Imtech provides trading update first 8 months 2014

Tuesday, 07. October 2014 07:29


Royal Imtech N.V. provides a trading update for the first 8 months of 2014 ahead of its Extraordinary General Meeting of Shareholders on 7 October 2014.

Order intake in first 8 months remains in line with revenue
Revenue for the continuing operations of the group for the first 8 months of 2014 amounted to 2,552 million euro. Order intake over the same period remained in line with revenue. Since Q2 2014, a number of divisions noticed that the uncertainty and turmoil around the company had a negative impact on the new order pipeline. The publication of the financial measures on August 26th 2014 had a positive impact on customer and other stakeholder sentiment which should facilitate a return to normalised trading conditions. However, the residual effect of the past uncertainty and turmoil could have an impact on order intake in the next few months to come.

Net debt at the end of August of 1,146 million euro
The net interest-bearing debt for the group at the end of August amounted to 1,146 million euro, an increase of 108 million euro compared to 1,038 million at the end of June. This was caused by the normal seasonal increase in working capital which reaches its peak in Q3, cash restructuring costs, cash refinancing costs and paid interest.

Update on divestment processes and progress on legacy items
On 26 August 2014, we announced that we had reached an agreement with Vinci S.A. regarding the sale of the entire ICT division at an enterprise value of 255 million euro, subject to competition clearance and customary closing conditions. The process for closing the transaction is on track, with closing and cash proceeds expected before mid-November 2014. In addition, the closing of the sale of the investment in our joint venture IHC systems has been completed, and a book profit of approximately 12 million euro will be recorded in Q3 2014.

Two previously announced legacy items have been closed: the closing of the sale of a German commercial building, reported as asset held for sale, has been completed at cash neutral terms, and the cash settlement for a 2010 project dispute in Spain has resulted in a cash inflow of 11 million euro.

Offers received to purchase 146 million euro notional debt at approximately 79%
On 26 August 2014, we announced a partial buyback programme of the company's cash debt in a "Dutch" auction process. On 6 October, the company received valid offers to purchase debt with an aggregate par value of 224 million euro. Per the terms of the offer, we may use up to 117 million euro to fund the debt purchases. Based on the 117 million euro maximum, we envisage accepting offers of up to an aggregate par value of 146 million euro. The average weighted price of the offers that are envisaged to be accepted equals approximately 79%. The group's ability to complete the auction and the amount available for the auction remain subject to the outcome of shareholder approval of the rights issue, the completion and market take-up of the rights issue and the sale of the ICT division. Accordingly, we will provide an update on the actual outcome of the Dutch auction in due course.

Shareholder supports rights issue
The group of funds managed by Orbis Investment Management Limited and/or its affiliates, and together holding approximately 6.03% of the ordinary shares, has irrevocably committed to subscribe for new shares in the rights issue in proportion to their joint shareholding. Orbis has also committed itself to vote in favour of the rights issue at today's Extraordinary General Meeting of Shareholders.

The Q3 2014 figures will be published as scheduled on 18 November 2014.

More information

Media: Analysts & investors:
Dorien Wietsma
Director Corporate Communication & CSR
T:  +31 182 54 35 53
Jeroen Leenaers
Director Investor Relations
T: +31 182 543 504

Imtech profile
Royal Imtech N.V. is a European technical services provider in the fields of electrical solutions, automation and mechanical solutions. With approximately 23,000 employees, Imtech holds attractive positions in the buildings and industry markets in the Netherlands, Belgium, Luxembourg, Germany, Austria, Eastern Europe, Sweden, Norway, Finland, the UK, Ireland and Spain, the European market of Traffic as well as in the global marine market. Imtech offers integrated and multidisciplinary total solutions that lead to better business processes and more efficiency for customers and the customers they, in their turn, serve. Imtech also offers solutions that contribute towards a sustainable society - for example, in the areas of energy, the environment, water and traffic. Imtech shares are listed on the Euronext Amsterdam.


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Source: Imtech via Globenewswire

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