Excellent results for Movares in 2008

2008: Broadening scope bears fruit for Movares 

• Operating revenue rises from € 138.8 million to € 171.7 million, mainly on account of significantly higher levels of contracting
• Operating result: € 6.1 million
• Net profit: € 2.3 million
• Profit in the Netherlands and Poland at 2007 levels
• Huge influx of new staff

Engineering consultancy Movares can look back on a good year. The company did well on both of its home markets, the Netherlands and Poland, and Movares Deutschland achieved excellent results. The Movares Group operating result was € 6.1 million on a turnover of € 171.7 million, with net profits of € 2.3 million. Some 180 new personnel joined Movares in 2008, and the company invested considerable effort in integrating them. The credit crunch had little effect on Movares during 2008.

Movares was successful both inside and outside the rail sector, and broadening the scope of the company’s operations in the Netherlands made a substantial contribution to total turnover. This broadening of scope encompassed water management, power, process management, asset management, light rail and roads. These moves constitute an important step in the process of diversifying to cover not only the rail market but also a range of other sectors, building a distinctive profile that draws together spatial planning, mobility, infrastructure, property and the environment.

Movares Nederland
The Rail Division acquired a number of strategic contracts, such as the RijnGouwelijn and the Schiphol Amsterdam Almere Lelystad corridor. Light rail turnover rose by over 20%.

The Infrastructure Division concentrates on non-railway infrastructure. Turnover in this sector rose by over 40% in 2008. A significant percentage of this growth came from contracts with the Directorate-General of Public Works and Water Management, with which Movares has a framework agreement. Projects included Parts 1 and 2 of the structure inspection programmes in the north-east region, which involved inspecting almost 750 civil structures in a year. The water management and power sectors are also growing in scope and diversity.

The Mobility and Spatial Planning Division provides integrated services within its sphere of operations. In 2008, this included a study on the effects of transport developments, public transport and planning on the accessibility of Haaglanden Urban District. Other significant projects included Leiden ‘world’ station and P+R car parks near the A2 motorway at Eindhoven, which are intended to improve traffic flows.

Creating a stronger regional presence is one of Movares’ major strategic aims. Last year, the company focused on establishing a presence in the southern sector of the Randstad (the conurbation in the western Netherlands), based on Zoetermeer, and in the south of the Netherlands, at Eindhoven. This stronger presence enabled the company to serve its regional customers even better.

International
2008 marked the fifth anniversary of the founding of Movares Polska. The company is an important player on the Polish rail market and has developed steadily over the last five years. Movares Polska did well again in 2008, continuing its expansion with the opening of branches in Kraków and Opole.

Movares Deutschland can look back on an excellent year. Focusing on niche activities, such as safety analyses, has been the key to success.

Recapitalization
The majority of Movares shares have been in the hands of employees since 2006. The outstanding results of recent years led to a rapid rise in the value of the shares, and a recapitalization operation in November created a structure attractive to both existing and potential shareholders. Paying a dividend became part of policy.

Innovation in employer/employee relations
Considerable effort was devoted to innovation in employer/employee relations during 2008. The central element was a mature relationship between employer and employees, with flexibility and individual needs as key concepts. Five working groups made up of personnel, unions and external advisors put forward proposals in various areas. This was a unique process, with many observers maintaining that nothing of the sort had ever been seen in the Netherlands.

Sustainability and socially responsible business
Sustainability and socially responsible business are important elements of the way Movares does business. 2008 saw Movares take important steps towards organizing itself in an even more sustainable fashion. Socially responsible business is becoming a more significant element of Movares’ services; designing stations and other buildings to be carbon neutral is one example. Movares focused its innovation activities firmly on sustainability during 2008. Results included a programme entitled ‘The green railway,’ which has sparked considerable interest at Dutch national rail operator NS and at ProRail, the rail infrastructure manager. The ‘Sustainable Highway’ achieved substantial exposure with national authorities and other bodies, and there is every chance of launching a pilot project in 2009.

This year's annual report presents examples of innovative and sustainable projects. 

Finally
2008 was a good year. Current market developments present a challenge, but for a company such as Movares they offer interesting perspectives in 2009.