The order book of Ballast Nedam hasn’t been this large. The order book has increased significantly, this year, to over € 1.5 billion, despite the selective tender policy. This will increase the turnover of next year by 15 to 30%, compared to this year, to almost € 1 billion. In addition, the quality of the order book has increased considerably due to the selective tender policy. This is evident, for example, from a qualitatively better tender process, a larger percentage of projects with a lower risk profile and healthier profit and risk margins.
Olav Padberg, member of the Board of Management Ballast Nedam: “This is the first year that we are back at this level since 2012. This time, we are much more confident about the quality of the projects, as the tendering and bidding processes have been completely redesigned. We are now at a much different place in terms of risk management, as the percentage of legacy projects from before the takeover is less than 6% in our current order book. We are very happy to see that the strategy we initiated two years ago, selective tendering, improving the quality of the order book and focussing on the growth of the order book is paying off.”
This year around a break-even result is expected. The underlying earnings are positive. The result is being squeezed because investments are consciously made now, to have the organization ready for the future.
These investments are made, for example, in the quality of the design, estimations and tender departments, to be able to let the order book develop even further in 2019 and the years after. Investments are also being made in new business units (such as Ballast Nedam Renewables and Ballast Nedam construction region Midden), because there are still opportunities that can be utilized better. These investments are now starting to pay off.
In 2018, the order book has increased, because the following and other (major) projects:
In addition, Ballast Nedam has broadened its order book with smaller construction, infrastructure and housing projects.