Published: 07:30 CEST 28-07-2015 /GlobeNewswire /Source: Imtech / : IM /ISIN: NL0010886891
Trading update Royal Imtech
Performance in the first half year of 2015
Revenue, order intake and operational working capital satisfactory
Operational EBITDA lower compared to prior year
Non-operational costs significantly lower compared to prior year
Net finance result significantly improved compared to prior year
Constructive and advanced dialogue with financiers
Alvarez & Marsal engaged and Chief Restructuring Officer appointed
Return to profitability takes more time than anticipated; achieving positive operational EBITDA in 2015 will be very challenging
Royal Imtech provides a trading update on the basis of preliminary unaudited figures for the first half year 2015 ahead of its final reviewed half year figures announcement on August 25th, 2015.
Performance in the first half year of 2015
Revenue for the first six months of 2015 is around a satisfactory €1.8 billion. This revenue is circa 8% lower than last year, which is largely attributable to the planned reduction of the German division. The other Imtech divisions, combined, deliver revenue comparable to the 2014 period.
Order intake for the first six months of 2015 is around a satisfactory 100% of revenue.
Operational EBITDA for the first six months of 2015 will be €45-€50 million negative compared to €25 million negative for the comparable period in 2014. The performance in Germany, the UK, Nordic and Traffic & Infra business have declined and the performance in Benelux, Spain and Marine business have improved.
Non-operational costs in the first half year were significantly lower compared to comparable period in 2014.
Net finance result improved significantly for the first six months of 2015 compared to 2014. Net finance result in Q2 2015 remained stable compared to Q1 2015.
Operational working capital came in at around a satisfactory 0.5% of revenue reflecting a normal seasonal pattern.
Net interest-bearing debt at the end of June 2015 was approximately €545 million. Imtech's total credit facility is around €700 million. Of the total available liquidity of circa €150 million, €50 million is committed liquidity in support of joint ventures and guarantees.
Constructive and advanced dialogue with financiers
To address the slower than anticipated return to profitability, Imtech and its financiers are in a constructive dialogue about all possible long term structural solutions and are in a constructive and advanced dialogue about an amendment to the financing arrangements including an increase in liquidity headroom for the group and its subsidiaries. A liquidity facility of €75 million, in addition to the existing facility of €700 million, has been agreed to, subject to credit committee approval of certain financiers.
Imtech agreed with its main financiers, subject to credit committee approval of certain financiers, to utilise a portion of its available guarantee headroom to facilitate such liquidity facility. The liquidity facility will be available until the end of December 2015 in two tranches of €37.5 million. The first tranche is expected to become available within the next week. The second tranche will be available within four weeks, provided that certain conditions are met. Final processing and signoff on this amendment of the financing arrangements is expected within a week and Imtech will update the markets in due course.
Hiring of Alvarez & Marsal and appointment of a Chief Restructuring Officer
In an effort to accelerate Imtech's turnaround, the company has hired Alvarez & Marsal, a leading global professional services firm specialised in providing comprehensive performance improvement, turnaround management and interim management services. Mr. Stefaan Vansteenkiste, an experienced turnaround manager and country head of Alvarez & Marsal Benelux, will assist and complement Imtech's management board as Chief Restructuring Officer effective the second half of August. Mr. Vansteenkiste will be responsible for reviewing and overseeing the implementation of Imtech's restructuring and performance improvement initiatives.
Outlook for the rest of the year
Based on the performance of the first half year and an updated forecast for the remaining of the year, Imtech announces that the return to profitability takes more time than previously anticipated. Particularly, this applies to the performance in Germany (challenges in downsizing the business and higher than expected losses in old projects), the Dutch building services business (higher than expected project losses and lower margins) and the water business in the UK (project losses in closure of several larger older contracts and market related start-up delays of new projects). For those reasons, achieving a positive operational EBITDA for the year will be very challenging.
Imtech will report its reviewed results for the first half year of 2015 as scheduled on August 25th, 2015.