Mysteries Are a Concern at Royal Imtech N.V. (AMS:IM)

By Damion Rallis, Senior Research Associate

Two weeks ago Royal Imtech N.V. (AMS:IM), the Dutch provider of the 2012 London Olympics stadium infrastructure, announced that it had reached an out-of-court settlement with its troubled Polish project Adventure World Warsaw. The press release was terse and stated that “the parties will not disclose any financial details of the settlement.” The announcement and lack of disclosure aptly crystallize the sudden derailment of the Dutch engineering and consultancy agency’s once positive trajectory, after the company revealed major write-offs and a forensic investigation into possible irregularities. As a result, its share price dropped nearly 50% of its value in only one trading day. As more and more bad news continues to trickle out and as the pieces of the puzzle slowly come together, the obvious question at this point has to be is Imtech’s recent spate of problems a sign of more issues to come?

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