2009 Semi-annual figures for listed company Oranjewoud NV
Higher revenue and profits
Gouda Netherlands, August 26, 2009 - Oranjewoud N.V. releases its semi-annual report for the first half of 2009. In accordance with transparency guidelines, it will feature a general description of the financial position, profits, cash flow, and material transactions.
Based on a period of six months:
- net sales increased by 7.4%
- net profits increased by 23.6%
- solvency rose from 45.9% to 53.2%
- the order portfolio grew by over 54 million Euros up to 204 million Euros, an increase of over 36%
The market
Oranjewoud N.V. specializes in consultancy and engineering services, contracting and temporary employment. These are the group’s three core segments.
In the consultancy and engineering services segment (Europe and the United States), net sales rose by 14.4 million Euros (or 13%) over the past six months. The percentages of growth in the two regions were similar. Profits before taxation from operations in Europe have seen a sharp increase. Profits before taxation rose from 2.3 million Euros to 5.1 million Euros over the past six months. We have also seen growth in profits before taxation in the United States. It should be noted here that this result is still heavily influenced by the effects of amortization of intangible assets. The operating profit over the first six months of 2009 was zero.
In the core segment of contracting, sales were up by 2.6 million Euros over the first six months, an increase of 6%. Profits before taxation remained the same over the first half of the year at 0.3 million Euros. The contracting core segment is experiencing seasonal effects. One of the implications is that profits will be concentrated over the latter half of the year.
The temporary employment core segment experienced a 4.3 million Euro decrease in sales (22%) over the first half of the year. In late 2008, management adequately anticipated this drop and adjusted available capacity to the market’s demand. The situation has now stabilized. Profits before taxation fell from 4.5 million Euros to 2.2 million Euros over the first half of the year.
Priorities
In the United States, Oranjewoud is working to diversify both its customer base and its product offering. Our customer base predominantly consists of global oil, gas, and chemical companies. In order to reduce dependency on this specific customer group, efforts are underway to boost our market position with governmental customers and industrial manufacturers.
Backoffice integration of acquired companies is proceeding. This is providing backoffice savings thanks to economies of scale, and is preferable from a risk management and governance perspective.
Oranjewoud N.V. continues to focus on controlling its operating capital. Our efforts in this area have been fruitful and are being reinforced.
Balance sheet and cash flows
Oranjewoud N.V.’s balance sheet is strong. Over the past six months solvency increased from 45.9% to 53.2%. The method of financing the company may change in the future. The strategic choice for international growth and changes in fiscal rules and regulations may result in different financing arrangements within the group.
Our cash flow and cash position are in line with expectations.
Outlook
Oranjewoud N.V.’s sales and profits over the first half of 2009 are satisfactory. Despite deteriorating economic conditions, all three core segments managed to contribute to the profits. Oranjewoud N.V.’s management has a neutral outlook with respect to developments over the second half of 2009. The group’s ample order portfolio is a positive indicator, but uncertainty persists regarding the strength of the economic recovery currently underway.
Key figures
| (amounts in millions of Euros) | First half of 2009 | First half of 2008 | Difference | % | |||
| Results | |||||||
| Revenue | 184,5 | 171,8 | 12,7 | 7,4% | |||
| EBIT | 7,6 | 6,4 | 1,2 | 18,0% | |||
| Net profit | 5,3 | 4,3 | 1,0 |
23,6% |
|||
| Backlog | 204,5 | 149,9 | 54,6 | 36,4% | |||
| Equity | |||||||
| Equity (E) | 113,8 | 93,6 | 20,2 | 21,6% | |||
| Total Equity (TE) | 213,8 | 204,1 | 9,7 | 4,7% | |||
| E/TE | 53,2% | 45,9% | |||||
| Balance of cash and cash equivalents | 10,6 | -13,7 | 24,3 | ||||
These figures have not been subjected to review by an auditor.
Download a full summary of the semi-annual results [pdf].