Tauw strengthens financial position in turbulent year

The 2012 annual results published today reveal that Tauw Group suffered a net loss of EUR 3 million (after taxes), while achieving an increase in turnover of 1.1% to EUR 114.2 million. To strengthen its financial and market positions, 2012 saw the consulting and engineering company setting out a new strategy, restructuring its operations and cutting its workforce in the Netherlands and Spain, while initiating talks with financiers.

In the Netherlands, Tauw saw its turnover rise by 2.2% to EUR 85.4 million, while reporting a loss of EUR 3.6 million (after taxes). In Germany, Belgium and Italy profits were reported, while France and Spain also sustained losses.

Decline in demand

In 2012, Tauw Group appointed Mrs. Annemieke Nijhof MBA as new CEO. The former Director General for Water of the Netherlands Ministry of Infrastructure and the Environment believes that the decline in demand from government authorities played a major role in the downtrend in the Netherlands: “Tauw had to cut back in the Netherlands in order to balance capacity with the declining demand from our government clients. The mid-year financial results in 2012 forced us to reconsider Tauw’s future. A new strategy has been developed and a business review entitled ‘BeterTauw’ (Better Tauw) has been carried out. This review will also be carried out in other country organisations in 2013. Based on, among other things, the business review, we have implemented the necessary measures in the Dutch organisation. We were forced, much to our regret, to dismiss more than 80 colleagues, who have all contributed to Tauw’s development in the past.”

Year of transition

Tauw regards 2013 as a year of transition. The first results of the new strategy are already visible in the Netherlands, such as a major decrease in overhead and other costs. In order to cope with the challenging market conditions, the company is focusing on further professionalisation of the commercial process and financial project management.

Towards the end of 2012, Tauw initiated talks with financiers in order to strengthen the company’s financial position. Tauw’s Executive Board expects to conclude these talks with a positive result shortly.

Annual report

Tauw Group’s full annual report can be found at www.tauw.com/annualreport; the annual report of Tauw Netherlands at www.tauw.nl/jaarverslag.

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