Our core business is provided through the Group’s consulting and engineering firms. We have office networks in seven home markets and we deliver project services in a selected number of other markets in Europe. Our highly-expert operating companies work in three business lines Planning & Design, Transportation & Mobility, Water & Energy, delivering services to the public and private sectors in urban areas (or regions of economic development) and covering all segments of the project chain, including design, consultancy, management and engineering.
Strategy 2010 - 2015
Grontmij has a five year strategy with a focus on profitability, organic revenue growth and further expansion by acquisitions. We will leverage our local expertise to allow greater knowledge sharing and cross selling internationally across the business. At the core of the strategy is the principle of sustainability by design which is a leading proposition for our customers.
Our strategy to 2015 is the logical next phase in the development of Grontmij. Five years ago, we were mainly active in the Netherlands. After a period of sustained organic growth, complimented by acquisitions, our company is now one of the leading design and engineering consultancies in Europe.
By focussing on innovations and expertise across the company and actively pursuing new markets for these, we will continue to grow the company and increase our profits. The organisational change will enable us to better anticipate demand, unlock synergies and leverage this across geographical borders. The new organisational structure offers opportunities for you too with growing opportunities to work in new geographical locations and with expanded international expertise.
Three new business lines
The crux of the strategy is that Grontmij will restructure the business from six separate geographical regions to three business lines. We will operate and report across three business lines, namely; Planning & Design, Transportation & Mobility and Water & Energy.
These business lines reflect the long term external market drivers that Grontmij can benefit from during the next five years such as climate change, population growth and urbanisation and the expansion of the European Union. As such, Grontmij will pursue organic growth in the most profitable and fastest growing markets; water, energy, transportation and sustainable planning and design.
Planning & Design (approx. 45% of Total Revenues) will cover the multidiscplinary services such as environmental management and design, urban planning, building, construction, land use, leisure and landscaping – everything which influences the places and spaces within which people live and work.
Transportation & Mobility (approx 25% of Total Revenues) will cover services such as mobility management, roads, railways, tunnels, waterways, traffic management systems and airports – all elements of enabling mobility and movement.
Water & Energy (approx 30% of Total Revenues) will cover services such as water, waste, waste water treatment, sustainable industrial processes,energy techniques and renewable energy – all of which are linked by the types of processes inherent to the work we do.
The acquisition strategy is unchanged. Any acquisitions will be made only where they have the potential to enhance the position in our home markets, or provide for a solid entrance position in chosen fast growing markets (such as Central & Eastern Europe). In addition to existing financial conditions, Grontmij’s acquisitions will need to satisfy the following strategic criteria:
The further enhancement of the Water & Energy and Transportation & Mobility business lines
Penetration into new, fast growing regions
The acquisition of new competences, technologies or customer groups, provided that this strengthens Grontmij’s market position
The wide spread of its activities in mature European economies ensures good control of business risks. Avoiding dependence on one market or single group of clients is an essential component of Grontmij’s strategy. The result is a Group that is less cyclical than it would be if it did not operate in different business lines and countries. Profit margins vary by activity, depending on the specific market circumstances. On average, the target profit margin is higher for activities with a relatively high risk profile or activities with substantial impact on the value of clients’ assets, compared to mono-disciplinary engineering activities.