Cleaning activities are feeling the effects of tough market conditions. In virtually all cleaning markets there is no perceptible growth, or only very limited growth, which means that competition continues to be fierce, with the high price pressure and pressure of work that this entails.
Facility Services
Facility Services Netherlands
In the Netherlands, persistent price pressure and pressure of work in the cleaning sector led in the spring to the longest strike in Dutch history, prompting Hago to focus its efforts on bringing prices and workloads back to normal levels. This resulted, amongst other things, in Hago Next: a service concept that offers clients a real alternative, with its emphasis on innovation, transparency and expertise.
Our collaboration with sheltered employment services once again showed strong growth, of close to 60%. This turnover is made up partly of commercial services, such as cleaning and catering, and partly of maintenance of green spaces. Because of the increase in the number of joint ventures, we have bundled these collaborations into a new organization: Vebego Public-Private Alliances.
By interweaving their internal organizations and market activities, Prisma Facility Management and Home at the Office strengthened their collaboration in 2010. At the end of 2010, our client Schiphol outsourced part of its facility management to Prisma. Vebego also took over two other activities from the airport. The Information and Schiphol Services departments, including security and luggage trolley management, were transferred to a joint venture.
Facility Services Netherlands grew by more than 10% in 2010, although its EBIT fell, primarily as a result of the difficult market conditions.
Our collaboration with sheltered employment services once again showed strong growth, of close to 60%. This turnover is made up partly of commercial services, such as cleaning and catering, and partly of maintenance of green spaces. Because of the increase in the number of joint ventures, we have bundled these collaborations into a new organization: Vebego Public-Private Alliances.
By interweaving their internal organizations and market activities, Prisma Facility Management and Home at the Office strengthened their collaboration in 2010. At the end of 2010, our client Schiphol outsourced part of its facility management to Prisma. Vebego also took over two other activities from the airport. The Information and Schiphol Services departments, including security and luggage trolley management, were transferred to a joint venture.
Facility Services Netherlands grew by more than 10% in 2010, although its EBIT fell, primarily as a result of the difficult market conditions.
Facility Services International
In Switzerland market conditions are increasingly starting to resemble those in surrounding European countries. Here too prices are coming under increasing pressure, as a result of which quality and profitability are under threat. In 2010 turnover in Swiss francs remained stable, although EBIT fell. Commercial successes later in the year, however, ensured that 2011 began with good turnover figures.
At French company Carrard we have experienced problems. Financial claims from previous years resulted in a substantial loss. A new director has now been appointed and the company is being restructured. Cleaning company K2 achieved growth of almost 40% thanks to a strong regional focus and targeted sales. EBIT did not manage to keep pace with this growth in turnover, but remained at a stable level.
In Belgium the turnover of cleaning company Care declined slightly. Growth achieved in Wallonia compensated to some extent for the drop in turnover in Flanders. A strong focus on quality, sustainability and relations with clients and employees saw EBIT improve.
In the United Kingdom Indigo’s turnover rose, with EBIT also improving. A more significant development is the fact that the company has managed to secure major contracts for the next few years and that new agreements have been concluded in the education sector. In spite of this, the market conditions remain tough.
In Germany Servico saw its turnover climb. Our instore logistics activities grew as a result of the upturn in the economy. However, in Germany too the economic recovery is leading to an increasing shortage on the labour market. Consequently, growth in the hotel segment stagnated. EBIT fell as a result of the fact that cost increases could not be passed on to clients.
Adjusted for currency effects, the combined turnover of Facility Services International remained at the 2009 level.
At French company Carrard we have experienced problems. Financial claims from previous years resulted in a substantial loss. A new director has now been appointed and the company is being restructured. Cleaning company K2 achieved growth of almost 40% thanks to a strong regional focus and targeted sales. EBIT did not manage to keep pace with this growth in turnover, but remained at a stable level.
In Belgium the turnover of cleaning company Care declined slightly. Growth achieved in Wallonia compensated to some extent for the drop in turnover in Flanders. A strong focus on quality, sustainability and relations with clients and employees saw EBIT improve.
In the United Kingdom Indigo’s turnover rose, with EBIT also improving. A more significant development is the fact that the company has managed to secure major contracts for the next few years and that new agreements have been concluded in the education sector. In spite of this, the market conditions remain tough.
In Germany Servico saw its turnover climb. Our instore logistics activities grew as a result of the upturn in the economy. However, in Germany too the economic recovery is leading to an increasing shortage on the labour market. Consequently, growth in the hotel segment stagnated. EBIT fell as a result of the fact that cost increases could not be passed on to clients.
Adjusted for currency effects, the combined turnover of Facility Services International remained at the 2009 level.