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: Annual Results 2014

Key developments in 4th quarter and full year 2014

Revenue up 4% at € 63.0 million in 2014, as a result of more licence sales and more direct employees. Operating margin from ordinary continuing operations after exceptional items comparable to 2013 at 7%. In the second half of 2014 ICT announced and completed the divestment of its German activities to Alten GmbH. ICT strengthened its partnership with LogicNets Inc. and announced the acquisition of Strypes Bulgaria, a specialist in embedded software development. Sharp increase in net result to € 5.0 million (2013: loss of € 1.1 million), largely due to tax benefit resulting from the liquidation of ICT Software Engineering GmbH. For 2015, ICT expects an further improvement in operating profit from continuing operations compared with 2014.

Key figures

(in millions of €)

FY 2014

FY 2013*

Q4 2014

Q4 2013*

Revenu

63.0

60.8

3.7%

16.7

16.3

2.3%

Operating result from ordinary continuing operations (after exceptional items) (**)

4.4

4.2

1.7

1.2

Result after taxes from discontinued operations

(2.8)

(1.1)

Taxes

4.3

(1.1)

Net result

5.0

(1.1)

(in €)

Earnings per share

0.56

(0.13)

Dividend per share

0.23

0.15

53.3%

(*)  In conformity with IFRS 11, effective 1 January 2014, InTraffic (as a joint venture) is no longer consolidated in the statement of comprehensive income in revenue, costs and EBIT but is presented as a single line item in the consolidated statement of comprehensive income under financial income. The 2013 figures have been accordingly restated for comparison purposes. 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’ (**)  Operating profit excluding impairment charges, including exceptional items.

Jos Blejie, CEO of ICT Automatisering N.V.: “2014 was a year of change for ICT. Not only did we divest our German activities, we have also taken important steps in the execution of our strategy. The acquisition of the strategic stake in our partner LogicNets brings us closer to becoming a multi-disciplinary system integrator. The acquisition of near-shore company Strypes in Bulgaria that we announced at the end of last year was another important step of the presented strategy. It provides us access to lower-cost quality solutions based on rapid development techniques, and a competitive edge in today’s market.  All these actions support us creating a stable platform from which we can further roll out our strategy and can grow our business sustainably. In 2015, we therefore expect to see a further improvement in operating profit from continuing operations compared with 2014.”

Notes to the results

ICT’s revenue came in at € 63.0 million in 2014, compared with € 60.8 million in 2013. As a result of licence sales and the increase in operational hours due to the increased number of direct employees in the Netherlands, ICT was able to realize 3.7% higher revenue than 2013. The license sales were due to the partnership ICT formed with LogicNets. The verticals Machine & Systems (including Energy and Healthcare) and Industrial Automation showed an increase in revenue. The other verticals and Improve Quality Services booked revenue which was in line with 2013.

The cost of sales, mostly material, expenses and outsourced work, increased to € 5.7 million (2013: € 5.0 million), mainly due to increased LogicNets licences.

Largely due to the growing average number of employees, personnel expenses increased to € 40.2 million in 2014 (2013: € 38.4 million). The focus on the reduction of indirect costs continued. In 2014, we renegotiated rental agreements and reduced personnel costs at support functions. Full effect of this will be attributable in 2015.

The operating profit from continuing ordinary operations before exceptional items in 2014 amounted to € 5.2 million (2013: € 5.6 million). This decrease was mainly due to pressure on secondment rates and increased expenses in marketing and sales. The margin was also impacted by the successful recruitment drive for young professionals, who were, as expected, not immediately fully productive.

As in 2013, ICT incurred exceptional costs in 2014 related to the investigation and realisation of strategic combinations. In 2014 these exceptional costs amounted € 0.8 million (2013: € 1.4 million).

The operating profit from continuing ordinary operations after exceptional items in 2014 amounted to   € 4.4 million (2013: € 4.2 million). The operating margin was 7%, in line with 2013.

Despite numerous attempts in recent years to make its German business profitable, ICT concluded in the first half of 2014 that the German activities would not contribute to a positive result in 2014. In view of this and the fact that in Germany ICT did not have the necessary critical mass to serve the multinational corporations, ICT decided to discontinue its German activities. As a result of the decision to divest, ICT Germany is recognised as “Discontinued operations”. The result from this divestment of the operations and the consequent liquidation amounted to a loss of € 2.8 million in 2014 of which € 0.8 million from ordinary operations (2013: loss of € 1.1 million), € 2.0 million from the consequent liquidation of the German subsidiaries.

Improve Quality Services was again critically assessed for goodwill impairment purposes. In the previous two years, ICT booked an impairment of € 4.9 million on the goodwill for Improve Quality Services B.V., due to the development of results over the previous years and the expectation that its profitability would improve albeit at a slower pace than previously believed feasible. In 2014, the results improved versus 2013, but were again lower than our expectations. ICT expects future improvement to be in line with the improvement realised in 2014, resulting in an additional impairment of € 1.2 million.

Corporate income tax related to continuing business activities excluding exceptional items in 2014 amounted € 1.4 million. Combined with a deferred tax benefit of € 5.6 million in the Netherlands, as a result of the liquidation of the German subsidiary, corporate income taxes in 2014 amounted to € 4.3 million positive (2013: € 1.1 million negative).

Net profit for the year amounted to € 5.0 million, compared with a loss of € 1.1 million in 2013. This translates into earnings per ordinary share of € 0.56. The number of outstanding ordinary shares stood at 8,747,544 on 31 December 2014, unchanged from a year ago.

Q4 2014 results

Revenue in Q4 2014 increased slightly to € 16.7 million compared to the last quarter of 2013. An operating result from continuing ordinary operations of € 2.3 million was realized, a slight decrease compared to last year.

Balance sheet structure

Mainly as the result of the addition of the net profit of € 5.0 million for 2014, shareholders’ equity increased to € 34.0 million. The balance sheet total increased by € 2.9 million to € 49.4 million at year-end 2014, from € 46.5 million at year-end 2013, as a result of the investment in LogicNets and the deferred tax asset related to the decision to liquidate the German entity. Solvency (shareholders’ equity/total assets) improved to 68.7% at year-end 2014 from 65.2% at year-end 2013, which represents a very sound basis.

Cash flow development

The net cash flow from continuing operations amounted to € 3.5 million positive in 2014 (2013: € 4.0 million positive) as a result of positive operating profit and a low tax rate due to income tax reimbursement.

Developments within Verticals

Revenue at the Machine & Systems Vertical (including Energy and Healthcare) was up 4.4% at € 29.5 million, from € 28.2 million in 2013. Revenue growth was due to LogicNets License sales and more demand from customers. However, last year saw continued strong pressure on secondment rates. The relatively small Healthcare and Energy Verticals are developing in line with expectations, while the Healthcare Vertical acquired a number of interesting contracts. The operating result was lower than in 2013 and came in at € 2.6 million (2013: € 3.1 million). The operating margin was lower in 2014, largely as a result of pressure on secondment rates and slightly lower productivity. The drop was partly compensated by increased operating margins as a result of LogicNets license sales.

The revenue at the Logistics Vertical was in line with 2013 at € 9.3 million. During the second and the third quarters of the year, this vertical saw less demand from clients, which had a negative effect on productivity.  As a result the operating result came in at € 0.6 million in 2014 (2013: € 1.0 million).

The Industrial Automation Vertical saw revenue increase by 9.0% to €15.9 million, from € 14.6 million in 2013, due to increased demand for projects, and as a result of project related material sales. The operating result improved to €1.5 million in 2014 from € 0.9 million in 2013, due to the higher customer demand, which in turn resulted in growth in the number of employees and higher productivity. In addition, this vertical also improved its project execution, which led to improved results compared with 2013.

In 2014, revenue at the Automotive Vertical amounted to € 5.6 million, in line with 2013. The vertical realized an operating result of € 0.3 million, which was lower than in 2013 (€ 0.5 million). Demand from customers was in line with 2013. Productivity was particularly high in the first three quarters of 2014, with a slight drop in the fourth quarter. Results were lower than in 2013 due to the hiring of new young professionals, who were not immediately fully productive. In the fourth quarter of the year, results were also negatively impacted as a result of work transferred to Alten GmbH in Germany, the company to which ICT sold its German Automotive activities.

The revenue at Improve Quality Services came in at € 3.2 million in 2014, at the same level as last year. With € 0.3 million, the operating result is better than last year (2013: € 0.2 million), as Improve’s training activities picked up in the Netherlands.

In the first half 2014, the performance of InTraffic B.V. (50/50 joint venture) was lower than expected due to a delay in orders. In the second half of 2014 InTraffic managed to recover. ICT’s share in the net profit for 2014 is € 0.3 million (2013: € 0.3 million).

Personnel

The total number of employees at year-end 2014 was 4% higher than at year-end 2013. This was mainly due to the recruitment of (young) direct professionals. For 2015, we expect the growth in the number of FTEs to be in line with our revenue development.

Dividend

It is proposed to the General Meeting of Shareholders that a dividend will be paid out for the 2014 financial year at the amount of € 0.23 per share in cash based on the number of ordinary shares outstanding at year end 2014. This represents a pay-out ratio of 40% of the net profit, in line with the dividend policy.

Significant events after the balance sheet date

On 6 January 2015, the Group acquired 100% of the shares and voting interests of Strypes Bulgaria. Strypes Bulgaria is a specialist in embedded software development based on modern agile methodologies. The remaining 10% of the shares of Improve was acquired on 1 January 2015 for the amount of € 250,000.

Composition of the Supervisory Board

The term of the Chairman, Mr. Theo van der Raadt and Mr. Friedrich Fröschl expires in 2015.  The Board intends to submit a proposal to the Annual General Meeting of Shareholders on 13 May 2015 to reappoint Mr. Van der Raadt and Mr. Fröschl for an additional four-year term.

Outlook

ICT’s focus in 2014 was on the execution of its strategy. ICT took additional steps to put its house in order, the most significant of which was the sale of ICT’s Germany-based activities. In the second half of 2014, ICT strengthened its strategic partnership with LogicNets. In January 2015 ICT acquired and obtained control in Strypes, a next-generation agile near-shoring company in Bulgaria. ICT will continue its strategy of offering innovative and effective product/market solutions, enriched with state-of-the-art technology, combining autonomous growth with growth through acquisitions. As a result of the above, for the full year 2015 we expect a further improvement in the operating profit from continuing operations compared with 2014.

Cautionary statement

This press release contains forward-looking statements. Forward-looking statements are always based on assumptions and estimates relating to uncertain events over which ICT Automatisering N.V. has no control. They concern, for example, measures taken by the Dutch and other governments, currency movements, price fluctuations, changes in law and regulations, legal precedents and market developments. ICT Automatisering N.V. would like to stress that the contents of this press release are based on the information that is currently available. The reality can always deviate from expectations for the future. ICT Automatisering N.V. has no obligation to update the statements contained in this document, unless required by law.

Annexes: Extracts from Consolidated Financial Statements 2014

  • Consolidated statement of total comprehensive income
  • Consolidated balance sheet
  • Consolidated statement of changes in equity
  • Consolidated statement of cash flows
  • Other financial information

Click here to download the Annex of the Annual Resuls of 2014

Q3 results 2014 ICT Automatisering

ICT reports flat third quarter revenues

Full year outlook reiterated

  • Revenue in Q3 2014 in line with last year at € 14.2 million
  • Operating result from continuing operations in Q3 came in at € 0.7 million (Q3 2013: € 0.8 million)
  • Sale of the German activities completed
  • Management reiterates expectation of improved operating result from continuing operations for the full year 2014 compared to 2013

Key Figures

(in € millions) Q3 2014 Q3 2013 Δ 9 months 2014 9 months 2013 Δ
Revenue 14.2 14.3 – 1% 46.6 44.5 + 5%
Revenue Added Value 13.1 12.9 + 1% 42.2 40.9 + 3%
Operating result from continuing operations 0.7 0.8   2.9 3.0  

(*) In conformity with IFRS 11, effective 1 January 2014, InTraffic (as a joint venture) is no longer consolidated in the statement of comprehensive income in revenue, costs and EBIT but is presented as a single line item in the consolidated statement of comprehensive income under financial income. The 2013 figures have been accordingly restated for comparison purposes. 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

ICT (ICT) announces revenues in the third quarter of 2014 came in at € 14.2 million, from € 14.3 million in the third quarter of 2013. The third quarter is traditionally a lesser period due to the summer holidays, with in addition this year more young professionals not yet fully productive. Revenue over the first nine months of the year amounted to € 46.6 million compared to € 44.5 million over the first nine months of 2013. As a result of licence sales and the increase in operational hours facilitated by the increased number of direct employees in the Netherlands, ICT was able to realise 5 % higher revenues than in the comparable period in 2013. The operating result from continuing operations came in at € 0.7 million in the third quarter, compared with € 0.8 million in the same period of 2013. The operating result from continuing operations in the first nine months of 2014 was in line with the first nine months of 2013 and amounted to € 2.9 million. The operating margin decreased due to the significant outlays made in marketing and sales. In addition the successful recruitment drive for young professionals, that understandably were not immediately fully productive, impacted the margin. ICT has completed the sale of its German activities to Alten GmbH, a German subsidiary of Alten SA. As a result of the divestment, ICT will liquidate its German subsidiary, ICT Software Engineering GmbH. As a consequence of the liquidation there will be a deferred tax benefit to be recognized, on which ICT is in discussions with the Dutch tax authorities. Further to the Letter of Intent signed end of August, ICT entered into a Strategic partnership with LogicNets in the second half of October. This strategic partnership comprises a distribution and implementation partner agreement for Western Europe and the acquisition by ICT of a 20% stake in LogicNets inc.

Outlook

ICT will continue to focus on the execution of the strategy combining autonomous growth with growth through acquisitions. Based on the backlog of projects and the experience that the fourth quarter of the year is generally the best quarter of the year in our business, we continue to expect that 2014 will represent an improvement in the operating profit from continuing operations compared with 2013 (€ 4.2 Million).

ICT Automatisering reports continued improvement in revenue and EBIT in Q1


Key Developments in first quarter:
– Revenue in Q1 2014 up 1.7% at € 18.9 million
– In Q1 2014 operating result from ordinary operations (before exceptional items) improved € 0.3 million to € 1.1 million due to an improved utilisation rate as well as the ongoing reduction of indirect costs.
– The Q1 operating result amounted to € 0.8 million, due to exceptional charges of € 0.3 million related to the Brandfort transaction.
Key figures *

(in € millions) Q1 2014 Q1 2013 Δ
Revenue 18.9 18.6 + 1.7%
Operating result from ordinary operations
(before exceptional items)
1.1 0.8
Exceptional charges ** 0.3 0.0
Operating result 0.8 0.8


* InTraffic classifies as a joint venture. As a result of IFRS 11,  effective per 1 January 2014,  InTraffic (as a joint venture) is no longer part in the statement of comprehensive income in revenue, costs and EBIT. From 1 January 2014 onwards the net result of InTraffic is being presented in one single line in the consolidated statement of comprehensive income under financial income. 2013 figures have been restated to reflect  to this new situation.
** This concerns corporate development expenses related to the consideration of strategic options, including the proposed acquisition of Brandfort.

Financial developments
ICT (ICT)’s revenue in the first quarter of 2014 was € 18.9 million compared to € 18.6 million in the first quarter of 2013. As a result of increased demand for ICT services, ICT was able to realise 1.7% higher revenues than in the comparable period in 2013.
The operating result from ordinary operations amounted to € 1.1 million in the first quarter, compared with € 0.8 million in the same period of 2013. The improvement in results was due to the higher utilisation rate of our staff as a result of an increase in demand for ICT’s services. In addition, the reduction of indirect costs also resulted in improved profitability. This improvement was partly off-set by lower than expected project results.
The costs related to the considerations of strategic options including the costs for due diligence and transaction costs for Brandfort amounted to  € 0.3 million. In the beginning of April, the discussions for the contemplated transaction with Brandfort were terminated.
Operational developments
The Verticals Machine & Systems and Logistics managed to record positive results, in line with expectations, continuing the trend of the second half of 2013. The vertical Industrial Automation realized positive but disappointing results due to lower than expected demand from customers, and as a result of this a lower productivity of employees, and lower average rates per hour. The Automotive Vertical recorded a slightly negative operating result in the first quarter, with the Netherlands achieving better than expected results in combination with disappointing results in Germany. An action plan is therefore being implemented in Germany. Both the German market circumstances as well as progress on the action plan is being monitored closely and additional actions will be taken as and when necessary.
The performance of InTraffic was lower than expected due to a delay in orders. The results of Improve are slightly better than last year as training activity is picking up in the Netherlands.
Outlook
ICT’s focus on Verticals and the continued reduction of indirect costs have had a positive impact on the performance and results of the company. The economic conditions improved slightly but remain challenging due to continued volatility. As we see in the first quarter of 2014, the range of measures that management took last year positively impacts our operating profit from ordinary operations. We expect 2014 to show a continued improvement of the operating profit from ordinary operations compared to 2013.

About ICT
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) 88 908 2000 / +31 (0)6 10 51 3745.
E-mail:  Femmy.de.rijk@ict.eu

ICT annual results 2013: substantial increase operating result

FOCUS ON VERTICALS AND PROJECT RELATED BUSINESS PAYS OFF

Key Developments in 4th Quarter and full year 2013:

  • Full year revenue increased by 2.1% to € 79.5 million (2012: € 77.8 million), this increase was realized in the second half of the year 2013 compared to the second half of the year 2012 (+6.1%).
  • Compared to Q4 2012 , operating result from ordinary operations in Q4 2013 increased € 1.7 million.
  • The full year 2013 operating result from ordinary operations before exceptional items increased substantially from € 1.7 million to € 4.9 million. The operating margin increased to 6.2% in 2013 (2012: 2.2%).
  • Net cash flow from operating activities was € 5.3 million.
  • Impairment of Improve Quality Services (€ 3.4 million) influenced net result.
  • Net result amounted to a loss of € 1.1 million (2012: loss of € 5.2 million).


Jos Blejie, CEO of ICT Automatisering N.V.:“The further roll out of our verticals strategy and the continued reduction of indirect costs have led to clear improvements in results in 2013, despite the fact that the market remains dominated by a reluctance to invest. We have signed a number of partnerships with leading players in a number of our key industries. These partnerships are of vital importance for the successful introduction of our products and services. For the coming year, we will further roll out our strategy and boost efforts in promising product market combinations. Our company is well-positioned for further growth, we are confident that 2014 will show a further improvement in the operating result compared to 2013.”
Notes to the results
ICT’s total revenue raised by 2.1% to € 79.5 million (2012: € 77.8 million). Revenue at ICT Netherlands increased by 6.2% to € 66.0 million (2012: € 62.1 million). Especially in the second half of 2013 ICT realized a substantial increase in revenue compared to the second half of 2012, as a result of increased demand for ICT’s services, and a consequent improved utilisation rate. All verticals, except Automotive Germany showed an increase in revenue. InTraffic saw its revenue increase, whereas at Improve, revenue was down considerably. The cost of sales, mostly material, expenses and outsourced work, increased to € 9.4 million (2012: € 9.0 million) as a result of different mix of business.
Personnel expenses, at € 50.0 million in 2013, were down slightly from the € 50.2 million recorded in 2012. This was largely due to the lower average number of employees (minus 19 FTE). As in 2012, ICT incurred one-off costs in 2013. In 2012 this amounted to € 2.6 million and comprised of a provision for so-called onerous contracts, the sale of the Neustadt activities and other restructuring measures. In 2013, this amounted to € 1.4 million. € 1.0 million of these costs concern expenses related to investigations of strategic combinations. The other € 0.4 million exceptional costs were related to the termination benefit of the former CEO who left the company in November 2013.
The focus on the reduction of indirect costs – is now paying off. In 2013, indirect costs – including depreciation on tangible assets – came in at € 16.9 million, down 12% from the € 19.3 million recorded in 2012. Including the depreciation charges on fixed assets, indirect expenses came in at 21% of revenue in 2013, down from nearly 25% in 2012, mainly as a result of lower indirect personnel costs and lower rental costs.
The total operating result before exceptional items for the year 2013 increased to € 4.9 million or 6.2% of revenues compared to € 1.7 million or 2.2 % of revenues in 2012. The improvement in results was due primarily to the 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 (Q4 2012) and the reduction of indirect costs also resulted in improved profitability.
The Verticals Machine & Systems (including Healthcare and Energy), Industrial Automation and Logistics managed to record positive and improved results compared to 2012. The vertical Automotive was loss making during 2013 (€ 0.6 million negative; 2012: € 2.1 negative). However, in the second half of 2013, the operating result of the Automotive Vertical was € 0.1 million positive. Automotive Germany did book improved results compared with the previous year and the first half of 2013. The appointment of new management with a focus on business development, the departure of a number of professionals who could not be deployed on a structural basis, and also the ongoing reduction in the number of indirect employees resulted in a small loss of € 0.1 million in the fourth quarter.
The performance of InTraffic developed positive, while the results of Improve Quality Services lagged. This was largely due to companies postponing training courses in the current economic climate.
The Vertical Automotive Germany and Improve Quality Services were again critically assessed for goodwill impairment purposes. Based on this it was decided to again impair goodwill for Improve Quality Services B.V. for an amount of € 3.4 million.
Taxes in 2013 totalled €1.2 million. ICT devaluated the loans to Germany as a result of losses in Germany for an amount of € 2.4 million. As a result a deferred tax liability was recognized for an amount of € 0.6 million.
Net loss was € 1.1 million, compared with a loss of € 5.3 million in 2012. This translates into a loss per outstanding weighted average ordinary share of € 0.13. The number of outstanding ordinary shares on 31 December 2013 amounted unchanged to 8,747,544.
Q4 2013 results
Revenue in Q4 2013 increased 9.0% to € 21.0 million compared to € 19.2 million in the last quarter of 2012. In the fourth quarter of 2013, an operating result from ordinary operations of € 2 million was realized, a substantial improvement from € 0.3 million in Q4 2012. This exceptional improvement was due to a relatively high number of working days in combination with an improved utilisation rate.
Balance sheet structure
Shareholders’ equity decreased to € 30.3 million, mainly as the result of the addition of the net loss for 2013. The trade receivables and other receivables have decreased by approximately € 0.3 million as of year-end 2013 due to effective billing and debtor collection. The balance sheet total decreased with € 0.6 million from € 47.8 million at year-end 2012 to € 47.2 million at year-end 2013. The solvency (shareholders’ equity/total assets) developed from 65.9% at year-end 2012 to 64.2% at year end 2013.
Cash flow development
The group’s cash position was € 10.1 million at year-end 2013 compared to € 5.9 million 2012. The company continues to focus on proper cash management. The cash flow from operations amounted to € 5.3 million positive in 2013 (2012: € 0.5 million negative). The increase is mainly the result of improved results and income tax received.
Personnel
The total number of employees in FTEs at end 2013 (751 FTE) was down 2.7% compared to end 2012 (772 FTE). This was largely related to the lower number of indirect employees. For 2014 we expect to grow in FTE in line with our revenue development.
Reporting
As per 1 January 2013, ICT’s strategy is focused primarily on verticals, with a secondary focus on country and regional/office level. Prior to the year under review, ICT reported its results on the basis of two ‘Operating Segments’, namely ICT the Netherlands and ICT Germany. Effective from the financial year 2013, ICT reports internally on the basis of the segments : Industrial Automation, Machine & Systems (including Healthcare en Energy), Logistics, Automotive, and the participation Improve Quality Services.
Strategy
The company will continue its strategy of offering innovative effective product/market solutions, enriched with state-of-the-art technology. Each vertical 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.
Management changes
Mr. Jan Willem Wienbelt succeeded Mr. Anno Kamphuis as CFO a.i. as from 1 September 2013. Mr. Carlo D’Agnolo stepped down as CEO on 17 November 2013 and was succeeded by Mr. Jos Blejie on 1 December 2013. His permanent appointment as Statutory Director as well as the formal appointment of Mr. Jan Willem Wienbelt as member of the Executive Board and Statutory Director shall be notified to the Annual General Meeting on 21 May 2014.
Composition of the Supervisory Board
At the General Meeting on 21 May 2014, Mr. Jan Sinoo ́s term on the Board will expire. The Board will submit a proposal to the General Meeting to reappoint Mr. Jan Sinoo for a new 4 year term.
Dividend
It is proposed to the General Meeting of Shareholders that a dividend be paid out for the 2013 financial year at the amount of € 0.15 per share in cash based on the number of ordinary shares outstanding at year end 2013. This reflects the dividend policy of a payout ratio of 40% of the net profit. For 2013 this net profit was corrected for € 4.4 million of impairment loss and exceptional costs.
Significant events after the balance sheet date
In June DPA Group N.V. (DPA) announced that it had taken a 20.4% shareholding in the company and proposes to combine its business with ICT’s. After further discussions with DPA and further assessment of the various strategic options ICT has ceased further conversations with DPA regarding its proposal.
On 18 November 2013, ICT announced it had reached agreement with Brandfort B.V. (Brandfort) on a proposed acquisition of Brandfort. Brandfort is a medium-sized engineering company with 250 employees and annual revenue of € 16.7 million. ICT and Brandfort have an excellent strategic fit and the acquisition will lead to accelerated growth and offers both ICT and Brandfort access to a number of new clients and a stronger relationship with existing clients.
On 18 December 2013 the management and supervisory board of ICT received a letter of DPA in which they requested ICT to convene an Extraordinary General Meeting (EGM) with the proposed acquisition of Brandfort as voting item on the agenda.
ICT convened an EGM on 11 February 2014 with the proposed acquisition of Brandfort as informal voting as sole agenda item. 73% of the issued share capital was represented at the meeting. 53% of the share capital represented at the meeting voted in favour of the Brandfort transaction. After careful considerations of all remarks of the shareholders the Board decided to continue with the transaction.
Outlook
In 2013, ICT’s focus on Verticals and the continued reduction of indirect costs have had a positive impact on the performance and results of the company. The economic conditions slightly improved but remain challenging due to continued volatility. On the other hand, the range of measures that management took will be felt fully in 2014. We therefore expect 2014 to show a continued improvement in the operating profit from ordinary operations compared to 2013.
Operational developments
Automotive
The Automotive Vertical develops, sells and implements products and services throughout the entire automotive supply chain. Core business is developing embedded software for automotive systems in the infotainment and telematics market. New deals came from WABCO Automotive, LG Electronics, gConcepts.
Revenue at the Automotive Vertical was down 1.7% at € 19.1 million, from € 19.5 million, excluding € 1.4 million divested Neustadt operations, in 2012. Revenue at Automotive Germany amounted to € 13.5 million, a decrease of 5.7% compared to the previous year (€ 14.3 million, excluding € 1.4 million divested Neustadt operations). Revenue at Automotive Netherlands amounted to € 5.6 million, an increase of 9.5% compared to the previous year (€ 5.1 million).
Logistics
The Logistics vertical is largely active in port logistics and goods transport. Overall it has been a positive year for the Logistics Vertical, The investment in developing targeted propositions based on our new Supply Chain Platform paid off. At the same time investments in the team ensured that we are well equipped in all types of logistics such as harbour logistics and warehouse logistics. Overall we won more assignments and deals for PostNL (Cloud solution) Zuivelhoeve, Zeelandia and Fedex.
The revenue of the Logistics Vertical increased to € 9.3 million, from € 8.5 million in 2012, an increase of 10.1%, largely due to an increased demand from larger customers, leading to more assignments which resulted in a higher productivity.
Industrial Automation
As a system integrator, the activities of the Industrial Automation vertical are focused entirely on the implementation of software for primary processes. These are largely processes in the field of water management, plant automation in the Food & Feed industry and the continuous flow chemicals sector. Despite the volatile demand in these sectors, ICT has in the past few years been extremely successful in water management for semi-government organisations. This vertical has performed well over the past few years.
The vertical performed well thanks to increased customer demand. ICT acquired a number of new contracts, such as Waterschap Rijn en Ijssel, Plant One, CSi Industries and Hoogheemraadschap of Schieland and the Krimpenerwaard (HHSK) projects. Revenue increased by 9.0% to € 14.6 million, from € 13.4 million in 2012, due to an increased customer demand for projects, and as a result project related material purchases.
Machine & Systems
The Machine & Systems vertical focuses on the development of total solutions, a significant proportion of which consists of embedded software, as well as hardware. This vertical has also built up specific expertise in Calibration, Performance and Diagnostics (CPD) that it offers to the market as outsourcing services. In addition, the vertical has invested structurally in the development and successful delivery of an end-to-end Connected Devices solution, which provides a total solution, from Embedded right through to the Cloud.
The vertical Machine & Systems is mostly active in the OEM market. While we are facing price pressure from OEM-s, revenue went up 3.2% at € 28.2 million, from € 27.4 million in 2012, thanks to an increase in the overall demand for secondment and the number of projects and services delivered. In addition the vertical saw an increase in the number of direct employees and an improvement of productivity.
For ASML, ICT is now farming out the entire calibration arm, coming from being an outsourcing partner. ICT has made progress are made in connectivity services, a growth market in which we are able to deliver the full range of services.
We expanded our Healthcare operations, that are part of this vertical, last year through a long-term partnership with the PALGA foundation. We also established an international presence through the partnership with the Massachusetts General Hospital. The cooperation with our U.S. partner LogicNets will be key to the new Dutch and international contracts.
In the energy sector we, in collaboration with our partner GreenFlux, work on Smart Charging, which anticipates on the rising popularity of electric vehicles (EVs). In addition we have launched new pilots such as Smart Grid in Balance (with GreenFlux) and PowerMatching City with our partners Kema, TNO, Essent, Enexis and TU/e.
Improve Quality Services
Improve is active in the market for testing services, a segment that has in recent years proven particularly sensitive to reluctance to invest. The year 2013 was a difficult year for training. This market lagged behind expectations, however a small recovery could be seen in the second half of the year. The economic situation led to companies deciding to postpone or cancel training. In 2013 turnover mainly decreased in the area of training, especially in the first half of the year. Interim services and consultancy decreased slightly compared to 2012, due to a lack of highly qualified consultants. In 2013 revenue decreased by 10.6% to € 3.2 million.
InTraffic
The focus of the InTraffic business is on the public transport sector. A significant portion of InTraffic’s revenue is generated by development and maintenance activities for ProRail. Revenue at the InTraffic joint venture increased with 3.2% to € 6.9 million in a stable market. The operating result in 2013 has improved tremendously as a result of improved efficiency.
About ICT
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. Our verticals: Automotive, Industrial Automation, Logistics, Machine & Systems, Healthcare and Energy, 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)88 908 23 05 or +31 (0)6 10 51 3745. E-mail: Femmy.de.rijk@ict.nl Cautionary statement
This press release contains forward-looking statements. Forward-looking statements are always based on assumptions and estimates relating to uncertain events over which ICT Automatisering N.V. has no control. They concern, for example, measures taken by the Dutch and other governments, currency movements, price fluctuations, changes in law and regulations, legal precedents and market developments. ICT Automatisering N.V. would like to stress that the contents of this press release are based on the information that is currently available. The reality can always deviate from expectations for the future. ICT Automatisering N.V. has no obligation to update the statements contained in this document, unless required by law.
Auditor’s involvement
The full year 2013 and 2012 summary financial information, as set out on pages 8 to 11 of this press release has been derived from ICT Automatisering N.V.’s 2013 financial statements, as included in the 2013 Annual Report (the financial statements), which have not been published. In accordance with article 2:395 of the Netherlands Civil Code, we state that our auditor, Deloitte Accountants B.V., has issued an unqualified opinion on the financial statements.
For a better understanding of the company’s financial position and results and of the scope of the audit of Deloitte Accountants B.V., this report should be read in conjunction with the financial statements from which these summary financial statements have been derived and the auditor’s report of Deloitte Accountants B.V. thereon issued on March 12, 2014. We plan to publish the financial statements by including on the company’s website on April 7, 2014. The general meeting has not yet adopted the financial statements.
Annexes – Consolidated financial statements 2013:
– Consolidated statement of total comprehensive income
– Consolidated balance sheet
– Consolidated statement of changes in equity
– Consolidated statement of cash flows
– Other financial information

Click here to view ‘Annex Annual Results 2013’

ICT Automatisering reports improved results in Q3

  • • 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.

Financial developments

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.

Key figures

(in € millions) Q3 2013 Q3 2012 Δ 9 months 2013 9 months  2012 Δ
Revenue 18.9 18.4 + 3% 58.5 58.6 (0.1)%
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
Operating result 0.7 0.0 2.3 0.1
Net profit 0.5 (0.1) 1.7 (0.5)

* 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.

Operational developments

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.

Outlook

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.

About ICT

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:  femmy.de.rijk@ict.nl