Royal HaskoningDHV reports stable 2018 results

Dutch consultancy Royal HaskoningDHV has confirmed a solid year of growth across its global operations. The company saw growth in the UK driven by demand for wind farm construction, in particular.

In recent years, engineering and project management firm Royal HaskoningDHV has been committing itself to an on-going digital transformation. In 2017, the firm launched its new strategy with a clear focus on data and digital. The company has since made a succession of steps to transform its organisation, introduce a new digital way of working, and co-create with clients and strategic partners (like data intelligence lab HAL24K) to deliver a new generation of tech solutions.

This included the July 2018 acquisition of data science company Ynformed, and has continued into 2019 with the addition of UK-based consultancy Lanner. The dual purpose software and consultancy provider possesses a line of simulation software, named WITNESS, which connects physical assets, processes and resources into a single digital model that delivers actionable insights that drive operational and supply chain efficiency.

Thanks in part to Royal HaskongingDHV’s continued drive to promote digital transformation in its company, the firm has reported stable results from the 2018 financial year. According to a release from the consultancy, restructuring and one-off costs were lower than in 2018 at €3.3 million, falling from €4.7 million a year earlier, while the remaining costs relate largely to the firm’s restructuring in South Africa and pension costs in the United Kingdom.

The UK wing of the firm meanwhile saw its performance boosted by Royal HaskoningDHV’s continued its involvement in the development of offshore wind farms on the Dogger Bank. Having been the lead environmental impact assessment and consents advisor, the company is now delivering an equivalent role in the Dogger Bank Wind Farms plan for construction. Each of the three projects will see the installation of up to 200 wind turbines, powering approximately 850,000 homes annually with clean renewable energy.

In terms of the firm’s global financial performance, the company’s operating income rose by €6.2 million to sit at €614.8 million in 2018. Unfortunately, the firm’s order book ended at €306 million, declining from  €341 million in 2017, due to disappointing sales, especially in Industry & Buildings and in South Africa. However, the firm’s free cash flow was €17.4 million despite investments and acquisitions, with an equity ratio of 48%. As a result, the business remains in a healthy financial position, with an operating margin of 4.2%.

Looking forward, Erik Oostwegel, the CEO of Royal HaskoningDHV, said the firm expects growth in two of its four main markets. In the Netherlands and Indonesia it anticipates a healthy performance in 2019, but uncertainty characterises its developments in the UK and South Africa.

Oostwegel explained, “In the UK this is due to Brexit and in South Africa it’s because of the upcoming elections after which we expect market conditions will ease and investments will increase. We have a great team, the right processes in place and sound long-lasting client relationships. Our focus on data and digital will continue in 2019, both internally, with clients and partners, and through strategic acquisitions. We look forward to making the coming year a success and driving forward in our mission to enhance society together.”