Takeovers of EC Harris and Davis Langdon & Seah drive growth
Arcadis鈥� acquisitions of EC Harris and Davis Langdon & Seah helped boost the firm鈥檚 revenue by 26% in its full-year results to 31 December 2012.
Revenue grew to 鈧�2.54bn (拢2.19bn), up from 鈧�2.01bn (拢1.74bn) the previous year.
Just 3% of the growth in revenue was accounted for by organic growth at Arcadis. The lion鈥檚 share was accounted for by acquisitions, including last April鈥檚 acquisition of Davis Langdon & Seah, now trading as Langdon Seah, and the November 2011 takeover of EC Harris.
EC Harris revenue counted towards acquisitive growth until October 2012 and thereafter as organic growth.
The acquisitions also helped the firm achieve a 15% growth in profit before interest, tax, depreciation and debt amortization (Ebitda) to 鈧�166.4m (拢143.4m), up from 鈧�144.4m (拢124.5m).
Arcadis said its revenue in emerging markets doubled during the year. Revenue overall grew strongest in the building and property markets in the UK, Asia and the Middle East, while the strongest organic growth was in infrastructure, particularly in South America.
EC Harris grew its operating margin from 5% in the first quarter to 9% for the full year, helping Arcadis overall achieve a 10% margin.
EC Harris鈥� margin growth put it 鈥渙n track鈥� to achieve 10% margin this year, one year ahead of the plan set out at the time of the acquisition, Arcadis said.
The firm said it secured 鈧�70m (拢60m) of 鈥渟ynergy wins鈥�, which would not have been won without its acquisitions, of which 鈧�58m (拢50m) were thanks to EC Harris.
Arcadis chief executive Neil McArthur said: 鈥淥ur results reflect the success of the design and implementation of our strategy.
鈥淥ur timely switch to emerging markets and rebalancing towards private sector and multinational clients while focusing on performance improvement and organic growth are beginning to pay off.
鈥淚n emerging markets we have captured strong organic growth in South America and created strong growth on the back of acquisitions in the Middle East and Asia.
鈥淭his helped to offset lower organic growth in mature regions such as Europe and the US, where market conditions remained difficult due to government austerity and market uncertainties.
鈥淲ith EC Harris, Langdon & Seah, BMG and ETEP we have added companies that offer broad synergy potential, which we have already partly capitalized on in 2012.鈥�
No comments yet