Press Release: ICT strengthens position in healthcare market

ICT signs letter of intent to acquire the leading software company BMA, specialised in obstetrics solutions

ICT Automatisering N.V. (ICT) announces that today it has signed a letter of intent to acquire the shares of BMA (Bureau Medische Automatisering), a leading Dutch Healthcare software company based in Houten. ICT plans to acquire 51% of the shares as per January 2016. The remaining 49% will be acquired after a period of three years. The purchase consideration comprises a cash payment and an amount paid in ICT shares. The intended acquisition of BMA marks another step in the growth strategy of ICT, as it enables ICT to further expand its position in the healthcare market.

BMA develops software products that are designed for electronic record-keeping and fetal monitoring, focusing on the optimisation of the working and decision-making processes at the maternity ward. Their own software called Mosos – the integral solution for Obstetrics – is developed by BMA in close cooperation with gynaecologists, midwives, universities and government agencies. BMA distinguishes itself by offering all necessary software modules in order to produce paperless synoptic reporting. Next to selling and implementing its software products, BMA is also an exclusive distributor of specific obstetrical hardware products. With some 40 highly skilled professionals, BMA is market leader in the Benelux with a market penetration of approximately 80%. Next to the Benelux market the company is active in the UK, France and Switzerland. In the past years, BMA realised consistent profitable revenues of more than EUR 5 million per annum.

Jos Blejie, CEO of ICT: Diagnostic software and tools are getting increasingly important in the Healthcare sector. This acquisition further enhances our position in the field of ‘Smart Health’. Moreover it fully fits ICT’s strategic objective to become a total solutions provider. BMA is a clear market leader in the field of Obstetrics and enriches the total Health portfolio of ICT.

Oscar Appeldoorn and Alex Holsbergen, Managing Directors of BMA: “Joining ICT, as a leading software integrator, is a next step in realizing our growth strategy. In combination with ICT we expect to accelerate in product development and further internationalization. Staying shareholders in BMA the coming three years, and at the same time becoming a shareholder in ICT underlines the trust we have in a long term relationship with ICT.”

BMA will remain an independent business unit residing in its current location and operating under its own label within the ICT Group.

 

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.), Raster, Improve Quality Services and InTraffic (50%).

www.ict.eu

www.bma-mosos.com

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: 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: 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: 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