Financial results
In 2024, our operating income once again increased compared to previous years. In total, income rose by approximately € 53.4 million, which is a 3.3% growth. This rise is partly due to a higher income from healthcare services, as a result of indexation and increased spending on expensive drugs, among other factors. In addition, other incomes have increased, mainly from research projects financed by third parties.
The rising income was offset by expenses that were higher too. Staff costs, including salaries, social charges and pension charges, went up by 6.7% this year compared to 2023. This amounts to an increase of € 58.2 million. The rise is mainly due to developments in the collective agreement (CAO).
On balance, these developments brought a positive result of € 30.6 million. This is approximately € 26.7 million less than the result over 2023, and € 17.8 million more than the budget for 2024. These revenues are the result of structural improvements. They include the increase in operational income and some incidental income with regard tot he budget, such as higher interest rates, lower amortization charges, a VAT refund on previous years, and delays in investments. The positive revenue in 2023 was to a large extent determined by incidental income, including the settlement of COVID-19 care from previous years.
In addition, structural earnings went up due to a favorable compensation of cost increases, higher healthcare turnover, and achieved efficiency gains. This efficiency is essential in order to absorb the expected rise in capital expenses in the future, which are linked to renovations in the scope of the Integral Structural Design (Integraal Structuur Ontwerp or ISO).
The income and expenditures with regard to expensive drugs and externally financed research projects had hardly any impact on the result, since revenues and expenses were close to balance here. At the same time, structural cost increases underline the importance of projects and initiatives that are aimed at containing this development. A significant example of this is the agreement between NFU and healthcare insurance companies regarding the use of transformation resources.
The achieved result as a whole was added to the equity capital. Our financial position thus remains healthy with the main balance-sheet ratio’s, such as solvency and Debt-Service Coverage Ratio (DSCR), slightly better than the previous year and well above the set standards. At the end of 2024, the positive cash balance was € 480 million.
At the same time, we foresee that additional funding will have to be attracted in the future for the implementation of our Strategic Development Vision for Accommodation (Strategische Ontwikkelvisie Huisvesting or SOH) and its elaboration in the Integral Structural Design (Integraal Structuur Ontwerp or ISO).
Consolidated shareholdings on balance contributed € 1.8 million to the income statement. This positive effect was mainly due to developments in the price of securities of the WKZ Fund.
