Heijmans has successful year

Netherlands-based construction company Heijmans has reported positive results in all its operating sectors.

Revenue for the company was up 13% in 2018, giving the group a total turnover worth €1.58 billion. Net profit was down 9% from 2017, however this was due to some discontinued operations and a one-off sale the previous year. With the discontinued operations excluded along with the sale from the 2017 results, the company would have made a loss of €9 million that year. In 2018, the company made a net profit of €20 million from its remaining operations.

In terms of building and technology, the company has constructed a single centralised management team which incorporates residential building, multi-functional high-rise residential construction, with non-residential projects and services, all into one sector since 2018.

Building and technology is reported to be in line with its targets, and as a result the combined revenues increased to €726 million in 2018, from €537 million in 2017.

The company’s order book is worth €2 billion with residential building revenues were reported to be €440 million and made up over a quarter of the order book at the end of 2018.

EBITDA (earnings before interest, tax, depreciation and amortization) was also higher than when it lost €1 million in 2017, reflecting a positive figure of €16 million in 2018.

Heijmans’ Infra division was said to have been focused on the predictability of projects with greater concentration on core competencies and risk management.

Infra recorded revenues of €654 million in 2018, slightly less than the €680 million achieved in 2017. The division also only managed to hold half the value of its 2017 EBITDA, with a total of €8 million in earnings being achieved.

The termination of certain contracts created issues for the sector, and the need to write off €10 million of bad debts in its third quarter weakened the arm’s position. However, Heijmans and fellow Dutch contactor Bam have submitted a proposal to create a joint asphalt company to the Dutch Authority for Consumers & Markets.

Ton Hillen, CEO of Heijmans, said, “For the first time in a number of years, all segments made a positive contribution to our operating result. The strong demand for homes translated into a significant improvement in profit for our property development and residential building operations.”