Imtech: a good first half of 2012, growth despite difficult market conditions; EBITA +12%, revenue +14%, order book +13%, profit per share +8%

• Order book up by 755 million euro (13%) to 6.5 billion euro
• Solid financial position
• Maintaining forecast of further EBITA growth over the full year 2012 through organic growth and acquisitions
• Maintaining 2015 strategic growth plan targets: revenue 8 billion euro, operational EBITA margin between 6% and 7%

René van der Bruggen, CEO Imtech: ‘In the first half of 2012 Imtech showed another solid performance and, despite difficult market conditions due to the economic crisis, continued its tradition of continued growth. Revenue rose by 14% and the order book increased by 755 million euro (13%) to nearly 6.5 billion euro. EBITA rose by 12%, of which 2% was based on organic growth. The organic growth percentage was negatively influenced by reorganisations in the Benelux, Spain and Marine. Reorganisation costs during the first half of 2012 amounted to over 8 million euro. Normally, these costs amount to 3 to 5 million euro a year.’

‘Imtech performed particularly well in Germany, Eastern Europe (especially Poland), the Nordic and the UK & Ireland, as well as in the European ICT market in which we are an outperformer. Our performance in the European traffic market was stable. Although the technical services market has also been affected by the economic crisis, we held our ground very well. This was because our drivers for growth remained unchanged and we can adapt well to changing market conditions. Examples are new total solutions in care & cure, high-tech management solutions in the traffic market, a marine life-cycle approach and the integration of numerous sustainability solutions in our services portfolio. This enables us to lower our customers’ exploitation costs and, at the same time, boost sustainability. We have also built-up a strong position in Turkey and are, step-by-step, expanding our activities outside Europe. This, together with the size of the order book and the improving order intake for our global marine activities, gives us confidence for the second half of 2012.’

‘We maintain our forecast of further EBITA growth for the full year 2012 through organic growth and acquisitions. In line with our 2015 strategic growth plan, during the first half of this year we once again acquired a number of strong companies which will grow further under our strong financial wings and through collaboration with our existing portfolio. Our financial position remains solid. Despite the difficult market conditions we look forward to the future with confidence.’

A good first half of 2012
At 5.6% the operational EBITA margin was virtually the same as for the first half of 2011 (5.7%). On 30 June 2012 the order book was 13% higher (+755 million euro) at 6,464 million euro. The operating result before amortisation and impairment of intangible assets (EBITA) increased by 12% to 134.4 million euro (first half of 2011: 120.5 million euro) of which 2% was organic. Revenue rose by 14% to 2,615 million euro (first half of 2011: 2,292 million euro).

Amortisation expenses rose by 5.4 million euro to 18.4 million euro as a result of the acquisitions of 2011 and in the first half of 2012. The net financing result rose by 3.6 million
euro to 29.9 million euro negative, primarily due to higher interest charges as a result of the settlement of acquisitions. Income tax amounted to 23.1 million euro (2011: 21.8 million euro) while the effective tax rate went slightly up to 26.3% (2011: 26.0%). Net profit rose by 2% to 62.0 million euro (2011: 60.7 million euro). This net profit growth is more limited than the growth of the EBITA due to higher amortisation expenses and higher interest charges.  

Net profit before amortisation and impairment of intangible assets increased by 9% to 80.4 million euro (first half of 2011: 73.7 million euro). Profit per share before amortisation and impairment of intangible assets rose by 0.07 euro to 0.92 euro (+8%), based on the weighted average number of issued shares of 87,782,642 shares (first half 2011: 87,048,926 shares). The exchange rate of foreign currency compared to the euro had a positive effect of 0.3 million euro on the EBITA and 25.6 million euro on revenue.

Solid financial position
As usual the characteristic seasonal pattern of the working capital meant net cash flow from operating activities was negative during the first half of the year. Net cash flow amounted to 59.5 million euro negative – an improvement of 20.6 million euro compared with the first half of 2011. An important cause of this is a reduction in working capital to 468 million euro (30 June 2011: 496 million euro). As a consequence the working capital improved to 8.6% of revenue from the last twelve months, which is significantly lower than 9.9% as at 30 June 2011. Imtech expects to meet its target of a year-end working capital amounting to between 6.0% and 6.5% of the annual revenue.

Net cash flow from investing activities was 132.6 million euro negative, primarily due to acquisitions. Net cash flow from financing activities was 66.9 million euro positive on the one hand due to borrowings and on the other hand due to the payment of dividend to shareholders and the purchase of own shares to cover the shares and share option schemes.

The net interest-bearing debt amounted to 761 million euro (30 June 2011: 624 million euro). The leverage ratio (average net interest-bearing debt / EBITDA) was 1.9 (30 June 2011: 1.7) and the interest coverage was 6.7 (30 June 2011: 7.2). This means Imtech has a solid financial position and remains well within the agreed financial covenants. At the same time, this implies Imtech has sufficient financial means at its disposal to finance future acquisitions envisaged in the 2015 strategic growth plan. A private placement of 100 million euro with a term of 7 and 9 years has further strengthened and diversified the long-term financing structure. Shareholders’ equity rose to 959 million euro, partly due to the addition of 62.0 million euro net profit in the first six months of the year. Solvency was 0.23 (30 June 2011: 0.26). Of the total dividend over the previous financial year 31.7 million euro was paid out in cash (52% of the total dividend) and the remaining 48% was paid out in stock for which 1,313,134 new shares were issued. As at 30 June 2012 the issued share capital amounted to 94,059,916 shares.

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