Ballast Plc (United Kingdom) continued to underperform. Problems drastically addressed in reorganisation process; Ballast Nedam International (BNI): extra provisions for the completion of a number of running projects. Organisation will be further downsized. Ballast Nedam International will be discontinued as a separate division; focus on the Netherlands and Dredging; Dutch activities show good results as expected; Ballast Ham Dredging makes good profit and the prospects remain excellent.
Ballast Plc in recent years has not developed as expected. This lead to the decision of Ballast Nedam at the end of last year to fully review and reorganise the United Kingdom business. This included the option to no longer pursue the 'two home-market strategy' (the Netherlands and the United Kingdom). This decision has now been taken. We are evaluating all options and will decide within a reasonable time frame how this will be implemented. At the same time we will foster the normal course of business. The problems are restricted to the Southern regions. These problems are drastically addressed. The Northern regions and the PFI (Private Finance Initiative) unit show good results.
Ballast Nedam International
A few running projects needed additional provisions in regard to variation orders, uncertain payments and operational risks.
The ongoing reorganisation of Ballast Nedam International is on schedule. The organisation is being further downsized. The expertise will be integrated in Ballast Nedam Infra. As a result thereof BNI will be discontinued as a separate division.
Focus on the Netherlands and Dredging
Improvement of the risk profile is one of the spearheads of Ballast NedamÂ's strategy. The course will therefore be changed radically. The two home-market strategy has not delivered the anticipated returns and is being abandoned. The international projects division Ballast Nedam International has unique expertise, but the risks connected with the international projects are of such magnitude that Ballast Nedam can no longer afford to internationally operate on a large scale. This is also a clean break with the past: Ballast Nedam will in the future only restrict its international focus to a few specialised markets.
Ballast Nedam Infra (Infrastructure), Ballast Nedam Bouw en Ontwikkeling (Building and Development) and Ballast Nedam Industrie en Toelevering (Industry and Supply) have all contributed according to plan.
The infrastructure market in the Netherlands will show solid growth and this allows to put the specific knowledge and experience of Ballast Nedam to excellent use.
The various units within the Building and Development division are becoming a very good team, thus creating synergy advantages and this is well received by the clients.
At Ballast Nedam Industrie en Toelevering a company was acquired and a company was sold.
Ballast Ham Dredging
The integration of the two former dredging companies (Ballast Nedam Dredging and HAM Dredging) is proceeding according to plan. Under the new flag several large projects have been acquired. The results are good and the prospects remain excellent.
It is expected that 2002 will show a substantial loss, which according to our expectations will not exceed the first half-year result. Considering potential effects of the restructuring in the international business during the years beyond 2002 we may consider further provisions in the second half-year.
Further information will follow later in the year.
(source: Ballast Nedam)