Jan de Ruiter, Chairman of the Management Board
“Our strong results over 2016 once more underline the strength and resilience of our operational model which is based on local leadership positions of our operating companies. Most of our segments took advantage of higher volumes and improved market conditions, leading to an increase in both revenue and EBITDA, whereby our overall EBITDA margin increased by 20 basis points to 4.6% and our return on capital employed increased by 420 basis points to 17.6%.
This was achieved despite the impact of an unfavourable exchange rate development with respect to our UK activities and delays in the execution of projects as a result of the wildfires in Fort McMurray (Alberta, Canada).
Our solid 2016 financial results are based on a very good mix of smaller & local projects, larger & more complex projects and selective multi-disciplinary projects. As a result of a strong cash conversion, our net cash position increased by € 251 million to € 189 million at year-end 2016.
Total equity, including the result for the year, increased to over € 1.1 billion at year-end 2016, resulting in a solvency ratio of 31.5%. In addition to that, in December 2016 we agreed a 5 year, € 600 million stand-by revolving credit facility with a syndicate of international banks.
And finally, we are all very pleased that we have finished the year 2016 with a record high order book of € 8.2 billion.
VolkerWessels has a long and rich history, characterised by entrepreneurship, professionalism, passion and innovative power. This is the DNA of our company and is the bedrock of the success of VolkerWessels.”
The financial information as now presented in this press release is not comparable to the financial information previously published by VolkerWessels for any financial period due to the following:
Restructuring of the legal structure and inclusion of the Matex real estate portfolio;
A conversion from NL GAAP reporting to IFRS;
In July 2016, VolkerWessels completed the transaction whereby its offshore activities were divested to Boskalis. The resulting book profit of € 38 million in 2016 and the operational profits relating to the offshore activities in 2015 are accounted for under discontinued operations;
In December 2016, 94.88% of Kondor Wessels Holding GmbH (“KWH”), a construction and real estate development company active in major cities in Germany, was acquired. This acquisition has been treated as a transaction under common control and KWH’s results have been retrospectively consolidated with VolkerWessels’ results from 1 January 2014.
The corresponding 2015 figures were adjusted accordingly.