Sogreah continues international growth with new subsidiary in Romania
July 4, 2007 -- Sogreah, the leading French engineering firm working in the fields of water, environment, energy and urban development, reported substantial growth at the end of 2006 for the seventh year running. 2006 turnover rose by almost 8% and totaled €86m, with orders reaching €100m.
After six years of sustained development on the national market, international markets experienced the strongest growth in 2006. Turnover on projects outside France reached €35m, an increase of almost 30% over the 12-month period, while international orders exceeded €44m.
This international growth is underpinned by:
• an efficient network of seven subsidiaries (Algeria, China, Cyprus, Egypt, United Arab Emirates, Madagascar, Poland);
• strong growth in services to private-sector clients (industry, construction companies, private investors, banks and insurance companies);
• proactive development of activity in Europe.
In Bucharest on 2 April, Jacques Gaillard, Sogreah's Chairman and CEO, concluded Sogreah's acquisition of a majority stake in Romanian company Enviro Asist, which specializes in urban and industrial environment.
In Romania, Sogreah is currently involved in the improvement of drinking water and sewerage management for the Drobeta Turnu Severin urban area, and in the extension of the Glina wastewater treatment plant in Bucharest, with European Union funding.
The group's consolidated net income amounted to €3.9m (after tax and profit-sharing schemes), i.e. a further increase of 25% on 2005.
Over the past six years, Sogreah has hired and trained nearly 100 engineering and technical staff each year for its branch offices in France and for its international contracts. The group's workforce currently exceeds 1000.
Sogreah is fully independent of any industrial or financial group, giving it enhanced credibility in its mission to provide consultancy services to public- and private-sector clients. Since 1999, its managerial staff have held 100% of the group's capital. The shareholders wish to perpetuate this independence and new managerial staff are expected to take a stake in the company's capital during 2007.
Growth continues to be driven by a proactive policy of involving employees in the company's success. Thus, more than 30% of Sogreah's 2006 operating profit will once again be paid out as part of a profit-sharing scheme, while the company will continue to encourage investments in the employee stock ownership fund (FCPE) by contributing proportional amounts.
In 2006 the company provided studies, consultancy services or assistance to owners, either alone or in association, for numerous new projects including:
• Ras Laffan industrial port (Qatar) and its 20 km of offshore breakwaters
• 1200 MW Teesta III private hydropower project (India)
• local sustainable development project for several medium-sized towns (Ukraine)
• flood protection for the city of Muscat (Oman)
• new reclamation scheme between Condamine and Larvotto (Monaco)
• impact of climate change on water resources (Algeria)
• Jilin drinking water supply and sewerage (Chine)
• contribution to post-tsunami reconstruction in Banda Aceh (Indonesia)
• rehabilitation of inland waterway structures in the Seine river basin (France)
• removal of polders in Somme bay (France)
• Avignon wastewater treatment plant (France)
• Detailed 3D modeling of hydro-sedimentary processes in the Loire estuary (France)
• redevelopment of the banks of Lac du Bourget (France)
• preparation of the PPP for Rouen public lighting (France)
• river Isère flood management structures upstream of Grenoble (France)
The orders taken in 2006 (€100m), which substantially exceed turnover, indicate that growth looks set to remain sustainable, notably on international markets. The group has very low debts (less than 1% of equity), enabling it to pursue external growth in Europe.
Sogreah is highly aware of the importance of excellence and innovation in the technical and economic quality of its services, and will continue building strategic partnerships in Europe based on its core business.
Sogreah is a major European independent consulting and engineering group specializing in the fields of water, environment, energy and urban development.
Sogreah works alongside local authorities, public buyers, industries, contractors, financiers and investors as they draw up, design and implement their strategies, projects and investments.
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