Photo: Ulrik Jantzen

Record results for 2007: DKK 192 million before tax 

The international consultancy group, COWI A/S, improved both turnover and earnings in 2007.
The financial ratios show improvement across all business units:
  • Net turnover grew to DKK 3,031 million (up 8 per cent)
  • The Group's own production increased by DKK 229 million (up 11 per cent)
  • Operating profit rose to DKK 181 million (up 13 per cent)
  • Pre-tax profit rose to DKK 192 million (up 9 per cent)
  • Profit for the year increased to DKK 155 million (up 29 per cent)
  • Operating margin went up from 5.7 to 6.0 per cent

Satisfactory performance

"Our performance, which we consider satisfactory, exceeds our expectations," says Klaus H. Ostenfeld, President and CEO of COWI.

2007 generally experienced good economic trends. As a result of the economic growth, we have experienced an upturn in demand for COWI's consultancy services in virtually all geographic markets and within most service areas.

Growth in turnover and own production

In 2007, the COWI Group generated a turnover of DKK 3,031.4 million, showing growth of DKK 222.5 million or 7.9 per cent compared with 2006. The Group's own production increased by DKK 228.7 million corresponding to 10.6 per cent. In 2007, COWI achieved organic growth in the region of 12 per cent, which is the highest organic growth the company has achieved for a number of years.

Photo: COWI


A string of acquisitions

In addition to the organic growth, COWI has grown through a considerable number of acquisitions. In 2007, COWI acquired companies in several countries, purchased the remaining shares in partly owned companies and divested a partly owned company.

Rise in earnings

COWI's operating profit came to DKK 180.8 million, a DKK 20.6 million or 12.9 per cent improvement. Pre-tax profits came to DKK 192.3 million, a DKK 15.5 million or 8.8 per cent progress. Operating margin rose from 5.7 per cent in 2006 to 6.0 per cent in 2007.

COWI's results were positively affected by non-recurring income from the sale of a subsidiary and from the restructuring of a pension scheme. The profit for the year has been negatively affected by goodwill writedowns .

The profit for the year was also affected by the Group's substantial investments in management development and the development of employees as well as business and IT systems in accordance with the Group's business strategy. COWI expects that the investments will generate a stronger basis for the company's development, growth and income in the years to come.

500 more staff

During the year, the Group increased its headcounts by 517 resulting in a total number of employees of 4,078 at the end of 2007.

Continued growth in 2008

For 2008, we expect to achieve increased turnover, says Klaus H. Ostenfeld:
"We anticipate continued organic growth combined with the acquisition of enterprises and activities in accordance with our strategy goals. Investments in the continuation of the strategy will influence turnover, earnings, profitability and cash flow in 2008."

Klaus H. Ostenfeld adds that COWI will continue implementing its regionalisation strategy and invest substantially in the development of the company's new regions, in management development, in the development of business systems, including IT, and in enhanced efforts within consultancy in the climate and health sectors.

See key figures

By John Jørgensen, jhj@cowi.dk
Published: 03.03.2008