In the first six months of this year Grontmij realised a result after tax of 5.7 million (2004: 4.6 million). The operating income in the first half year reached 210 million (2004: 241 million). The 2005 outlook is unchanged: further recovery of profitability.
From the financial year 2005 onwards, Grontmij prepares its annual accounts in accordance with IFRS.
Operating income and result
Grontmij's operating income for the first six months of 2005 amounted to 210 million (2004: 241 million). The operating income from continued operating activities remained at a virtually constant level at 182 million (2004: 183 million). The operating income from discontinued and available-for-sale operating activities dropped by 30 million to 28 million (2004: 58 million). In the first six months of 2004 the operating income from discontinued and available-for-sale operating activities was positively affected by approximately 30 million, due to the completion of one real estate development project. The result after tax in the first half of 2005 rose to 5.7 million (2004: 4.6 million). This brings the result after tax per share to 1.38 (2004: 1.11). The margin for interest and tax for continued operating activities in the first half of 2005 was 4.3% (2004: 2.7%). For discontinued and available-for-sale operating activities this amounted to 0.3% (2004: 2.9%).
Financial development of Consultancy & Engineering
The operating income from Consultancy & Engineering in the first half of 2005 was 170 million (2004: 164 million). The margin for interest and tax for Consultancy & Engineering in the first half of 2005 was 5.3% (2004: 3.2%). Productivity in the first six months of 2005 was higher than in 2004.
Balance sheet and financing
The balance sheet total as at 30 June 2005 has increased in comparison with year-end 2004 by 8% to 353 million (year-end 2004: 328 million). The ratio group equity/balance sheet total decreased to 25% (year-end 2004: 28%). The increase in the balance sheet total is virtually entirely attributable to the discontinued and available-for-sale operating activities.
The restructuring of Consultancy & Engineering has been more or less completed. The objective of a structural reduction in costs of 15-20 million annually from 2005 onwards (excluding autonomous cost increases), will be fully realised in 2005.
Excluding non-recurring income and expenditure, Grontmij expects a further recovery of its profitability in 2005 in relation to 2004. Implementation of the disinvestment programme will be continued, particularly where the capital-intensive property development companies are concerned. Grontmij will also continue to expand its regional office network in the urbanised areas of its home markets (the Netherlands, Belgium and Germany) and in its focus countries (Poland, Hungary and the Czech Republic).