CONTINUED REVENUE GROWTH AND MARGIN IMPROVEMENT
Strong performance in North America, the Netherlands and Australia
Further margin improvements in Asia and Latin America
Significant project win in digital solutions in the UK
Further strengthening of global environmental expertise for innovative PFAS treatment technology
Third quarter financials:
Organic net revenue growth of 3% to €642 million (Q3 2018: €613 million)
Operating EBITA increased by 17% to €53 million (Q3 2018: €45 million), resulting in an improved margin of 8.3% (Q3 2018: 7.4%)
Free cash flow of €4 million (Q3 2018: €23 million), temporarily held back by the implementation of the new Oracle Cloud solution in North America
Net revenues €1,917 million; organic growth +2%
Operating EBITA margin improved to 7.8% (2018: 7.3%)
EBITDA increased by 14% to €174 million (2018: €153 million)
Net debt further reduced to €386 million (2018: €468 million), free cash flow at €12 million (2018: €17 million)
AMSTERDAM, 24 OCTOBER 2019 – ARCADIS (EURONEXT: ARCAD), THE LEADING GLOBAL DESIGN & CONSULTANCY ORGANIZATION FOR NATURAL AND BUILT ASSETS, REPORTS ORGANIC NET REVENUE GROWTH OF 3%. OPERATING EBITA INCREASED BY 17% TO €53 MILLION RESULTING IN A MARGIN IMPROVEMENT TO 8.3%, UP FROM 7.4% LAST YEAR. THE HIGHER RESULTS CAME FROM CONTINUED STRONG PERFORMANCE IN NORTH AMERICA, THE NETHERLANDS AND AUSTRALIA AND FURTHER IMPROVEMENTS IN ASIA AND LATIN AMERICA.
Peter Oosterveer, CEO Arcadis, comments: “I am pleased with the continued strong performance in North America, the Netherlands and Australia, and equally pleased with the further improvements resulting from the measures we took in Latin America and Asia. Our results in the UK are solid, but we see that the ongoing Brexit uncertainty impacts the timing of infrastructure and buildings projects. The implementation of the new Oracle Cloud solution in North America, which went live in late July, has created a delay in our cash generation of around €50 million, however the actions we have taken will allow us to remedy the situation in the fourth quarter.
Good progress was made on our Innovation & Growth agenda. Our efforts to accelerate the upscaling of digital solutions resulted in a significant contract win with Transport for London to digitally improve frequency and reliability of London Underground. We also see that the market for environmental consultancy services continues to grow. With the signed heads of agreement with Evocra, an Australian based water solutions company, we are further strengthening our global environmental expertise. By using their internationally patented processes we can offer additional solutions to remove PFAS from contaminated water, which complements our existing suite of PFAS solutions. This provides us with a differentiated solution for one of the world’s biggest emerging contaminants that endangers environment and health & safety of humans.
Our strategy of “Creating a sustainable future” sets a clear path on long-term value creation and we see that our efforts are contributing to the achievement of the targets set for 2020.”
Amsterdam, 24 October, 2019 – Arcadis (EURONEXT: ARCAD), the leading global Design & Consultancy organization for natural and built assets, today announced that it had been granted a contract by Transport for London (TfL) to roll out its Metro EAM (Enterprise Asset Management ) and HSE (Health, Safety and Environment) Industry Solution Metro Maximo as the single asset management system for London Underground and London Trams.
Public transport providers across the globe want to combine sustainable efficiency gains across the whole life cycle of asset management whilst improving the reliability and frequency of services. At the same time, investment in infrastructure projects are planned to cater for cities’ needs for more capacity to manage - increasing passenger numbers and population growth. In the meantime, citizens and commuters demand frequent and reliable public transport services. To meet these needs, a strong asset management tool such as EAMS Group’s Metro Maximo is an absolute requirement.
Peter McNaught, Director of Asset Operations (AO) at Transport for London says, “Delivering one asset system that we can all use in AO will take us another step forward in our modernization journey. This is integral to our vision of achieving a safer, more reliable and more affordable railway, becoming better for our customers every day.”
Metro Maximo for TfL has been designed and built by EAMS Group (an Arcadis company) as a comprehensive solution to support the whole lifecycle needs of Metro Transportation organisations for asset and safety management. It maintains the long-term capacity demand and plans the capability development. In addition, Metro Maximo shapes and delivers infrastructure change projects, manages the assets and systems which underpin delivery of multi-modal transport solutions; and operates the service on a day to day basis.
“We are proud to have been awarded this competitive assignment by Transport for London, one of the biggest digital assignments in Arcadis’ history,” said Rachel White, CEO Global Digital Business at Arcadis. “With urbanization on the rise and nearly 70% of the world’s population expected to live in cities by 2050 innovative digital solutions such as Metro Maximo can help public transport authorities transform their services, while offering more frequent and reliable journeys for commuters.”
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