'In 2001 Volker Wessels Stevin has once again managed to continue the positive trend of recent years. Improved results elsewhere in the group have more than made up for the disappointing developments in the Dutch telecom infrastructure segment and the German Building and Property Development segment,Â'Â' says Herman Hazewinkel, chairman of the Board of Management of Royal Volker Wessels Stevin nv.
'No less than 23 million of the 26 million increase in EBIT (a rise of 19%) can be attributed to organic growth and the improved performance of the group divisions'.
Over the course of the year numerous initiatives have been taken with a view to working with innovative concepts and new forms of contract on projects that will be realised in the next few years. This has resulted in an order book of € 3.6 billion and order portfolio (representing the order book and order potential on the basis of current negotiations and the portfolio of land under controlen ) of € 7.5 billion. Hazewinkel: 'Based on our order book, we expect to achieve further growth in revenues and earnings in 2002. We do however note that external influences are introducing increasing levels of uncertainty. As a consequence we refrain at this stage from expressing our expectations in more concrete terms.Â'Â'
Volker Wessels Stevin is retaining its target of achieving average growth in net profit of 8-10% over the longer term. The strategy of realising part of its growth through acquisitions will be pursued further in 2002. The acquisition of the majority holding in KPN Netwerk Bouw and the interest in Petroplus Engineering to be concluded shortly are examples of this strategy.
New forms of contract
Hazewinkel: 'The pursuit of our strategic target of realising 25% of earnings before interest and tax (EBIT) from long-term contracts by 2004 will continue unabated. In 200102 we achieved a figure of 12% of our total earnings before interest and tax (EBIT). With the majority holding in KPN Netwerk Bouw and the interest in Petroplus Engineering, this proportion will increase still further.Â'Â'
'The management of Volker Wessels Stevin regards new forms of contract (alliance contracts, framework contracts, design-build and performance contracts) as an important factor in ensuring the healthy development of the industry in the Netherlands. We hope that the Parliamentary Inquiry in the Netherlands into the building industry will further encourage the development of new forms of contract, mirroring the developments that followed the publication of the Â'Rethinking ConstructionÂ' report in the UK a few years ago.Â'Â'
Operating revenues
Operating revenues (production turnover) increased in 2001 by almost € 0.3 billion to € 3.1 billion (2000: 2.8 billion). Of this € 69 million is the result of including the 2001 acquisitions in the consolidated figures and 225 million is the result of organic growth.
For further details please visit www.kvws.com
(source: Volker Wessels Stevin)
