ROSMALEN - Heijmans N.V. (construction and construction-related activities ) realised a net profit of € 19.9 million for the first half of 2000, an increase of 35.4% in comparison to the first half of 1999 (€ 14.7 million). Turnover rose by 22.3% to € 656.2 million (first half of 1999: € 536.7 million). The net margin is currently 3% (compared to 2.7% for the first half of 1999). Operating income increased to € 29.5 million (4.5% of the turnover) from € 22.2 million (4.1% of the turnover) in 1999.
Development activities
The main markets into which Heijmans has entered remained good; there is a large demand in the home and office market for more expensive private homes. All homes delivered by Heijmans were sold. All locations for which Heijmans has land positions are successively being developed. In the market for traffic and transport, signs of full capacity utilisation are appearing on the supply side. This is largely being caused by production starting up on mega-projects such as the Betuwe Rail Line, the High-Speed Rail Line etc. The profit percentage appropriate for these projects has not yet been realised in the market at this time. Heijmans is experiencing more difficulty in the Industry market. Clients in the (petro)chemical industry are not or hardly investing in new construction. The development result is especially encouraging in Belgium, where all participating interests realised improvements.
Heijmans took over four companies in the first half of 2000. These companies (Van den Berg in Belgium (cables and pipes), Hijbeek in Zwijndrecht (home and utilities construction), Tecona in Spijkenisse (engineering) and Van Hees in Tilburg (land, road and water construction) contributed
€ 55 million to the turnover in the first six months of 2000, or 10.2% of the total turnover growth. The autonomous turnover growth was 15%. The acquired companies realised a net profit of € 2.8 million in the first half of 2000. They were thus responsible for 19% of the net profit increase. Heijmans N.V.’s autonomous profit increase was 15.6% for the first half of 2000. Deconsolidations had an effect of 2.9% on the turnover and 0.8% on the net profit.
Group capital increased from € 137 million on 30 June 1999 to € 141 million on 30 June 2000. Solvency declined from 28.3% to 25.3% as a result of amortisation of goodwill from shareholders’ equity as well as a greater need for operating capital (particularly, accounts receivable). It is expected that solvency will again be around 30% at the end of 2000. The average number of issued ordinary shares increased by 2.3% from 17,836,754 in the first half of 1999 to 18,248,246 in the comparable period of 2000.
Heijmans N.V.’s order book was € 1,345 million at the end of June 2000 compared to € 1,082 million at the end of June 1999 - hence, a 24.3% increase. The order book only includes projects for which a written order has been received or which are being performed (often our own projects). At € 5 billion, work in progress is considerably greater.
Forecasts
When the annual figures were published for 1999 in March 2000, it was still expected that for the entire year 2000, turnover would increase by 20% (to € 1.5 billion). The net profit was expected to increase by 27% to € 43.5 million, resulting in expected earnings per ordinary share of € 2.25, an increase of 26%.
Heijmans now expects turnover for the entire year 2000 to increase by 23% to € 1,530 million. More than half of this increase, to wit, 12%, will be realised autonomously, the other 11%, through acquisitions. The net profit is expected to increase by 32% to € 45.3 million.
As a result of more stock dividends being taken than was expected in March of this year, the earnings per ordinary share will increase by 30% to € 2.32 per ordinary share, after deduction of the cumulative preferred dividend. For all of 2000, an average of around of 18,550,000 ordinary shares will be outstanding. Heijmans’ Economic Value Added (HEVA) is expected to be around € 16 million (compared to € 10 million for all of 1999).