DHV Group financial results

22 August 2008, 1:26pm

Amersfoort, the Netherlands, 22 August 2008

DHV posts strong first-half results

· Operating result grows 42% to €10.4 million
· Net turnover increases by 17% to €217 million
· Prognosis full year 2008: over 10% growth in turnover

DHV firmly on course

Consultancy and engineering firm, DHV Group looks back at a good first-half of 2008. The company's growth continues, along with substantial improvements in its results. The 42% increase in operating result was achieved virtually Group-wide. The improved margin is particularly noticeable in the African and North American regions. The most striking results in the Netherlands were achieved in the water and environmental markets. In line with this growth in results, DHV increased in turnover (up 17% to € 217 million) and added value (up 14% to € 159 million). The growth was almost entirely organic.

Strategy

DHV's focus on sharpening its profile in expertise positions and service provision is bearing fruit. New members that have joined the Group in the past six months include the Dutch firm Infocus (construction management), Turgis in South Africa (mining consultancy) and Poland’s Hydroprojekt (water management). DHV expects the positive impact of these new members to be visible in the second half of the year. In addition, the company is focusing on large countries with a favourable economic outlook, such as Poland, China, India and South Africa, as well as strengthening its position in North America.

Making a contribution to the sustainable development of our living environment is central to DHV projects. In its 2007 Corporate Responsibility Report, DHV was the first consultancy and engineering group in the Netherlands to report in conformance with the GRI (Global Reporting Initiative) guidelines, including external review.

DHV Group invests in innovations, working together with knowledge institutions and partners, and continuously exchanges knowledge throughout the organisation. Local Delivery of Global Solutions offers the company’s clients customisation. An example is the Dutch Nereda® waste water treatment technology. In co-operation with the Dutch Foundation for Applied Water Research (STOWA) and the Delft University of Technology, this DHV technology is being developed further for an application at the Epe sewage treatment plant in the Netherlands in 2009. Portuguese and South African DHV engineers already led the way this month when they completed the first full-scale sewage treatment plants based on Nereda® technology.

Looking ahead

Although global economic conditions, particularly the credit crunch and the strong euro, will slow down the company’s organic growth, DHV expects to see its turnover for the year increase by at least 10%, and to improve its profit margin. In order to establish a better risk spread, the company aims for faster growth in its private sector activities. The biggest challenge will be to recruit sufficient qualified personnel, particularly in the Netherlands, Poland, the United States, Canada and South Africa.

Selected projects acquired in first-half of 2008

* Phase 2 of the Indonesia Sanitation Sector Development Programme. In co-operation with local and international partners, DHV provides institutional, policy and technical support. The program will result in improved sanitation facilities for four to five million Indonesian citizens.
* DHV’s subsidiary NACO has been commissioned to design long-term development plans for the international airports of Damman and Riyadh in Saudi Arabia. The capacities of which will respectively be 20 and 45 million passengers per year.
* DHV’s Canadian partner Delcan is providing design, build and project management services in a joint venture for the 8.6 km extension of Toronto’s Spadina Subway line, comprising the addition of six more stations.
* SSI, DHV’s South African operations, is part of a consortium that has been awarded site supervision of two dams as well as the underground machine and transformer complex for the new Ingula hydro-electric power plant (1332MW) on the border of KwaZulu-Natal, South Africa.
* Strengthening of the dike line Amsterdam-Durgerdam-Uitdam-Monnickendam-Volendam-Edam. DHV is responsible for developing the plan, with respect for people, animals and the typical Dutch landscape.
* DHV subsidiary Infocus is project manager for the temporary accommodation of the Delft University of Technology’s Faculty of Architecture, which was displaced by fire. The faculty is due to relocate to the university's former main building on 1 September 2008.
* The city of Nijmegen is outsourcing its asset management. DHV will be responsible for the technical management of 650 buildings.
* DHV will be supporting the Directorate-General of Public Works and Water Management until year-end 2010 with a front-office and back-office to answer questions concerning noise, soil, air and climate; particularly as related to infrastructure planning studies.

www.dhv.com

Geo: International