Financial performance

In 2024, the Group’s consolidated turnover rose to a new high of €1,543 million (2023: €1,480 million), an increase of 4.3%. As is usual for our businesses, a major part of the increase in turnover can be attributed to price increases, particularly in our strategic core companies. In 2024, in addition to these known effects, revenue growth was also positively impacted by the incorporation of the Hoek acquisition by Vebego Groen, Cosource by Vebego Facility Solutions and the weaker performance of all financial investment companies (industrial and healthcare staffing activities).

The net result in 2024 was a significant improvement over the previous year, at €7.6 million (2023: €4.3 million), representing a return of 0.5% (2023: 0.3%), largely driven by lower Group expenditure as we approach the final restructuring stage of the Designing our Future (DoF) programme. Overall, investment in DoF has exceeded €30 million over the past five years. The net result was also negatively affected by lower market-driven contributions from our staffing services activities. The performance of our strategic core companies improved compared to last year in Belgium and the Netherlands, but deteriorated in Germany and Switzerland due to difficult market conditions.

Turnover

Belgium

Turnover in Belgium increased to €189 million (2023: €185 million), accounting for 12% of Vebego’s revenue (2023: 12%).

Vebego Cleaning & Services had a very successful year, with a nearly 13% increase in turnover (adjusted for the divestiture of the PMC Group). Combined with a strong direct margin contribution from key accounts and strict control of the indirect costs, this growth has directly translated into an improvement in net income in 2024. Throughout 2025, the company will continue to integrate its various entities into a unified operating unit.

Altrio continued its impressive growth story based on overtaking other home nursing companies and optimising the back-office processes of its operations. The upfront plus earn-out formula has been very successful in recent years.

Germany

The economic outlook for Germany in 2024 was weak, with its economy showing vulnerability to high energy costs, loss of competitiveness of its automotive sector to Chinese manufacturers, inflation and an ageing population. The same applies to the cleaning services sector, which shows stagnation after adjusting for wage increases.

This shifts customer focus even more towards pricing when it comes to tenders. Achieving a balance between quality and margin requires operational excellence. The sustainability component in contract negotiations has significantly lower weight in the award criteria than in the Dutch market.

In Germany, turnover decreased slightly to €313 million in 2024 (from €317 million in 2023), representing 20% of the Vebego Group's total (down from 21% in 2023). Germany also includes activities in Austria (turnover €28 million, 2023: €22 million).

The results are mixed: in the cleaning services sector at Vebego Facility Services Germany, the impressive turnover growth (+27%) in Austria was nearly offset by the negative development in Germany (-2%). The latter was the result of significant losses in customer portfolio triggered by price increases early in the year, as well as personnel gaps in top management during the period of integration of the former hectas and Servico companies.

M2 Personal, our industrial staffing business, reported a decline in revenue compared to the previous year. The weakening of the German economy after the exceptionally successful 2023 result has translated into increased pressure on margins. This was partly offset by strict cost control and optimisation of overhead.

The Netherlands

In the Netherlands, the labour market has remained tight, with stubbornly high absenteeism rates and continued pressure from the ageing population. Despite this, revenue from all activities increased by 9.2% to €735 million (2023: €673 million), representing approximately 48% of Vebego’s total revenue in 2024, up from 46% in 2023. This increase was driven by several factors:

• First, the increase in turnover reflects the incorporation of the results from the acquisition of Hoek by Vebego Groen from Q2 2024, as well as the consolidation of Cosource's results from March 2024, following an increase in ownership to 100%.

• Second, Vebego Cleaning Services achieved a significant increase in turnover driven by successful volume growth, almost half of which was driven by large accounts (NS Railways, ASML and Schiphol).

In 2024, Vebego Facility Solutions demonstrated an impressive turnaround from its loss-making operations in 2023. This tremendous achievement in just one year was made possible due to conscious choices in the contract portfolio, strict cost control, focus, commitment and hard work by the entire company team. As a confirmation of its success, the company secured one of the largest Group contracts with Rabobank in the second half of 2024.

Vebego Groen successfully integrated the recently acquired Hoek operations and rolled out a single Metacom ERP system, going live at the end of 2024.

The rebranding of Hago Zorg to Vebego Zorgservice included establishing an additional range of care services for our existing customer base. This development not only supports our customers by easing the daily workload of healthcare professionals, but also offers greater fulfilment, development opportunities and motivation for health services employees.

Switzerland

In Switzerland, turnover remained level at €306 million (2023: €305 million) as the low inflation environment, contract mechanisms and a strong local currency limited the scope for price increases. This, combined with a well-known brand, enabled the company to achieve a high level of customer retention. Minor declines in revenue at Vebego AG and Move Consultancy were offset by an increase in revenue at Cleaning Service SA, resulting in a 20% share of total revenue from Vebego (2023: 21%).

Trend in results

The net result in 2024 was an improvement over the previous year, at €7.6 million (2023: €4.3 million), representing a return of 0.5% (2023: 0.3%). This was largely driven by lower Group expenditure, as Vebego approaches the final stages of restructuring under the DoF programme. The operating companies delivered mixed results, but overall performance remained stable.

Taxes

In 2022, Vebego entered into a revised Horizontal Supervision Covenant. The agreement has a term of three years. The signing was the result of a multi-year process by Vebego in the area of tax control. We are currently in the process of renewing this agreement.

In the years leading up to 2022, Vebego developed and implemented a tax control framework in the Netherlands. This framework supports our goal of being fully transparent about our fiscal policy with all relevant stakeholders.

For us, tax is not a profit centre. We are committed not only to complying with all applicable tax laws and regulations, but we also want to handle our tax obligations in an ethical manner. We pay taxes in the countries in which we operate.

Vebego has been subject to Pillar II tax legislation as of 1 January 2024, which requires the Group to pay tax on its profits at an effective tax rate of at least 15% within each jurisdiction. Vebego uses the temporary Country-by-Country (CbCR) Safe Harbours wherever possible.

Balance sheet

Vebego's capital position remains strong. The solvency ratio is 27.5% (2023: 26.4%), calculated as equity divided by total assets. The solvency ratio remained stable and in line with previous year due to the positive result in 2024, resulting in higher equity. Furthermore, total assets have decreased slightly due to the amortisation of intangible fixed assets and a strong focus on collecting receivables from customers. The decrease in financial fixed assets is due to the weaker performance of financial investment companies, the acquisition of the remaining shares in CoSource and a decrease in deferred tax assets. The cash position increased due to the development of the group as a whole and, after deducting short-term debts to credit institutions, stood at €95 million on the balance sheet date.

Vebego's liquidity position increased in 2024 compared to 2023. The increase is partly due to a strong management focus on outstanding balances and partly due to a one-off effect, as the number of working days between Christmas and New Year led to early customer payments, with outgoing payments only planned for the first week of 2025.

The increased result, the adjustment for depreciation, changes in provisions and changes in working capital ensure an increase in liquidity. Substantial investments, dividends paid, increased profit tax paid and repayments of short-term bank overdrafts resulted in a decrease. More interests paid and slightly lower dividends received resulted in only a limited decrease. Cash flow from investment activities was at a lower level as in the previous year 2023. We have sufficient own resources to finance Vebego's strategic vision and the subsidiaries' underlying plans.