ICT has introduced new (amended) General Terms and Conditions of Supply as well as General Terms and Conditions of Procurement. These new (amended) General Terms and Conditions, submitted to the Chamber of Commerce and replacing the General Terms and Conditions earlier used, are effective as of 1 July 2017 and apply to all ICT’s deliveries and procurements as well as all negotiations and (new) agreements with ICT. ICT’s new General Terms & Conditions can be read, downloaded, saved and printed through the links below. In case of questions, please turn to the Legal Department, +31889082000.
With almost forty years of experience, ICT Group is a leading organisation in the Netherlands, especially in the field of industrial automation. ICT wants to make the world a bit smarter with its solutions. “Where others still think and develop, we already deliver the software solutions.” Thus, the article begins that appeared today in MT500 (page 137) and on CStories.nl. (Only available in Dutch)
After 2 years of building, 4 months of intensive testing, ups-and-downs, failures, and successes InMotion is ready to break the electric lap record at Circuit Zandvoort. They will take the ultimate test on the 3rd and 4th of June. The attempt will occur during the break, as there are various racing competitions to enjoy during the rest of the day. Everybody is welcome to come by and witness this event first hand during the Pinksterraces at Circuit Zandvoort.
InMotion at Jumbo Family Racingdays
Next to the record attempt, InMotion will drive at the Jumbo Family Racingdays, on 20th-21st of May. With over 100.000 visitors, this is the biggest motorsport event in the Netherlands. You can visit the InMotion stand at the Paddock 2, reachable with the Jumbo-tickets, and catch up with all the adventures they experienced in the last few months.
Road to Zandvoort
Can’t wait for the record? In the upcoming weeks InMotion will let you experience the final steps via social media, newsletters and press releases. Follow them closely via #roadtozandvoort
Partnership ICT and InMotion
InMotion is an automotive race team that consists of students of Eindhoven University of Technology and Fontys University of Applied Sciences. InMotion aims to participate in the 24h race of Le Mans in 2020 with their IM01 race car. Together ICT and InMotion developed the Electronic Control Units (ECU’s) for the complete IM/e race car. ICT provides its Model based development Production Platform: Motar, consisting of the ECU’s hardware and platform software, while InMotion develops the control algorithms (application software) for these ECU’s.
Today, the Dutch Technology Week (DTW) has started in Eindhoven. ICT Group is proud sponsor of the micro:bit based escape room, called Time Machine. You can visit this escape room during DTW. Other sponsors of the escape room are NXP, Philips, Deloitte, JetNet. You can try the Time Machine escape room during the following Dutch Technology Week events: Opening DTW, Night of the Nerds, High Tech 2 Discover, KempenTech en de High Tech Ontdekkingsroute. Data and locations 15 May 2017 08:00-12:00 Opening event DTW Klokgebouw Eindhoven 16 May 2017 12:00-21:00 Night of the Nerds Klokgebouw Eindhoven 18 May 2017 08:45-13:00 High Tech 2 Discover High Tech Campus Eindhoven 19 May 2017 10:00-14:00 KempenTech Onderwijsdag Smaragdweg Kempisch Bedrijvenpark, Hapert 20 May 2017 11:00-17:00 High Tech Ontdekkingsroute Several location Click here for more information. (Only available in Dutch.)
NS (Dutch Railways) recently selected ICT Group to deliver a Manufacturing Execution System (MES) at NedTrain in Haarlem. NedTrain, a subsidiary of NS, overhauls and maintains train bodies at its Refurbishment & Overhaul workshop in Haarlem. NedTrain is modernizing the process of overhauling wheelsets by building a new and sustainable production workshop, a new production line, a new production machine park, and by applying an IT system (MES) for real-time production control of all machines and transport systems. All data from the overhaul process is stored and managed in MES in order to comply with the increasingly stringent legislation with regard to rail safety. ICT Group is developing the MES using the AspenTech AspenOne software. The solution will consist of hardware and software, as well as an application that will run on mobile barcode scanners and that will be used by the production staff. A service contract for the duration of several years is part of the project. The introduction of MES at NedTrain must result in an efficient, ‘lean’ production process (Manufacturing Excellence), as well as quality improvements. The new production facility is scheduled for completion in the middle of 2017. The new workshop will have an annual overhaul capacity of 3,000 wheelsets. Following professional overhaul, the wheels will have a new lifespan of approx. 1.2 million kilometers.
Key developments: Q3 2016
- Revenue in Q3 up 23% at € 21.0 million (Q3 2015: € 17.1 million), organic revenue growth 5%.
- EBITDA in Q3 amounted to € 2.1 million (Q3 2015: € 1.7 million).
- Acquisition of Nozhup completed on 6 September 2016.
Year to date 2016
- In the first nine months of 2016 revenue was up 22% at € 63.1 million (YTD 2015: € 51.7 million), organic revenue growth 7%.
- EBITDA in the first nine months amounted to € 6.3 million (YTD 2015: € 4.8 million), an increase of 30%.
- ICT confirms its expectation of an improvement in EBITDA between 25%-35% for the full year 2016 compared to 2015.
|(in € millions)||Q3 2016||Q3 2015||Δ||YTD 2016||YTD 2015||Δ|
|Revenue||21.0||17.1||23 %||63.1||51.7||22 %|
|EBITDA||2.1||1.7||27 %||6.3||4.8||30 %|
Jos Blejie, CEO of ICT Group N.V.: “The positive trend of the first half of 2016 continued in the third quarter. Our revenue development is strong, both organically and through our successful acquisition strategy, with all subsidiaries contributing to the growth. Our latest acquisition, Nozhup, strengthens our position in Industrial Automation and is consolidated from 1 September onwards. Our profitability continues to improve. Furthermore, we have won a number of important contracts in the past months. Based on these developments we confirm our expectation of an improvement in EBITDA between 25 and 35% for the full year 2016.” Financial developments Revenue in the third quarter of 2016 increased to € 21.0 million compared to € 17.1 million in the third quarter of 2015. Revenue grew 5% organically in the, due to the holiday season traditionally weaker third quarter. All ICT subsidiaries contributed to this growth. Revenue over the first nine months of the year amounted to € 63.1 million compared to € 51.7 million last year, supported by an organic growth of 7%. Within ICT Netherlands, productivity levels in the third quarter have been comparable to the same quarter last year, but ICT increased average rates and achieved better project results, which led to an increase in revenue. Revenue of Strypes Bulgaria increased compared to Q3 last year. Also the other recent acquisitions performed well, in line with expectations. Nozhup was included in the results for the first time, for one month. EBITDA amounted to € 2.1 million in the third quarter, compared to € 1.7 million in the same period of 2015. In the first nine months of 2016 EBITDA improved to € 6.3 million (first nine months 2015: € 4.8 million). The recent acquisitions, increased number of staff, slightly higher average rates and good project results, all contributed to this improvement. At the same time the double digit growth in Bulgaria was supported by the continued investments in the quality controls and professionalization of the organisation. Acquisition of Nozhup ICT has completed the purchase of 100% of the shares of Nozhup as of 6 September 2016. With this acquisition ICT gains significant scale in the industrial automation market. At the same time, it considerably widens ICT’s customer base and scope of activities in this market. The purchase consideration comprised a cash payment and an amount in ICT shares. The share capital was diluted with 443,058 shares as from 9 September 2016. On a full year basis, the acquisition will substantially enhance the earnings per share. Extended credit facility In anticipation of the acquisition of Nozhup, ICT has extended its acquisition credit facility with Rabobank in July 2016 from € 6 million to € 11 million. Additionally, ICT has increased its working capital credit facility from € 6 million to € 10 million. The conditions of the facilities remained unchanged. Outlook ICT continues to aim for organic growth in combination with growth through acquisitions. ICT will focus on further leveraging its recent acquisitions. Given the strategic progress made and its acquisitions, ICT confirms its expectation for the full year 2016 of an improvement in EBITDA between 25%-35% compared to the full year 2015.
On Tuesday 18 October the winners of the 2016 sMove360° Award were announced at the international eCarTec expo in Munich. In the category ‘ICT Infrastructure & Security’ the first prize was awarded to Dutch charge point operator and service provider GreenFlux. Their Smart Charging Controller can transform every charge station for electric vehicles into an intelligently connected device. ICT Group has a minority interest in Greenflux.
GreenFlux developed their Smart Charging Controller to offer charge point manufacturers and operators worldwide a scalable and future-proof working solution. The controller is designed to support smart charging of electric vehicles. Smart Charging distributes the total available power over charging stations in a smart way. This means electric vehicles can charge at a higher speed and ‘capacity overload’ with full occupancy is prevented. This results in a safe solution and no extra installation fees or electricity charges based on a higher peak use.
GreenFlux is a pioneer in Smart Charging and has extensive experience in this field in several European countries such as the Netherlands and the UK. The solutions GreenFlux offers are based on extensive experience and pilots with Dutch grid operators and companies. They address current issues for organisations that want to offer EV charging as a service. The need for smart charging will only grow, both nationally and internationally, when the demand of energy on the network will increase because of market growth of electric vehicles. GreenFlux’ controller is ready for that and moreover transforms unconnected charge stations for electric vehicles into smart stations, offering the charge point operators more services for their customers like remote services and billing services.
The GreenFlux Smart Charging Controller is part of GreenFlux’ vision of a sustainable world, powered by the sun. The controller enables a way to charge cars with 100% renewable energy. Making cars charge faster when there is more green energy available.
Jos Blejie, CEO ICT Group: “The Greenflux platform was developed by the ICT Energy unit and we are therefore very proud to congratulate Greenflux with the 2016 sMove360° Award. In 2015 we have transferred the intellectual property of this development to Greenflux and we have at the same time acquired a minority interest in the company. This award shows that we have made the right decision and we will of course continue to support Greenflux as a technology partner”.
For more information www.greenflux.nl
ICT Group was selected by leading global baby food producer Danone Nutricia to develop the complete manufacturing execution system for a new plant in Cuijk, The Netherlands. The facility is Danone’s largest investment in Europe and will double the Dutch production capacity for its international early life nutrition brands. ICT will be responsible for the detailed engineering, delivery, installation and implementation of the software. Resulting in a 24/7 operational smart factory that will start its production in late 2017. Danone Nutricia chose ICT Group after completing a similar and successful project at the baby food production plant of Danone Nutricia in Fulda, Germany. Bas Hazewinkel, Business Development Manager Food / Feed and Beverage at ICT Group: ‘This means that the software ICT will provide in Cuijk is based on a proven and fully operational Wonderware Manufacturing Execution System (MES) – the linking pin between customer demand and the machines delivering the right product. With ICT’s solution, Danone Nutricia will be able to build another state-of-the-art factory, characterized by highly intelligent production processes, connected machinery, integrated information systems, traceability of products and continuous performance analysis.’ For more in depth information, please watch our presentation about the MES solution ICT Group implemented at Danone’s plant in Fulda, Germany. This presentation was held at the Wonderware Benelux Knowledge Exchange 2016.
ICT Group (ICT) announces that today it has completed the purchase of 100% of the shares of Nozhup, a Dutch based industrial automation services provider. The purchase consideration comprised a cash payment and an amount in ICT shares. The share capital will be diluted with 443,058 shares. With this acquisition ICT gains significant scale in its activities in the industrial automation market. At the same time it considerably widens ICT’s customer base in this market. Nozhup will immediately contribute to the profitability of ICT. On a full year basis the acquisition will substantially enhance the earnings per share.
STRONG FIRST HALF YEAR RESULTS On track to become a leading total technology solutions provider Highlights H1 2016
- Revenue up 22% to € 42.1 million, 8% organic growth
- EBITDA increased 32% to € 4.2 million
- Net profit at € 2.1 million, an increase of 44% (H1 2015: € 1.5 million)
- Acquisition of BMA in the field of Smarter Health completed
- Intended acquisition of Nozhup in the field of Smarter Industries as announced on 12 July 2016
- Barring unforeseen circumstances, ICT expects an improvement in EBITDA between 25%-35% for the full year 2016 compared to 2015.
|(in millions of €)||H1 2016||H1 2015||Change|
|Revenue Added Value||37.3||31.8||18%|
|Amortisation / depreciation||1.2||1.1||8%|
|Earnings per share (*)||0.24||0.17||41%|
(*) Based on the average number of outstanding ordinary shares. Jos Blejie, CEO of ICT Group N.V.: “We are pleased with the developments of this first half year. Both in terms of results as well as in the further roll out of our strategy. We realised strong revenue and EBITDA growth, to which all our key activities contributed. We closed the acquisition of BMA, thereby strengthening our position in Smarter Health. We announced the expansion of our water infrastructure services through the acquisition of the Dynniq activities. And finally, early July, we announced the intended acquisition of Nozhup, with which we will gain significant scale in the Industrial Automation markets. These are all important steps in our road map to becoming a leading total technology solutions provider. In March we decided to close our Polish operations and focus our nearshoring business on Strypes in Bulgaria, which is further professionalising its organisation to enable sustainable growth. We are confident about the second half of the year and therefore expect an improvement in EBITDA between 25-35% for the full year 2016.” Strategy update In the first half of 2016 ICT made important steps in the execution of its strategic road map. The success of the earlier strategic choices is reflected in the strong financial results realised in the first half of the year. In 2015 ICT changed its organisational structure from verticals to business units, to spark the entrepreneurial spirit within ICT. This resulted in the first half of 2016 in a profitable autonomous growth of 8%. In February 2016 ICT completed the purchase of 51% of the shares of BMA (Buro Medische Automatisering), a leading Dutch Healthcare software company active in obstetrics. The remaining 49% will be acquired after a period of three years. This transaction also marks an important step in ICT’s growth strategy and further enhances ICT’s position in the field of Smarter Health. The acquisition of Raster in September 2015 marked an important step in strengthening ICT’s position in the Oil and Gas market. In June 2016, ICT acquired the water related services activities of Dynniq, which strengthened ICT’s expertise in Smarter Cities. In July 2016, we announced the proposed acquisition of Nozhup, active in process automation in the industry and infrastructure markets. With these acquisitions, ICT is well on track to deliver on its ambition to become one of the largest Industrial Automation players in the Netherlands, addressing the global themes Smarter Industries and Smarter Cities. Furthermore at the end of March 2016 ICT announced the closure of the ICT Poland operation with effect from 31 May 2016. As the Polish operations had not reached the necessary scale to continue to make the operation viable, ICT decided to focus its nearshoring strategy fully on Strypes Bulgaria. At the beginning of July 2016 a new legal entity (start-up), ICT Mobile B.V., was incorporated, in which ICT holds 51% of the shares (49% is owned by the two founders). With this new activity ICT is responding to the trend of enterprises embracing mobile processes and adopting a mobile strategy at high speed. At the AGM held on 11 May 2016 the statutory name change of ICT Automatisering N.V. to ICT Group N.V., was adopted. The new name better reflects the international character of the company and also enables the company to easier add new labels to the group. Notes to the results In the first six months of 2016 ICT Group’s revenue came in at € 42.1 million, up 22% compared to € 34.6 million reported in H1 2015. Organically, revenue increased by 8%. This was driven by increased number of staff, slightly higher average rates and good project results, whilst overall productivity was slightly lower. Revenue at ICT Netherlands increased 7% to € 32.3 million in H1 2016 from € 30.1 million in the same period last year. Productivity levels were more or less at the same levels as last year, but ICT was able to increase the average rate and the company realised good project results. Licences and materials sales were below expectations. Market circumstances in the Industrial Automation market remained challenging. Other markets, including High Tech, Machine & Systems, Automotive, Healthcare and Logistics, showed a positive development. ICT sees ample opportunities in Healthcare that realised good growth percentages. Strypes Bulgaria (“ICT Nearshoring” or “Strypes”) saw a 26% increase in revenue from € 2.5 million in H1 2015 to € 3.2 million in the first six months of 2016. As Strypes further broadened its client base, it continued to decrease the firm’s dependency on its largest client. In the past six months Strypes invested efforts both on new clients as well as on the internal processes, with the objective to further professionalise the organisation and to ensure that Strypes Bulgaria will be able to continue its strong growth path. Given these outlays we anticipate a temporisation of the results. Raster contributed revenues of € 2.9 million in the first six months of 2016. Despite the still challenging Oil and Gas market, Raster showed a good performance, in line with expectations. The segment ‘other’ (Improve, BMA and ICT Poland) recorded revenues of € 4.2 million. The market for training is favourable as is reflected in the revenue recorded by Improve, which slightly improved over last year. BMA performed below expectations as a result of postponement of projects, but expects to improve in the second half of the year and the new product developments are running on schedule. As a result of the closure of the Polish operations as per 31 May 2016, revenue of ICT Poland was slightly down compared to H1 2015. Personnel costs increased overall to € 24.9 million (H1 2015: € 21.6 million), as a result of both salary increases as well as the increase in number of employees. Other operating expenses also increased, mainly as a result of the most recent acquisitions. The costs related to strategic initiatives and the realisation of acquisitions and partnerships amounted to € 0.3 million (H1 2015: € 0.3 million). EBITDA for the first six months of 2016 increased by 32% to € 4.2 million, compared to € 3.2 million in the comparable period in 2015. Organically (excluding BMA and Raster) EBITDA was in line with last year. Profitability at ICT Netherlands increased, but this was off-set by the increased investments in Strypes Bulgaria and the costs related to the closure of the Polish operations. The EBITDA margin increased from 9.2% in H1 2015 to 9.9% in H1 2016. Based on Purchase Price Allocation, ICT has attributed a value to and is amortising a number of intangible assets, including order backlog, software and customer relations of its recent acquisitions. Amortisation amounted to € 0.9 in the first half of 2016, comprising € 0.3 million related to Strypes Bulgaria, € 0.3 million related to Raster and € 0.3 million related to BMA. Depreciation for the first half of 2016 amounted to € 0.2 million (H1 2015: € 0.2 million). The operating profit amounted to € 3.0 million in H1 2016 (H1 2015: € 2.1 million). The results from joint venture InTraffic increased compared to last year and contributed € 0.1 million to the results. The result from associates improved to € 0.1 million negative (H1 2015 € 0.2 million negative), mainly due to a better performance of LogicNets Inc. Taxes in the first half of 2016 amounted to € 0.7 million compared with € 0.4 million in the first half of 2015. Net profit for the first six months of 2016 amounted to € 2.1 million, compared with € 1.5 million in H1 2015. This translates into earnings per share of € 0.24 for H1 2016. The number of outstanding ordinary shares increased during the first half year 2016 to 8,845,251 (31 December 2015: 8,747,544). Cash flow movement As usual for the first half of the year, net operational cash flow amounted to € 0.3 million negative in H1 2016 (H1 2015: € 0.8 million negative). The cash position per 30 June 2016 decreased to € 1.2 million (31 December 2015: € 6.7 million). This was mainly due to investments in housing facilities, the payment of the earn out obligation related to the acquisition of Strypes Bulgaria, the purchase price cash consideration of the acquisition of BMA, and the payment of dividend. The acquisition of BMA was partly financed from the acquisition facility. Balance sheet structure In the first half of 2016, shareholders’ equity increased to € 36.3 million (31 December 2015: € 35.5 million) as a result of the net effect of dividend paid of € 2.1 million, issuance of new shares of € 0.8 million, related to the acquisition of BMA and net profit of € 2.1 million. The balance sheet total increased from € 58.2 million at year-end 2015 to € 70.3 million at 30 June 2016, as a result of the acquisitions in the last half year. Solvency (shareholders’ equity/total assets) represents a sound financial basis and stood at 52% at the end of June 2016 (61% at year-end 2015). Personnel The total number of employees at 30 June 2016 was around 4% higher than at year-end 2015. This was due to both acquisitions and as well as increased recruitment efforts. Significant events after the balance sheet date On 11 July 2016, ICT signed a letter of intent to acquire Nozhup. With this intended acquisition ICT gains significant scale in the industrial automation market. At the same time it considerably widens ICT’s customer base in this market. Nozhup will immediately contribute to the profitability of ICT. In anticipation of the intended acquisition of Nozhup, ICT has extended its acquisition credit facility with Rabobank in July 2016 from € 6 to € 11 million. Additionally ICT has increased its working capital credit facility from € 6 million to € 10 million. The conditions of the facilities remained unchanged. Composition of the Supervisory Board At the General Meeting of Shareholders held on 11 May 2016, Mr. Luthra was reappointed for a second four-year term as member of the Supervisory Board. Outlook ICT continues to aim for organic growth in combination with growth through acquisitions. ICT will focus on further leveraging its recent acquisitions. Given the strategic progress made and its acquisitions, ICT expects for the full year 2016 an improvement in EBITDA between 25%-35% compared to the full year 2015. Condensed consolidated interim financial statements 30 June 2016