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Turnover third quarter flat; results under pressure

ICT (ICT) announces that turnover in the third quarter of 2012 amounted to € 18.4 million, in line with the same period last year (€ 18.4 million). In the Netherlands turnover decreased from € 14.8 million to € 14.2 million. As of the second half last year, ICT Netherlands encountered continuing challenging market conditions here. This is reflected in the number of projects. Turnover in Germany increased by 5% to € 4.2 million. Operating result for the group was break-even in the third quarter of 2012, compared to € 0.8 million last year. ICT (ICT) announces that turnover in the third quarter of 2012 amounted to € 18.4 million, in line with the same period last year (€ 18.4 million). In the Netherlands turnover decreased from € 14.8 million to € 14.2 million. As of the second half last year, ICT Netherlands encountered continuing challenging market conditions here. This is reflected in the number of projects. Turnover in Germany increased by 5% to € 4.2 million. Operating result for the group was break-even in the third quarter of 2012, compared to € 0.8 million last year.
ICT Netherlands has been selective as of this year in its recruitment policy and has reduced the number of professionals with a low utilization rate. Consequently the decrease in utilization rate was limited compared to the third quarter of 2011. The lower number of professionals in conjunction with a lower average utilization rate led to decline in turnover and operating results.
To enhance profitability of the Dutch activities a number of measures will be taken to further reduce the indirect costs. The recruitment activities will remain focused at selectively hiring new direct employees taking into account the anticipated growth of the activities in the high-tech machine building sector.
ICT Germany did not contribute positively to the operating result to date in 2012. Its results did however show an improvement compared to the same quarter last year. This is the consequence of a slight increase in the number of professionals and a decrease in the number of indirect employees. Moreover, the average utilization rate was higher than last year.
In Germany cost reductions are currently being implemented. This was initiated by the successful implementation of the required infrastructure that is now identical to the Dutch infrastructure. Also the number of offices has been reduced. A small portion of turnover is realized by the activities in Neustadt that insufficiently fit the strategy of ICT. It has been decided to discontinue these activities within the Group. Employees have been informed of this decision. ICT expects these measures to have a positive effect as from the first half year of 2013 and to substantially contribute to realizing a break-even result in Germany.
Based on current insights, the cost of the above mentioned measures in the Netherlands and Germany are expected to amount in total between € 1.0 and € 1.2 million in the fourth quarter.
ICT expects continuing weak economic development in its markets. ICT expects to realize a modest operating profit (excluding cost of above mentioned measures) in Q4 2012, and not at the relatively high Q4 2011 level. ICT refrains from making a specific statement about turnover and issuing a profit forecast for the full year.

Contact for media and press

Carla Stuifzand

Marketing Communications Director / Corporate Spokesperson

t +31 88 90 82 000

e carla.stuifzand@ict.nl