201422May

Facilicom achieves profit recovery in difficult market

201422May

The Facilicom Services Group, a comprehensive facilities services provider based in Schiedam, the Netherlands, achieved a 52% growth in profit in 2013, under difficult market conditions. Mainly because of the fact that the Group fully focused on providing integrated services, cost control, and operational excellence, the net profit equalled EUR 22.2 million. The turnover of the group once again declined somewhat to EUR 1.018 billion (-2%).

Challenging Market Conditions
At the beginning of 2013, Facilicom stated that it expected market conditions to continue to be challenging. That indeed turned out to be the case. Many clients are reducing their office space even further. Reduced floor space automatically reduces the demand for facilities services and consequently results in continued contraction and price competition. Furthermore, the government's plan to once again outsource large facilities contracts is putting the market under further pressure.

For 2014 Facilicom is therefore once again expecting a slight reduction in turnover in our traditional facilities markets.

Investing in Client Retention
"Our aim is to maintain turnover levels in 2014, however. That may seem like a modest goal, but in a shrinking market is definitely a stretch. Keeping turnover up to par in this market is only possible by investing in client retention. By becoming even more client-oriented and by introducing tools designed to further improve the quality of our services, client satisfaction is sure to increase and that must result in higher retention rates," says Hans Gennissen, Chairman of the Facilicom Services Group in the disclosures to the annual accounts.

Growth Potential in Care and Welfare
Because the traditional markets no longer have a great deal of growth potential, Facilicom is concentrating on new markets in which it can provide added value and achieve growth. In 2013, a great deal of effort was therefore expended on creating a company focused on care and welfare. "With the company Incluzio - established at the beginning of 2014 - and together with strong partners in the care and social domain, we are aiming to integrate the different processes and financing flows as a means of increasing the effectiveness of care and services in districts. It is a market that offers investment opportunities and potential for Facilicom that will offset the structural contraction of existing markets and consequently guarantee the continuity of our family business over the long-term," explains Hans Gennissen.