Imtech announced that a JV with Volker Wessels has been awarded a € 270m contract to provide installation services to finish the new Amsterdam subway connection (Noord-Zuid Lijn). Circa € 100m will be for Imtech, with execution from spring 2012 until late 2015. Imtech will provide technical systems for subway stations (lighting, ventilation, safety, sprinklers) and for rail (safety) and the risk profile is good because the systems to be installed are proven technology according to IR, so there is no weird experimental stuff as was the case with some tunnel projects in the past.
Order intake YTD:
The (multi-year adjusted) order intake so far this year stands at € 1,067m, excluding this new contract because execution only starts in 2012. The current intake is already at the same level as the € 1,092m of the entire fiscal year 2010. This trend shouldnot be extrapolated because large orders represent only 20% of the business, but it suggests that momentum is solid.
Positive for backlog, no impact on estimates:
The new contract is positive as it brings a huge load of work for the Dutch business, which should benefit utilization of staff levels. Pre-calculated margins are obviously not disclosed and we assume they are in line with the average Benelux margin of 3-4%. We leave our estimates and TP unchanged.