In 2004, Drees & Sommer, market leader in the sector of construction and property management, despite the sector's crisis were able to keep profits on previous year's levels.
Group turnover was increased by 4,8% from 104,4 million Euro in the fiscal year 2003 to 109,4 million Euro in 2004. Expenditure was 99,3 million Euro (94,3 in the previous year). Increased expenditure is mainly due to subcontractor services in connection with new business models. The result of normal business activities amounted to 10,1 million Euro -the same as the previous year. Foreign revenue was 13,0 million Euro - this corresponds to an increase of 25 per cent to the previous year (10,2 million Euro). The unchanged result - in contrast to the increased turnover - is due to fee rates continuing to decline in Germany. "Increasingly, services are placed for dumping prices, which, later, emerges as expensive experiment," comments Professor Dr Hans Sommer, Executive Chairman of Drees & Sommer AG on this development. "We cannot and do not want to participate in price wars - we employ permanent and highly qualified staff and invest in further training as well as research and development." Next to lower fees, other factors influencing the year's results are, in particular, investments in new international locations as well as depreciation from postulations.
Forecast 2005
For the year 2005, the company has agreed on an offensive to increase effectiveness in terms of service transaction. In order to achieve not only an increase in sales but also an increase in results, service areas will be analysed even more precisely and customised to client requirements.
Internationalisation
For the past five years, Drees & Sommer have consequently geared towards international markets. Main focus is placed on Western Europe, Eastern Europe including Russia, the Middle East, and Asia. A particularly large increase of turnover is to be expected due to various major projects in the United Arab Emirates. Since mid-2004, the network of the English cooperation partner Cyril Sweett complements locations. Target is to increase the turnover contingent of international bodies to 20 per cent of the overall group turnover in 2005.
