Ramboll achieves record results and strong order book

The Ramboll Group continues its positive course in 2017. Once again the engineering, design and consultancy company reports the best operating profit in company history and an improved EBITA margin. With a solid order book across all markets, Ramboll is well positioned for future growth.

COPENHAGEN, Denmark, March 08, 2018 (GLOBE NEWSWIRE) -- The Ramboll Group delivered yet again a strong performance in 2017. Operating profit before goodwill amortisation (EBITA) increased by 2.8% to DKK 618.9 million – the highest in the company’s history – and EBITA margin improved to 5.8%. Organic growth was 2.8%. At year-end, Ramboll’s strong order book amounts to DKK 5.6 billion compared to DKK 4.8 billion at the end of 2016.

“I am pleased to report another successful year for Ramboll,” says Group CEO Jens-Peter Saul. “All business units have delivered a profit and we have seen improved operational performance in most of our markets. We achieved particularly good results in the US and in the Nordics, where Finland and Sweden delivered all-time high results.”

“Our Middle East and Asia business unit has achieved a successful turnaround and is now moving to become as profitable as the rest of the Group. Our Energy business unit delivered according to plan, but it is not as strong a result as we have seen in previous years. Our Oil & Gas business has realised a good result in a still difficult market. The measures we took following the oil and gas market plunge in 2015-2016 have had a positive effect, so that our Oil & Gas business unit is now again one of the most profitable in Ramboll."

“In light of the good results for 2017 and a 17% increase in orders since last year, I expect stronger organic growth in 2018,” Jens-Peter Saul says.

Accelerating innovation
Ramboll’s strong performance allows the company to place focus on growth and invest in innovation and digitalisation which are top priorities in the Group’s 2020 strategy Winning Together.

”We want to be at the front end of digital development and create value for our clients through forward-leaning innovation,” says Jens-Peter Saul. “Our ambition is to embed innovation and digitalisation deeply in daily operations by transforming both the way we work and what we offer to our clients. We are ramping up initiatives to accelerate innovation and we have welcomed a new Chief Innovation Officer to the Group Executive Board to lead the transformation.”

Spearhead engines for growth
To drive growth and strengthen specialisation, a number of global Spearhead services have been defined and developed. Covering internationally deployable services such as High-Rise Buildings, Major Crossings and Smart Mobility, the Spearhead services will target specific client and market segments and help Ramboll offer high-end solutions internationally and within markets where the company already has a strong presence.

“The Spearhead services are established to strengthen Ramboll’s specialisation in certain areas while keeping our broad multidisciplinary competence base and holistic offering. They are a growth engine for the future, and I am pleased to see that they are already taking off strongly,” says Jens-Peter Saul.

The Spearhead services are part of a new operating model and matrix organisation implemented to boost profitable growth and increase collaboration globally.

“We win when we work together across geographies and market areas,” says Jens-Peter Saul. “By breaking down silos, our new matrix organisation aims to drive profitable growth by leveraging our full strengths and synergies across our portfolio.”

Global signature projects
Ramboll’s enhanced competitive strength is already evident in the number of high-profile projects won in 2017 that involve expertise across disciplines and geographies.

In Denmark, Ramboll was selected as engineering consultant on a 300 meter high-rise building which will become Western Europe's tallest building.

In Norway, Ramboll, as part of Team URBIS, will play a central part in the creation of the new government quarter in Oslo.

In Finland, Ramboll has been selected to participate in the design of the 25-kilometre Jokeri light rail line between Helsinki and Espoo which is projected to carry more than 100,000 passengers per day by 2040.

In the UK, Ramboll will help prepare the Digital Railway programme, a cross-industry initiative designed to support the sustainable growth of the UK's railway infrastructure through the accelerated deployment of digital technologies.

In Abu Dhabi, Ramboll has secured a major win as a lead consultant for the real estate developer IMKAN’s ‘Makers District’ development, which comprises a mix of residential, hospitality, commercial and retail space spread across 18 hectares of land.

In the Americas, Ramboll was engaged by Brazil's Federal Public Ministry to oversee the remediation of the Rio Doce Basin, following the 2015 collapse of a dam which caused the release of contaminated water into the river basin.

In Singapore, Ramboll has won the contract for design and implementation of the world’s largest energy recovery facility which will employ experts in Singapore and Denmark over the next ten years.

Key figures and financial ratios2017 2017 2016
Income statementEUR mDKK mDKK m
Operating profit before depreciation and amort. (EBITDA)106.0788.3782.5
Operating profit before goodwill amort. (EBITA)83.2618.9602.1
Operating profit (EBIT)59.3441.1338.0
Profit before tax41.4307.8342.0
Profit for the year19.6146.1176.9
Balance sheet
Total assets861.96,412.6
Shareholders' equity293.02,180.1
Net interest bearing cash/(debt)10.981.3
Cash flow
Cash flow from operating activities42.6317.1
Investment in tangible assets, net(-19.9)(147.9)
Free cash flow22.7169.2
Acquisitions of companies(-15.6)(116.0)(-50.2)
Number of employees, end of year13,40113,024
Number of full-time employee12,52712,497

Financial ratios in %20172016
Revenue growth1.20.2
Organic growth2.80.4
EBITDA margin7.37.4
EBITA margin5.85.7
EBIT margin4.13.2
Return on invested capital (ROIC)17.916.9
Return on equity (ROE) 6.78.3
Cash conversion ratio 64.5119.9
Equity ratio 34.033.9

About Ramboll
Ramboll is a leading engineering, design and consultancy company founded in Denmark in 1945. The company employs more than 13,000 experts globally and has especially strong representation in the Nordics, UK, North America, Continental Europe, Middle East and Asia-Pacific. With 300 offices in 35 countries, Ramboll combines local experience with a global knowledgebase constantly striving to achieve inspiring and exacting solutions that make a genuine difference to our clients, the end-users, and society at large. Ramboll works across the following markets: Buildings, Transport, Planning & Urban Design, Water, Environment & Health, Energy and Management Consulting. More information available at www.ramboll.com. Follow us on LinkedIn, Facebook and Twitter.

The Ramboll Foundation is the main owner of Ramboll Group A/S and its main objective is to promote the company’s continuance alongside the long-term development of the company, its employees and the communities it serves. All shares in Ramboll Group A/S are owned either by the Ramboll Foundation (98%) or by employees in Ramboll (2%).

John Reynolds

Source: Ramboll