Facilicom achieves profit recovery

7 July 2014

The Facilicom Services Group, based in Schiedam, the Netherlands, achieved a 52% growth in profit in 2013, under difficult market conditions. Mainly because of the fact that the Group fully focused on providing integrated services, cost control, and operational excellence, the net profit equalled EUR 22.2 million. The turnover of the group once again declined somewhat to EUR 1.018 billion (-2%).

At the beginning of 2013, Facilicom stated that it expected market conditions to continue to be challenging in the Netherlands. That indeed turned out to be the case. Many clients are reducing their office space even further. Reduced floor space automatically reduces the demand for facilities services and consequently results in continued contraction and price competition. Furthermore, the government's plan to once again outsource large facilities contracts is putting the market under further pressure. For 2014 Facilicom is therefore once again expecting a slight reduction in turnover in our traditional facilities markets in the Netherlands. "Our aim is to maintain turnover levels in 2014, however. That may seem like a modest goal, but in a shrinking market is definitely a stretch. Keeping turnover up to par in this market is only possible by investing in client retention. By becoming even more client-oriented and by introducing tools designed to further improve the quality of our services, client satisfaction is sure to increase and that must result in higher retention rates," says Hans Gennissen, Chairman of the Facilicom Services Group in the disclosures to the annual accounts.