ICT Group opens new subsidiary in Aartselaar, Belgium

In November 2017 ICT Group has opened a new office in Aartselaar, Belgium. This step is in a line with the growth strategy of ICT Group.

Herman Roelandts has been appointed as Sales Director Belgium. His main objective will be the further growth of the secondment activities in Belgium. In addition, his focus will be on Healthcare Projects and the expansion of our LogicNets decision software solutions as well as the ICT Group proposition for Digital Transformation.

For more information, please contact Herman Roelandts: herman.roelandts@ict.eu

ICT Group intends to acquire NedMobiel

ICT Group N.V. (ICT) announces that it has signed a letter of intent to acquire 100% of the shares of NedMobiel B.V., a Dutch based expert consultancy company for complex infrastructures, such as tunnels, bridges, water locks, motorways and mobility solutions. The fields of expertise of NedMobiel include (tunnel) safety, asset management and project management. The highly educated and experienced advisors and project managers cover the full spectrum from strategy to operations.

NedMobiel, based in Breda, was founded in 2006. The team of 27 professionals has various engineering disciplines and backgrounds such as civil engineering, safety, mechanical & electrical engineering. All consultants and project managers have either a bachelor or master degree.

Jos Blejie, CEO of the ICT Group, stated: “We are very pleased with the intended acquisition of NedMobiel. The expertise of ICT and NedMobiel is fully complementary and we believe that the highly educated and experienced professionals of NedMobiel will fit perfectly within the existing ICT Group culture. NedMobiel will work closely with ICT’s business unit Engineering Contractors and will be able to benefit from the strong position that ICT holds in the national rail, road, water and infrasectors.”

NedMobiel has approximately € 3 Million revenues. The founders and partners of NedMobiel will continue within the ICT Group and will lead the mobility initiatives. The purchase consideration will be paid in cash. Further financial details will not be disclosed. The completion of the transaction is expected at the beginning of 2018.

The acquisition of NedMobiel is in line with ICT’s strategy to achieve organic growth combined with acquisitions. The aim of the acquisition strategy is to achieve strong positions in each of ICT’s three main themes: Smarter Industry, Smarter Cities and Smarter Health. Within these themes ICT delivers the highest added value to its customers. This acquisition supports ICT’s transition from a leading software integrator to a total technology and service provider, by increasing revenue from projects as well as from services.

We will maintain our focus on what we try to accomplish every day; making the world a bit smarter with our technologies and skills.

Q3 2017 Results: solid performance

Key developments:

Q3 2017
– Revenue increased 23% to € 25.8 million (Q3 2016: € 21.0 million), organic revenue growth trend continued.
– EBITDA came in at € 2.5 million, an increase of 19% compared to € 2.1 million in Q3 2016.
– Focus on integration and consolidation of acquisitions continued; integration HTS ongoing.

9M 2017
– In the first nine months of 2017 revenue was up 21% to € 76.5 million (9M 2016:
€ 63.1 million), organic revenue growth 8%.
– EBITDA amounted to € 7.8 million (9M 2016: € 6.3 million), an increase of € 1.5 million.

Outlook.
– For the full year 2017 EBITDA expected between € 11.5 million and € 12.5 million.

Jos Blejie, CEO of ICT Group N.V.: “In the third quarter we continued our disciplined approach towards integration and consolidation. The integration process of HTS, which we acquired last June, is ongoing and we completed the integration of Nozhup. All ICT subsidiaries contributed to the growth realized in the past nine months. In particular ICT Nearshoring and BMA performed well in the third quarter. BMA benefited from its delayed launch of a new generation fetal heart monitors. With the continued favorable economic conditions, we expect to pass the € 100 million revenue milestone this year and expect to realize an EBITDA between € 11.5 million and € 12.5 million.”

Financial developments
In the third quarter of 2017 revenue increased 23% to € 25.8 million compared to
€ 21.0 million in Q3 2017. Organically, excluding HTS (acquired in June 2017) and
2 months Nozhup (consolidated as of September 2016), revenue growth was in line with the previous quarters. For the first nine months of the year revenue amounted to € 76.5 million. All subsidiaries contributed to the 21% increase compared to last year. Organic revenue growth year to date is 8%.

Overall productivity levels within ICT Netherlands were in line with last year. Strypes Bulgaria showed a significant increase in revenue compared to Q3 last year. BMA performed above expectations, Improve and Raster performed in line with last year. All ICT subsidiaries recorded positive results. EBITDA came in at € 2.5 million in the third quarter, compared with € 2.1 million in the same period of 2016. Year to date EBITDA was up 24% to € 7.8 million (9M 2016: € 6.3 million), resulting in an EBITDA margin of 10.2% (9M 2016: 10.0%). The positive trend in ICT’s markets continued in the third quarter.

Strategic themes
ICT focuses on the themes Smarter Industries, Smarter Cities and Smarter Health. Within these themes ICT delivers the highest added value to its customers. Due to the acquisitions of Nozhup and HTS, growth in the themes Smarter Industries and especially Smarter Cities was higher than in the Smarter Health theme.

Divestment of minority share in Strypes Nederland B.V.
In October Strypes Bulgaria (ICT Nearshoring) agreed to divest its minority stake (25%) in Strypes Nederland B.V. to the existing shareholders. As a consequence, transfer of the shares will take place early November. As part of this agreement Strypes Bulgaria and Strypes Nederland B.V. will continue their collaboration.

Outlook
ICT will continue to further leverage the strategic platform it has successfully built over the past years, aimed at organic growth combined with acquisitions. ICT’s acquisition strategy is focused on achieving a more balanced position between the three main themes. Our solutions, enabling a digital transformation for our customers, will be deployed in all industries and further internationalized.

Overall ICT has benefited from favorable economic circumstances. The markets in which ICT operates are expected to continue this favorable trend in the fourth quarter of the year. The strong fourth quarter of last year was the first quarter in which the activities of Nozhup were fully consolidated.

Based on the above, ICT expects EBITDA between € 11.5 million and € 12.5 million for the full year 2017.

ICT Group Kennis Event: Trends en ontwikkelingen in IA 2017

Het Event over Industriële Automatisering dat je niet mag missen!

Op donderdagavond 16 november 2017 vindt het ICT Group Kennis Event: Trends en ontwikkelingen in IA 2017 plaats bij het Muntgebouw in Utrecht.
Deze avond gaat over oplossingen die je helpen om processen in industriële omgevingen efficiënter, flexibeler, eenvoudiger, veiliger en duurzamer te maken. Met aansprekende sprekers van Raster, Siemens, Schneider, Wonderware BNL, ABB en ICT Group. Zij geven tijdens het Kennis Event presentaties over onderwerpen als Cybersecurity, Smart Manufacturing, Safety systemen, Data-analyse, Telemetrie & GIS Integratie en nog veel meer. Laat je op deze avond inspireren en informeren over alles wat met Industriële Automatisering te maken heeft.

Klik hier om het volledige programma te bekijken.

Wil je ook deel uit maken van dit leerzame en opbouwende event?
Schrijf je dan in via het formulier.

Press release: Half Year Results 2017 ICT Group

H1 2017 RESULTS: CONTINUED ORGANIC REVENUE GROWTH

– Recent acquisitions integrated –

Highlights H1 2017

  • Revenue increased 20% to € 50.7 million, 6% organic growth
  • EBITDA up 28% to € 5.3 million (H1 2016: € 4.2 million)
  • Net profit at € 2.6 million, an increase of 20% (H1 2016: € 2.1 million)
  • Focus in H1 2017 on integration and consolidation of acquisitions
  • Continued investments in the organization to support future growth
  • Acquisition of high technology automation services provider HTS
  • Outlook 2017: ICT expects further growth in revenue and EBITDA in the second half of 2017 compared to the first half of 2017

Key figures

Jos Blejie, CEO of ICT Group N.V.:In the past six months we have prioritized the integration of the acquisitions of the past year to safeguard a proper basis to consolidate future potential, without losing focus on driving organic growth. Nozhup, that is now fully integrated, contributes positively to the Group’s results. With our latest acquisition HTS, that will primarily service Smart Industries, we passed the milestone of 1,000 employees. With this increased group of dedicated professionals, we are fully committed to further executing the company strategy, making the world a little smarter every day. We also continued our investments in the organization, companywide, to ensure a stronger foundation on which we can further build our company. We are confident about the second half of the year and therefore expect further growth in revenue and EBITDA in the second half compared to the first half of 2017.

Strategy update

In June 2017 ICT acquired High Tech Solutions B.V. (“HTS”), a Dutch based well-respected industrial automation project and services provider. HTS employs 25 professionals on an HBO / academic level. HTS delivers consultancy services in various markets within the domain of Smarter Industries.

During the first six months of 2017 we continued our investments in new platforms and start-ups. Developments at ICT Mobile are promising and a new platform was launched together with start-up company Valuemaat.

By the end of the first half of 2017, ICT passed the mark of 1,000 employees.

Notes to the results

In the first half year of 2017 ICT Group’s revenue came in at € 50.7 million, up 20% compared to € 42.1 million reported in H1 2016. The revenue growth showed a consistent trend. Organically, excluding the contribution of Nozhup and HTS, revenue increased by 6%. This was driven by an increased number of staff and productivity in line with last year.

Revenue at ICT Netherlands increased 22% to € 39.3 million in H1 2017 from € 32.3 million in the same period last year. The increase is mainly attributable to Nozhup that was acquired in September 2016, and fully integrated within ICT Netherlands in the first half of 2017. Organically, revenue was up approximately 5%. Main contributor to this organic growth was the business unit Automotive. Productivity levels were in line with last year. The average tariff increase was in line with the average salary increase. EBITDA came in at € 3.6 million in H1 2017 (H1 2016: € 2.6 million). Licences and materials sales were in line with last year.

Strypes Bulgaria (“ICT Nearshoring”) reported a 46% increase in revenue from € 3.2 million in H1 2016 to € 4.6 million in the first six months of 2017. In 2016 Strypes started to upgrade the organizational effectiveness to safeguard continued and sustainable strong growth of the nearshoring activities. In the first six months of 2017 these investments, in among others quality controls, continued and will continue in the second half. EBITDA amounted to € 0.9 million in H1 2017 (H1 2016: € 0.6 million).

The segment ‘Other’ recorded revenues of € 7.4 million (H1 2016: € 7.1 million). Improve had a slow start to the year, due to postponement of assignments. Recovery is expected in the second half of 2017. After a good 2016, in 2017 Raster experienced margin pressure as a result of more difficult market circumstances. BMA performed in line with last year.

Strategic themes

ICT’s growth strategy focuses on the themes Smarter Industries, Smarter Cities and Smarter Health. Within these themes, ICT delivers added value to its customers.
Due to the acquisitions of Nozhup and HTS growth in the themes Smarter Industries and especially Smarter Cities was higher than in the Smarter Health theme.

Personnel costs increased significantly to € 31.0 million (H1 2016: € 24.9 million), primarily because of an increase in number of employees and salary increases.

Other operating expenses also increased, mainly because of the recent acquisitions. In the first half of 2017 the investment levels were similar to those in 2016. The investments focused primarily on housing and further operational effectiveness of the organisation. In addition, ICT continued investing more heavily in recruitment. The costs related to strategic initiatives and the realisation of acquisitions and partnerships amounted to € 0.1 million (H1 2016: € 0.3 million).

EBITDA for the first six months of 2017 increased by 28% to € 5.3 million, compared to € 4.2 million in the comparable period in 2016. The EBITDA margin increased from 9.9% in H1 2016 to 10.5% in H1 2017. The increased scale, following the acquisitions, leads to a more effective use of the indirect cost base. 

Amortisation and depreciation
ICT has attributed a value to and is amortising several intangible assets, including order backlog, software and customer relations of its recent acquisitions. Amortisation in the first half of 2017 included Nozhup and amounted to € 1.2 million (H1 2016: € 0.9 million). Depreciation for the first half of 2017 amounted to € 0.5 million (H1 2016: € 0.3 million).

The operating profit amounted to € 3.7 million in H1 2017 (H1 2016: € 3.0 million). As a result of the higher amortization, the operating margin was 7.2%, at the same level as H1 2016 (7.1%).

Results from joint ventures and associates
The results from InTraffic were in line with last year and contributed € 0.1 million to the results
(H1 2016: € 0.1 million). The total result from joint ventures and associates amounted to a loss of € 0.2 million (H1 2016: € 0.1 million loss).

Interest expenses increased to € 0.3 million in H1 2017, from € 0.2 million in the first six months of 2016, as a result of increased financing for the recent acquisitions.

Taxes in the first half of 2017 amounted to € 0.7 million compared with € 0.7 million in the first half of 2016.

Net profit for the first six months of 2017 increased to € 2.6 million, compared with € 2.1 million in H1 2016. An amount of € 2.5 million is attributable to the shareholders of ICT Group N.V. (H1 2016: € 2.1 million). This translates into earnings per share of € 0.27 (H1 2016: € 0.24). The number of outstanding ordinary shares increased during the first half year 2017 to 9,411,301 (31 December 2016: 9,288,309) due to stock dividend and to the employee share participation plan.

Cash flow movement

In the first half of the year, net operational cash flow amounted to € 0.5 million negative in H1 2017 (H1 2016: € 0.3 million negative). The net cash position per 30 June 2017 decreased to € 1.0 million negative (31 December 2016: € 5.6 million positive). This was mainly due to the purchase price cash consideration of the acquisition of HTS, the payment of dividend, the repayments of existing acquisition financing and investments in housing facilities.

Balance sheet structure

In the first half of 2017, shareholders’ equity increased to € 44.5 million (31 December 2016: € 43.7 million) as a result of the net effect of dividend paid of € 2.1 million, net profit of € 2.6 million, and an equity increase of € 0.3 million as a result of issuing new shares (for the share participation plan for personnel and stock dividend). The balance sheet total increased from € 79.2 million at year-end 2016 to € 84.7 million at 30 June 2017, as a result of the acquisitions in the last six months. Solvency (shareholders’ equity/total assets) stood at 53% at the end of June 2017 (55% at year-end 2016).

Personnel

At 30 June 2017, ICT Group has 1,014 employees (971 FTEs), around 6% higher than at year-end 2016. The acquisition of HTS, a low attrition in the first half of the year as well as increased recruitment efforts contributed to this increase.

Outlook

ICT will continue to further leverage the strategic platform it has successfully built over the past years, aimed at organic growth combined with acquisitions. The aim of the acquisition strategy is to achieve strong positions in each of ICT’s three main themes. ICT continues its focus on the smarter themes by further deploying its solutions in Internet of Things enabling a digital transformation for its customers. Overall ICT has benefited from favourable economic circumstances. The markets in which ICT operates are expected to continue this favourable trend in the second half of the year. Some markets, such as Oil and Gas are more challenging than others.

Based on the above, ICT expects further growth in revenue and EBITDA in the second half of 2017 compared to the first half of 2017.

Click here to download the Annex of the Condensed consolidated interim financial statements of 30 June 2017

ICT awarded gold medal for corporate responsibility

ICT Netherlands (ICT) is proud to announce that they received the Gold Medal of achievement for Corporate Social Responsibility (CSR) from EcoVadis, a leading sustainability assessor.

ICT’s score of 64, out of 100, places the company in the top 5 percent of the 7086 companies evaluated by in 2016.  ICT established its Sustainability/CSR program in 2011 and has continued to add new elements each year – including a “CO2 Prestatieladder” level 4 and the European Energy-Efficiency Guide line – EED.

 “Sustainability assessments like EcoVadis require that companies continuously improve their achievements, because the bar is constantly raised in terms of societal expectations” states Roy Jansen, COO of ICT. “In order to maintain our gold level, we will continuously strengthen our sustainability programs in 2017 and beyond.”

New General terms and Conditions ICT Group

ICT has introduced new (amended) General Terms and Conditions of Supply as well as General Terms and Conditions of Procurement. These new (amended) General Terms and Conditions, submitted to the Chamber of Commerce and replacing the General Terms and Conditions earlier used, are effective as of 1 July 2017 and apply to all ICT’s deliveries and procurements as well as all negotiations and (new) agreements with ICT. ICT’s new General Terms & Conditions can be read, downloaded, saved and printed through the links below. In case of questions, please turn to the Legal Department, +31889082000.

ICT Group and Cisco enter into partnership for Digital Transformation

ICT Group and Cisco recently entered into a partnership to address the rapidly increasing demand for IoT (Internet of Things) applications and further digitization within the industry market segment. This cooperation is a logical sequel to the IoT cooperation between Cisco and Microsoft, as was announced recently. ICT Group’s expertise in the industrial market as well as its knowhow of both Microsoft and Cisco provide an excellent foundation to realize further digitization in this market.

Aart Wegink, Director Digital Transformation ICT Group: “The cooperation is aimed at delivering industry-proven technologies in the industrial market that will realize the integration between the IT and OT domains (operational technology) in a secure and reliable manner.”

“ICT Group is a visionary and an authority in the OT domain. We are very proud that ICT Group is going to work side by side with Cisco to bridge the gap between the IT and OT worlds. This will help our common clients in the utilities, manufacturing and mobility markets to successfully venture into the digital world. The need to break open technological silos to enable efficiency, open access to data and analytics in processes, system performance and cyber security as a business enabler, will unite us into a very promising combination”, says Daan de Groot, Channel Lead Cisco Nederland.

ICT Group acquires high tech solutions and passes the milestone of 1,000 professionals

ICT Group N.V. (ICT) announces that it has signed a share purchase agreement to acquire 100% of the shares of High Tech Solutions B.V. (HTS), a Dutch based high technology automation services provider. The company was founded in 2006 and currently employs around 25 professionals on a HBO / academic level. HTS brings a customer set that is highly complementary to ICT. The acquisition supports ICT’s growth ambitions. High Tech Solutions is a well-respected industrial automation project and services provider. The company is located in Apeldoorn and delivers consultancy services in different markets like Telecom, Healthcare, Defence Security and High Tech Manufacturing. HTS realises profitable revenues of around EUR 2.5 million per annum. With this acquisition ICT passes the mark of 1,000 employees. Commenting on the closing, Jos Blejie, CEO of the ICT Group, stated: “We are pleased with the acquisition of High Tech Solutions. Although a niche player, HTS is bringing new, well respected, clients and specialised industry knowledge to the ICT Group. We warmly welcome our new colleagues and are proud to pass the milestone of 1,000 professionals. For many years HTS and ICT have worked together and both companies acknowledge that there is a clear cultural fit between the two companies. HTS will work closely together with ICT’s Machine & Systems business unit. The founders of HTS will remain involved until the end of 2018. The purchase consideration will be paid in cash. Further financial details will not be disclosed.

“Everybody talks about it; We just do it!”- Publication about ICT Group in MT500

With almost forty years of experience, ICT Group is a leading organisation in the Netherlands, especially in the field of industrial automation. ICT wants to make the world a bit smarter with its solutions. “Where others still think and develop, we already deliver the software solutions.” Thus, the article begins that appeared today in MT500 (page 137) and on CStories.nl. (Only available in Dutch)