Arcadis (EURONEXT: ARCAD), the leading global Design & Consultancy organization for natural and built assets is responding to the consequences of the global COVID-19 pandemic.
Arcadis has taken measures to protect the health and safety of employees and their families, clients and society and to ensure business resiliency
Arcadis stops the current share buy-back program and withdraws the proposal for dividend payment to enhance its cash position as a precautionary measure
Arcadis closely monitors directions by the Dutch government regarding COVID-19 impacting the AGM
First priority in dealing with the current COVID-19 outbreak is to protect the health & safety of employees and their families, clients and society. Significant measures were taken to secure a thorough health approach, in line with WHO recommendations and the guidance from government experts in the various countries in which Arcadis operates. Employees are equipped to maximize work from home, using digital collaboration platforms and virtual channels.
Considering the unprecedented and rapidly changing operating environment, Arcadis has also taken measures to ensure business resiliency, guided by a global task force established in early March, as well as regional and local teams of subject matter experts. As a result, Arcadis is well prepared and organized to continue delivering on its commitments to clients.
The impact of the COVID-19 outbreak was initially limited to the Arcadis business in China and Hong Kong. Since the virus has now spread around the world, it will adversely impact our markets and it requires the additional measures we are taking. In identifying and implementing the actions, Arcadis made a distinction between immediate priorities, preparing for the crisis impact, and recovery thereafter. The results of our actions will be impacted by the time societies and governments need to contain this crisis, and on support businesses will receive from governments.
Our primary focus is on continuing to serve our clients, win projects where possible and apply commercial effectiveness to keep our pipeline of orders filled.
To further ensure business resiliency, a large number of measures have been taken to reduce cost, such as freezing virtually all travel, reducing of external advisory services and suspending all uncommitted capital expenditure. In addition, a full hiring stop has been implemented for any new employees. Applying for relevant government support in countries which provides for this opportunity is being reviewed.
Solid financial position and good liquidity
The focus of Arcadis in the last two years has been on reducing debt and strengthening the balance sheet. The strategy has resulted in a solid financial position and good liquidity. In order to contain its cost and protect its cash position, Arcadis has decided as a precautionary measure to stop the current share buy-back program and to withdraw the dividend proposal from the agenda for the Annual General Meeting as scheduled for May 6th, 2020. Arcadis does understand the importance of dividends for its shareholders but considers this decision to be in the best interest of Arcadis, its people, its clients and its shareholders. The adjusted agenda for the Annual General Meeting can be found on the Arcadis website www.arcadis.com.
Where it comes to the Annual General Meeting (AGM), Arcadis is aware of, and closely monitors regulations by the Dutch government regarding COVID-19 and in particular in person meetings. Arcadis may take further COVID-19 related decisions with regard to the AGM. Arcadis suggests to regularly check its website for any further updates.
Peter Oosterveer, CEO said: “For all our employees and our customers everyday life and work has been severely disrupted. The prosperity and safety of our societies is being challenged and everyone realizes that it will take a considerable amount of time and effort to allow us to resume ‘life and business as usual’. We will all have to contribute to this task. In the meantime, those who care for our health and our safety deserve our unconditional support and respect. We are all completely focused on the measures necessary to deal with the current circumstances. We are a strong company, provide valuable expertise and have an extremely dedicated team, and in joining forces with our clients we will navigate through this period.
Arcadis is a leading global Design & Consultancy organization for natural and built assets. Applying our deep market sector insights and collective design, consultancy, engineering, project and management services we work in partnership with our clients to deliver exceptional and sustainable outcomes throughout the lifecycle of their natural and built assets. We are 28,000 people, active in over 70 countries that generate €3.5 billion in revenues. We support UN-Habitat with knowledge and expertise to improve the quality of life in rapidly growing cities around the world.