Heijmans on track for good annual results
Highlights:
- Higher revenue and underlying EBITDA in Q3 compared with
2019
- Number of homes sold 1,581 (through 31 October 2020)
- Order book at healthy level of € 1.9 billion in Q3
- Heijmans adjusts 2020 outlook upwards, revenue and underlying
EBITDA 5-10% higher
- Cash position remains strong
Ton Hillen, Chairman of the Executive Board /CEO
Heijmans:“We are on track to record good annual results in
2020. Higher revenue and underlying EBITDA have improved our
outlook for 2020. Our Property Development and Infra business units
delivered particularly strong performances. The outlook for the
second half of the year is good and our well distributed order book
remains healthy at € 1.9 billion. Just as I did earlier this year,
I am looking to the future with confidence. Our mission – the
creation of a healthy living environment – remains our guiding
principle. We want to deliver better, smarter and more sustainable
work, with a long-term perspective. The current Covid-19-related
developments remain uncertain, but despite deteriorating economic
forecasts, our clients seem to be keeping their investment budgets
available for these themes.”
Property Development Property Development has
maintained the growth seen in the first half of the year. Both
revenue and profit came in higher in the third quarter. The number
of homes sold through 31 October 2020 stood at 1,581 (versus 1,577
in 2019). The demand for homes remains strong. There is still too
little planned supply, due to a lack of locations and production
delays – as a result of slower building permit procedures. There is
still a great deal of confidence in the long-term prospects of the
housing market.
The new-build Maanwijk project in Leusden is one of our
showcases on the healthy living environment front. In Q3, the
design phase of the Maanwijk project was awarded the NL
Gebiedslabel (area label) A by NL Greenlabel, the specialist in
measurable sustainability improvements in the living environment.
Label A is the highest level that Greenlabel awards. In
West-Brabant, Heijmans signed an agreement with the Alwel housing
corporation for the large–scale maintenance and renovation of 2,000
homes in Breda, Etten-Leur and Roosendaal.
Project Fenix I in Rotterdam continues to win recognition: The
residential complex has been nominated for the Gouden Piramide
(Golden Pyramid) 2020, won the Dutch National Staalprijs 2020
(category residential building) in Q3 and came in first in the BNA
Beste Gebouw van het Jaar (best building of the year) 2020
(category Liveability & social cohesion). At the Architectenweb
Awards the complex also won first prize. Last but not least there
is an international trophy in Q3: the ULI Europe Award for
Excellence.
At the 2020 National Staalprijs awards, the light artwork ‘De
Zwerm’ in Eindhoven also won the first prize (category
Characteristic steel construction elements).
Building & Technology In Q3, the picture at
Building & Technology remained largely the same as in the first
half of 2020. Residential Building and Services delivered solid
performances. As in the first half of the year, non-residential
projects continue to be the hardest hit by delays and inefficiency
as a result of the Covid-19 outbreak. This was particularly true
for the NACH project, which is now into the finishing phase.
The Kunstenpand (arts building – theatre and library) delivered
in the spring of 2020 is an important part of the Hart van Zuid
area development, the area around Ahoy and Zuidplein in Rotterdam.
Her Majesty Queen Máxima opened the theatre in mid-September of
this year. This new building offers Theater Zuidplein the
opportunity to expand to 120,000 visitors a year. Another part of
the Hart van Zuid project is the formal delivery of the prestigious
Ahoy International Congress Centre, which will take place in
November.
Heijmans is also set to renovate a building for the University
of Maastricht to create a large practise lab for students. In Q3,
we will also deliver a section of the offices of the Dutch
Government’s Real Estate Agency (Rijksvastgoedbedrijf) on Laan op
Zuid in Rotterdam.
InfraOur infra business unit once again
delivered a strong performance. We make solid progress on a number
of projects, including the A1 between Apeldoorn and Azelo. In this
project, Heijmans is working on the widening of more than 40
kilometres of the motorway between Twello and Azelo, for the
Ministry of Public Works and Waterways. In addition, one of the
longest land tunnels in the Netherlands (Gaasperdammertunnel) has
now been opened in phases by Minister Cora van Nieuwenhuizen.
In the coming years, Heijmans will be working on the
reinforcement of the Lekdijk (a dike and road on the River Lek).
The project covers a length of 55 kilometres from Amerongen to
Schoonhoven and will stimulate sustainable innovation. As part of
the Innovation partnership of our client, the Stichtse Rijnlanden
Water Board, Heijmans is working with GMB and de Vries & van de
Wiel. Together with these parties, Heijmans has already set up the
Emission Free Infra Network (Emissieloos Netwerk Infra - ENI) to
accelerate the energy transition.
In Breda, Heijmans scored a worldwide scoop with a pilot for an
innovative half-open asphalt mix on a porous foundation. The
so-called Klimaflex asphalt has been created for application in
inner-city environments to combat heat stress in the environment
and ground water depletion. This is in line with Heijmans’
sustainability strategy, which includes climate adaptation,
circular building, energy and biodiversity.
Since Q3, the majority of Infra operations meet all requirements
for step 4 of the so-called Safety Culture Ladder
(Veiligheidsladder). This is one of the ways that clients assess
how much progress a company is making in the field of safety. The
aim of this national assessment method is to reduce the number of
work-related accidents.
Heijmans CapitalHeijmans has reached an
agreement with 3i Infrastructure on the sale of its equity
interests in the Joint Venture Heijmans Capital. Heijmans Capital
is an investment vehicle holding equity interests in four PFI/ DBFM
projects. Given that in all four projects the availability
certificate has been received and that the projects are currently
in a long-term management and maintenance phase, Heijmans has
decided to sell its 20% equity interest in Heijmans
Capital.
Following the transaction, 3i Infrastructure will own 100% of
the equity interest in Heijmans Capital. Completion of the
transaction, which is subject to certain conditions including
customary third-party approvals, is expected to take place in Q4
2020. The transaction will generate proceeds of more than € 7
million for Heijmans.
Market developments The impact of Covid-19 on
the Heijmans results has so far remained limited to several large
utilities projects. Our organisation has proven sufficiently
adaptable to continue our activities, but the medium-term impact of
the current developments to our clients’ investment patterns is
still unclear. The government’s new nitrogen emissions plan is
another worrying issue. This might well bring some relief for
residential building, but the current proposals will not solve the
structural problem, especially on the infra front.
Outlook Heijmans has adjusted its outlook for
2020 upwards, and now expects revenue and underlying EBITDA to be
between 5% and 10% higher. The order book is at a healthy level of
€ 1.9 billion and Heijmans’ cash position remains strong.
About Heijmans Everyone wants clean air, to
live in a nice neighbourhood, to work in a good workplace and to be
able to travel safely from A to B. By making things better, more
sustainable and smarter, Heijmans is creating that healthy living
environment. Jan Heijmans started as a road builder in 1923. Today,
Heijmans is a stock exchange-listed company that combines
activities in property development, building & technology and
infrastructure. In addition to this, we work safely and we add
value to the places where we are active. This is how we build the
spatial contours of tomorrow together with our clients:
www.heijmans.nl/en/
For more information / not for publication:
Media Jeroen van den Berk Spokesman +31 73 543 52
17jberk@heijmans.nl
Analysts Guido Peters Investor Relations + 31
73 543 52 17 gpeters@heijmans.nl
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