The volume of properties in the manage
ment portfolio increased, partly through
takeover, as a result of which the branch network
now includes an office at Hoofddorp. The voids
level was reduced still further to an average figure
of 1% of the total number of units. Renovation of
both commercial and residential properties is
steadily increasing. The activities developed in
this field are contributing to results. Manage
ment activities were expanded to include shop
ping center management and energy manage
ment.
Real estate brokerage showed an upward
trend in various sectors. A new branch was
opened in Rotterdam-Hillegersberg.
A start was also made with offering auto
mated data processing services to outside organi
zations in the insurance field and with providing
internal as well as external training courses in the
use of word processing equipment in order not to
be reliant on service bureaus and also so as to be
able to expand the services provided, particularly
to professional insurance intermediaries, at lower
cost.
Aannemingsmaatschappij Gebam B. V.
The volume of new building in The Netherlands
leveled out in 1986 after the steady decline since
1980, and is expected to remain at the same level
in 1987. However, housing production as well as
groundworks, road construction and civil
engineering output are expected to decline while
the value of production in general/industrial con
struction increases.
The profit margin on total production in
the construction industry fell from 2.05% to
1.78% for the industry as a whole in 1986. For
1987, an average pretax profit of 1.72% is forecast.
The decline in the profit margin is most severe in
the housing market, where a profit percentage of
1.03% is expected in 1987. This erosion of profit
margins is due to the decline in construction
output and the consequent fierce competition.
Now that construction output is stabilizing, the
immediate effect is that the ’true’ costs of mate
rials and supplies have to be paid. Labor costs are
also showing upward pressure, partly as a conse
quence of the agreed reductions in working
hours.
However, thanks to the dedication, exper
tise and innovative thinking which marks the
entire organization, Gebam has been able to
maintain the level of its production and profit
margin, which is significantly better than the
industry average. The average pretax profit per
centage since 1980 has been 2.80% and reached
3.47% in 1986, representing a return of over 26%
on stockholders’ equity.
Financial, Economic and Accounting
Departments
In 1986, the course set in previous years as
regards the use of other resources in the account
ing area was continued:
the personal computer is helping to ensure that
information is more rapidly obtainable;
- the new central accounting system imple
mented on November 1, 1986, offers greater
scope for both the accounting procedures them
selves and for the provision of information.
After the new accounting organization have
had time to shake down, the situation was
evaluated. This study revealed the need for a
number of adjustments, some of which were
completed before the end of the year. A great deal
of effort is being required of the administrative
departments in connection with the setting-up
of a new loan administration system. This new
system will ultimately lead to a completely differ
ent method of working, which will also have
organizational consequences. The process of put
ting the changes into effect has already been
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