Ramboll grows 28% despite difficult market conditions
The engineering, design and consultancy company increased revenue by 28% in 2015, however, performance was challenged by tough market conditions. With the acquisition of ENVIRON, the Group has significantly strengthened its position in the environment market and Ramboll has been growing organically in most of its key markets, especially in the Nordic countries. Globally, 2,265 additional colleagues joined Ramboll, which now has more than 13,000 employees in 35 countries.
COPENHAGEN, Denmark, March 11, 2016 /PRNewswire/ -- The Ramboll Group delivered growth despite challenging market conditions in 2015. Revenue increased by 24.5% measured in local currencies and by 27.7% in Danish kroner from DKK 8,292 million in 2014 to DKK 10,589 million. Organic growth was 1.5%. Excluding the Oil & Gas business, organic growth was 4.5%. Operating profit before goodwill amortisation (EBITA) was DKK 475 million compared to DKK 413 million in 2014, giving an EBITA margin of 4.5%, which was 0.5%-point lower than in 2014.
The lower EBITA margin was a result of significantly lower performance in Ramboll's Oil & Gas business unit and write-downs on a few large buildings projects. When adjusting for the Oil & Gas business unit and write-downs on four buildings projects, the underlying EBITA margin improved by 0.4%-point in 2015, primarily due to improved performance in the country business units in Finland and Sweden and the international Energy business unit. The Energy business unit delivered the highest margin of all business units and recorded its best performance ever in 2015 – clear evidence that Ramboll has created a strong foothold in the global market for energy.
"2015 has been a challenging year with a disappointing profit margin, mainly due to the impact of the dramatic drop in oil prices on our Oil & Gas business and related markets and project write-downs. Consequently, the performance has been mixed across our markets with solid performance in most of our Nordic business units, but less satisfactory results in some of our business units outside the Nordic region. When considering the very tough market conditions, the EBITA-result for 2015 is acceptable due to the improvements in our underlying business and the good performance in key markets," says Ramboll's CEO Jens-Peter Saul.
Cash conversion was strong at 126% in 2015, resulting in an average of 113% over the last 3 years. Cash flow from operating activities was DKK 516 million.
"We have finished 2015 with a top tier cash performance. We are a strong, financially robust company with a truly global platform. With a constant focus on improving services to our clients and deepening existing competences, we are in a good position to handle a challenging 2016 and take advantage of opportunities globally," says Jens-Peter Saul.
Large scale projects worldwide
Across all markets, in 2015 Ramboll succeeded in continuously winning and delivering inspiring, ground-breaking projects around the world.
In Denmark, project wins in 2015 included providing full engineering consultancy on a new innovation campus for Novozymes, and planning and design of a new road tunnel to improve the access for traffic in the new North Harbour district of Copenhagen.
In the Asia Pacific region, Ramboll is delivering a study on solutions to enhance resilience to climate change and reduce carbon emissions in six large cities for the Asian Development Bank.
In Mecca, Kingdom of Saudi Arabia, Ramboll has secured a contract for a very big district cooling project, one of several initiatives to improve the conditions for pilgrims during Hajj.
In Montreal, Canada, Ramboll has been appointed as Independent Engineer for the new Champlain Bridge Corridor Project - one of the largest infrastructure projects in North America.
Becoming truly global
On 1 January 2015, Ramboll acquired the US-based global consultancy, ENVIRON, which places Ramboll in the global elite within environmental services and represents a major step in becoming truly global.
The acquisition led to the establishment of two new international business units within Environment & Health and Water, both of which delivered growth in line with expectations.
"Adding ENVIRON to our business has started as promising as expected. We are now bringing traditional Ramboll services to our new ENVIRON clients and ENVIRON-based capabilities to our Nordic home markets. To date, we have generated more than 100 new projects due to the synergies between Ramboll and ENVIRON," says Jens-Peter Saul.
| Key figures and financial ratios |
2015 |
2015 |
2014 |
| Income statement, DKK million |
EUR m |
||
| Revenue |
1,419.5 |
10,589.3 |
8,291.9 |
| Operating profit before goodwill amort. (EBITA) |
63.6 |
474.7 |
413.2 |
| Operating profit (EBIT) |
19.7 |
146.7 |
286.7 |
| Profit before tax |
29.8 |
222.6 |
265.1 |
| Profit for the year |
10.1 |
75.4 |
163.7 |
|
|
|||
| Total assets |
916.6 |
6,837.5 |
5,381.3 |
| Shareholders' equity |
282.8 |
2,109.7 |
1,856.3 |
| Net interest bearing cash/(debt) |
(26.0) |
(194.1) |
380.2 |
|
|
|||
| Cash flow from operating activities |
69.1 |
515.8 |
368.6 |
| Investment in tangible assets, net |
(22.3) |
(166.7) |
(166.6) |
| Free cash flow |
46.8 |
349.1 |
202.0 |
| Acquisition of companies |
(144.9) |
(1,081.0) |
(368.7) |
| Key figures and financial ratios continued |
2015 |
2014 |
|
|
||
| Number of employees, end of year |
13,074 |
10,809 |
| Number of full time employee equivalents |
12,269 |
10,256 |
|
|
||
| Revenue growth |
27.7 |
6.4 |
| Organic growth |
1.5 |
3.0 |
| EBITA margin |
4.5 |
5.0 |
| Operating margin (EBIT margin) |
1.4 |
3.5 |
| Return on invested capital (ROIC) |
8.5 |
15.7 |
| Return on equity (ROE) |
3.8 |
9.2 |
| Cash conversion ratio |
125.8 |
82.1 |
| Equity ratio |
30.9 |
34.5 |
About Ramboll
Ramboll is a leading engineering, design and consultancy company founded in Denmark in 1945. The company employs 13,000 globally and has especially strong representation in the Nordics, UK, North America, Continental Europe, Middle East and Asia-Pacific.
With more than 300 offices in 35 countries, Ramboll combines local experience with a global knowledgebase constantly striving to achieve inspiring and exacting solutions that make a genuine difference to our clients, the end-users, and society at large. Ramboll works across the markets: Buildings, Transport, Planning & Urban Design, Water, Environment & Health, Energy, Oil & Gas and Management Consulting. www.ramboll.com
Ownership
The Ramboll Foundation is the main owner of Ramboll Group A/S and its main objective is to promote the company's continuance alongside the long term development of the company, its employees and the communities it serves. All shares in Ramboll Group A/S are owned either by the Ramboll Foundation (98%) or by employees in Ramboll (2%).
SOURCE Ramboll
Share this article