KEMA once again achieves strong growth in sales and profits in 2010
All business units and regions contribute to the 63% increase in the net result
Arnhem, The Netherlands, March 14, 2011 – Knowledge-based energy service company, KEMA, has once again achieved a significant increase in sales and result in 2010. For the third consecutive year, the company has realized double digit growth. The net result, excluding extraordinary items, increased by 63% to € 18.6 million (2009: € 11.4 million). On a comparable basis (1), sales in 2010 grew by 19% to € 245.3 million (2009: € 207.3 million): 10% as a result of organic growth, 7% through acquisitions and 2% due to currency effects. All business units and countries in which the company maintains branches contributed to the growth. Especially consulting activities in the area of energy efficiency, smart grids and gas exhibited strong global growth. In addition, activities in the area of testing, inspection and certification of energy equipment once again exhibited strong growth. The operating result (EBIT) amounted to € 19.0 million versus € 13.2 million in 2009, an increase of 44%. This corresponds to an operating margin (EBIT) of 7.7% (2009: 6.4%).
Key Developments in 2010
2010 was an important year for KEMA in which the company focused even more specifically on the energy market. As in previous years, KEMA successfully continued to anticipate developments in the global energy sector. In particular, consulting activities in the area of energy efficiency, gas and smart grids – in which the company managed to further expand its leading position – exhibited strong global growth. Furthermore, activities in the area of testing, inspection and certification of energy equipment, once again exhibited strong growth and carried on the growth trend of previous years. Important, generic energy trends that influence KEMA’s activities include the energy transition, investments in and innovation related to energy infrastructure, further liberalization of the global energy market and a progressive rise in the demand for independenttesting, inspections and certification of energy equipment.
Another key development was the successful integration of the companies acquired in 2009, namely Gasunie Engineering & Technology (Netherlands), Zku (Czech Republic) and Elbas (Germany and Switzerland). Furthermore, to better anticipate global opportunities for growth in the energy sector, KEMA adapted its organizational structure by implementing a matrix organization with seven Global Business Lines and four regions. KEMA believes that with these organizational changes, the company is optimally positioned to continue to successfully implement its global growth strategy.
Innovation is of key importance to KEMA. The ‘Window on the World’ program, which began in 2009 and takes an even closer look at client and government program developments in the United States, countries in the European Union and in Asia, produced many results in 2010. For example, KEMA installed new testing facilities in the Netherlands and the United States in the area of ultra-high voltage and (car) batteries. In addition, various technologies were optimized, such as those used for determining the integrity of gas pipes and preventing power failures. KEMA furthermore played an important global role in 2009 in support of the implementation of smart grids. KEMA attaches a great deal of value to open innovation, and brings together various parties, each with its own area of expertise, for the purpose of achieving breakthroughs.
Pier Nabuurs, chairman of the Executive Board:
“The past year was once again a good year for KEMA. Not only did we strengthen our position within the energy value chain; with our new organizational structure we also positioned ourselves well to even better anticipate the opportunities for growth offered by the energy market. We consequently have every confidence in the future.”
Key Figures (in € millions, unless indicated otherwise)
|Operating result (EBIT)||19.0||13.2||44%||17.2|
|Net liquidity position||92.1||86.1||7%||86.1|
|Operating margin (EBIT)||7.7%||6.4%||–||6.7%|
The fundamental developments in the energy markets are generally favorable to KEMA's activities. In spite of the fact that the macroeconomic climate still remains uncertain, the new organizational structure and the spread of activities provide stability. On this basis and the size of the current order book, KEMA consequently has every confidence that it will continue to be able to successfully pursue its growth strategy, organically, as well as on the basis of acquisitions. These projections assume similar accounting practices and steady exchange rates, and are exclusive of extraordinary items and unforeseeable conditions.
), which was founded in 1927, is an independent knowledge company that is active worldwide in the energy value chain, and is specialized in high-grade service provision in the field of business and technical consultancy, operational support, measurement & inspections, and testing & certification. As an independent business, KEMA advises and supports government bodies as well as producers, suppliers and end-users of energy, and manufacturers of electricity transmission and distribution equipment. More than 1,700 professionals work at KEMA, which has branches and representatives in over 20 countries around the world.
Notes1) The comparable figures for 2009 do not include the results of the divested KEMA Quality.
2) Reported figures, including 10 months consolidation for KEMA Quality which was divested in 2009.
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For more information about this press release, contact Rolf van Stenus, KEMA Corporate Press Officer by telephone at +31 26 3 56 2607 or by e-mail at: email@example.com).