- • Revenue in Q3 2013 up 3% at € 18.9 million.
- • Operating result from ordinary operations rose to € 1.0 million in the third quarter of this year, from
€ 0 million in Q3 2012, largely as a result of the focus on Verticals and the measures implemented to reduce indirect costs.
- • Machine & Systems, Industrial Automation and Logistics Verticals record positive results.
- • Automotive Vertical achieves break-even in the third quarter.
ICT (ICT) announces revenue in the third quarter of 2013 came in at € 18.9 million, from € 18.4 million in the third quarter of 2012. The third quarter is traditionally a lesser period, due to the summer holidays, but thanks to increased demand ICT was able to realise 3% higher revenue compared with the comparable period in 2012. Corrected for € 0.6 million turnover from the Neustadt activities, which were sold in 2012, revenue was up 6%.
Revenue over the first nine months of the year was unchanged from the comparable period last year. Restated for the Neustadt activities (revenue € 1.4 million), which were sold in 2012, and exceptional project results in the first half of 2012 (revenue € 1.1 million), revenue was up 4.0%.
The operating result from ordinary operations came in at € 1.0 million in the third quarter, compared with € 0.0 million in the same period of 2012. The operating result from ordinary operations over the first nine months was € 2.9 million, compared with € 1.4 million in the same period of 2012. The improvement in results was due primarily to improved utilisation rate of our staff as a result of an increase in demand for ICT’s services. In addition, the sale of the Neustadt activities and the reduction of indirect costs also resulted in improved profitability. Indirect costs as a percentage of revenue fell to 21%, from 24% in the 2012 period.
|(in € millions)||Q3 2013||Q3 2012||Δ||9 months 2013||9 months 2012||Δ|
|Revenue Added Value||16.7||16.0||+ 4.3%||51.9||51.2||+ 1.3%|
|Operating result from ordinary operations||1.0||0.0||2.9||1.4|
|Exceptional charges *||0.3||0.0||0.6||1.3|
* this represents one-off costs or costs that are not related to ordinary operating activities. In 2012, this was a provision for onerous contracts, while in in 2013 it concerns corporate development expenses related to the consideration of strategic options, including the preparations for the proposed cooperation with Brandfort.
The adopted strategy, with its focus on verticals, has in 2013 led to a clear improvement in results, despite the fact that the market remains dominated by a reluctance to invest. The Machine & Systems, Industrial Automation and Logistics Verticals managed to record positive results in the third quarter, continuing the trend of the first half of the year. The Automotive Vertical recorded a break-even operating result in the third quarter, with the Netherlands achieving a modest positive result and Germany a slightly negative result. The performance of InTraffic was stable, while the results of Improve Quality Services lagged. This was largely due to companies postponing training courses in the current economic climate.
Development of revenue at Verticals
Revenue at the Automotive Vertical was down 3.4% at € 4.7 million, from € 4.8 million in the third quarter of 2012. The productivity of our own workforce improved both in the Netherlands and in Germany, while hiring of freelance staff was down.
The revenue of the Logistics Vertical increased to € 2.2 million, from € 1.9 million in the third quarter of 2012, an increase of 14.2%, largely due to more assignments which resulted in a higher productivity.
The Industrial Automation Vertical saw revenue increase by 10.7% to € 3.5 million, from € 3.1 million in the third quarter of 2012, due to an increased customer demand.
Revenue at the Machine & Systems Vertical (including Energy and Healthcare) was up 7.1% at € 6.7 million, from € 6.3 million in the third quarter of 2012, thanks to an increase in the number of projects.
Revenue at the InTraffic joint venture was stable. Improve Quality Services had a disappointing quarter, as a result of low participation in training courses, which account for a considerable proportion of the revenue.
The Verticals that operate from the Netherlands recorded a satisfactory operating result. The German operation is active solely in the Automotive Vertical. The operating result of the Automotive Vertical was break-even, with the Netherlands showing a modestly positive result and Germany a slightly negative result.
In the first nine months of 2013, the focus on Verticals and the continued reduction of indirect costs have had a positive impact. The economic conditions remain challenging, however, due to continued volatility. We reiterate our expectation, barring unforeseen circumstances, of a material improvement in the operating result compared to full-year 2012. Herewith, we expect that the final quarter of 2013 will show a continued improvement in the operating result from ordinary operations compared to the third quarter of the year.
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. E-mail: email@example.com