This section of our report shows our performance against the economic and financial indicators we have selected for our GRI compliance.
Economic Performance 2009
2009 has been challenging for Grontmij, with a decline in our reported profits after five consecutive years of growth. The 2008 ‘credit crunch’ that became a full-blown global financial crisis, almost overnight, has already made history. At Grontmij, we were not immune but its full effects on our business only became clear in the second half of 2009. After an optimistic first half, with forward order books looking strong, more and more of our clients began to feel the economic pinch. Major, long-term projects were delayed or postponed and our short-term order book came under pressure. However, while performance is strongly influenced by the challenging market conditions, we still were able to achieve:
Total revenue € 800 million (2008: € 844 million), Net revenue € 630 million (2008: € 664 million).
Operating result (EBITA) € 45 million (2008: € 53 million).
Profit after tax € 20.4 million after € 11.7 million restructuring (2008: € 38.8 million).
Operating cash flow € 52.3 million (2008: € 34.5 million), cash conversion 104% (2008: 74%).
Business re-alignment, improved costs structure and cash management create platform for long term growth.
We expect 2010 to be a year when markets stabilise in the first half and pick up slightly in the second half. Our cost reduction plan should realise structural cost savings of € 3-5 million with first effects in the second half of 2010.
Our long term goals are ambitious; especially since we have to absorb the challenges of the current economic. The company will continue to secure and optimise its strong local market positions by lowering the overhead costs and standardising operation models, for example in IT and risk management. Furthermore, Grontmij will focus on cash conversion, lower working capital and improvement of treasury management. In the expectation that growth drivers like climate change, population growth, urbanisation and the expansion of the European Union will increase the demand for our services, we are confident about the long-term goals we have set for the coming five-year time frame (2010-2015).
Throughout 2009, our engagement with both internal and external stakeholders led us also to embed our CSR reporting into our business processes and values. To this end we are in the process of enhancing our reporting of CSR indicators into our financial and risk management reporting pack. In this way our CSR data will gain the rigour of our financial reporting.