News

Strukton Results 2017: Strong growth of net result

07 June 2018

Strukton achieved a net result amounting to EUR 25.1 million in 2017, which is significantly higher than in 2016. Even though growth of the operating income itself is not Strukton’s target, the 2017 operating income increased to EUR 1.916 billion. This is mainly due to a growth of the operating income within Strukton Rail and to a lesser extent within Strukton Worksphere and Strukton International.

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In April 2018, Strukton concluded a new financing arrangement for a three-year period with two one-year extension options. This financing is based on better terms and conditions, and bank supervision is more remote.

In a nutshell

  • Operating result further improved to EUR 76.0 million (2016: EU R 66.7 million)
  • Good performance of rail systems segment
  • Refinancing completed
  • Lowering risk profile bears fruit
  • 2017 net result increased to EUR 25.1 million (2016: EUR 13.3 m illion)
  • Solvency rate increased to 24.3% (2016: 18.8%)
  • Operating income stabilised at EUR 1.9 billion

Strukton realised this good result owing to intensive cooperation and improvement projects. The focus in the order portfolio is shifting from projects to management and maintenance, which is in line with Strukton’s strategy.

Strategy

Strukton concentrates on activities that match its strengths. Maintenance and management using high-end technology, domain knowledge and professionalism are the foundation of the company. This provides stability and enables Strukton to discern itself from its competitors, based on applied use of data in management and maintenance. Additionally, Strukton focuses on projects where the technology component is key, and projects in which the company can apply its specialist fields, proven knowledge and expertise.

The company aims to respond to worldwide developments, including urbanisation and the associated growing need for metro and light rail. Additionally, Strukton sees opportunities in rail cargo. The focus in this type of project has shifted in the past few years, with management and maintenance as the key component, followed by specialist fields and projects.

Outlook

The order portolio of Strukton as a whole provides a sound basis for the future. Although the crisis seems to be behind us now, the market for companies such as Strukton continues to be challenging. On the other hand, Strukton Rail foresees good opportunities. The markets for Strukton Civiel and Strukton Worksphere are more challenging, but the order books are well-filled. Strukton International’s order book is slowly decreasing as the Riyadh project, involving the construction of a metro system, is nearing completion. In the order books, the focus on building is shifting towards management and maintenance. This is in line with Strukton’s strategy.