Restructuring measures starting to have effect
ICT (ICT) realized a revenue of € 19.8 million for the first three months of 2013. This is a reduction of 5.1% compared with € 20.9 million for the same period of last year. The underlying revenue development though was positive. Corrected for three aspects, which are explained below, revenue was up 2.5% compared with the same period of 2012.
The first quarter of 2013 had two working days fewer than the same period of 2012. This had an impact of some € 0.5 million on revenue and operating result.
The second explanation for the reduction in revenue lies in the fact that in the first quarter of 2012, we realized revenue and profit of € 0.7 million on a number of projects for which the main part of the work was carried before 2011.
Finally, the sale of the Neustadt activities as per 1 December 2012 had a negative impact on revenue of around € 0.3 million.
Operating result in the first quarter was unchanged from the same period of 2012 at € 0.9 million. However, profit in the first quarter of 2013 showed an important improvement when corrected for the two fewer working days and the profit realized on the above-mentioned projects.
The measures we took in 2012 in the areas of infrastructure, indirect cost and management are starting to have a positive effect on results. Indirect expenses were down € 0.5 million in the first quarter of 2013 compared with the same period of last year, largely due to savings on indirect personnel costs and rental costs.
Below we discuss revenue development per vertical, corrected for the above-mentioned effects.
Revenue at the Automotive Vertical was up 8.3% at € 5.0 million, largely due to healthy productivity at the Dutch operations. Revenue from the deployment of internal staff at the German operations was slightly lower and from freelancers higher.
Revenue at the Logistic Vertical rose to € 2.3 million, an increase of almost 5%, primarily on the back of improved productivity.
The Industrial Automation Vertical saw revenue rise 8.0% to € 3.7 million, largely thanks to a higher average yield per hour, the result of more cost-efficient project execution.
Revenue at the Machine & Systems Vertical (including Energy and Healthcare) was down 2.2% at € 6.9 million due to a slightly lower deployment of staff.
The developments at the joint venture InTraffic were positive. However, Improve Quality Services had a disappointing first quarter, largely due to low participation in training courses that account for a considerable part of the company’s revenue.
The Verticals that operate from the Netherlands realized a satisfactory operating margin. The German operations are fully active in the Automotive Vertical and have not yet realised an operating profit, though losses have fallen considerably. We continue to strive for a break-even result for the full-year 2013.
We are positive about the development of the group’s results for the full-year 2013 and, barring unforeseen circumstances, we expect a material improvement in the operating result compared to full-year 2012.
ICT’s goal is to simplify and improve our clients’ business, production and communication processes and to make them more flexible. We do this by using our high-grade technological expertise. We deploy this expertise in the form of inventive and effective product and market combinations. ICT is organised in line with the markets we serve. We have six verticals: Automotive, Industrial Automation, Logistics, Machine & Systems, Healthcare and Energy. Each vertical offers professionals with specific know-how and expertise of a market’s products and processes. For more detailed information on ICT, visit our website at www.ict.eu.
For further information:
Femmy de Rijk – Marketing & Communications ICT Automatisering N.V.
Telephone: +31 (0)6 10 51 3745. Email: Femmy.firstname.lastname@example.org