Press Release: Q3 Results 2015

Q3 2015: revenue growth and improvement of profitability 

Key developments:

  • Revenue in Q3 up 20% at € 17.1 million (Q3 2014: € 14.2 million), organic revenue growth 9%.
  • EBITDA from continuing operations in Q3 came in at € 1.7 million (Q3 2014: € 0.7 million).
  • Acquisition of Raster completed on 16 September 2015.
  • ICT raises its expectation of an improvement in EBITDA to a range of 40%-50% for the full year 2015 compared to 2014.

Key figures (*) tabel (*) In conformity with IFRS 5, ICT Germany classifies as “Discontinued operations” following the decision to divest the operations and is presented as a separate line item in the income statement, being the total loss post tax of the German operations for the period as ‘result from discontinued operations’ Financial developments Revenue in the third quarter of 2015 increased to € 17.1 million compared to € 14.2 million in the third quarter of 2014. Excluding Strypes Bulgaria, revenue grew 9 % (organic growth). All ICT subsidiaries contributed to revenue growth. During the third quarter, ICT Netherlands partly recovered from the slowdown in demand and postponements of projects in the industrial automation markets in the first half of 2015. ICT Netherlands managed to improve productivity rates of employees as a result of more demand of customers. Revenue over the first nine months of the year amounted to € 51.7 million compared to € 46.6 million over the first nine months of 2014. Organically revenue grew 2.2%. Intensive collaboration between ICT Netherlands and Strypes Bulgaria resulted in additional growth in Bulgaria. EBITDA from continuing operations came in at € 1.7 million in the third quarter, compared with € 0.7 million in the same period of 2014, all subsidiaries contributed to this improvement. In the first nine months of 2015 EBITDA improved to € 4.8 million (first nine months 2014: € 3.1 million). The acquisition of Strypes positively impacted the EBITDA margin. Improve Quality Services and ICT Poland also contributed to this improvement. The improvement was partly off-set by lower than expected results in the Netherlands due to postponement of projects in the first half of 2015. The operating result from continuing ordinary operations in the first nine months of 2015 amounted to € 3.5 million (first nine months 2014: € 2.9 million). The acquisition of Strypes Bulgaria was completed on January 6th 2015. In compliance with IFRS 3 order backlog and customer relations have been valued as a result of a Preliminary Purchase Price Allocation. As a result the total amortization for the first nine months of 2015 amounts to € 1.0 million. Depreciation amounts to € 0.3 million for the first nine months of 2015. Acquisition of Raster ICT has completed the purchase of 100% of the shares of Raster as of the 16 September. The acquisition of Raster will substantially enrich ICT’s Industrial Automation activities and will further improve ICT’s position as a total solutions provider and open up new markets and customers. The acquisition will have a direct positive impact on ICT’s earnings as of the closing date. Raster figures are included in the group’s results as from the 16 September. Renewed and extended credit facility To create room for the execution of ICT’s buy and build strategy, ICT renewed and extended its credit facilities in the third quarter of 2015. The renewed facility consist of three credit facilities. The first facility of € 1.5 million, is advised and is used for providing guarantees and securities. The second credit facility amounts to € 6 million, is committed and can be used for working capital financing. The third credit facility also amounts to € 6 million and can be used for financing of acquisitions. From the acquisition facility € 3 million has been used for the acquisition of Raster in the third quarter of 2015. Outlook ICT continues to execute its strategy offering innovative and effective product/market solutions, enriched with state-of-the-art technology, combining autonomous growth with growth through acquisitions. Based on the performance year to date September 2015 and barring unforeseen circumstances, ICT raises its full year 2015 expectation of an improvement in EBITDA (operating profit before depreciation and amortization from continuing operations) between 40%-50% compared to 2014.

Press Release: First electric car unveiled

Already in March we announced the partnership between ICT and InMotion about the development of the Electronic Control Units (ECU’s) for the complete IM/e race car. ICT provides its Motar platform consisting of the ECU’s hardware and platform software, while InMotion develops the control algorithms (application software) for these ECU’s. Last Saturday, InMotion revealed its first electric racing car: the KP&T IM/e during the opening of the Dutch Design Week (DDW) in Eindhoven. ICT was present and pleased to see the branded fastest electrical formula racer. With a top speed of 285 km/h the KP&T IM/e belongs to the absolute world top. During the remainder of the DDW the racing car is to admire in the so-called Klokgebouw at Strijp-S in Eindhoven. http://nos.nl/artikel/2063905-studenten-bouwen-snelste-elektrische-raceauto.html Press release from InMotion More information can be found at http://inmotion.tue.nl and at https://ict.eu/markets/automotive-mobility/motar/.

Press Release: LANXESS selected ICT for process control solution for China plant

World’s largest synthetic rubber plant enters production using advanced software from ICT

LANXESS commissioned ICT (ICT Automatisering Nederland B.V.) to supply a system to optimise operation of the production process. This will enable LANXESS both to realise its production targets and achieve high quality.

LANXESS, one of the largest specialty chemicals companies in the world, has realised a new synthetic rubber plant in Changzhou in the Chinese province of Jiangsu. The USD 235 million plant will be the largest in the world for the production of EPDM (ethylene propylene diene rubber). EPDM is primarily used in the automotive industry for sealing rubber and coolant hoses, with LANXESS estimating that every car contains around five kilogrammes of EPDM rubber. The new LANXESS EPDM plant in China is already fully operational.

The system supplied by ICT will enable LANXESS to realise its production targets whilst also achieving high quality. At the same time more efficient use of raw materials and energy will support the company’s ambitious sustainability targets.

The system performing these functions was developed by ICT based on AspenTech’s Advanced Process Control (APC) software. Having been a distributor and integrator of AspenTech for many years, ICT has in-depth knowledge of process optimisation. ICT previously successfully automated LANXESS’s synthetic rubber production in the Netherlands. It is because of this knowledge and the good collaboration that ICT was chosen to develop a similar advanced system for the new plant in China.

LANXESS project leader Jos Schmitz: “ICT’s system ensures a seamless transition when the plant’s production settings are changed. This allows us to increase our focus on quality and to manufacture several product variations. Thanks to the system we get a higher yield from raw materials, produce less waste and use less energy. The system started proving its worth right from the moment the plant came on stream.”

Martin Bijl, Business Development Manager for ICT Food, Chemicals & Pharma: “This contract is consistent with our strategy to help the chemical industry to optimise production processes using high-performance software such as MES and APC – not just in the Netherlands, but also for companies operating globally.”

Press Release: ICT completes acquisition of system integrator RASTER

ICT Automatisering NV (ICT) announces that today it has completed the purchase of 100% of the shares of RASTER, a Dutch based system integrator. The intended acquisition marks a significant step in the growth strategy of ICT. The acquisition will have a direct positive impact on ICT’s earnings as of the closing date. The acquisition of RASTER will substantially enrich ICT’s Industrial Automation activities and will further improve ICT’s position as a total solutions provider and open up new markets and customers. The combination of the Industrial Automation activities of both companies offers a strong platform for partnerships with the main industrial software vendors, such as Schneider Electric, Siemens and Rockwell. ICT Group (ICT Automatisering N.V.) is an independent provider of industrial automation services. Our specific industry knowledge of various markets, enables us to realize innovative solutions. Over 700 passionate technical specialists are working for the ICT Group. The following subsidiaries are member of the ICT Group: ICT Netherlands (ICT Automatisering Nederland B.V.), Strypes Bulgaria (ICT Nearshoring B.V.), Improve Quality Services and InTraffic (50%). For more information: www.ict.eu About Raster RASTER IA BV is a project-oriented system integrator in the area of industrial process automation. Main activities are production automation, software development and consultancy. RASTER delivers its services to multinationals and Dutch companies with international activities active in Oil & Gas, offshore, heavy lifting, chemicals, pharmaceuticals and defense sectors. RASTER-Products BV imports, distributes and develops industrial automation products. (www.raster.com and www.raster-products.com) For further Information: Femmy de Rijk, PR & Communications, ICT Group +31 (0)88 908 2000 / + 31 (0)6 10 51 3745. E-mail: Femmy.de.rijk@ict.eu

Press Release: FIRST- HALF YEAR RESULTS 2015 ICT AUTOMATISERING

REVENUE GROWTH AND IMPROVEMENT IN EBITDA SIGNIFICANT STEPS REALIZED IN EXECUTION STRATEGY Key developments:

  • Revenue in H1 2015 up 7% at € 34.6 million, mainly attributable to the acquisition of Strypes Bulgaria
  • H1 2015 EBITDA improved to € 3.2 million; 9.2% of revenue (H1 2014: € 2.4 million, 7.5% of revenue)
  • Acquisition of Strypes Bulgaria completed on 6 January 2015. Intensive collaboration between ICT Netherlands and Strypes Bulgaria bears fruit.
  • Price Purchase Allocation on Strypes completed, intangibles identified and valued, resulting in period amortization of € 0.9 million in H1 2015
  • Letter of intent signed end of June to acquire industrial systems integrator RASTER

Key figures (*)

(in millions of €) H1 2015 H1 2014 Change
Revenue 34.6 32.4 6.8%
Revenue Added Value 31.8 29.2 8.9%
EBITDA from continuing operations 3.2 2.4 33.3%
Amortization / depreciation 1.1 0.2  
Operating result from continuing operations 2.1 2.3  
Net profit from continuing operations 1.5 1.7  
Result after taxes from discontinued operations                                – -0.7  
Net profit 1.5 0.9  
(in €)      
Earnings per share (**) 0.17 0.11  

(*)  In 2014, in conformity with IFRS 5, ICT Germany classified as “Discontinued operations” following the decision to divest the operations and is presented as a separate line item in the income statement, being the total loss post tax of the German operations for the period as ‘result from discontinued operations’. (**)  Based on the average number of outstanding ordinary shares. Jos Blejie, CEO of ICT Automatisering N.V.: “In the first six months of this year, our focus has been on the execution of our strategy. The acquisition of near-shore company Strypes in Bulgaria is an important step in this execution. It provides us access to lower-cost quality solutions based on rapid development techniques, and a competitive edge in today’s market. Intensive collaboration between The Netherlands and Bulgaria is showing good results. The intended acquisition of RASTER that we announced end of June this year, will substantially enrich our Industrial Automation activities and will further improve ICT’s position as a total solutions provider and open up new markets and customers. These actions support us in creating a stable platform from which we can further roll out our strategy and can grow our business sustainable. Although in the first half of 2015 ICT Netherlands was confronted with a slowdown in demand in the markets served by industrial automation, we do envisage a recovery of demand in the second half of 2015.” Strategy The company will continue its strategy of offering innovative effective product/market solutions, enriched with state-of-the-art technology. Each unit offers market specific solutions in which ICT has a high level of expertise, which allows the company to offer its clients greater added value. This puts ICT in a position to execute projects for its clients independently, making use of the specialist expertise and experience it has gained from previous assignments for its clients. As a result, ICT is able to realise innovative solutions for its clients that are also both repeatable and scalable. The acquisition of new business and the development of new emerging markets are key focus areas of ICT’s strategy. Acquisition of Strypes Bulgaria On 6 January 2015, ICT acquired 100% of the shares of Strypes Bulgaria. Strypes Bulgaria is a specialist in embedded software development based on modern agile methodologies. The total purchase price of the acquired shares, including the earn-out amounts to € 5.4 million. Goodwill resulting from the transaction amounts to approximately € 1.4 million (after the implementation of the Purchase Price Allocation). Acquisition of remaining shares Improve Quality Services According to the original contract the remaining 10% of the shares of Improve was acquired on 1 January 2015. Letter of Intent signed to acquire RASTER End of June 2015, ICT signed a letter of intent to acquire 100% of the shares of Raster Holding BV (RASTER), a Dutch based system integrator. The intended acquisition marks a significant step in the growth strategy of ICT. RASTER operates in the domain of industrial automation and more specifically in the area of industrial process automation, production automation, software development and consultancy. Segmentation (IFRS 8) The acquisition of new business and the development of new emerging markets are key focus areas of ICT’s strategy, which resulted in a new organizational structure that came into effect in Q1 2015. Therefore ICT decided to change the management control of the company. ICT reassessed how to apply IFRS 8 with respect to segment disclosure in its financial statements. In the past the breakdown of cash-generating units (CGU(s)) was aligned with the segmentation of ICT. This alignment is also reassessed. Taking into account how management manages and monitors ICT NL’s business units, future impairment testing will take place at (total) ICT NL level, resulting in partial aggregation of CGU levels as from 2015, in line with the organizational changes and in line with IFRS requirements. Financial developments H1 2015 ICT’s revenue in the first half of 2015 was € 34.6 million compared to € 32.4 million in the first half of 2014. This increase was mainly attributable to the acquisition of Strypes Bulgaria (ICT Nearshoring BV) which realised € 2.5 million of revenue. ICT Netherlands is confronted with postponement of projects and realised revenues of € 30.1 million compared with € 30.7 million in the first half of 2014. As a result of these postponements ICT realised lower licences and materials sales than in the first half of 2014. In the industrial markets we were also confronted with lower than expected secondment demand from customers. Intensive collaboration between ICT Netherlands and Strypes Bulgaria resulted in additional growth in Bulgaria from 54 fte on acquisition date up to 85 fte per 30 June 2015. This growth is mainly attributable to the acquisition of new customers. In the segment other both Improve Quality Services and ICT Poland realised revenue growth due to business generated at new customers. Improve Quality Services realised revenue growth of around 15 % (H1 2015: € 1.9 million / H1 2014 € 1.6 million). ICT Poland is working closely together with ICT Netherlands in the Automotive markets. The realised EBITDA (earnings before interest, taxes, amortization and depreciation) amounted to € 3.2 million in the first half of 2015, compared with € 2.4 million in the same period of 2014. Strypes Bulgaria contributed to this improvement with a realised EBITDA of € 0.7 million. Improve Quality Services and ICT Poland also contributed to this improvement with € 0.3 million. The improvement was partly off-set by lower than expected results in the Netherlands due to postponement of projects and transferred activities to Bulgaria. The Acquisition of Strypes Bulgaria was completed on 6 January this year. In compliance with IFRS 3, as a result of a Preliminary Purchase Price Allocation, order backlog and customer relations have been valued. As a result the total amortization amounts to € 0.9 million in the first half of 2015 (€ 0.543 million one off on backlog and € 0.325 million on customer relations). Customer relations have been valued at € 3.3 million to be amortized over a period of 5 years as from acquisition date. The amortization on customer relations amounts of € 0.6 million a year. The operating result from continuing ordinary operations in the first half of 2015 amounted to € 2.1 million (H1 2014 € 2.3 million).  The acquisition of Strypes positively impacted the operating margin (€ 0.7 million). The amortization on Strypes Bulgaria as described above (€ 0.9 million) had a negative impact. The costs related to the consideration of strategic options, including the due diligence and transaction costs for Strypes and Raster, amounted to € 0.3 million (H1 2014: € 0.3 million). Taxes in the first half of 2015 amounted to € 0.4 million compared with € 0.6 million in the first half of 2014. Net profit was € 1.5 million, compared with a profit of € 0.9 million in the first half of 2014. The balance sheet total decreased from € 49.4 million at year-end 2014 to € 49.1 million at 30 June 2015 mainly as a result of the net effect of dividend paid of € 2 million and net profit of € 1.5 million realized in the first half of 2015. The net cash flow from continuing operations amounted to € 0.8 million negative in the first half of 2015 (H1 2014: € 0.4 million negative) as a result of a relatively high amount of creditors on the balance sheet per year end 2014, to be paid in the first half of 2015. The cash position per 30 June 2015 decreased to € 4.1 million (June 30, 2014: € 7.5 million). This was mainly due to the payment of the acquisition price for Strypes Bulgaria and dividend paid. Composition of the Supervisory Board The term of the Chairman, Mr. Van der Raadt and member Mr. Fröschl expired in May 2015.  The Annual General Meeting of Shareholders reappointed Mr. Van der Raadt and Mr. Fröschl for an additional four-year term on 13 May 2015. Outlook ICT continues to execute its strategy offering innovative and effective product/market solutions, enriched with state-of-the-art technology, combining autonomous growth with growth through acquisitions. Barring unforeseen circumstances, ICT expects for the full year 2015 an improvement in EBITDA (operating profit before depreciation and amortization from continuing operations) between 25%-35% compared to 2014. Condensed consolidated interim financial statements

ICT and Brabantse Ontwikkelings Maatschappij (BOM) acquire stake in GreenFlux

System integrator and technical services provider ICT and the Brabantse Ontwikkelings Maatschappij (BOM) have signed a letter of intent (LOI), stating their intention to invest in GreenFlux, a charging point operator and services provider for electric vehicles. The investment will help GreenFlux to strengthen its position in the fast-growing market for electric vehicles and give the company the opportunity to accelerate the introduction of innovative charging services. The cooperation with BOM and ICT creates a unique combination of expertise in electric transportation, the energy sector and innovative IT solutions.

Strong growth in electric vehicle use

The use of electric vehicles is set to grow enormously in Western Europe. In addition to the growth in the number of electric cars, battery capacity is also expected to increase, which will in turn accelerate the growth in charging capacity.

ICT

Aart Wegink, Sales Director ICT Emerging Solutions: “ICT has made a large number of investments in solutions for the energy market in recent years and is involved in a number of Smart Energy projects such as USEF, Stad van de Zon (City of the Sun) and PowerMatching City. We have noted that solutions for the management and control of decentralised electricity generation and consumption have become essential. The growth in electric vehicle use will continue to increase the dynamics of energy consumption. The combined investment with BOM and the cooperation with GreenFlux is a good fit with ICT’s proposition in the energy market.”

BOM

The Brabante Ontwikkelings Maatschappij boosts the economy of the Brabant region by encouraging cooperation between companies, public sector bodies and other organisations, and by attracting foreign companies, developing business locations and making risk-bearing investments in new and growing innovative companies.

GreenFlux

GreenFlux has been active in the market for electric vehicle use since 2012. In recent years, GreenFlux has developed a unique platform together with ICT. This has created opportunities for innovative services such as Smart Charging, which makes the platform extremely suitable for larger charging environments.

Press Release: ICT signs letter of intent to acquire system integrator RASTER

ICT (ICT) announces that today it has signed a letter of intent to acquire 100% of the shares of Raster Holding BV (RASTER), a Dutch based system integrator. The intended acquisition marks a significant step in the growth strategy of ICT. The acquisition will have a direct positive impact on ICT’s earnings as of the closing date, anticipated in August 2015. RASTER operates in the domain of Industrial Automation and more specifically in the area of industrial process automation, production automation, software development and consultancy. RASTER is a project-oriented system integrator with reputable customers in defined segments. In addition RASTER imports and distributes industrial equipment in partnership with industrial software vendors. RASTER is also the owner of its proprietary software development platform (‘foundation software’). RASTER, with some 20 highly educated professionals, is well-known and respected in our markets, and brings ICT significantly closer to realizing its ambitions in Industrial Automation markets. RASTER delivers its services to multinationals and Dutch companies with international operations active in Oil & Gas, offshore, heavy lifting, chemicals, pharmaceuticals and defence sectors. The combination of the Industrial Automation activities of both companies offers a strong platform for partnerships with the main industrial software vendors, such as Schneider Electric, Siemens and Rockwell. RASTER will facilitate the ambitions of ICT to grow with self-developed solutions. The purchase consideration comprises a cash payment and an amount in ICT shares. Further details will be disclosed at closing. During 2012 – 2014 RASTER realised profitable revenues of around EUR 4 to 5 million per annum. Jos Blejie, CEO of ICT: “I am delighted that the founders of RASTER are willing to join forces with ICT. The acquisition of RASTER will substantially enrich our Industrial Automation activities and will further improve ICT’s position as a total solutions provider and open up new markets and customers.” Jan Dekker, CEO of RASTER: “By joining ICT, RASTER will enter a new stage in its development. Together the combination can deliver the full breadth of capabilities in the Industrial Automation market. The transfer of ICT shares to the founders of RASTER underlines the trust we have in a long term relationship with ICT.” RASTER will stay an independent business unit on its current location and under its current label within ICT. The management of RASTER remains committed.

Press Release: Q1 Results 2015

ICT reports improvement in revenue and operating result in Q1. Key Developments in first quarter: Revenue in Q1 2015 up 7% at € 17.1 million, fully attributable to the acquisition of Strypes Bulgaria. Q1 2015 operating result improved € 0.2 million to € 1.3 million. Acquisition of Strypes Bulgaria completed on January 6th.

Key figures (*)

(in millions of €)

Q1 2015

Q1 2014

   D  

Revenue

17.1

16.0

+ 7,3%

Operating result from ordinary operations

1.5

1.4

 

Exceptional charges (**)

0.2

0.3

 

Operating result

1.3

1.1

(*) Q1 2015 figures includes the figures of Strypes Bulgaria (consolidated as from the beginning of January). Q1 2014 figures are restated for ICT Germany regarding discontinued operations (IFRS 5). (**) This concerns corporate development expenses related to the consideration of strategic options, such as the acquisition of Strypes Bulgaria. Financial developments ICT (ICT)’s revenue in the first quarter of 2015 was € 17.1 million compared to € 16.0 million in the first quarter of 2014. This increase was fully attributable to the acquisition of Strypes Bulgaria. Excluding Strypes Bulgaria, revenue was in line with last year. The operating result amounted to € 1.3 million in the first quarter, compared with € 1.1 million in the same period of 2014. Strypes Bulgaria contributed to this improvement with positive results in line with expectations. This improvement was partly off-set by lower than expected project results in the Netherlands. Operational developments All organisational entities managed to record positive results. Machine & Systems, Logistics and Automotive performed in line with expectations. Industrial Automation is confronted with postponement of projects in combination with lower than expected secondment demand from customers. Improve Quality Services According to the original contract ICT agreed to acquire the remaining 10% of Improve in January 2015. ICT completed its acquisition of the remaining shares of Improve Quality Services BV and now owns 100% of the company. Improve Quality Services realized positive results in line with expectations. Outlook ICT continues to execute its strategy offering innovative and effective product/market solutions, enriched with state-of-the-art technology, combining autonomous growth with growth through acquisitions. ICT expects for 2015 a further improvement in the operating profit compared with 2014 (operating profit from continuing operations).

Annual Report 2014 ICT Automatisering available online

Today ICT NV (ICT) published its Annual Report for 2014. The report can be found here. ICT invites its shareholders to the Annual General Meeting of Shareholders (AGM). The meeting takes place on May 13, 2015 in the Novotel Rotterdam, KP van der Mandelelaan 150. The meeting will start at 10 AM. The call for the AGM, the agenda and explanatory documentary is published on the website.

Press release: ICT and InMotion annouce partnership

Today ICT (ICT) and Stichting Automotive Technology InMotion (InMotion) announce a partnership. InMotion is an automotive race team that consists of students of Eindhoven University of Technology and Fontys University of Applied Sciences. InMotion aims to participate in the 24h race of Le Mans in 2017 with their IM01 race car. Furthermore they set out to break the all time record on the famous Nürburgring Nordschleife. As predecessor of the IM01, InMotion is currently developing the IM/e race car which embodies an all-electric test platform for technologies to be used on the IM01, e.g. several active systems.News_20150310-2 Together ICT and InMotion will develop the Electronic Control Units (ECU’s) for the complete IM/e race car. ICT provides its Model based development Production Platform: Motar, consisting of the ECU’s hardware and platform software, while InMotion develops the control algorithms (application software) for these ECU’s.News_20150310-1 Colin Diederen, Public Relations Manager InMotion: “We are proud to team-up with an innovation-driven company like ICT. With their platform, we can create the perfect ECU and architecture for our test vehicle. This is a major step towards the development of our Le Mans racer, the IM01”. Eeuwke Wielinga, ICT’s Business Unit Manager Automotive & Mobility: “We are excited to contribute to the goal of InMotion to deliver the first race car on the roadmap to the IM01 in 2015. Both InMotion and ICT share the passionate drive of technological innovation and the desire to apply groundbreaking technology on cars. Being at the forefront of many of the latest developments we successfully developed the Motar-platform for the automotive industry. ICT’s Motar-platform consists of both hardware and software. The platform offers seamless integration of MATLAB / Simulink control algorithms on production class automotive hardware built up on an AUTOSAR architecture. As such it forms an excellent basis for automotive control development on various HW platforms.” For further information about InMotion: www.inmotion.tue.nl Further information about ICT’s Motar-platform