Tauw achieves 8% turnover growth in 2017
Tauw Group B.V. achieved good financial results in 2017, as was also the case in 2015 and 2016. We reported an 8% rise in turnover from 109 million euros to 118 million euros. The year 2017 was marked by Tauw’s buy-back of the minority share interest (25%) from investor Wadinko. This brought our company fully back into the hands of its employees and management.
The combination of a financially healthy situation and employee participation give the firm a stable foundation for the future. In the coming years there will be plenty of room for innovations in projects and employee development.
Tauw Group opted for a unique form of employee participation in 2017, in which participation and ownership have been deliberately separated from the management structure. According to Tauw CEO Annemieke Nijhof, this participatory leadership is a very logical choice. “Our employees have always felt strongly committed to the Tauw organisation. We don’t want to create a partnership in which the managers have both the organisational power and the largest share of the profit. We achieve our results together and everyone has an equal financial stake in them. Thus, all employees with a permanent contract have been given certificates. In addition, at least 50% of our employees have independently purchased additional shares.”
Technology Development Board
Tauw employees spend a significant part of their time on product and knowledge innovation. In order to acquire a strong position at an international level, Tauw will continue to invest heavily in new technological solutions. Those investments are necessary to remain at the forefront in the coming years in a radically changing environment. There will be a strong focus on data management and the innovative translation of research results and advice. Tauw's Technology Development Board, established in 2017, is taking major steps in the development and application of new measuring methods with drones and XRF, and the translation of results using VR/AR.
All countries positive
At 11% of the total, the Tauw entities in Belgium, France, Germany, Italy and Spain made up the largest share of the 8% turnover growth in 2017. Nijhof: “This is in line with the 2020 Tauw Group Strategy which focuses on further strengthening our position in the European industrial sector.” Added value grew by 9% from 86.3 million euros in 2016 to 93.7 million euros in 2017. This increase is also particularly reflected in these countries (a 10% increase).
The gross result was 3.7 million euros. The Dutch group companies contributed 1.9 million euros to this result and the other countries contributed 1.8 million euros. The results from these countries remained the same as last year. Due to the additional costs involved in the refinancing and the introduction of the employee participation, the gross result in the Netherlands was lower in 2017 than in 2016.
In the 2017 financial year, all Tauw group countries and all business units in the Netherlands achieved a positive result. France and Spain saw a considerable improvement in their results. The net result increased from 2.9 million euros in 2016 to 3.0 million euros in 2017.
Tauw also expects positive market conditions for all relevant market sectors in 2018. Nijhof on 2018: “We will focus on further strengthening our position in the European industrial sector, either through autonomous growth or acquisitions. The objective for the Dutch public sector in 2018 is to further improve the positive result.” The overall financial objective is stable profitability of at least 5.7% EBITDA in 2018 and 7% in 2020. The turnover target for 2018 at group level is 121 million euros, with an EBITDA of 7 million euros and a gross result of 5.1 million euros.
See also: Infographic annual figures 2017