For the first half of 2007, the result after income tax increased by 86%, totalling EUR 15.4 million (2006: EUR 8.3 million)
Total revenue from continuing company operations doubled in the first half of the year totalling EUR 367 million (2006: EUR 183 million)
The result after income tax for the consultancy and engineering firms tripled, totalling EUR 24.5 million (2006: EUR 7.7 million)
The margin for the continuing operations before interest, tax and amortisation (EBITA) was 7.2% (2006: 5,9%)
The forecast for 2007 remains unchanged: increased profitability


In the first six months of 2007, Grontmij realised an result after income tax of EUR 15.4 million (2006: EUR 8,3 million). The improvement in the result after income tax is primarily attributable to the contribution from Carl Bro, the improvement in pro-ject results and the results from larger infrastructure and regional development projects which were completed (in the Netherlands and Belgium in particular) in joint ventures and associated companies. The margin before interest, tax and am-ortisation (EBITA) for the total was 6.7% (2006: 5,9%).

Total revenue and result in the first half of 2007
During the first six months of 2007, Grontmij’s result increased by 86% as compared with the first six months of 2006. The net result amounted to EUR 15.4 million (2006: EUR 8,3 million). The total revenue was EUR 384 million (2006: EUR 206 million). The earn-ings per share grew by 69% and were EUR 0.86 (2006: EUR 0.51 per share).

In evaluating the company’s result a distinction must be made between the continuing operations (mainly the consultancy and engineering firms and holding) and the discon-tinued operations available for sale (capital-intensive activities related primarily to real estate in the Netherlands and abroad).

Continuing operations
The total revenue from continuing operations doubled in the first half of the year totalling EUR 367 million (2006: EUR 183 million). The net revenue from continuing operations rose 95% totalling EUR 291 million (2006: EUR 149 million).
The margin before interest and income tax (EBIT) was 6.1% for continuing operations (including third-party project costs) during the first half of 2007, as compared with 5.9% during the first half of 2006. When this margin is adjusted for the cost of amortisation of the intangible assets in the amount of EUR 3.8 million for the first six months of 2007, the margin (EBITA) of continuing operations before interest and taxes is 7.2%
(2006: 5,9%).

In the operational results from continuing operations, there was a one-off loss of EUR 2 million included for two projects which are classified as capital-intensive activities and which are not likely to be sold to third parties in 2007. The result after income tax of the consultancy and engineering firms as such (therefore excluding the holding company and other continuing operations) amounts to EUR 24.5 million (2006: EUR 7.7 million). This represents more than a threefold increase. The holding results involve primarily amortisation, headquarter expenses, interest and the results from the other continuing operations.

Discontinued operations available for sale
The result before interest and income tax (EBIT) for the discontinued operations avail-able for sale was EUR -1.3 million (2006: EUR 1,4 million). It must be considered here that as a result of recent negotiations, a one-time write off of EUR 1.6 million was per-formed for a number of projects which are classified as discontinued operations available for sale. The expectation is that the results of the discontinued operations available for sale will be nil for the entire year 2007.

During the first half of 2007, a number of projects and businesses in the real estate sec-tor were disposed of, which caused the balance for the discontinued operations available for sale to drop by approximately EUR 8 million to EUR 31 million (book value balance of EUR 39 million at the end of 2006). The expectation that a substantial part of the remain-ing discontinued operations available for sale will still be sold in 2007 has not changed.

Market
The market in Grontmij’s domestic markets as well as in Central and Eastern Europe has led to a good order portfolio, both in terms of volume as well as composition, which has led to better margins and capacity utilisation results.
For many years now, our risk policy has focused on executing larger projects in joint ventures with third parties via separate project companies. These are a fully integrated part of the core activities and therefore of Grontmij’s operational results. These projects have increased during the previous period.

During the first six months of 2007 all countries contributed to the the autonomous growth of the total group of approximately 8%, whereby the United Kingdom, Ireland and Poland demonstrated more than average growth rates.

The scarcity of professional technical services in the market will have to translate into higher rates. Depending on the types of contracts, this will gradually occur in the coming period.

Over the past several months, Grontmij has added the following assignments to its order portfolio:
Grontmij is involved as one of the leading parties in the development of a hypermod-ern biomass fired co-generation plant (100MWh) in Järfälla, Sweden;
Opernplatz Property Holdings has given Grontmij the commission for the planning and supervision of the building and construction quality for the construction of the 170-metre-high Opernturm in Frankfurt;
Grontmij is assisting a project team from Umicore in the design of a new production unit in Antwerp for the largest precious metals refinery in the world;
by assignment of the Woningcorporatie Com - wonen, Grontmij is handling the entire project for the urban renewal of the Rotterdam Agricultural Area - project coordina-tion, consulting, engineering and management;
Grontmij is consultant of the PPP consortium that is designing, building and will man-age the new Danish national Archives. The project is the largest PPS project in Den-mark;
between 2007 and 2011, Grontmij will supervise the construction of the new, 11-km-long rail tunnel through the Brenner in Austria;
the coming three years, a team of specialists from Grontmij will facilitate the Dutch Rijkswaterstaat (Ministry of Waterways and Public Works) by compiling knowledge on the effects of state infrastructure on the environment (nature, landscape, cultural history);
for the next four years, Grontmij will conduct research into the various electrical, me-chanical, thermal and fire safety installations involved in the renovation and new con-struction of the Imelda Hospital in Bonheiden, Belgium.
In addition, Grontmij has designed a 180-metre-long bridge over the Esk River for the Carlisle -Guardsmill section of the M6 motorway in England. Applying innovative tech-niques, the bridge will be slid into place at a rate of 12 metres per hour. in June, the first wide area telemetry system in Ireland was put into operation.This new system enables the effective supervision of the water supply in Southeast Ireland. Grontmij has provided a range of services for this project.

Balance Sheet and Financing Position
The balance sheet reflects an increase in the working capital in the first half of 2007. This is temporary in nature and will correct itself in the second half of 2007.The net cash flow was negative in the first half of 2007 as a result of a substantial seasonal cash out-flow (payment of dividends, holiday pay and profit distributions) and the increase of the working capital.

Forecasts for 2007
In view of the development of turnover and profit in the first six months of 2007 and the developments in the market, the forecast for the year 2007 are unchanged; excluding non-recurring income and expenditure, we expect our profitability to continue to growth in 2007 as compared with 2006.