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 Automatisering reports a positive development in Q1 2013 operating result

Restructuring measures starting to have effect

ICT (ICT) realized a revenue of € 19.8 million for the first three months of 2013. This is a reduction of 5.1% compared with € 20.9 million for the same period of last year. The underlying revenue development though was positive. Corrected for three aspects, which are explained below, revenue was up 2.5% compared with the same period of 2012.
The first quarter of 2013 had two working days fewer than the same period of 2012. This had an impact of some € 0.5 million on revenue and operating result.
The second explanation for the reduction in revenue lies in the fact that in the first quarter of 2012, we realized revenue and profit of € 0.7 million on a number of projects for which the main part of the work was carried before 2011.
Finally, the sale of the Neustadt activities as per 1 December 2012 had a negative impact on revenue of around € 0.3 million.
Operating result in the first quarter was unchanged from the same period of 2012 at € 0.9 million. However, profit in the first quarter of 2013 showed an important improvement when corrected for the two fewer working days and the profit realized on the above-mentioned projects.
The measures we took in 2012 in the areas of infrastructure, indirect cost and management are starting to have a positive effect on results. Indirect expenses were down € 0.5 million in the first quarter of 2013 compared with the same period of last year, largely due to savings on indirect personnel costs and rental costs.
Below we discuss revenue development per vertical, corrected for the above-mentioned effects.
Revenue at the Automotive Vertical was up 8.3% at € 5.0 million, largely due to healthy productivity at the Dutch operations. Revenue from the deployment of internal staff at the German operations was slightly lower and from freelancers higher.
Revenue at the Logistic Vertical rose to € 2.3 million, an increase of almost 5%, primarily on the back of improved productivity.
The Industrial Automation Vertical saw revenue rise 8.0% to € 3.7 million, largely thanks to a higher average yield per hour, the result of more cost-efficient project execution.
Revenue at the Machine & Systems Vertical (including Energy and Healthcare) was down 2.2% at € 6.9 million due to a slightly lower deployment of staff.
The developments at the joint venture InTraffic were positive. However, Improve Quality Services had a disappointing first quarter, largely due to low participation in training courses that account for a considerable part of the company’s revenue.
The Verticals that operate from the Netherlands realized a satisfactory operating margin. The German operations are fully active in the Automotive Vertical and have not yet realised an operating profit, though losses have fallen considerably. We continue to strive for a break-even result for the full-year 2013.
We are positive about the development of the group’s results for the full-year 2013 and, barring unforeseen circumstances, we expect a material improvement in the operating result compared to full-year 2012.

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. Email: Femmy.de.rijk@ict.nl