Other risks

Vebego remains alert to other developments that could affect the company. Currently there is no known potential risk of a new pandemic outbreak. Nevertheless, events involving a large number of people, such as Christmas markets, the Dutch, Belgian and German carnival and winter sports, can still lead to a peak in the number of sick days. At such times, absenteeism increases structurally, according to our data. In addition, the development of the office market combined with the promotion of working from home remains an important issue for all facilities management companies. Less and less square footage is needed in offices, which is a risk for cleaning companies and facility management. At the same time, office spaces are expected to be used differently, which in turn creates opportunities for our companies in the aforementioned industries.

Continuity

Vebego has existed for over eighty years. In future, we see no risk to its continued existence; the 2024 budget year is also expected to end with a positive result, likely higher than the results for 2023. The third generation of Goedmakers is associated with Vebego with a board member and as employees. In addition, the entire third generation acts as depositary receipt holders. Our order books are well filled and the retention rate is high: we are able to hold on to most customers for a longer period of time.

The liquidity position was under pressure for some time due to the acquisition of hectas but has now returned to a stable level. Customers normally pay outstanding invoices on time and in full, and we are able to meet our obligations to employees, suppliers and governments on time. Our expectation is that personnel costs, by far the largest cost item, will continue to increase in the coming years. Wages are rising more than average due to collective labour agreements, see also 'Inflation'. This will lead to wage cost increases resulting in pressure on our margins. So far, we still manage to pass on the aforementioned wage increases - for the most part - in the rates to our customers. However, negotiations with customers on rates are intensifying. In line with the aformentioned positive price negotiations, the liquidity position for the longer term is therefore showing a positive development. In addition, Vebego has an ample credit facility. If necessary, we can use this. Our solvency – the ratio of shareholders' equity to total assets – is 26.4% in 2023. This ratio shows that Vebego is in a good position to meet its long-term debts.

Being an attractive employer: the ongoing challenge

Vebego wants to be a meaningful employer. The crises mentioned earlier have a major influence, but in an indirect way. Our vision and what we stand for as an organisation will not change as a result. The crises also offer new opportunities in this regard and have accelerated a number of things, such as the switch to electric driving of our fleet of vehicles. In addition, our employees are indicating a desire to work more hours, whereas in the past there was a greater need for part-time employment. This is due in part to living expenses becoming increasingly expensive.

What does pose an immediate risk for Vebego and its services: the continuing shortage on the labour market. At all levels, finding and retaining well-qualified personnel is a challenge. Individual subsidiaries sometimes have hundreds of vacancies open. Job seekers have plenty of choice in the current market and plenty of room to be critical during their job search. Remuneration and work-life balance play a decisive role here. It is obvious that this affects us and may eventually have direct consequences for our services. The question that then arises is: are we still able to keep our promises to customers?

As in previous years, the most important mitigating measures are increasing retention and reducing absenteeism. If a colleague does not leave, there is also no need for a replacement. Furthermore, for potential colleagues who support the primary process, hybrid working remains an important desire/requirement. We offer this to our employees, including through our job postings.

We believe in the power of differences. In our family business there must be a place for everyone to work, regardless of ethnicity, origin, age, gender or ability to work. A place without a glass ceiling. We are convinced that our organisation will become stronger if we embrace diversity. It will also help us to (partially) compensate for the shortage in the labour market. We have the View on Talent programme. This gives us a picture of what talents someone has, what role fits them and what development is needed. In this way, we can make optimal use of people's talents and respond to the market in a timely manner.

Increasingly complex legislation and regulations

Vebego's decision to work towards eight strategic core companies was a good one, also in view of the increasingly complex legislation and regulations in the countries where we operate. Governments, external financiers, auditors, supervisory authorities and the tax authorities are making increasing demands. To stay ‘in control’ we work from the holding company with an internal audit process. Every six months this provides a comprehensive, country-focused checklist and a balance sheet data book. The checklist is monitored annually and adapted to current, relevant legislation, regulations and any incidents. The strategic core companies within Vebego carry out a quarterly self-assessment of their level of compliance with laws and regulations. The internal audit team of the holding company reviews these balance sheet movements every quarter. Furthermore, this team conducts internal audits at all Belgian and Dutch companies using a sampling methodology grafted onto the way the Dutch tax authorities conduct audits. During these audits, the team verifies whether the rules are correctly complied with and whether any deficiencies have been resolved. Within our Swiss companies, there are monthly audits based on a data book. The results always show that we are in control. At our German companies, the first audit according to Vebego standards will take place in mid-2024. This will enable us to show that these companies, too, are demonstrably in control.

Working towards strategic core companies gives an extra impetus for improving the quality of the administrative organisation. Vebego is actively steering for a joint organisation of the back offices of the companies in each country. In Switzerland, the largest operating company ensures that almost all administrative tasks are carried out centrally. As a result, the work processes are unambiguous and there are fewer risks. In the Netherlands, the service and expertise centre is in full swing after the transition in 2022. Whereas in that year the holding departments HR Administration, Sustainable Employability, IT, Procurement and Legal Affairs were added to our shared services, in 2023 the Project Management Office was established. In the future, this department will support Dutch Vebego companies in large projects.

IT security

IT security is a high priority at Vebego. The risks associated with IT are growing daily. This therefore demands a great deal of awareness on the part of our employees. Almost every day we intercept malware, phishing emails and hostage software. But cybercriminals remain active and innovative, so we must remain vigilant. The results of the annual security audits show that information security at Vebego is constantly improving. The data classification that we have implemented in the central IT environment works effectively and provides better security for our documents. The connection of more Vebego companies to the central IT infrastructure is also progressing steadily. The advantage of this is that it facilitates mutual cooperation between the Vebego companies and ensures better IT security. We will continue with this implementation in the coming years.