Good first half of 2005: EBITA rose by 18%

Tuesday, 16. August 2005 07:15

René van der Bruggen: 'great performance'
René van der Bruggen, chairman Board of Management of Imtech N.V: 'In
the first half of 2005 Imtech has made good progress, despite
unfavourable market conditions in particular the Netherlands and the
technological market segments ICT and telecoms. An EBITA growth of
18% and a growth of the net result with 10% is a great performance.
Our positions in Spain and UK have been strengthened further through
good acquisitions. Imtech is on its way to become a prominent player
in the market of technical service providing also in these countries.
Imtech clearly is on route to achieving further growth and reaching a
strong position in Europe conform its strategic goals. The
developments in the first half-year of 2005 make it possible to
confirm our forecast given in March 2005, of increase of the
operating results. Imtech's portfolio provides confidence for the

Further growth
Imtech N.V. (technical service provider in Europe) had a good first
half of 2005 with both EBITA and net result increasing, revenues and
turnover showing further growth and the order portfolio reaching a
record high for Imtech.

In the Benelux both Belgium and Luxembourg achieved good results but
in the Netherlands the result was slightly down. Germany, the UK and
Spain achieved a good increase in result. The ICT & Technology
activities also achieved a higher overall result. In every cluster
there was a further increase in the activities in the field of
technological upgrading, renovation, maintenance and management.

In addition, in line with the Imtech strategy, the following
companies were acquired during the first half of 2005:
- In April: Mavisa (Mantenimiento y Montaje de Tuberiás), a Spanish
industrial technical service provider (2004 turnover around 100
million euro, 700 staff);
- In June: Goodmarriott & Hursthouse, a multidisciplinary technical
service provider in the buildings and industry markets in the UK
(2004 turnover around 35 million euro, 220 staff);
- Various Belgian infrastructure maintenance contracts of Arduco
(total annual turnover around 7 million euro, 50 staff).

The purchase price of these acquisitions amounted to 50.9 million
euro, of which 35.7 million euro was accounted for as goodwill. This
purchase price includes a maximum earn-out of 8.5 million euro, which
will be paid afterwards depending on realisation of goals previously
set. The fixed part of the purchase price has been paid in cash.

Results for the first half of 2005
As of the first half of 2005 Imtech is obliged to prepare its
financial reports in accordance with IFRS (International Financial
Reporting Standards). All amounts stated in the half-year report
(including the comparable figures for 2004) have been calculated on
the basis of the new reporting regulations. The transition from the
old accounting principles to IFRS is dealt with in a separate

EBITA rose by 5.6 million euro to 36.2 million euro (first half of
2004: 30.6 million euro), an increase of 18.3%. Net result rose by
1.9 million euro (10.2%) to 20.5 million euro. Revenues rose by 117
million euro to 1,063 million euro, an increase of 12.4% (first half
of 2004: 946 million). Turnover rose by 7.2% to 835 million euro
(first half of 2004: 779 million euro). The order portfolio increased
by 10.3% to 2,660 million euro - a record high for Imtech (first half
of 2004: 2,411 million euro). These figures prove that, despite
conditions in several markets sometimes being unfavourable, Imtech
has continued on the road to further growth in line with its
strategic goals.

Earnings per share before amortisation rose from 0.73 euro to 0.82
euro (an increase of 12.3%), based on the average number of issued
shares during the first half of the year.

Here follows a more detailed description of progress in each of the
three clusters:
- Benelux
- Germany / UK / Spain
- ICT & Technology

Imtech's overall development in the Benelux was less positive. With
revenues increasing by 14.4% to 365 million euro (first half of 2004:
319 million euro) and turnover decreasing by 8.5% to 268 million euro
(first half of 2004: 293 million euro), EBITA was 10.4 million euro
compared with 11.2 million euro in the first half of 2004 - a drop of
7.1%. This cluster's order portfolio rose by 9.3% to 952 million euro
(first half of 2004: 871 million euro). In Belgium and Luxembourg,
where the market was stable, Imtech continued to achieve growth. In
the Netherlands conditions in the technical services market remained
difficult with fierce price competition. As a result, margins were
below the desired level. Because Imtech anticipated this situation
several years ago by focusing on early involvement in projects (for
example through Public Private Partnership) and concentrating its
activities on several growth segments (care, integral security and
education), in the Netherlands there was only a slight reduction in
the achieved result.

In Belgium and Luxembourg Imtech developed positively. In the
buildings market Imtech was involved, as the technology partner, with
an over 75,000 m² real estate development in Antwerp. In the industry
sector Imtech was involved with an expansion of pharmaceutical
company Pfizer, with an upgrading for Total Fina and with various
automation projects for Volvo and Opel. The share of technological
renovation and maintenance orders increased in part due to additional
real estate projects for the City of Brussels. Imtech also developed
well in Luxembourg. One new order was for the technology in the
21,000 m² Espace Petrus office - Le Dôme.

In the Netherlands Imtech saw a slight recovery in the buildings and
industry markets with an increase in demand, especially for
technological renovation, upgrading and expansion in both the private
and public buildings sectors. Although the margins are still lower
than a few years ago, in the first half of 2005 orders worth nearly
50 million euro were acquired including the head offices of Essent
and NAM and the County Hall of the province Overijssel in Zwolle.
This market trend was also apparent in the industry sector. One of
the orders acquired was for an upgrading at Friesland Coberco Dairy
Foods. Good progress was made in the growth markets care, integral
security and education, where Imtech - which has its own competence
centres with specialist domain expertise in these markets - can offer
customers added-value. There was also further growth in the market
for technical maintenance and management, for example with a
maintenance contract for buildings of the Department of Public Works.

The Dutch infrastructure market can be classified as extremely
'keen'. Nevertheless Imtech managed to acquire orders for, among
other projects, the expansion of a traffic management centre, the
implementation of a national information system in the field of
traffic management and the renovation and upgrading to NATO standards
of the total technical infrastructure at Leeuwarden airport. In
Belgium various infrastructure maintenance contracts in the provinces
of Antwerp, Vlaams Brabant and Limburg were acquired from Arduco.
This has strengthened the position in the infrastructure market in

Germany / UK / Spain
Imtech's performance in the Germany / UK / Spain cluster was
excellent. This was partly thanks to the acquisition of the Spanish
company Mavisa. EBITA rose by a substantial 41.7% to 20.4 million
euro compared with 14.4 million euro in the first half of 2004.
Revenues rose by 13.6% to 459 million euro (first half of 2004: 404
million euro). Turnover increased by 22.5% to 386 million euro (first
half of 2004: 315 million euro). The order portfolio showed a healthy
development by increasing 6.6% to 1,188 million euro (first half of
2004: 1,114 million euro). Good progress was achieved in every
Although market conditions in Germany remained difficult, Imtech's
strong market position enabled further growth to be made,
particularly in the field of maintenance and management. Partly in
the light of the circumstances on the office market, which can be
classified as 'moderate to bad', Imtech concentrated more, and
successfully, on complex and large-scale buildings projects such as
hotels, stadiums and expo centers. Examples include orders for
technological solutions in the Holiday Inn Hotel in Munich and new
multifunctional (ice) stadiums in Mannheim and Dusseldorf. Imtech
also focussed more on the industry sector where the emphasis was on
offering total technology solutions, for example for a Volkswagen
distribution centre and a new assembly hall for Bosch. Moreover,
Imtech was successful in the field of Energy Contracting where Imtech
takes multi-year total responsibility for the energy supply and the
installation and upgrading of the technology as well as the total
maintenance and management. This saves customers a considerable
amount in energy costs. An award for this was received from
Rheinische Kliniken - a care centre in Bonn. The Energy Contracting
agreement signed last year with semi-conductor manufacturer Infineon
was expanded. From Germany Imtech, together with existing Western
customers, is becoming increasingly active in several Eastern
European countries. Imtech took care of the total contracting
(buildings and technology) in a large number of Selgros'
cash-and-carry establishments in Poland and Rumania. In these
countries Imtech was also responsible for the technology in two
cigarette factories for BAT (British American Tobacco).

In the UK Imtech performed well. The broad scope of the activities in
the Greater London area offers continuity and makes further growth
possible. This enabled Imtech to profit from the improving retail,
(extremely) luxurious apartment and hotel markets. For the Makro
supermarket chain, for example, Imtech was responsible for the total
technology in a new establishment. Imtech's success in the field of
water and waste-water purification continued with a multi-year
contract being received for South Staffs Water. The acquisition of
Goodmarriott & Hursthouse has strengthened Imtech's position in the
UK technical services provision market. As well as occupying a strong
position in the Greater London area, Imtech is now also one of the
larger technical service providers in the Midlands region. This has
greatly expanded the geographical field of operations. Goodmarriott &
Hursthouse is responsible for some of the technology in the new
Arsenal Emirates football stadium which is currently under

The picture in Spain was also positive. In the buildings sector the
focus shifted successfully from the shrinking office market to
hotels, shopping centres, museums and expo centers. Orders included
the technology in shopping centres 'Plenilunio' in Madrid and 'Vialia
Málaga' in Málaga. In Barcelona Imtech acquired orders for technical
solutions in the new 'Paseo de Gracia' hotel and the large 'Fira'
exhibition. Imtech was also successful in the industry market where
orders were received from, among others, Renault and pharmaceutical
company GlaxoSmithKline. To improve its position in the growing
Spanish industrial market, Mavisa was acquired. Mavisa has a strong
position in the Spanish market for industrial technical services
provision. Although the activities are concentrated in the
(petro)chemical and steel industries, Mavisa is also active in other
industry sectors and its customers include major national and
international concerns such as Repsol-YPF, Cepsa, BP, GE Plastics,
Aceralia (Grupo Arcelor), BASF and Acerinox. With the acquisition of
Mavisa, Imtech has become a major player in Spain with an revenues
totalling around 150 million euro.

ICT & Technology
This cluster has developed less positively in certain areas. Although
progress was slower than expected in ICT and Telecom, further growth
was achieved in Technology and Marine. On balance the result was
higher. The EBITA was 10.6 million euro compared with 9.5 million
euro in the first half of 2004, an increase of 11.6%. At 239 million
euro revenues was 7.2% higher than in the first half of 2004 (223
million euro). Turnover raised by 5.8% to 181 million euro (first
half of 2004: 171 million euro). The order portfolio grew by a robust
22.1% to 520 million euro (first half of 2004: 426 million euro).

In the still difficult Dutch ICT market Imtech's result improved
slightly but not as much as anticipated. Performance was particularly
disappointing in the field of Software Services, despite orders from
customers such as Hoek Loos and agricultural and horticultural
organisation ZLTO (Zuidelijke Land- en Tuinbouw Organisatie). By
contrast, the activities in the field of project management and
consultancy performed up to expectations. BrightHouse and Eniac,
companies acquired last year, developed positively within Imtech. For
example, a new ERP system (Enterprise Resource Planning) for
accounting, project management, stock management, fault processing
and the digital management of the field staff was supplied to water
company Vitens. The ICT infrastructure activities (business
telephony, data communications, ICT networks and server technology)
maintained their strong market position. Imtech developed
particularly well in the education and care sectors.

In the telecoms market the activities in Belgium, Germany, the UK and
Scandinavia developed well. Projects for which Imtech, together with
strategic partner Juniper, was responsible included the technology
for Dante - the university knowledge network in the UK. In the
Netherlands Imtech had problems with interruptions in the order
stream. Imtech Telecom concentrated exclusively on the development of
a 'knowledge company with added-value'. This suited the market which
is rapidly moving towards the full integration of TV, internet, fixed
and mobile telephony (GSM and UMTS).

In the Technology market the process technology related activities
developed very well internationally. The activities in the field of
access and fire fighting technology also developed well. Integral
security is high on the agenda of many organisations. Major orders
included the access control in football club FC Groningen's new
Euroborg Stadium and the Philips Hightech Campus. The parking
activities showed the first signs of recovery after a lean year in
2004. In Belgium the position was strengthened and in the Netherlands
a major score was the order for the installation of the total parking
technology in de Mosae Forum parking garage in Maastricht.

Imtech's marine activities once again showed a positive picture. The
trend towards the further internationalisation of the activities is
continuing unabated. The co-operation with HST, which was acquired
last year, is proving very fruitful. In addition to substantial
orders in Germany, Imtech has strengthened its position in the
Chinese maritime market both autonomously and via a joint venture of
HST. Partly thanks to the growing international demand for oil and
gas, the position in the offshore market has also strengthened. In
addition, Imtech strengthened its position in the North-West Europe
coastal shipping market. One large order was for the technological
renovation of the platform automation on board four of the Stena
Line's high-speed ferries.

Capital and financing
On 30 June 2005 the group funds : total liability ratio was 21.0%
(end of 2004 21.4%).

Cash flow from operational activities was 25.4 million euro negative
compared with 33.6 million euro negative at the in the first half of
2004. Cash flow from financing activities was due primarily to the
dividend payment (1.07 euro per share).

During the first half of the year 184,495 shares were sold by the
Company for 3.7 million euro. The sale was related to the exercise of
staff options.

At the end of June 2005 the Company's net debt position was 28
million euro (end of June 2004 a net cash position of 41 million
euro). This reduction was related to the dividend paid out (1.07 per
ordinary share), the purchase price paid for acquisitions and the
greater need for operating capital due to the growth of the
activities. Liquid assets amounted to 198 million euro (end of June
2004: 261 million euro).

On 30 June 2005 the staff numbered 14,087 people compared with 12,836
at the end of 2004, an increase of 9.7%. The main cause of this
increase was the acquired companies. Because Imtech's customers
increasingly offer added-value, the need for staff with a high level
of technical training is rising. The growing order portfolio is also
creating a need for more staff.

The total value of the assets and liabilities relating to companies
acquired in the first half of 2005 has been provisionally determined
and may be due to adjustment if the division of the purchase price so
requires. Since their acquisition, the companies concerned realised
revenues of 26.1 million euro. Their annual turnover amounts to 142
million euro.

With its strategy - aimed at further growth, both organic and through
acquisitions - Imtech strives for higher added-value with a further
European expansion. On the one hand through the acquisition of
high-value services with good margins in information and
communications technology, design and consultancy, and technical
maintenance and management. On the other hand through strengthening
its position particularly in the UK, Spain and Eastern Europe. The
combination of an extensive offer of high-tech skills, a horizontal
and flexible organisation which is 'close' to the market and strong
market positions, means Imtech is well positioned for further growth
in the future.

Based on developments in the first half of 2005, the Board of
Management maintains its forecast of March 2005 that the operating
result will increase in 2005.

Further information

Public Relations
Imtech N.V.
Mark Salomons
Company Secretary
Telephone: + 31 182 54 35 14

Investor Relations
Imtech N.V.
Kees van Rooden
Financial Director
Telephone: + 31 182 54 35 04

Imtech N.V. is an European technical service provider in the field of
information & communication technology and electrical and mechanical
engineering. With approximately 14,000 employees, Imtech realises an
annual turnover of more than 2 billion euro. Imtech holds strong
positions in the buildings, industry, marine, infrastructure and
telecoms markets in Belgium, UK, Germany, Luxembourg, the Netherlands
and Spain. Imtech shares are listed on the Euronext Stock Exchange
(Amsterdam), where Imtech is included in the Amsterdam Small Cap
Index (AScX) and the Next 150 index.

Press conference
On 16 August 2005 a press conference will be organised from 10.00
hours a.m. in the Nassau Room of the Hilton Hotel. Media will be send
a separate invitation, but they can also apply by contacting
Jacqueline van Wijk: +31 6 51 37 19 66.

Analysts' meeting
On 16 August 2005 an analysts' meeting will be organised from noon in
Ball Room A of the Hilton Hotel. Financial analysts have been invited
separately, but it is also possible to attend the analysts' meeting
by contacting Astrid Marré: +31 6 11 39 69 98.

Webcast (live broadcast via the Internet)
The presentation for financial analysts is in the Dutch language and
will be broadcasted live on our website ( from noon. If
you are not able to follow the live transmission, then after 5.30
hours p.m. it is possible to see this webcast from our internet

Financial calendar
- 28 February 2006 - Publication of 2005 annual accounts (before
opening Stock Exchange)
- 28 February 2006 - Press conference and analysts meeting 2005
annual accounts (Hilton, Amsterdam)
- 11 April 2006 - General Meeting of Shareholders (De Doelen,

Photographs of the presentation of the half-year results of Imtech
will be available to the media through Fotopersbureau Dijkstra. For
more information phone or mail to: Fotopersbureau Dijkstra,
telephone: + 31 297 56 68 83, E-mail:

Project photography
The following high-resolution photographs of half-year 2005 projects
can be offered to the media via e-mail. For further information:
Imtech Corporate Communications, telephone: +31 182 54 35 25,

Technology in new Arsenal Emirates Stadium, London
Arsenal Emirates realizes its new stadium in London. The hyper-modern
stadium, which is nearly 42 metres high and holds over 60,000
spectators and 150 VIP-boxes, will be been built on a 17-hectare
site. Goodmarriott & Hursthouse, which has been acquired by Imtech,
is responsible for a part of the technology in this new stadium.

Energy efficient offices 'Skyper', Frankfurt am Main
In Frankfurt am Main Imtech looks after the total technical
infrastructure in the 135 metres high 'Skyper', office tower - one of
the highest and most energy efficient buildings in the city. The
order is worth over 35 million euro.

For tables (pdf), click here: Imtech halfyear accounts 2005 tables
For clarification about IFRS (pdf), click here: Imtech halfyear
accounts 2005 clarification IFRS
For the complete press release (text and tables, pdf), click here:
Imtech halfyear accounts 2005 press release incl. tables
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