Growth and efficiency improvements contribute to solid KEMA result.

Annual report 2006 published.

In 2006, KEMA’s net sales grew autonomously 9 percent totaling to EUR 180.5 million. The net result was EUR 7.5 million, corresponding to 4 percent of sales. The increase is a result of more than 5 percent growth in the domestic markets of theNetherlandsand theUSas well as a strong increase of more than 20 percent in the growth markets ofGermanyandAsia. Growth allowed KEMA’s net normalized result to rise from EUR 1.7 million in 2005 to EUR 7.3 million in 2006.  KEMA expects continued growth of sales and profit in 2007.

Reasons for KEMA’s increased result include growth, internal efficiency improvements and a stronger commercial focus. KEMA was able to benefit from favorable global market conditions across the board. All company activities yielded better results than in 2005. Both consulting, technical and operational services and testing & certification managed to increase their market position.

Innovations
In 2006 KEMA continued to invest in innovative concepts which in the near future will contribute to the further growth of the company. Recent examples are the innovative concept for Carbon (CO2) capture (Nanoglowa) and the enhancement of the reliability of electricity cables (PD-online). With these kinds of investments KEMA strengthens its leading position in the Energy Chain.

International growth
In the year ahead, there will be an even stronger focus on international growth. This will be realized by autonomous growth, partnerships and possibly acquisitions. The rise in sales and profit KEMA hopes to realize is partly based on a growing demand for investments in the energy sector and an increasing interest in the environment and energy transition. KEMA’s core competencies include providing consulting services on the transition to a more reliable, sustainable and affordable energy supply system generating economic activities.
The market for testing and certification focuses increasingly on risk management and quality assurance. This is another area in which KEMA expects to outgrow the market in 2007, all the more so because of its successful acquisition of a fourth laboratory in China at the end of 2006.  
Based on the strong potential of the markets in which KEMA operates, we are positive about the possibilities to further improve our net sales and profitability in 2007.
The assumptions are all based on constant scope of consolidation, constant exchange rates, excluding exceptionals and barring unforeseen circumstances.