Royal Imtech accelerates and intensifies its recovery plan in Germany and provides a trading update ahead of closing of the year 2013. In line with announcements of third quarter results on November 7th, 2013 Imtech has continued to focus on implementing the groups operational recovery plan. October and November results show continued stable revenue and order intake performance for the group providing a platform for recovery. Except for Germany, margin development is mostly satisfactorily also helped by the positive impact of management upgrades and the largely completed headcount reduction programs. As announced on November 7th, margin recovery of our German business will take more time and does not yet show improvement in October and November versus the first nine months of 2013.
Acceleration and intensifying of German recovery plan
Rebuilding the German organisation is in full process. Management has launched a comprehensive recovery plan named "Neue Imtech". This program prioritizes healthy project margins over volume and focuses on efficiencies in staffing, project control and purchasing.
Furthermore the "Neue Imtech" program aims to accelerate the conclusion of previously identified legacy issues such as overdue debtors and certain project work in progress positions in a diligent way. Conclusion on these legacy issues will balance timely resolution and cash proceeds with potential non-cash margin impact. The latter could result in valuation allowances to cover these legacy issues. Full details on the "Neue Imtech" program will be published at the annual results publication on March 18th 2014.
Headcount reduction program
The extended headcount reduction program as announced last month has progressed well. The headcount reduction programs in Benelux, Traffic & Infra, Marine and Eastern Europe units have finalised and these businesses will now increasingly benefit from the related cost savings. The first German headcount reduction program to reduce 550 FTE is expecting to finalise around year-end. The additional reduction of 300 FTE in Germany is scheduled for the first half in 2014. The headcount reduction program in the Nordic division is targeting to capture the post acquisitions integration benefits and is expected to be finished before year-end.
| Media: || Analysts & investors: |
| Dorien Wietsma|
Director Corporate Communication & CSR
T: +31 182 54 35 53
| Jeroen Leenaers|
Director Investor Relations
T: +31 182 543 504
Royal Imtech N.V. is a European technical services provider in the fields of electrical solutions, ICT and mechanical solutions. With approximately 29,000 employees, Imtech is active in attractive markets in the buildings and industry sector in the Netherlands, Belgium, Luxembourg, Germany, Austria, Eastern Europe, Sweden, Norway, Finland, the UK, Ireland, Turkey and Spain, the European markets of ICT and Traffic as well as in the global marine market. In total Imtech serves 24,000 customers. 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 the NYSE Euronext Amsterdam, where Imtech is included in the AEX Index.
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Source: Imtech via Globenewswire