COWI achieves record growth in 2008, COWI
Release Date: 2009-03-02
In 2008, the international consultancy group, COWI, achieved its highest growth in turnover for many years and maintained a handsome level of earnings: a level which we expect to sustain in 2009.
Net turnover rose to DKK 3,498 million (up 15 per cent).
The Group’s own production increased by DKK 418 million (up 18 per cent).
Operating profit decreased by DKK 13 million to DKK 167 million (down 7 per cent).
Adjusted for exceptional non-recurring income in 2007, operating profit increased by DKK 30 million (up 22 per cent).
Pre-tax profit decreased by 16 million to DKK 176 million (down 8 per cent).
Profit for the year was down DKK 27 million to DKK 128 million. This drop is to be seen in the context of a favourable tax adjustment of DKK 22 million in 2007.
The operating margin fell from 6.0 to 4.8 per cent. Adjusted for non-recurring income in 2007, the operating margin in 2008 is on a par with that of 2007.
"Our performance in 2008 was in line with our expectations, which we feel is a satisfactory outcome," says Lars-Peter Søbye, President and CEO of COWI.
"The downturn in profits for the year is attributable first and foremost to the fact that the 2007 accounts were atypical, thanks to a major item of non-recurring income from the sale of a subsidiary. We improved our operating profit by DKK 30 million."
In 2008 demand for COWI’s consultancy services increased in most geographic markets and within most service areas. The growth in our own production is attributable mainly to organic growth, primarily in Denmark, Norway and the Arabian Gulf. However, in the wake of changes in market conditions, COWI has experienced a pronounced drop in turnover in Africa.
Facing the future with optimism
It seems clear, early in 2009, that the economic crisis will be deep, and that every region and country in which COWI is represented will be affected to a greater or lesser extent by a slump in growth. COWI does not expect to see a significant upturn in economic trends until 2010.
"In 2009, we expect both consultancy fees and the number of projects to come under pressure. But COWI enjoys a strong position in terms of the public sector, infrastructure, energy, climate and green economy, and therefore our broad expectation is that falling demand from the private sector will to some extent be offset by rising demand from the public sector. In spite of the economic crisis, we face the future with moderate optimism," says Søbye.
COWI anticipates reduced growth in turnover in 2009, and earnings on a par with 2008.
Strength to fund acquisitions and development
Having emerged from 2008 with equity in excess of DKK 770 million, the COWI Group is well placed as far as developing new business areas and new acquisition options.
"If we look around the sector, there are several potential acquisitions which are attractive, and we will keep them in our sights. We will meet the crisis with the ambition that by building on our business strategy and sound financial position, we will emerge even stronger than we are today," says Søbye.
In 2008 COWI acquired the Swedish company PICON and the UK company Flint & Neill which are in the process of being fully integrated in the organisation in line with the other 14 companies COWI has acquired over the last two years.
Successful regionalisation
The President and CEO of COWI believes that the wisdom of the decision to transform COWI into a One Company Network with five international regions has become apparent.
"Our internal structure facilitates optimal exploitation of the resources we have amongst our regions – a great strength in times of crisis – and enables us to deliver our core competencies wherever we are working. Our customers experience COWI as always providing the strongest team, combining local presence and international strength, and there is no doubt that the regionalisation strategy is the main reason for our success in landing a range of major international and prestigious contracts," says Søbye.
800 new employees
COWI’s headcount of employees rose to 4,872 by the end of 2008: up 794, which represents an increase of 19 per cent.
A lack of manpower has meant that it has been extremely challenging in virtually all disciplines and geographic areas to provide sufficiently skilled employees, emphasises Søbye.
"We have made significant investment in new business systems, in branding, in integrating new employees and not least in developing management and employees. We believe that such investment in people and talent will boost our capacity to react quickly and effectively to changes in the market."
| Type: | NORMAL |
| Company: | COWI |
| Country: | Denmark |
| Url: | http://www.cowi.com/menu/news/newsarchive/generalnews/Pages/COWIachievesrecordgrowthin2008.aspx |