In April 2007, when NNE’s acquisition of Pharmaplan received final approval from the authorities, we took an important strategic step towards realising our vision: to become the leading international supplier of engineering and consulting services to the pharma and biotech industries.

During 2007, we invested in our future. We enhanced NNE Pharmaplan’s reputation and position in the global pharma and biotech market, and created an excellent platform for our future growth. We carried out an extensive integration process, with restructuring costs that left a clear dent in our bottom line. Though turnover in 2007 was in line with our expectations for the combined company, the result was not satisfactory and did not live up to our long-term objective of an operating profit margin of 5-10%.

Key figures

• In 2007, NNE Pharmaplan reached a turnover of DKK 1,444 million, representing a growth of 23% over 2006.
• As of April 2007, NNE completed the acquisition of Pharmaplan. Accordingly, the name of the combined company has changed to NNE Pharmaplan.
• Strong focus on integration of the two companies during 2007, preparing the combined business for synergies and future growth.
• In 2007, results are negatively impacted by one-off expenses related to the integration process and restructuring costs amounting to DKK 47 million.
• Operating profit was DKK -20 million. Adjusted for the one-off expenses in 2007, operating profit was DKK 27 million, corresponding to an operating profit margin of 1.9%.
• Outlook 2008: Growth in turnover of at least 5% and operating profit margin of around 5%.

The Annual Report 2007 is available at the download library.

Outlook 2008

The general business outlook for 2008 is positive with a satisfactory project portfolio and a promising intake of new orders in sight. We expect that NNE Pharmaplan in 2008 will benefit from the full effect of the synergies created by the integration of the two companies.

With our global organisation, professional solutions and competitive costs, combined with a focus on efficient international project governance, we aim to generate at least 5% growth in turnover through successful completion of our pipeline of projects and through important new contracts. Moreover, we expect to improve our operating profit and reach an operating margin of around 5% in 2008 – in line with our company strategy.

We have strong confidence that we will realise our targets and look forward to sharing both the challenges and the rewards with our clients and employees. Together in 2008, we will add new value to our clients throughout the world and enhance the NNE Pharmaplan brand as a consequence.

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