Other risks

Vebego remains alert to other developments that could affect the company. The development of the office market, combined with the popularity of remote working, remains an important issue for all facility management companies. Office space is being reduced, which poses a risk to cleaning companies and facility management. At the same time, office space is expected to be used differently, which in turn creates opportunities for our companies in the aforementioned industries.

Continuity

Vebego has existed for over 80 years. We do not see any risk to its continued existence in the future. The third generation of Goedmakers is associated with Vebego as a board member and as employees. In addition, the third generation holds depositary receipts. Our order books are well-stocked, and the retention rate is high: we have a stable customer base and are able to retain most of our customers for a longer period of time.

The liquidity position was under pressure for some time due to the acquisition of hectas but returned to a stable level in 2023 and showed significant improvement in 2024. Customers generally pay outstanding invoices on time and in full. We are able to meet our obligations to employees, suppliers and governments on time. We expect personnel costs, which are by far the largest cost item, to continue rising in the coming years. Wages are rising at a rate higher than the average due to collective labour agreements (see also ‘Inflation’). This will lead to wage cost increases, which will put pressure on our margins. So far, we have been able to pass on these wage increases to our customers. Negotiations with customers on rates are intensifying, but the longer-term liquidity position remains positive. In addition, Vebego has a substantial credit facility that remained unused at year-end. Our solvency – the ratio of shareholders' equity to total assets – was 27.5% in 2024. This ratio indicates that Vebego is well-positioned to meet its long-term debt obligations.

Being an attractive employer: the ongoing challenge

As already mentioned, the ongoing labour shortage is an immediate risk for Vebego and its services. Attracting and retaining well-qualified staff is a challenge at all levels. Individual subsidiaries sometimes have hundreds of vacancies. In the Netherlands, the complex system of taxes and allowances sometimes discourages employees from working more hours, because it will affect their total income. Job seekers have plenty of choice in the current market and ample room to be critical in their job search. Remuneration and work-life balance are key issues. It is clear that this affects us and may eventually have a direct impact on our services. The question then becomes: Can we still deliver on our promises to customers?

As in previous years, the most important mitigation measures are to increase retention and reduce absenteeism. If a colleague does not leave, there is also no need for a replacement. In addition, hybrid working remains an important aspiration for potential colleagues who support the primary process. We offer this to our employees, including through our job advertisements.

Increasingly complex legislation and regulations

Vebego's decision to focus on eight strategic core companies was a good one, particularly in light of the increasingly complex legislation and regulations in the countries in which we operate. Governments, external financiers, auditors, regulators and tax authorities are becoming increasingly demanding. To maintain control, we operate an internal audit process from the holding company. This is based on a comprehensive, country-specific checklist and a balance sheet data book. The checklist is reviewed annually and updated to reflect current, relevant legislation, regulations and any relevant incidents. The strategic core companies within Vebego carry out a quarterly self-assessment of their level of compliance with laws and regulations. The holding company’s internal audit team reviews these balance sheet movements every quarter. Furthermore, this team conducts internal audits at all Belgian and Dutch companies using a sampling methodology based on the way the Dutch tax authorities conduct their audits. During these audits, the team verifies whether the rules are correctly followed and whether any deficiencies have been corrected. Our Swiss and German companies will be audited for the first time in accordance with Vebego standards in mid-2025. In addition to the internal audit process, both in Switzerland and Germany, our companies will use the data book as a quarterly self-assessment, ensuring a consistent approach throughout Vebego. This will enable us to show that these companies are also demonstrably in control.

Information and IT security

IT security is a high priority within Vebego. The risks associated with IT are increasing every day. Attention must be paid to the prevention or prompt detection and containment of cyberattacks and/or attempts by (cyber)criminals. This requires constant awareness at all levels within Vebego. We intercept malware, phishing emails and hijacking software on an almost daily basis. As mentioned above, cybercriminals remain active and innovative, so we must remain vigilant.

The connection of more Vebego companies to the central IT infrastructure is progressing well. The advantage of this is that it facilitates mutual cooperation between the Vebego companies and ensures standardised IT security and compliance.

In 2025, we will focus on IT security and business continuity, including technological and organisational assessments and preparedness in the event of a disaster. We also aim to strengthen our existing measures, implement new measures and standardise and develop an IT risk framework. A constant focus on improvement will lead to the necessary increase in maturity level across various domains.