Royal Imtech provides a trading update, announces EUR 30 million financing preference shares issue and extends the rights offering by five business days.

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In the process of preparing its half year results 2013, Royal Imtech now has a preliminary view of its performance for the first six months of 2013. In connection therewith, Royal Imtech provides this trading update now. The more conservative approach taken by newly appointed divisional financial management has resulted in various valuation allowances and expected project losses. These allowances and losses are of a non-cash nature.

In line with our trading update of 28 June 2013, operating performance for the divisions Imtech Germany & Eastern Europe, Imtech Benelux and Imtech Marine has continued to be poor in June. 

Over the second quarter of 2013, revenue development at Imtech Germany & Eastern Europe is satisfactory. Cost levels remain too high, resulting in a significant loss in the second quarter of 2013.

Over the same period, the Imtech Benelux performance is affected by volume and price pressure in the commercial real estate and infrastructure markets. In addition, Imtech Benelux will recognise valuation allowances and expected project losses amounting in aggregate to approximately EUR 15 million in the second quarter of 2013. Both factors will contribute to a significant loss for Imtech Benelux in the period.

The performance of Imtech Marine in the second quarter is affected by lower volumes and the high cost level within the Imtech Marine division. In addition, valuation allowances and expected project losses amounting in aggregate to approximately EUR 25 million will be recognised. Both factors will contribute to a significant loss for Imtech Marine in the second quarter of 2013.

In light of the above, Royal Imtech will update the goodwill impairment tests for Imtech Benelux and Imtech Marine as per 30 June 2013.

The other divisions of Royal Imtech continue to perform at satisfactory levels.

As previously announced, steps have been taken to improve operational performance in the Germany & Eastern Europe, Benelux and Marine divisions. In these divisions senior management (CEO and CFO) has recently been replaced and restructuring programs have been initiated.

In Germany there will be a headcount reduction of 550 jobs and an indirect cost saving program with an expected benefit of approximately EUR 40 million over the next three years. The implementation of the headcount reduction is expected in the second half of 2013. In the Benelux division a headcount reduction of 550 jobs is underway. Implementation is largely completed with the remaining part scheduled for the second half of 2013. In the Marine division a headcount reduction program of 140 jobs is planned. Implementation is scheduled for the second half of 2013.