2017 1May

Facilicom Group books a result before taxation of 27.3 million euro in a challenging year

2017 1May

In 2016, Facilicom Group booked a result before taxation of 27.3 million euro The turnover of the facilities service provider from Schiedam rose to a record level: 1,292 million euro. CEO Geert van de Laar: ‘We are satisfied with the results, especially as 2016 was a challenging year.’

Facilicom Group took a step forward in client orientation in 2016. In 2015 and the preceding years there was a great deal of investment in making employees aware of the importance of client orientation. Van de Laar: ‘We are developing from an organisation with operational excellence into a more client-driven business; towards client excellence. We believe that client orientation is going to make the difference in facilities services. In 2016 client orientation was translated into concrete organisational adjustments, projects and policy. The high point in 2016 was the strategic collaboration with Albron.’

Offering added value in a shrinking market
As in previous years, in 2016 Facilicom Group operated in a shrinking market in which competition was primarily on price. By subscribing to the Code Verantwoord Marktgedrag [Code of Responsible Market Conduct], Facilicom Group is ensuring that not just price, but above all quality is a decisive factor in bids in the cleaning, security and catering sector. Van de Laar: ‘This offers opportunities for us, because Facilicom Group has a unique position in integrated service provision, with all specialities in-house.’

In the security sector, technologisation has been a factor for several years. Facilicom Group is responding to this by offering technological security solutions in combination with personal security. For professional care and domestic help, 2016 was a very turbulent year. With initiatives like ZorgCentrale.nl, Incluzio has taken major steps to make the difference with this form of care at a distance.

Integrated service provision and innovation
Facilicom Group maintained the strategic policy of previous years in 2016. In 2016 the strategy has concentrated in more detail on four priorities: connecting, focusing, expanding and innovating. Van de Laar: ‘In 2016 we laid the foundation for innovation in the organisation. On the one hand by implementing innovations that make service provision better, faster and more efficient. And on the other hand by developing new and innovative concepts.’ Good examples of this are Directschoon, an online cleaning service for SMEs; Magnifique, cleaning for high-end client requests; and Compartijn, small-scale luxury residential facilities for the elderly with an indication for long-term care.

Successful partnerships
Furthermore, 2016 was characterised by a number of strategic partnerships. For example, Prorest and Albron merged. Geert van de Laar on this: ‘A high point. With the new organisation we can serve the markets of business, government, education, hospitals, healthcare institutions and daytime and residential recreation.’ Facilicom Group has a 31.25% interest in Albron. That share will ultimately become a majority interest of 51%.

The merger of Facilicom Facility Solutions and Breijer to become Facilicom Solutions took shape further in 2016. The different business units were brought together in one building. As of 2017, Facilicom Solutions can focus on profitable growth. However, in 2016 Facilicom Solutions was still contending with financially disappointing projects. That put pressure on the result. And finally, Gom acquired the Kleentec company in 2016. With this, Gom has strengthened its market share in cleaning.

Satisfied with the results
The commitment to client orientation and innovation paid off in the past year. The Net Promoter Score, the barometer for client satisfaction, rose in 2016. The retention rate was also high. This means that many clients also remained clients in 2016. The financial result is also encouraging. Profit increased in 2016. The profit (EBITA) increased from 13.4 million euro in 2015 to 30.6 million euro in 2016. Van de Laar concludes: ‘So we have been able to reverse the negative trend of the financially mediocre year 2015 and we are back at the level of 2014.’ The facilities services divisions provided the greatest contribution to the profit. In particular, Trigion, Gom and Prorest, the portion that became part of Albron, performed well in the past year. This happened in particular because these divisions were well and efficiently managed, with a strong commitment to business control.

With a profit percentage of 2.1% of the turnover, Facilicom Group still lags behind its ambition. That is 4%. ‘For 2017 we will need to keep pursuing the upward trend,’ says the CEO of Facilicom Group. ‘It means that we must use our potential optimally and avoid occasional setbacks in the future by better targeting risks.’

Expectations for 2017

‘For 2017 we find it important that all the activities initiated in 2016 are properly continued and that we put the focus in 2017 primarily on the identified strategic priorities to arrive at a new period of growth: connecting, expanding, focusing and innovating,’ says Geert van de Laar. Facilicom Group expects to be able to continue the upward trend in 2017 and hence come closer to the long-term objective of 4% EBIT.