Royal Imtech N.V

Imtech: healthy growth in the first half of 2011, EBITA +12%, revenue +13%, order book +10%


Source: Royal Imtech N.V

  HY 2011 HY 2010 Growth  
Revenue (in millions) 2,292 2,025 +13%  
EBITA (in millions) 120.5 107.5 +12% (organic +6%)
EBIT (in millions) 107.5 96.0 +12%  
Net profit (in millions) 60.7 57.0 +6%  
Earnings per share (before amortisation) 0.85 0.88 (3%)[1]  
Operational EBITA margin 5.7% 5.7%    
Order book (in millions) 5,709 5,171 +10%  
Number of employees (on 30 June) 26,829 22,684 +18%  


  • Combination of organic EBITA growth (+6%) and EBITA growth through acquisitions (+6%)
  • Order book of 5.7 billion euro instils confidence for the second half of 2011, maintaining the outlook for a further EBITA increase over the full year 2011 through organic growth and acquisitions
  • Growth in energy market and sustainability
  • Strict adherence to 2015 strategic growth plan targets (revenue of 8 billion euro with an operational EBITA margin between 6% and 7%)

René van der Bruggen, CEO Imtech: 'Imtech develops very well and, once again, achieves healthy growth. The EBITA rises by 12% of which 6% is organic and 6% the result of acquisitions. Revenue is up by 13% and the order book grows by 10% to 5.7 billion euro. This instils confidence for the second half of 2011. Despite changeable conditions in the various markets, the demand for technology continues to increase and Imtech, with its multidisciplinary technical concepts, is in a very good position to respond to this demand. In the market for energy in particular - including energy efficiency, energy saving, bio-energy cogeneration (combined heat/power technology) and, as a result, the reduction of customers' carbon footprint - Imtech achieves substantial growth. In Germany & Eastern Europe, the Nordic region (Sweden, Norway and Finland) and the European ICT and Traffic markets. Imtech achieves healthy growth. In the UK the EBITA level is maintained and Imtech's competitive position is strengthened significantly through acquisitions, which means it is now well positioned for further growth. Spain and the marine division do, however, lag slightly behind. In the Benelux, where market conditions have persistently been challenging, the EBITA falls and Imtech started a transition to opportunity-rich markets and a restructuring through cost reductions and reorganisations.


'Imtech's objective is healthy growth through a combination of organic growth and acquisitions. The market for technical services is fragmented, which means there are many opportunities for further acquisitions. We only acquire healthy and profitable companies that fit within our strategy and will in time lead to further organic growth of both the acquired company and the existing Imtech portfolio. In 2011 Imtech acquired nine companies with a combined revenue of approximately 327 million euro - which means we have already exceeded the acquisition revenue for the whole of 2010 (approximately 290 million euro). Further acquisitions are anticipated in the second half of 2011.'


'Imtech's earlier outlook for the full year 2011 - a further increase of the EBITA through organic growth and acquisitions- remains unchanged. The same applies for the targets of the 2015 strategic growth plan - revenue of 8 billion euro with an operational EBITA margin between 6% and 7%. Our financial position is solid. We are right on course.'


[1] Lower profit per share due to higher number of outstanding shares as a result of share issue in June 2010.


Healthy growth in the first half of 2011
2011 started well for Imtech with a healthy combination of organic growth and growth through acquisitions in its results, revenue and order book. The Imtech proposition - multidisciplinary technical total solutions through a combination of electrical solutions, ICT (information and communication technology) and mechanical solutions - once again proved its worth.


At 5.7% the operational EBITA margin is the same as for the first half of 2010. On 30 June 2011 the order book is 10% higher (+538 million euro) at 5,709 million euro (2010: 5,171 million euro). The operating result before amortisation and impairment of intangible assets (EBITA) rises by 12% to 120.5 million euro (2010: 107.5 million euro) of which 6% is organic. Revenue grows by 13% to 2,292 million euro (2010: 2,025 million euro). The net finance charges increases by 7.9 million euro to 26.3 million euro, primarily due to acquisitions and a higher working capital requirement. Income tax expense amounts to 21.8 million euro (2010: 21.0 million euro) while the tax rate drops slightly to 26.0% (2010: 26.8%). Net profit rises by 6% to 60.7 million euro (2010: 57.0 million euro). Earnings per share before amortisation and impairment of intangible assets falls, primarily due to a share issue at the end of June 2010, by 0.03 euro to 0.85 euro (-3%), based on the weighted average number of issued shares of 87,048,926 shares (2010: 78,093,557 shares). The exchange rate of non-euro related currencies (primarily the Swedish kroner) compared to the euro had a positive effect of 1 million euro on the EBITA and 26 million euro on revenue.


Solid financial position
Net cash flow from operating activities amounts to 80 million euro negative (2010: 95 million euro negative). Due to the seasonal pattern of the working capital, a negative cash flow from operating activities is normal during the first half of the year. In absolute terms the increase in working capital requirement is less compared to the first half of 2010. In relative terms the increase is in line with the historical seasonal pattern. During the first half of 2011 working capital rises to 9.9% of revenue (2010: 8.7%). This is coupled with a bigger order book (+538 million euro), a significant increase in work in progress and with the fact that many projects are still in the start-up phase, so that fewer prepayments are received, in particular in Germany. Imtech's target of a year-end working capital commitment amounting to between 6.0% and 6.5% of annual revenue as the result of a strengthened and continuous focus on working capital is maintained strictly.


Net cash flow from investing activities is 76 million euro negative primarily due to acquisitions. Net cash flow from financing activities is 51 million euro positive due on the one hand to borrowings and on the other hand to the payment of dividend to shareholders and the purchase of own shares to cover the share and share option schemes.


Net interest-bearing debt amounts to 624 million euro, partly as a result of the working capital requirement (30 June 2010: 385 million euro, including proceeds from the share issue and excluding the purchase price of NEA). The leverage ratio (the average net interest-bearing debt divided by the EBITDA) is 1.7 (30 June 2010: 1.5) and interest coverage is 7.2 (30 June 2010: 8.1). This means Imtech has a solid financial position, has remained well within the financial covenants agreed with the banks and has sufficient financial means at its disposal to finance the future acquisitions envisaged in the 2015 strategic growth plan.


Shareholders' equity rises to 828 million euro, partly due to the 60.7 million euro net profit achieved during the first half of the year. Solvency is 0.26 (30 June 2010: 0.27). Of the total dividend over the previous financial year 26 million euro was paid out in cash (46% of the total dividend). The remaining 54% was paid out in stock for which 1,172,942 new shares were issued. As at 30 June 2011 the issued share capital amounts to 92,746,782 shares.


Benelux: transition and restructuring
The market for technical services in the Benelux has been challenging for some time. Competition has been fierce, both from local competitors and competitors from other parts of Europe, and customers have been slow to make investment decisions. Imtech is responding to the changed market conditions by implementing a combination of measures, including a strategic transition with a sharp focus on opportunity-rich markets and activities such as energy, green technology, education, care, export, data centers, maintenance and management. At the same time Imtech has implemented reorganisations combined with cost savings, efficiency improvements, operational excellence and a clustering of competencies. The EBITA margin and EBITA will, however, remain under pressure for the full year 2011.


Benelux key figures for the first half of 2011


  HY 2011 HY 2010 Growth
Revenue (in millions) 471 491 (4%)
EBITA (in millions) 13.1 16.1 (19%)
EBITA margin 2.8% 3.3%  
Order book (in millions) 1,263 1,404 (10%)
Number of employees (on 30 June) 6,546 6,959 (6%)


The buildings market remains difficult, some improvement in industry and export, growth in the energy market, position in the infra market maintained
Although investment in buildings is at a low level, Imtech in Brussels succeeds in winning sizeable contracts, such as the contract for part of the technology in the new NATO head office. Imtech's focus on sustainable government premises leads for example to its involvement in the sustainable technological renovation and extension of the County Hall in Haarlem. Progress is achieved in the maintenance market, for example with technical maintenance and management combined with energy reduction for 420,000 m² of offices for the Dutch Government Buildings Agency. Large orders are won in the care sector. In the education sector Imtech focuses on both sustainability and climate improvement ('airy schools'). New services for the data centers market are developed and Imtech is carrying out substantial sustainable extensions to data centers for BT.


The industrial market is improving slowly and here too Imtech focuses on sustainability. One good example is an emission-friendly desulphurisation facility for KPE (Kuwait Petroleum Europoort). The acquisition of high-tech specialist Trecom is enabling green gas to be generated for customers, for example biogas facilities that generate green gas from fish waste material. Technology export is expanding successfully. Imtech is for instance responsible for a wood-fired bio-heat/power plant in Latvia.


Imtech is playing a role on numerous fronts in the energy market. The largest project (> 100 million euro) is the building and technical maintenance of two sustainable energy plants based on a combination of cogeneration, biomass, solar energy and wind energy in Limburg. Imtech is the technology partner for making Amsterdam's Schiphol Airport more sustainable. Imtech is also involved in innovative smart grids - intelligent energy networks that make decentralised electricity generation and electric transport possible.


Despite governmental budget reductions Imtech is able to hold its own in the infrastructure market. The clustering of expertise and technological competencies is bearing fruit. Imtech is doing well in the rail market. One major order is for the technical completion of the metro stations and railway connections along the, partially underground, North/South metro line in Amsterdam. In the public lighting market growth is achieved with the energy-efficient lighting concept Innolumis®. Imtech occupies a good position in the water treatment market. A new initiative - in cooperation with Imtech UK - is the combination of energy generation from the waste products of water treatment, energy and water savings, more efficient production processes and the reduction of customers' carbon footprint.


Germany & Eastern Europe: another excellent growth performance
In Germany Imtech is now the leading implementation partner in the growing energy market. The German government's decision to renounce the use of nuclear energy is presenting Imtech with further opportunities for future growth. Thanks to its high-value technological competencies Imtech also excels in a range of sectors including airports, the automotive industry, the data center market and care sector. Sustainability is also high on the agenda in these sectors, which means Imtech's portfolio of services can offer differentiating added value. Imtech's position in Eastern Europe is also developing well and is strengthened through both organic growth and an acquisition. All of this means that in Germany and Eastern Europe Imtech is achieving another excellent organic growth performance. In addition, the substantial 20% increase of its order book will lead to further growth in the future.


Germany & Eastern Europe key figures for the first half of 2011


  HY 2011 HY 2010 Growth
Revenue (in millions) 658 562 +17%
EBITA (in millions) 48.3 40.7 +19%
EBITA margin 7.3% 7.2%  
Order book (in millions) 2,273 1,895 +20%
Number of employees (on 30 June) 5,202 4,743 +10%


Large energy projects, a sustainable automotive industry, growth in data centers, innovation in care sector and good progress in Eastern Europe
Imtech's strong position in the energy market is confirmed by a 15-year energy management contract - based on an energy contracting model - for around 800 buildings of Deutsche Post. This contract, which is worth 400 million euro, is in line with Imtech's strategy of achieving further growth in this opportunity-rich market. The acquisition of some of the activities of cooperation partner Lorac Investment Management forms an integral component of the contract. Long-term energy contracting contracts are also signed with many industrial manufacturers including Voith Paper, Böhringer and Winkelmann. The energy savings will be between 20% and 40%. The sustainable technology in a new, innovative waste/energy power plant in Plymouth in the UK is supplied out of Germany.


As the permanent technology partner of the German automotive industry Imtech helps car and lorry manufacturers make their production more sustainable. In Ingolstadt, for example, Imtech helps Audi utilise the waste heat released from the nearby Petroplus oil refinery. Imtech also offers high-tech total solutions for the upgrading and expansion of the technical infrastructure in data centers combined with innovative energy-efficient solutions. Customers include BT and Deutsche Telekom. In the German care sector, an important growth market for Imtech, new orders include the University Hospitals in Tübingen and Ulm.


The economic growth in Poland is resulting in a growing demand for technological total solutions. Imtech, as one of the largest players, is able to respond to this demand. One major new order is for all the technical solutions for the buildings in Eastern Europe's first large-scale theme and adventure park in Warsaw. Demand for solutions to complex energy problems is also increasing and in this field Imtech is leading the way. The result is robust organic growth in Poland. One new order in Russia is for the technology in a Deutsche Bank office in Moscow. Imtech's position in Romania is stable with new orders including the technology in one of the Unicredit Tiriac Bank's buildings in Bucharest. To further strengthen its position in Hungary Imtech has acquired the activities of YIT. Shortly after the acquisition Imtech is awarded the order for the extension of an Audi car manufacturing plant in Györ and a Ceva-Phylaxia veterinary vaccine factory in Budapest. A flying start indeed.


UK, Ireland & Spain: a solid performance in difficult market conditions
As a result of the economic crisis, market conditions in the UK, Ireland & Spain vary from difficult to extremely difficult. In the UK, especially in the Greater London region that is important for Imtech, the first signs of a recovery are apparent. At the same time Imtech has strengthened its position in the country significantly through acquisitions. In Ireland the bad economic situation has led to Imtech focusing, successfully, on export. In Spain Imtech has succeeded in maintaining its position in recent years despite the difficult market conditions, but is now experiencing some pressure on revenue and EBITA margin. On balance, although Imtech achieves a lower EBITA margin in the UK, Ireland & Spain cluster, thanks to a sharp rise in revenue (+20%) its EBITA remains at the same level. A solid performance.



UK, Ireland & Spain key figures for the first half of 2011


  HY 2011 HY 2010 Growth
Revenue (in millions) 320 267 +20%
EBITA (in millions) 17.2 17.2 -
EBITA margin 5.4% 6.4%  
Order book (in millions) 605 553 +9%
Number of employees (on 30 June) 5,129 3,641 +41%


UK: strengthening the market position with future growth in mind, a focus on waste water, energy, education and multidisciplinary projects
Strengthening its positions in the UK is a component of Imtech's 2015 strategic growth plan and with the acquisition of both Inviron and Smith Group UK Imtech has taken major steps in this direction. Inviron is one of the few companies in the UK that is totally specialised in technical maintenance and management. This acquisition does not only increased Imtech's portfolio, size and geographical spread in the UK significantly, it has also gives Imtech access to the vast and opportunity-rich airport segment, including Heathrow, Gatwick and the Royal Air Force airfields. Multidisciplinary technical services provider Smith Group UK is an out-performer in the UK with a strong geographical focus on the north-west of the country - a region in which Imtech was only minimally active - and also has certificated competencies in the field of energy, including energy efficiency and carbon footprint reduction. This means Smith Group UK is an ideal complement to Imtech's position. Thanks to these new acquisitions Imtech is on the way to becoming one of the strongest players in the UK's technical services market. Further growth is anticipated.


Unique expertise in the combination of energy and water leads to further growth in the waste water treatment market. The bio-gas power plants recently completed for Welsh Water in Cardiff and Afan have won a prestigious British environmental prize. Comparable projects have been started in, among other places, Howdon and Five Fords. Imtech improves sustainability at several of Anglian Water's waste water treatment sites via high-tech cogeneration facilities.


Imtech is also focusing on ('green') innovation, education and multidisciplinary projects. One example is the new 'green' Town Hall in the London borough of Croydon, which includes sustainable cogeneration facilities plus other innovative energy-efficient solutions. Another innovative project, based on high-tech industrial building processes, is Croydon College. Energy issues are also gaining importance in the education sector, in which Imtech occupies a strong position. New projects include Loughborough University and Salford University. The acquisition of Inviron means Imtech can focus on long-term maintenance contracts. A number of new maintenance contracts are signed with the British Film Institute, Capital Shopping Centers and Land Securities. There is also a sharp focus on multidisciplinary projects such as Mann Island on the Liverpool Waterfront and the office building No.1 First Street in Manchester.


Ireland: a successful focus on exporting technological competencies
Ireland's bad economic situation leads Imtech to focus on exporting its electrical engineering and instrumentation (E&I) expertise. It is a good move. Imtech is now involved structurally with the technical infrastructure for oil exploration in one of the world's largest oil exploration areas - Kazakhstan. In Saudi Arabia Imtech, as the technology partner of food manufacturer Almarai, is active on a project basis in various factories. Orders are also being acquired in Europe, e.g. for Genzyme's new biotechnology facility in Belgium. New segments, such as waste/energy power plants, are also being penetrated in the domestic market.


Spain: a solid performance in view of the challenging market conditions, a focus on energy, the care sector and maintenance
In Spain, Imtech is increasingly feeling the effects of challenging market conditions. Investments in the buildings market are limited and in the industrial market increasing competition is putting margins under pressure. Despite this, Imtech manages to hold its position reasonably well, primarily thanks to the fact that around 40% of its revenue is derived from (long-term) maintenance contracts.


In the energy market Imtech is focusing on added value and has important references, such as the first 'green' shopping centre (LEED Gold certificate) in Madrid. The energy activities will be boosted by a new Energy Contracting business unit - Imtech's response to the Spanish government's initiative to make hundreds of large public buildings energy-efficient. The first success is the technology in Repsol's 'green' head office in Madrid. The working terrain is also broadened, for example to include R&D centers. In the technical maintenance and management field Imtech is doing well and is able to obtain new maintenance contracts including one from the exhibition organisation Ifema Feria of Madrid.


In the care sector Imtech performs well. The combination of technical infrastructure and maintenance services for medical equipment enables total solutions with a high added value to be offered. New orders include a new hospital in Burgos and maintenance contracts for hospitals in Madrid, Cartagena and Tudela.


In the industry sector Imtech is a strong player. A substantial portion of the activities involves long-term maintenance activities and shut-downs for companies including oil producers Cepsa and Repsol, steel manufacturer Acerinox and paper manufacturer Holmen Paper. New industrial projects are limited, and partly because of this, Imtech is focusing on an integrated multidisciplinary approach. Examples include improving Cepsa's energy efficiency. Imtech is also a specialist in large thermal solar-energy projects.


Nordic: substantial growth
The economies of the Nordic region are healthy and there is a strong demand for technical solutions. Imtech makes the most of this situation and obtained numerous projects, especially in southern Sweden and the region around Oslo in Norway. The effect of the acquisition of NEA in July 2010 is apparent in the figures. Thanks to this and other small acquisitions in 2010 and 2011, as well as organic growth, revenue (+93%), EBITA (+80%) and the order book (+77%) increase substantially. Because NEA's operational EBITA margin is lower than that of the existing activities, the EBITA margin dropped to 6.1%. Overall, growth is substantial.


Imtech Nordic key figures for the first half of 2011


  HY 2011 HY 2010 Growth
Revenue (in millions) 322 167 +93%
EBITA (in millions) 19.8 11.0 +80%
EBITA margin 6.1% 6.6%  
Order book (in millions) 523 296 +77%
Number of employees (on 30 June) 4,718 2,331 +102%


Growth through multidisciplinary cooperation and acquisitions, a focus on energy, added-value and the care sector
Imtech is one of the strongest technical players in the Nordic region (Sweden, Norway and Finland) with pro forma 2010 revenue of around 600 million euro. Substantial growth in the Nordic region is a component of Imtech's 2015 strategic growth plan. The target is revenue of 1 billion euro in 2015. This will be achieved through a combination of organic growth, by integrating NVS (mechanical solutions) and NEA (electrical solutions) into the multidisciplinary technical services provider Imtech Nordic, and supplementary acquisitions.


The first multidisciplinary projects are acquired and include the upgrading of energy facilities with substantial energy savings in a multifunctional complex in Vänersborg. Further growth is achieved in the energy market. Examples include substantial energy savings for housing associations, for example in Riksbyggen, and 'green' buildings including the head office of fashion house 'Gina Tricots' in Boräs. Imtech is involved in an innovative project for the generation of energy from organic manure in Vara and the combination of geothermal energy and high-tech heating facilities in Vänerparken. Imtech is also able to offer customers high added value. Examples include maintenance contracts in the pulp and paper industry, flexible energy solutions in the 'green' Ullevi Office Arena in Gothenburg and high-tech cooling in switching stations of telecommunications supplier Telenor in Norway. In the care sector further growth is being achieved.


Imtech's position has been strengthened still further by supplementary acquisitions. One of the acquired companies is the Swedish energy and climate specialist Sydtotal, which will be consolidated in the second half of 2011. Sydtotal is a strong player with nationwide coverage and a leading position in the Swedish energy market. This acquisition adds complementary high-value specialisms not only in energy technology and energy savings but also in high-value climate control solutions. The position in Norway is also strengthened through two acquisitions and a small regional technical services provider in Sweden is acquired as well.


ICT, Traffic & Marine: a mixed picture
The picture in this partly European and partly globally operating cluster is mixed. Imtech performs very well in the European ICT market and is achieving further growth in the European traffic market. The order inflow in the global marine market is slow, but this is offset to some extent by maintenance, conversion and upgrading activities. On balance, the ICT, Traffic & Marine cluster achieves further EBITA growth and the EBITA margin increases.


ICT, Traffic & Marine key figures for the first half of 2011


  HY 2011 HY 2010 Growth
Revenue (in millions) 521 538 (3%)
EBITA (in millions) 32.0 31.1 +3%
EBITA margin 6.1% 5.8%  
Order book (in millions) 1,045 1,023 +2%
Number of employees (on 30 June) 5,188 4,965 +4%


ICT: a good performance - the strategy works
The importance of ICT in solving economic and social questions is increasing rapidly due to the far-reaching integration of technology in which ICT plays a key role. This is why Imtech has a strong European ICT division that is active in eight European countries. In accordance with the 2015 strategic growth plan, in 2011 the first steps were taken to strengthen Imtech's market position in Eastern Europe and the activities in Asia were expanded.


To succeed in the European ICT market, companies have to stand out from the competition. Imtech focuses on integrated solutions with measurable added value in business intelligence, data centre technology, managed services and business solutions. The cooperation with strategic partners is being intensified. Imtech is a partner in IBM's Smarter Planet Strategy, which focuses on sustainability themes such as water, energy and mobility. Imtech is also a partner of Cisco in the smart grids market. Together with Microsoft the position of Microsoft Dynamics within local authorities has been strengthened through an order for the implementation of a Microsoft Dynamics based software solution for (local authority) accounting in 300 Swiss municipalities. Good results are also achieved in the field of business intelligence. More than 1,000 companies around the world use Imtech Control®, a software package for performance management. The position in the market for 'cloud computing' (components of computer infrastructure) is strengthened further.


In an, on balance, somewhat reticent European ICT market Imtech performs very well and achieves further growth. In the Netherlands Imtech is well on course with substantial orders, e.g. from Wageningen University and the Dutch Ministry of Foreign Affairs. In Belgium Imtech is strengthening its position as an IT partner for large financial institutions such as ING and BNP Paribas Fortis. An ICT solution for monitoring, control and incident management for 1,400 cameras in 22 traffic tunnels in Paris was developed for Belgian customer Traficom. In Germany Imtech (the business unit Fritz & Macziol) is achieving further growth in a number of markets including data centers, data storage and 'cloud computing'. An innovative solution for mobile computing is developed in cooperation with Cisco. Managed services enable doll manufacturer Zapf Creation to achieve substantial cost savings. In Austria Imtech holds an extensive managed services portfolio for SAP users which also includes offshoring via Imtech offices in Asia. In total 250 SAP applications for more than 100,000 SAP users are supported. Imtech is also a leader in the field of logistics software and obtains a large order from sewing thread manufacturer Coats. Although market conditions in the UK are challenging, Imtech strengthens its position in the field of network integration and infrastructure, for example with long-term orders from MS3 and Northgate.


Traffic: further growth, technological integration, more impact in Eastern Europe
Despite lower government budgets and fierce competition Imtech is achieving further growth. The market trend is towards more added value for less money. Imtech's answer is technological integration. Examples include high-tech urban traffic control systems, a new energy-efficient traffic light and integrated traffic management units. Energy is a major theme, for example when it comes to improving the energy efficiency of road marking illumination on secondary roads. The Netherlands now has the first cycle track with built-in solar cells: SolaRoad®. In the UK Imtech is the technology partner of the Highways Agency. As a spin-off from the ongoing maintenance contract for the high-tech digital data backbone for all the motorways in England the order was received for installing a network of 850 emergency roadside telephones connected to the Internet. Another important contract was the framework contract for the next generation of digital enforcement systems on the English motorways. Cross-selling leads to a breakthrough in the public lighting market with the first contract for the A49 near Warrington. As a partner of TfL (Transport for London), Imtech is involved in making the 2012 Olympic Games sites ready to receive traffic.


Further growth in Eastern Europe is one component of Imtech's 2015 strategic growth plan. Breakthroughs are achieved for high-tech traffic solutions in Russia, Lithuania and Romania and the existing positions in Poland and Croatia are strengthened. In St. Petersburg in Russia Imtech is supplying an innovative traffic monitoring solution and, together with partners, is involved in a master plan for the coming years. Imtech is also responsible for the technical infrastructure in the Sea tunnel - the last link in the ring-road around St. Petersburg. Imtech has been active in Poland for a number of years and holds a number of maintenance contracts. This provided the basis on which a tender for a section of the S8 motorway near Konotopa was won. In Split (Croatia) and Jelgava (Latvia) Imtech is responsible for innovative traffic management systems.


The position in the Nordic region is also improving. Sweden has decided to install the Dutch Motorway Traffic Management system, which affords opportunities. Imtech has installed a traffic metering system in Gothenburg and in Malmö it is involved in an upgrade of various traffic control systems and traffic monitoring. Imtech is also a strong player in the field of traffic monitoring in Finland. A number of new upgrades will be implemented very shortly. Imtech is realising the traffic technology on the Siilinjärvi - Matkus route.


Imtech's export position outside Europe is expanded with the supply of high-tech traffic solutions to Israel. Imtech is also doing well in the international parking market with new parking solution orders for instance in the Hollywood & Highland Center in Los Angeles.


Marine: many prospects in the new-build market, increased services and renovation
Imtech's annual revenue on the global marine market amounts to around 500 million euro. The strategic growth plan target is to double this to 1 billion euro in 2015 through a combination of organic growth and acquisitions. From a strategic point of view Imtech wants to develop into an independent top-player with a sharp focus on life cycle management for its customers. Imtech strives to offer customers the lowest possible total cost of ownership for their marine technical infrastructure throughout the operating period of a vessel. To this end, Imtech combines its expertise as a system integrator during the initial construction phase with professional maintenance and management during the operating phase. More and more often shipowners want a permanent relationship with a globally-operating technical services organisation. The objective is the optimum balance of maintenance and repair, transparent maintenance costs and higher reliability. In this context Imtech will expand its global network of offices and service centers. Imtech is also working on innovation, for example green technology and integrated automated solutions.


Ongoing naval programmes ensure a substantial stock of work including the air and climate technology on board German F-125 frigates and Royal Navy aircraft carriers. Imtech is also the technology partner for the automation and electronics on board the new logistical support ship 'Karel Doorman' - the largest naval vessel ever built for the Dutch Navy. New orders came from the Meyer Wharf in Papenburg for the energy-efficient air and climate technology on board two new Norwegian Cruise Line passenger liners. These are the largest cruise liners ever built in Germany. Other naval programmes in which Imtech is involved include those of Morocco, Oman, Spain, Singapore, Thailand and Belgium. Despite this stream of new-build orders and an impressive list of prospects, there is no denying the fact that the order intake in the new-construction segment is under pressure, especially in the oil and gas market.


An increase in the number of service and maintenance contracts held by Imtech provides compensation. Imtech has ongoing service and maintenance contracts with companies such as A.P. Moller - Maersk, Reederei Blue Star and Vroon Ship Management and also maintains the technology on board numerous drilling platforms. Imtech is involved in a growing number of conversions and renovations, such as the conversion of HVAC facilities (Heating, Ventilation and Air Conditioning) on board two former Stena Line passenger ships that have been acquired by the Canadian Marine Atlantic company. Imtech is also involved in the conversion and renovation of various naval vessels, cruise liners and luxury yachts. In China, Hong Kong and the Middle East Imtech is developing well. Under Imtech's wings Turkish company Elkon, which was acquired last year, is showing a healthy growth. Elkon received orders from the Turkish Navy as well as for cargo vessels, yachts and trawlers. Together with Imtech Elkon is introducing innovative electrical propulsion technology for 'green' ships in Turkey.


Nine acquisitions - an accelerator for future growth
Imtech has acquired the following companies:

  • Benelux
    • Industrial automation specialist Trecom - a specialist in complex industrial automation concepts and high-tech energy solutions including biogas plants that enable green gas to be generated from waste;
  • Germany & Eastern Europe
    • Some of the technical activities of Lorac Investment Management were acquired as part of a 15-year energy management contract for over 800 German buildings;
    • The activities of YIT in Hungary, a specialist in mechanical and electrical services, including energy savings, fire protection and building automation;
  • The UK
    • Inviron, one of the few companies in the UK fully specialised in technical maintenance and management with nationwide coverage and a wide range of activities in the airport segment;
    • Multidisciplinary technical services provider Smith Group UK, an out-performer in the UK with a sharp geographical focus on the North-west of England and certificated competencies in the field of energy, including energy efficiency, sustainable energy and carbon footprint reduction;
  • Nordic
    • Swedish energy and climate specialist Sydtotal (consolidated in the second half of 2011), specialised in energy technology, energy saving and high-tech air and climate solutions;
    • Norwegian company Unireg - a specialist in software (building automation) and energy technology;
    • The Norwegian activities of Elajo Installasjon - an electrical specialist in the fields of security, energy, technical automation and telecommunications in the Oslo region;
    • The small technical services provider Comfortgruppen in Sweden (consolidated as of July 2011).


The largest acquisitions are Inviron (1,100 employees, annual revenue of 140 million euro), Sydtotal (300 employees, annual revenue of 80 million euro) and Smith Group UK (270 employees, annual revenue of 70 million euro). All the acquisitions were paid for in cash and contingent consideration. The total acquisition price was approximately 110 million euro. The combined annual revenue of all the acquired companies amounts to around 327 million euro, which already exceeds the impact of all the acquisitions in 2010 (approximately 290 million euro revenue). The number of new employees is around 1,800. All the acquired companies contribute towards earnings per share. The total annual contribution towards the EBITA amounts to approximately 16 million euro. Imtech emphasises that the objective of all the acquisitions is the achievement of future strategic growth through their integration and intensive cooperation with existing Imtech activities. This will lead to additional growth of both the acquired companies and the existing Imtech portfolio. Imtech will continue seeking further strategic acquisitions in the second half of 2011.


Divestment of Swedish technical trading activities
After the books for the first half of the year were closed the Swedish technical trading activities - the NEA Elmateriel business unit - were sold to the technical trading company Ahlsell (deconsolidation as of July 2011). Technical trading is not one of Imtech's core businesses. This business unit with around 170 employees achieves annual revenue of around 90 million euro, half of which is generated internally and half externally.


The number of employees rises to nearly 27,000
The number of employees on 30 June 2011 was 26,829, 18% more than the 22,684 employees on 30 June 2010. The main concern for the future remains the availability of qualified and experienced employees. This is why Imtech will continue to invest in training programmes at both a management and technical level, ensure it stands out from the competition through labour market recruitment campaigns and make every effort to retain its existing employees.


Strict adherence to the 2015 strategic growth plan targets
Imtech's long-term growth target for 2015 - revenue of 8 billion euro with an operational EBITA margin between 6% and 7% - is adhered to strictly. Imtech is on course with the implementation of its 2015 strategic growth plan announced in November 2010, having made clear progress in the European energy market and strengthened its positions in the UK, the Nordic region and Eastern Europe.


Maintaining the outlook for the full year 2011
The outlook for the full year 2011 expressed in February 2011 is maintained strictly: according to its current views the Board of Management expects a further EBITA increase for the full year 2011 through organic growth and acquisitions.






For more information

Media: Analysts & investors:
Pieter Koenders
Director Group Communications    
T: +31 (0)655 74 65 85


Mark Salomons
General Counsel
T: +31 (0)182 543 514
Jeroen Leenaers
Manager Investor Relations
T: +31 (0)182 543 504



Imtech profile
Imtech N.V. is a European technical services provider in the fields of electrical solutions, ICT (information and communication technology) and mechanical solutions. With almost 27,000 employees, Imtech achieves annual revenue of around 4.5 billion euro. Imtech holds strong positions in the buildings and industry markets in the Netherlands, Belgium, Luxembourg, Germany, Austria, Eastern Europe, Sweden, Norway, Finland, the UK, Ireland and Spain, the European markets of ICT and Traffic as well as in the global marine market. In total Imtech serves 21,000 customers. Imtech offers added value with 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, amongst others in the areas of energy, the environment, water and traffic. Imtech shares are listed on the Euronext Stock Exchange Amsterdam, where Imtech is included in the Midkap Index. Imtech shares are also included in the Dow Jones STOXX 600 index.


Financial calendar

  • Trading update third quarter of 2011: 25 October 2011
  • Publication of 2011 annual figures, press conference and analysts' meeting: 7 February 2012
  • General Meeting of Shareholders: 4 April 2012


Analysts' meeting 2 August 2011, live transmission via Internet (Webcast)
From 11.00 hrs an analysts' meeting will be held in the Mövenpick Hotel, Piet Heinkade 11, 1019 BR Amsterdam. This analysts' meeting will be transmitted live via the Internet ( from 11.00 hrs until around 12.00 hrs and after this time will also be available on the website.


Photographs of the Chairman of the Board of Management are available to the media via Fotopersbureau Dijkstra. For further information: Fotopersbureau Dijkstra, telephone +31 (0)297 56 68 83, E-mail:



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Source: Imtech N.V. via Thomson Reuters ONE

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