Royal Haskoning warns of downturn in revenue for 2009

The Dutch-based environmental and technical consultancy Royal Haskoning reports a 14% increase in sales in 2008, bringing total worldwide turnover to €373 million. Pre-tax profits were slightly higher than in 2007, at €23.7 million. However, after tax, employee profit sharing and a significant (€4.9 million) investment in ICT, 2008 net profits were down significantly on 2007, coming in at only €8.7 million, compared to €11.1 million the previous year.

Given current economic conditions the consultancy says it has “taken into account a possible decrease in turnover of 5% in 2009”, although the forward order book at the end of 2008 is described as healthy (with 7.3 months of target annual revenues).

Weakening in the strength of the British pound adversely affected Royal Haskoning's pre-tax margin in 2008, which would have grown by 18% rather than 14% had the pound retained its 2007 strength. Further detail about the impact of recession in the UK on the group's business should be included in its full accounts, to be published at the end of April.

According to its 2007 annual report, the UK was Royal Haskoning's second largest market, accounting for 14% of total revenue. The company's UK presence continued to grow last year, with the acquisition of First Marine International, a shipbuilding and ship repair consultancy with offices in London and Newcastle.

Royal Haskoning's largest source of revenue is its home market, The Netherlands, which accounted for more than half of turnover last year. Around three quarters of its total business was derived from Western Europe as a whole, with regional revenue growing by more than 11%. However, business outside of Europe grew more quickly, at 26%, with the Middle East and Africa particularly strong markets. Orders from the private sector contributed 53% of total turnover.

• Royal Haskoning news release