief
Restructuring Officer
In an effort to accelerate
Imtech's turnaround, the company has hired Alvarez & Marsal, a
leading global professional services firm specialised in providing
comprehensive performance improvement, turnaround management and
interim management services. Mr. Stefaan Vansteenkiste, an
experienced turnaround manager and country head of Alvarez &
Marsal Benelux, will assist and complement Imtech's management
board as Chief Restructuring Officer effective the second half of
August. Mr. Vansteenkiste will be responsible for reviewing and
overseeing the implementation of Imtech's restructuring and
performance improvement initiatives.
Outlook for the rest of the year
Based on the performance of the
first half year and an updated forecast for the remaining of the
year, Imtech announces that the return to profitability takes more
time than previously anticipated. Particularly, this applies to the
performance in Germany (challenges in downsizing the business and
higher than expected losses in old projects), the Dutch building
services business (higher than expected project losses and lower
margins) and the water business in the UK (project losses in
closure of several larger older contracts and market related
start-up delays of new projects). For those reasons, achieving a
positive operational EBITDA for the year will be very
challenging.
Imtech will report its reviewed
results for the first half year of 2015 as scheduled on August
25th,
2015.
More information
Media: |
Analysts & investors: |
Dorien Wietsma
Director Corporate Communication & CSR
T: +31 182 54 35 53
E: dorien.wietsma@imtech.com
www.imtech.com |
Jeroen Leenaers
Director Investor Relations
T: +31 182 54 35 04
E: jeroen.leenaers@imtech.com
www.imtech.com |
Imtech profile
Royal Imtech N.V.
is a European technical services provider in the fields of
electrical solutions, automation and mechanical solutions. With
approximately 22,000 employees, Imtech holds attractive positions
in the buildings and industry markets in the Netherlands, Belgium,
Luxembourg, Germany, Eastern Europe, Sweden, Norway, Finland, the
UK, Ireland and Spain, the European market of Traffic as well as in
the global marine market. Imtech offers 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 traffic. Imtech shares are
listed on Euronext Amsterdam.
PDF: Press Release
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Imtech via Globenewswire
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