Turnover decline public sector puts pressure on results; cost-saving programme delivers more than expected
(Thomson Reuters ONE) -
Nieuwegein, 20 August 2015
HIGHLIGHTS H1 2015
* Recurring EBITDA falls to EUR 3.3 million (H1 2014: EUR 8.3 million);
* Recurring EBITDA margin drops to 1.9% (H1 2014: 4.5%);
* Turnover declines 6.8% to EUR 172.7 million (H1 2014: EUR 185.2);
* Turnover the Netherlands down by 9.1%, largely within the public sector
* Turnover Belgium/Luxembourg up by 3.2%
* Net result falls to loss of EUR 3.9 million (H1 2014: profit of EUR 0.1
million);
* Cost-saving programme raised from EUR 6.0 million to around EUR 0.8 million
per annum
* Employee engagement stable at 6.5 (2014: 6.4).
HIGHLIGHTS Q2 2015
* Recurring EBITDA falls to negative EUR 0.8 million (Q2 2014: EUR 3.6
million);
* Recurring EBITDA margin drops to minus 1.0% (Q2 2014: 3.9%);
* Effect of two fewer working days around EUR 1.6 million
* Turnover declines 8.2% to EUR 84.2 million (Q2 2014: EUR 91.7 million);
* Company successfully completes re-financing;
* Net debt position improves to EUR 6.1 million (end-Q2 2014: EUR 8.0
million).
STÉPAN BREEDVELD, ORDINA CEO, ON THE RESULTS
"The decline in turnover was considerable and put pressure on the results, in
particular in the Public sector and industry segments in the Netherlands. In
Belgium/Luxembourg, Ordina delivered a good performance, both in terms of growth
in turnover and profitability.
The media reports and discussions regarding public sector IT projects led to a
slowdown in decision-making related to IT investments in the Netherlands. The
public sector's goal is to make processes and services more efficient and
intensify communications with private citizens. Digitisation plays a key role in
this. We therefore expect demand in the public sector to increase again in the
future.
A number of energy and telecom clients in the Industry segment are cutting
costs, which is having an impact on the hiring of IT staff. Growth among
logistics clients in this segment was not enough to fully compensate for this
decline.
The previously announced cost-saving programme aimed at bolstering Ordina's
results has been adjusted to around EUR 0.8 million per annum. We are taking
measures to reduce both direct and indirect costs and to improve processes.
The IT market is caught in the tail-end of the crisis and is showing no signs of
a broad recovery in the Netherlands. Due to the constantly changing market
conditions, we are making accelerated adjustments to our range of competencies,
in order to maintain our focus and enable us to respond effectively to client
demands. In the coming period, we will adapt our strategy where necessary and
identify new growth opportunities. We will also continue to invest in our
innovation programme, (re-)training and our Young Professionals programme."
OUTLOOK
We decline to give a outlook for the coming period.
Turnover decline public sector puts pressure on results:
http://hugin.info/130778/R/1946592/706437.pdf
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Source: Ordina via GlobeNewswire
[HUG#1946592]
Unternehmensinformation / Kurzprofil:
Datum: 20.08.2015 - 07:30 Uhr
Sprache: Deutsch
News-ID 414861
Anzahl Zeichen: 3898
contact information:
Town:
Nieuwegein
Kategorie:
Business News
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