De Boer Structures sees turnover and profits rise sharply in 2016
De Boer Structures, specialist in the rental of fully equipped temporary accommodation for events and business space solutions, showed a strong growth in profits and turnover in 2016. The company from Alkmaar achieved a net profit of € 9.5 million, against € 3.4 million in 2015. Turnover rose from € 72,5 million in 2015 to € 90 million. The order book for 2017 is well filled with attractive projects in Europe and the Middle East. De Boer expects to book robust results in 2017.
• Operating profit (EBITDA) € 13.5 million (2015: € 7.0 million);
• Net result € 9.5 million (2015: € 3.4 million);
• Turnover € 90 million (2015: € 72.5 million);
• Solvency 64.6% (2015: 56.9%);
• Order book has a balanced distribution in Europe and the Middle East;
• Maintaining customer satisfaction score NPS on high level with 60% (2015: 63%);
• Investments focus on tent structures, staff and ICT solutions
• Positive outlook for 2017
Arnout de Hair, CEO De Boer Structures: "De Boer showed excellent results in 2016. Our employees have again succeeded to build impressive accommodation in many places around the world for our clients. This was reflected in a healthy growth of our turnover and profitability. Thanks to a well-spread order book and the acquisition of several multi-year contracts with leading clients, our outlook is positive. Internationally, and certainly in the Middle East, we are making good progress. In the past year, we have opened a Dubai office in addition to our footholds in Abu Dhabi and Qatar. De Boer is now strongly represented in Europe and in the Middle East. This is important because it ensures a good spread of our activities throughout the year and reduces the traditional seasonal swings we have in Europe. It is positive that, due to our growth, we will recruit new employees for our European branches in the coming years. "
Sharp increase of profitability and turnover
Revenues rose sharply in 2016 by 24.2% to € 90 million (2015: € 72.5 million). In particular, growth outside Europe was strong thanks to large projects in Azerbaijan and the Middle East. The demand for temporary housing for asylum seekers also made a significant contribution to growth in 2016. The operating result (EBITDA) in 2016 was € 13.5 million (2015: € 7.0 million). Net result was € 9.5 million, compared to € 3.4 million in 2015. The increase was mainly due to the increased turnover and the successful execution of the many projects. The order book for 2017 is well filled with attractive projects in Europe and the Middle East. This provides a healthy foundation for a positive 2017.
Supplier for prestigious events
In 2016, De Boer built temporary accommodation for a large number of prestigious projects in the Event and Exhibitions markets. Besides their large scale, these projects were characterized by their logistical challenges, complex building conditions and sometimes very short construction times. Examples of such 'signature' projects in 2016 were the Baku City Race (Azerbaijan), KLM Open and the World Championship Rowing (Netherlands), Farnborough Airshow (United Kingdom), Bauma (Germany), UEFA Euroleague Final (Switzerland), and Doha National Day (Qatar).
The Business Space Solutions market segment focused mainly on temporary accommodation for offices, sports facilities, supermarkets and storage and distribution. In this segment, it is important to build temporary accommodation fast, flexible and cost-effective. In 2016, a wide variety of projects were realized in this segment like the expansion with four additional temporary production and research halls at the headquarters of WILO SE (Germany). In London (United Kingdom) De Boer added an additional theatre and auditorium to the King's Cross Theatre. For several municipalities in Germany and the COA in the Netherlands, assignments were received for the provision of temporary accommodation for reception centres for asylum seekers.
Increasing investments in people and ICT
De Boer invests extensively in its yearly expansion and maintenance of its structure stock and the development of new tent structures. In recent years, however, an increasing part of the investment budget has been allocated to people and ICT development programs to steer De Boer's growth and the increasing complexity of the projects in the right direction.
Increasing attention to recruitment and talent development
Due to the increasing number of projects and the growing complexity of its projects, De Boer is more and more operating with teams from different countries. In particular in the areas of logistics and project management, high demands are made on the employees. In order to meet the growing demand for talent, De Boer has launched a labour market campaign to attract new employees for its European branches. In addition, De Boer develops a Talent Academy to train employees and to offer interesting career opportunities.
Quick advance digitization
Digital and cloud solutions become popular within De Boer. For example, in 2016, the MyDeBoer customer portal was introduced, more and more 3D animations are being developed, and the newest virtual reality applications visualize new projects before they are built. In order to enable these applications, investment in new hardware and software applications were made in 2016. Besides having project information up-to-date, information becomes available faster and more efficient. Paper is becoming less relevant due to these ICT solutions. In 2017, all employees will have access to the digital customer portal via their mobile equipment. This will provide them with the latest documentation available.
Positive outlook for 2017
In 2017, De Boer expects to book healthy results. The order book for 2017 is well filled with attractive projects in Europe and the Middle East. Important progress will be made with the development of the new innovative "Eagle" structure, which is expected to be launched in 2018.
Special projects to be executed in 2017 include the Mobile World Congress (Spain), RHS Chelsea Flower Show (United Kingdom), King Abdullah Economic City Center (Saudi Arabia), Qatar Airways (Qatar), KLM Open Netherlands) and Tour de France (Germany).
Profile De Boer Structures
De Boer is the market leader in the rental of fully furnished temporary locations for major events and urgent business applications. Founded in 1924, with its headquarters in Alkmaar, De Boer now has offices in several western European countries, Qatar and the United Arab Emirates, and a representative office in the United States. Worldwide De Boer employs approximately 250 people (fte) and during high season runs this increases with 150 temporary people. De Boer is VCA**, ISO 9001:2015 and ISO 14001:2015 certified.
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