Financial performance

Turnover

Vebego

In 2023, Vebego’s turnover has increased to a record high €1,480 million. In 2022, this was €1,371 million. An increase of 7.9%, mainly driven by Switzerland, and landscaping and cleaning services in the Netherlands.

Belgium

Turnover in Belgium increased to €185 million (2022: €178 million). The cleaning and facility management activities continued to grow in turnover, mainly thanks to additional work for existing customers. Indirect costs were lower, due to a focus on efficiency and a substantial number of unfilled vacancies. Altogether, this resulted in an increase in margin and operational result. The end of 2023 marked the start of the Designing our Future programme in Belgium, the journey to build one large cleaning company from several mid-sized companies (Care, Vebego Airport Services Belgium and Cleaning Professionals). We will use the experience gained during the restructuring of the Dutch cleaning companies.

The healthcare activities in Belgium (especially Altrio Group) continued to grow, driven by the price increase at Altrio although we had anticipated larger growth by increasing the number of self-employed home care workers that work for Altrio. The growth in margin and operating result at Altrio was offset by the lower achievement at Reflex, resulting in margin and result in line with 2022.

The turnover in Belgium accounts for 12% (2022: 13%) of Vebego's turnover.

Germany

Driven by positive developments in staffing and price increases in facility services, turnover increased to €317 million (2022: €297 million) in Germany. That is 21% (2022: 22%) of Vebego's total turnover. Germany (which also includes activities in Austria with €22 million) is the third country in terms of turnover where Vebego carries out its activities. The project of creating one large facility services company (integration, optimisation, restructuring) in Germany is on track, although this required quite some attention from staff and management. In the second quarter of 2023, a culture integration programme started, to align cultures and foster a Vebego culture within the new company. Sales picked up slowly, as the market still needs to get used to the new name, resulting in lower new sales than last year in facility services.

Our staffing business (M2 Personal) in Germany significantly increased their turnover in 2023. The company continued to benefit from the huge demand for staff across all sectors.

The Netherlands

In the Netherlands, the turnover of all activities amounted to €673 million (2022: €632 million). The Dutch activities account for approximately 46% (2022: 46%) of Vebego's total turnover.

Several overarching developments in the Netherlands affected our performance in 2023. The positive achievements of negotiating price increases were offset by low availability rates due to illness (flu and COVID-19). The Dutch labour market is characterised by scarcity of labour and new improved collective labour agreements. Most of the costs of these improved agreements were not compensated for by higher tariffs during 2023. We expect this to improve in 2024.

Turnover in our Dutch cleaning company developed well, despite having to manage the biggest merger in Vebego’s history as a large part of the transformation was still ongoing. They delivered a solid performance, in tough market environments with tremendous cost increases. For example, the company managed a flawless implementation of a new HR system for 8,000 staff and a new invoicing system amidst tough market conditions.

In the healthcare activities, management and staff managed to positively turn around a situation of low margins, high sickness leave and insufficient growth. The products & systems company strongly contributed to the positive result. In 2024, they will expand their services to Germany and Switzerland which provides additional potential for revenue growth. The Dutch facility management company is facing operational challenges, low margins and higher organisational costs based on an expected future growth.

Switzerland

In Switzerland, the turnover increased to €305 million (2022: €264 million), despite the loss of two large contracts. Price competition is fierce and the labour market is challenging, also in Switzerland. The higher turnover was a result of additional work for existing clients. Switzerland has a share of 21% (2022: 19%) in Vebego's turnover.

Trend in results

The net result was €4.3 million (2022: €10.6 million), a return of 0.3% (2022: 0.8%). The lower result was driven by lower margins overall and higher indirect costs in the Netherlands and Germany due to wage increases, inflation and planned investments in the DoF restructuring programme to build a future-proof Vebego, the rebranding and the strengthening of the Vebego culture. 

The sickness rates in the Netherlands continue to be high. In Switzerland, net result improved in 2023 despite the pressure on margin and higher costs. In Belgium, we recorded a stable and positive performance.

Taxes

On 21 July 2022, CEO Ton Goedmakers signed the revised Horizontal Supervision Covenant on behalf of Vebego. The covenant has a term of three years. The signing was the result of a multi-year Vebego process in the area of Tax Control. In the years prior to 2022, Vebego set up and implemented a Tax Control Framework in the Netherlands. We have also started to develop a similar control system for the Vebego entities in Belgium, Germany and Switzerland.

Transparency about our fiscal policy to all relevant stakeholders is an important basic principle. We do not only want to be compliant with the applicable tax laws and regulations, but we also want to handle our tax obligations ethically. Our activities and the countries where we conduct them determine where we pay our taxes. We expressly do not see taxes as a profit centre.

Balance sheet

Vebego's capital position remains strong. Solvency is 26.4% (2022: 25.7%). The slight increase in the solvency percentage is due to a different ratio of the Equity to the Total Assets. The increase in the Equity stems from the positive result for 2023, after deduction of the dividend paid. The balance sheet total increased mainly in line with the growth of the turnover, offset by the sale of the shares in the Belgian company PMC, which can be seen in the decrease in the provisions and long-term debts. The cash position increased due to the development of the group as a whole and the sale of the shares of PMC and, after deducting short-term debts to credit institutions, stood at €80 million on the balance sheet date.

Vebego's liquidity position increased in 2023 compared to 2022. Despite the decreased result, the adjustment for depreciation, changes in provisions and changes in working capital ensure an increase in liquidity. Substantial investments, offset by disinvestments of consolidated companies, dividends paid, decreased profit tax paid and repayments of short-term bank overdrafts and long-term loans resulted in a decrease. More interest and dividends received resulted in only a limited improvement. Cash flow from investment activities was at a higher level as in the previous year 2022. We have plenty of our own resources to finance Vebego's strategic vision and the subsidiaries’ underlying plans.