Ordina N.V. results first quarter 2015: Turnover declines, limited impact on margin
(Thomson Reuters ONE) -
Nieuwegein, 30 April 2015
Highlights
* Recurring EBITDA down at EUR 4.1 million (Q1 2014: EUR 4.8 million);
* Recurring EBITDA margin drops to 4.7% (Q1 2014: 5.1%);
Turnover declines by 4.9% to EUR 88.5 million (Q1 2014: EUR 93.6 million);
* Net debt position improved at EUR 7.0 million (Q1 2014: EUR 12.4 million),
ratio net debt / adjusted EBITDA stands at 0.7 (maximum leverage ratio: less
than or equal to 1.50);
* Ordina nominated for the Computable Awards 2015;
* Clockwork nominated for Dutch Interactive Awards.
Stépan Breedveld, CEO Ordina, about the results
"Turnover at our largest division, T&C, fell in the first quarter, while the
other divisions managed to realise (normalised) growth in difficult market
conditions. The effect on the margin was limited, as a result of our constant
focus on costs and a more selective projects intake.
Our net debt position improved to EUR 7.0 million.
Recent media reports and the debate related to public sector IT projects have
led to a delay in decision-making on IT projects in the public and healthcare
markets in the Netherlands. A number of large industrial clients are currently
in the midst of cost cutting exercises, which is having an impact on the hiring
in of IT staff.
Our main priority for the period ahead will be raise productivity. Our
salesforce effectiveness programme should result in greater focus and
specialisation in our client approach. We are also accelerating our innovation
programme by creating increasing our focus in areas that represent value for our
clients. Our initiatives on this front are gaining recognition. For instance, we
have been nominated for the Computable Awards 2015 and Clockwork, Ordina's
digital engagement bureau, has been nominated for the Dutch Interactive Awards."
Outlook
We decline to give a forecast for the coming period.
Turnover
Turnover in the Public Sector and Healthcare segments was down as a result of
delays in decision-making following recent media reports and the debate related
to government IT projects. Turnover in Financial Services remained relatively
stable. The decline in the Industry sector was driven largely by cost cutting at
a number of large clients in the energy and telecommunications sectors.
Technology & Competencies
The Technology & Competencies division designs and builds applications for our
clients in the form of secondment, sourcing and project contracts for both out
of the box and tailor-made solutions. Turnover declined by 12.3% to EUR 41.3
million (Q1 2014: EUR 47.1 million). This decline was largely due to a drop in
the number of public sector projects and a decline in demand from a number of
large clients in the energy and telecom sectors who are currently implementing
cost reduction programmes.
Business Consulting & Solutions
The Business Consulting & Solutions division advises clients on how they can
improve their processes and IT systems. The division also combines business
know-how and technical expertise to devise sustainable solutions in the field of
business intelligence, (digital) client interaction, chain integration and
security. Turnover declined by 3.6% to EUR 14.0 million (Q1 2014: EUR 14.6
million). Corrected for the downsizing of the generic activities of Ordina
Consulting Public and the sale of Fundation (impact Q1: EUR 1.2 million),
turnover was up 5.0% as a result of new projects for clients in the carriers and
mainports sector and growth at a number of smaller financial institutions.
Application Management
The Application Management division is responsible for management, maintenance
and renovation of applications in the form of long-term contracts. Turnover was
up 3.3% at EUR 14.4 million (Q1 2014: EUR 13.9 million). Turnover was up
primarily at a number of clients in the carriers and mainports sector.
Belgium/Luxembourg
Turnover in the Belgium/Luxembourg division rose by 4.5% to EUR 18.8 million (Q1
2014: EUR 18.0 million). The increase in turnover was largely on the back of
growth at large clients in the industry and financial services sectors in both
Belgium and Luxembourg.
Sourcing
The Sourcing division acts as strategic partner for large clients, helping them
to improve the added value of hired-in IT personnel. Client-specific improvement
programmes in the field of productivity improvements, talent development, know-
how exchange and innovation are an integral part of this approach. As from
2015, Sourcing is no longer reported as a separate division but deployed on a
broader scale for the clients of all divisions in the form of a differentiated
delivery model. As from 1 January 2015, the turnover and costs of the sourcing
model will be reported in the results of the divisions delivering the services
in the Netherlands.
Growth and innovation
Our salesforce effectiveness programme should contribute to an increase in
productivity. Our Commerce department will be working in smaller teams with a
more clearly defined specialisation in terms of delivery models.
We will accelerate our positioning as an innovative IT partner. We have defined
a number of 'growth diamonds' in which we join forces with our clients to
experiment with innovative applications that add value to their business. It is
also important in this context that we expand and intensify our ties with
universities, start-ups and knowledge centres to arrive at co-creation with
those organisations.
Employees
At the end of the first quarter of 2015, the number of direct employees was up
by 7 FTEs, partly as a result of the intensified recruitment of Young
Professionals. The number of indirect employees was up by 6 FTEs, who filled
existing vacancies.
In order to further improve productivity, we are making pro-active investments
in the training and education of our employees using a T-shaped approach. This
means that in addition to training in technical competencies, we are also
investing in business know-how and soft skills.
Financing
The net debt stood at EUR 7.0 million at the end of Q1 2015, an improvement
compared to the first quarter of 2014 (Q1 2014: EUR 12.4 million). When compared
to year-end 2014, the net debt position increased by EUR 16.6 million, largely
as a result of regular seasonal influences (Q4 2014: EUR 9.6 million cash
positive). The ratio of net debt / adjusted EBITDA stood at 0.8 (maximum
leverage ratio: less than or equal to 1.50) and the Interest Cover Ratio stood
at 8.6 (minimum interest cover ratio: more than or equal to 5.0). The ratios are
therefore well within the limits agreed in the bank covenants.
# # #
ABOUT ORDINA
Ordina is the largest independent IT services provider in the Benelux. We
design, build and maintain IT solutions for organisations in the public sector,
in financial services, industry and the healthcare sector. We aim to design IT
solutions that help people, IT that matters and that is produced without wasting
precious resources. We do this by forging Partnerships in Sustainable Innovation
with our clients.
Ordina was founded in 1973. The company's shares have been listed on the NYSE
Euronext Amsterdam since 1987 and are included in the Small cap Index (AScX). In
2014, Ordina recorded turnover of EUR 367 million. For more information visit
the website at www.ordina.com.
ADDITIONAL INFORMATION
For more information about this press release:
Annemieke den Otter, Investor Relations
Mail: annemieke.den.otter(at)ordina.nl
Telephone: +31 (0)30 663 7468
Jeroen Hellenberg, Communications
Mail: jeroen.hellenberg(at)ordina.nl
Telephone: +31 (0)30 663 8557
Jolanda Poots-Bijl, CFO
Mail: jolanda.poots(at)ordina.nl
Telephone: +31 (0)30 663 8906
Stépan Breedveld, CEO
Mail: stepan.breedveld(at)ordina.nl
Telephone: +31 (0)30 663 7111
This document contains forward-looking statements regarding the future financial
performance of Ordina N.V. and outlines certain plans, targets and ambitions
based on current insights. Obviously, such forecasts are not without risk; they
entail a relative degree of uncertainty since there are no guarantees of future
circumstances. There are many factors that could potentially affect the actual
performance, causing this to deviate from the situation described in this
document. Such factors include: general economic trends, the pace of
globalisation in the solutions, IT and consulting markets, the growing number of
projects with responsibility for deliverables, scarcity on the labour market and
future acquisitions and disposals.
Ordina N.V. results first quarter 2015:
http://hugin.info/130778/R/1916915/685686.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Ordina via GlobeNewswire
[HUG#1916915]
Unternehmensinformation / Kurzprofil:
Datum: 30.04.2015 - 07:30 Uhr
Sprache: Deutsch
News-ID 389682
Anzahl Zeichen: 10170
contact information:
Town:
Nieuwegein
Kategorie:
Business News
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