DHV, a top-five consultancy in the Netherlands with a staff of 5,500, is concentrating all of its effort this year on improving its profitability. Following a steep fall in profits in the recession year 2009, the focus is now on “keeping our company healthy,” says the executive board president of the Amersfoort company Bertrand van Ee.
“Growth in turnover is not a priority over the short term,” states Van Ee. “In the first place we will have to improve our profit margins and slow down our pursuit of turnover. By investing in innovation and sustainability, we believe that we will record a better result this year.” DHV will be investing more in technology and in intellectual property. There are no takeovers on the horizon.
The engineering consultancy today officially announced its annual results for 2009. The economic crisis had a strong impact on results: net profit was practically halved to 5 million euros, while the operating margin shrank from 6.4% to 4.2%—DHV has a margin of 7% as a financial target.
The order portfolio decreased, principally in the second half of the year. The Building & Industry and the Airports sectors were severely hit, leading to the postponement of building commissions. The reduction in the number of employees in these sections amounted, all told, to almost one hundred.
DHV has many international offices, so that the impact of the recession was cushioned somewhat. “We witnessed an extremely variable picture,” says Van Ee. “The recession was felt most in Europe.” In the Netherlands, where the company records 52% of its turnover, private sector turnover decreased sharply, but the flow of commissions from the public sector made up for this. In Asia, the flow of commissions continued unabated. DHV made its highest margins in Africa and North America.
Turnover grew last year by 3% to 481 million euros. If one excludes the contributions of two purchased companies, NPC and Innova, turnover would have decreased by 1%. This does not impress Van Ee. For him, added value is a better indicator of how things stand. Added value increased last year by 7% to 347 million euros, 1% of which was autonomous growth.
Of the 5 million euros profit, the greatest part will be used to strengthen shareholders’ equity, thus increasing solvency to 32%. Those staff members who hold shares will receive dividends. DHV is the property of a foundation which strives toward sustainable company operations.
DHV is busy with the renovation of its head-office in Amersfoort. The objective is to have the building, where 900 staff members work, consume a lot less energy in its new design. The renovation will cost more than 10 million euros and should be completed in early 2011.