Imtech UK has seen its operating margins fall from 3.9% in to 1.6%, according to the publication of latest half yearly results by Dutch parent company Royal Imtech.
Streamlining the engineering services business has led to a 6% reduction in headcount, with staff numbers falling by 222 to 3,174 employees in the first six months of the year.
The results also show that the UK and Northern Ireland business suffered a loss of £1.4m in the second quarter before tax and interest, while during the first six months of 2014 profits dropped from £12 million to £800,000 on sales which were down nearly 25% at £241m.
Imtech’s Dutch parent company has been fighting to get back on track and address major financial financial issues. Royal Imtech also separately announced the sale of its ICT division, believed to include its UK ICT operation in Basingstoke to Vinci Energies.
Commenting on the results, Gerard van de Aast, CEO of Royal Imtech said:
“Today’s announcement is a decisive step forward for the company. The sale of the ICT division combined with a fully underwritten rights issue and significant changes in the financial agreements, such as a step-down in pricing and increased liquidity, will significantly reduce debt and improve the financial structure. The first half of 2014 has been difficult for the company due to market conditions and the uncertainty around our financial position. Management and employees can now focus fully on improvement of operational results and the completion of the turnaround programme."
In 2013, Royal Imtech started a company-wide turnaround programme, putting a new board of management in place, strengthening its supervisory board and installing new management teams in several operating divisions. As a result of the changes, over 70% of senior management has now been replaced.
Gerard van de Aast added:
“Market conditions during Q2 2014 remained challenging in the Netherlands, UK, Finland and Sweden. Within the Dutch industrial businesses, the UK engineering services and water businesses and in Sweden, we noticed continuing longer lead times from customers. During the quarter, some of our operations were impacted by the turmoil and uncertainty among stakeholders regarding our financial position.”
The group said additional restructuring measures would be implemented in the second half of 2014 in light of ongoing challenging market conditions in order to strengthen competitiveness and profitability. Royal Imtech described 2014 as a transition year in which it was implementing the next phase of its operational and financial recovery programme. It added that given the size of the transition and the challenging market circumstances, no specific forecasts would be given for 2014.
Craig Nienaber, Business Development Manager for Safe Access Solutions (SAS) at HUBER Technology, explores why the company is seeing a growing level of interest in its safe access solutions for critical infrastructure providers, including their application in wastewater treatment assets.
Albion Water, the first NAV (New Appointment & Variation) to have been established in1999 and now under the ownership of SDS Water Group, has appointed Andy Holland as its new Director of Business Development.
UK water companies are invited to join an upcoming webinar which will explore how the sector can take indirect potable reuse (IPR) from concept to full-scale operational reality.
James Sumsion, CEO of predictive water intelligence specialists Kohtari, says the water sector needs to take a giant leap forward, so that it can anticipate and act upon water quality issues - rather than merely react.
Hear how Scottish Water has completed its £235 million Ayrshire Glasgow Resilience Project - customers across Greater Glasgow, Ayrshire and East Renfrewshire will now benefit from a more secure and resilient water supply.
Hear how United Utilities is accelerating its investment to reduce spills from storm overflows across the Northwest.
Find out more about the remarkable career opportunities on offer at WSP - scroll down to watch the inspirational video.