Q3 2018 RESULTS: REVENUE AND EBITDA GROWTH CONTINUES

Key developments:

Q3 2018

  • Revenue grew 23% to € 31.8 million (Q3 2017: € 25.8 million), organic revenue growth of 3%
  • EBITDA of € 3.1 million, up 24% compared to € 2.5 million in Q3 2017
  • Software solutions bundled in OrangeNXT

9M 2018

  • Revenue rose 21% to € 92.7 million (9M 2017: € 76.5 million), organic revenue growth of 5%.
  • Underlying EBITDA of € 8.9 million (9M 2017: € 7.8 million). Including one-off costs for contract termination fees at InTraffic (€ 0.8 million), EBITDA amounted to € 8.1 million

Outlook

  • FY 2018 underlying EBITDA forecast at between € 13 and 14 million

Key figures

Jos Blejie, CEO of ICT Group N.V.: “ICT Group continues to realise good growth while making strategic progress in becoming a leading total solutions provider. The acquisition of the remaining shares in ICT Mobile was the jumpstart for OrangeNXT in which we have bundled promising ICT Group software solutions to help our customers reap all the benefits that digital transformation has to offer. We are convinced that combining our in-depth industry knowledge with our ability to connect people, devices and data provides a unique offering. Our outlook for the fourth quarter is positive and we expect an underlying EBITDA of between € 13 and € 14 million for the full year 2018.” 

Financial developments
In the third quarter of 2018 revenue increased by 23% to € 31.8 million from € 25.8 million in the third quarter of 2017. Organically, i.e. excluding NedMobiel and the full consolidation of InTraffic, revenue grew 3%. For the first nine months of the year revenue amounted to € 92.7 million (9M 2017: € 76.5 million). Revenue rose 5% organically year-to-date.

EBITDA increased to € 3.1 million in the third quarter from € 2.5 million in the same period of 2017, mainly as a result of improved productivity at ICT Netherlands and recent acquisitions. The EBITDA margin was 9.7% in the third quarter, in line with 2017 (9.6%).

In the first nine months of 2018 EBITDA was up 4% compared to last year. Underlying EBITDA, i.e. excluding the one-off costs of € 0.8 million in the second quarter of 2018 relating to contract termination fees at InTraffic, increased by 14% compared to the same period last year. The resulting underlying EBITDA margin came in at 9.6% year-to-date (9M 2017: 10.2%). The positive impact of higher productivity levels at ICT Netherlands was offset by substantially lower EBITDA margins at InTraffic and lower hardware sales at BMA. 

Strategic themes
ICT has made clear choices in terms of growth, focusing on the strategic themes of Smarter Industries, Smarter Cities and Smarter Health. Smarter Cities realised considerable growth, mainly as a result of the acquisition of NedMobiel and the remaining stake in InTraffic. Smarter Industries posted good organic revenue growth, while revenue in Smarter Health declined as a result of lower hardware sales at BMA and lower productivity in the ICT Healthcare unit.

OrangeNXT
In September 2018 ICT Group acquired the remaining 49% of the shares in ICT Mobile from its management. The software solutions provided by ICT Mobile have been housed with the solutions provided by other ICT Netherlands business units in OrangeNXT (formerly ICT Mobile), to distinguish the software as a service offerings from traditional time hire and project activities.   

CIS Solutions Germany
CIS Solutions is a reselling agency for LogicNets and Internet of Things solutions in Germany for which ICT Group provided loans in 2016. In the third quarter of 2018 the outstanding convertible loans were converted into shares. Combined with an additional investment, ICT Group obtained 66% of the shares in CIS Solutions Germany.

Outlook
Going forward ICT Group will continue to focus on growth, both organically and through acquisitions. ICT Group continues to invest in creating a strong platform to take its transformation into a total solution provider to the next level. The battle for talent continues and attracting and retaining the right people remains a key priority.

For the full year 2018 ICT Group expects underlying EBITDA to come in at between € 13 and € 14 million.

ICT Group acquires remaining 49% in ICT Mobile – Software propositions consolidated in new entity OrangeNXT

ICT Group N.V. (ICT) announces that it has acquired the remaining 49% of the shares of ICT Mobile B.V. (ICT Mobile) from management. The software solutions of ICT Mobile together with software solutions of other business units within ICT Netherlands will be consolidated into a new entity, OrangeNXT (www.orangenxt.com), to distinct software offerings from the traditional time hire and project activities within ICT.

OrangeNXT focuses on ready to use software solutions, offered as Software as a Service. The plug-and-play cloud platform that connects people, devices and data consists of three solutions. ConNXT provides asset management and predictive maintenance solutions. MobileNXT delivers real-time tracking and tracing support for field service engineers, logistics staff, parcel delivery services and auditors. DigitalNXT helps companies to accelerate their digital transformation. The solutions of OrangeNXT are aimed at the smarter cities and smarter industries segments and cover many industries, from water management to logistics and transportation.

ICT Mobile was established as a start-up in 2016 together with the current management, Huub van der Linden and Jeroen Donkers. Both have a long track record in the Enterprise Mobility market, and will stay on board to lead OrangeNXT, together with director Alliances John Koot. The purchase consideration will be paid in cash. Further financial details will not be disclosed.

Eneco Groep en SET Ventures investeren 11 miljoen in GreenFlux

Groeikapitaal voor software slimme EV laadoplossingen om internationale groei te versnellen

Duurzaam energiebedrijf Eneco en onafhankelijk investeringsfonds SET Ventures hebben beiden een minderheidsbelang verworven in GreenFlux Assets BV (“GreenFlux”), door middel van een Serie B-investeringsronde met een omvang van EUR 11 miljoen. Bestaande aandeelhouders BOM Brabant Ventures en ICT Group NV namen ook deel aan deze ronde. Deze investering in de meest vooruitstrevende leverancier van software en totaaloplossingen voor elektrisch rijden past naadloos in de ambities van Eneco en SET om de energietransitie te versnellen door middel van technologie.

Meer informatie is beschikbaar op de website van Greenflux.

Shareholders meeting ICT Group adopts all resolutions

ICT Group N.V. (ICT) announces that the Annual General Meeting of Shareholders (AGM), which was held today, adopted all proposed resolutions. This included the appointment of Mrs. Gina van der Werf as member of the Supervisory Board of ICT Group. Mr. Jan Sinoo, who was not available for re-appointment, retired as member of the Supervisory Board as per the end of the AGM. After the AGM, the Supervisory Board re-appointed Mr. Jos Blejie and Mr. Jan Willem Wienbelt as member and CEO, respectively CFO of the Executive Board for a period of four years.

In line with the proposal, the AGM approved a dividend of € 0.35 per share for the 2017 financial year. The dividend will be payable, in cash or in shares, on 30 May 2018. ICT will determine the dividend payment in shares one day after the end of the optional period on the basis of the average price of ICT shares during the last five trading days of the optional period, which shall end on 28 May 2018. The ex-dividend date is 11 May 2018.

Q1 2018 results: organic growth trend continued

Key developments:

  • Revenue in Q1 up 12% to € 28.7 million (Q1 2017: € 25.6 million)
  • Organic revenue increase of 6%
  • EBITDA amounted to € 6.5 million, including a one-off accounting gain of
    approx. € 3.5 million
  • Underlying EBITDA increased to € 3.0 million (Q1 2017: € 2.8 million).
  • Acquisition of NedMobiel and remaining 50% stake in InTraffic completed

Key figures

(in € millions) Q1 2018 Q1 2017 Δ
Revenue 28.7 25.6 12%
EBITDA* 6.5 2.8
Underlying EBITDA 3.0 2.8 6%

* including a one-off gain of approx. € 3.5 million. This one-off accounting gain is the result of the acquisition of the remaining 50% stake in InTraffic.

Jos Blejie, CEO of ICT Group N.V.: “In the first quarter of 2018 results were in line with expectations, with a good performance of ICT Netherlands. One of the highlights of the first quarter was acquiring full ownership of InTraffic. As wholly owned subsidiary, InTraffic substantially strengthens our position in Smarter Cities from Q2 onwards. We will continue to focus on the further execution of our strategy, aimed at organic growth combined with add-on acquisitions. Considering the performance in this first quarter and the continued positive market trends, we reiterate that we expect a further growth in both revenue and EBITDA for the full year 2018 compared to 2017.”

Financial developments

Revenue increased to € 28.7 million in the first quarter of 2018, compared to € 25.6 million in the first quarter of 2017. Organically, excluding High Tech Solutions (acquired in June 2017) and NedMobiel, revenue grew 6%. InTraffic is consolidated as of 1 April 2018. In the first quarter, InTraffic is still reported as a joint venture.

ICT Netherlands performed well, showing good productivity levels, except for the Healthcare unit, for which a large project ended in 2017. The results of Strypes Bulgaria are somewhat behind compared to last year due to slightly lower productivity in combination with ongoing outlays in quality improvement. In the segment ‘Other’, Raster is experiencing a lack of larger new projects, which is reflected in its results. We anticipate that the challenging Oil & Gas market circumstances will continue in the next two quarters.

EBITDA, excluding the one-off accounting gain, increased to € 3.0 million in the first quarter, compared to € 2.8 million in the same period of 2017.

Strategic themes

ICT has made clear choices in terms of growth. ICT focuses on the themes Smarter Industries, Smarter Cities and Smarter Health. Within these themes ICT delivers the highest added value to its customers. Due to the acquisition of NedMobiel, Smarter Cities realised considerable growth. The declining revenue in Smarter Health is a result of flat revenue development at BMA and lower productivity in the ICT Healthcare unit.

Revenue split per theme (in € millions) Q1 2018 Q1 2017 Δ
Smarter Industries 18.8 17.4 +8%
Smarter Cities 5.7 4.1 +41%
Smarter Health 2.2 2.5> -11%
Other 2.0 1.6 +22%
Total revenue 28.7 25.6 +12%

InTraffic

On 21 March 2018 ICT completed the acquisition of the remaining 50% of the shares of InTraffic B.V. from former joint venture partner Movares Group B.V. ICT now holds 100% of the shares of InTraffic. The acquisition resulted in a one-off accounting gain of approximately € 3.5 million, mainly related to the revaluation of the 50% stake in InTraffic already held by ICT. Except for the one-off gain, InTraffic is still reported as a joint venture in the first quarter of 2018. The impact of step up accounting and purchase price allocation will be disclosed upon publication of the 2018 half year results.

NedMobiel

In January 2018 ICT completed the purchase of 100% of the shares of NedMobiel B.V., a Dutch expert consultancy company for complex infrastructures. This acquisition supports ICT’s transition from a leading software integrator to a total technology and service provider, by increasing revenue from projects as well as from consulting services.

Outlook

ICT’s management reiterates the outlook given at the announcement of the annual results in March. ICT will continue to focus on growth, preferably organically as well as through acquisitions. The focus in 2018 is on increasing the company’s size in Smarter Cities and Smarter Health. ICT will continue to be disciplined and cautious in its acquisition strategy.

ICT expects its capital expenditures and research & development expenditures to increase in 2018, in line with the increased scale of the company. With these investments ICT creates the right conditions to take additional steps in our transformation into a total solution provider. The battle for talent continues and attracting and retaining the right people remains to be one of our key priorities.

Based on the above, ICT expects a further growth in revenue and EBITDA in 2018 compared to 2017.

Press release: Full Year Results 2017 ICT GROUP NV

ICT REPORTS 17% INCREASE IN REVENUE AND EBITDA

Integration of acquisitions and continued investments result in a more powerful organisation

Highlights FY 2017

  • Revenue up 17% to € 105.0 million, 7% organic growth
  • EBITDA increased 17% to € 12.0 million
  • Acquisitions of HTS and NedMobiel further strengthen position in Smarter Industries respectively Smarter Cities
  • The net result came in at € 5.2 million, compared to € 5.0 million in 2016 that included a one-off gain of € 0.8 million
  • Proposed dividend of € 0.35 per share for the year 2017

Highlights Q4 2017

  • Revenue up 7% to € 28.5 million, EBITDA realised at € 4.2 million (Q4 2016: € 4.0 million)
  • Organically, revenue growth was in line with the full year growth

Outlook

  • ICT expects a further growth in revenue and EBITDA for 2018 compared to 2017

Key figures

Jos Blejie, CEO of ICT Group N.V.: “We successfully took ICT Group to the next level in 2017. Both in terms of scale, as we surpassed the milestones of 1,000 employees and € 100 million in revenue, but even more so in terms of our readiness for the future. By decisively embarking on our strategic road map for growth, we once again delivered on our promises. We recorded sustainable levels of growth, while making the world a little smarter every day. The full integration of Nozhup and HTS resulted in a major step forward in our position in the industry and vital infrastructure sectors. The integration, combined with continued investments in the organisation, led to a more powerful organisation. The rapid pace of technological developments requires a certain critical mass to operate at the forefront of these developments. This is why growth is once again our key objective for 2018. Organic growth remains our main growth driver and we will also continue our buy and build strategy.”

Strategy update

Progress in 2017
In 2017, ICT passed the milestone of 1,000 employees as a result of acquisitions, hires and a modest attrition rate. In an employment market characterised by an ever-growing shortage of IT talents, ICT’s efforts to have an appealing profile as an employer bear fruit as the company scored well in terms of attracting and retaining talented people in 2017.

In 2017, ICT prioritised the integration of the acquisitions made over the previous year, to safeguard a proper basis for the consolidation of future potential, without losing focus on driving organic growth. ICT fully integrated Nozhup, which was acquired in September 2016. With the acquisition of Nozhup, ICT gained significant scale in its activities in the industrial automation market, and also widened its customer base in this market. The integration of Nozhup enabled ICT to move further up in the value chain.

Further acquisitions
In June 2017, ICT acquired High Tech Solutions B.V., an industrial automation project and services provider, employing 25 highly educated professionals. HTS delivers consultancy services in various markets within the domain of Smarter Industries. In November 2017, ICT signed a letter of intent to acquire 100% of the shares of NedMobiel B.V., a Dutch expert consultancy company for complex infrastructures, such as tunnels, bridges, water locks, motorways and mobility solutions. The fields of expertise of NedMobiel include (tunnel) safety, asset management and project management.

Digital transformation
A key strategic theme, interwoven with all other key trends throughout ICT’s activities, is digital transformation. In 2017, ICT has therefore set up a dedicated Digital Transformation Unit, a team that works across all sectors and industries. The combination of profound Digital Transformation expertise and the deep knowledge of those industries provides ICT with a unique proposition.

Focus in 2018
In 2018, ICT will continue to focus on the further execution of this strategy, aimed at organic growth combined with add-on acquisitions.

ICT aims to grow organically by 5% per annum. ICT’s performance in the last four years demonstrates its ability to deliver on this target. As the company has clearly achieved a substantial position in Smarter Industries, fuelled in part by the acquisition of Nozhup, the focus of the acquisition strategy in 2018 will be increasing its size in Smarter Cities and Smarter Health. ICT will continue to be disciplined in its acquisition strategy.

Further expansion of the digital transformation activities will also be a key priority for 2018, aimed at building more innovative solutions in-house. ICT remains focused on creating all the right conditions to take further steps in the transformation into a total solutions provider.

Notes to the results

Revenue
In 2017, ICT Group’s revenue came in at € 105.0 million, 17% higher than the € 89.7 million reported in 2016. Organically, revenue increased by 7%. Acquisitions accounted for 10% of ICT Group’s revenue growth. Organic growth was driven mainly by the increase in the number of FTEs, higher average rates and improvements in a number of markets. Added value increased by 18% to € 93.4 million in 2017.

Revenue at ICT Netherlands increased by 18% to € 81.3 million in 2017 from € 69.0 million in the previous year. Nozhup, which ICT acquired in September 2016, and fully integrated within ICT Netherlands in the first half of 2017, was the main contributor to this increase. Productivity levels were in line with last year. The average tariff increase was in line with the average salary increase.

Strypes Bulgaria (“ICT Nearshoring”) reported a 27% increase in revenue to € 9.6 million in 2017, from
€ 7.6 million in 2016. This increase was recorded at both existing and new clients.

The segment ‘Other’ recorded revenues of € 16.4 million in 2017 (2016: € 14.3 million). The slow start of Improve was balanced by its recovery in the second half and the good start to the year for Raster was offset by a more moderate second half. In 2017, BMA benefited from the delayed launch of a new generation of foetal heart monitors, which resulted in a substantial increase in revenue.

Costs/personnel expenses
Personnel costs increased to € 62.5 million (2016: € 52.0 million), as a result of the marked increase in the number of employees and an increase in salaries. Other operating expenses increased by 11%, as a result of recent acquisitions and higher costs for recruitment, office accommodation and a further professionalization of the organisation. The costs related to strategic initiatives and the realisation of acquisitions and partnerships amounted to € 0.2 million (2016: € 0.5 million).

EBITDA
EBITDA for the full year 2017 increased by 17% to € 12.0 million, compared to € 10.3 million in 2016. The increase was mainly due to the higher EBITDA at ICT Netherlands (up 25% to € 8.3 million in 2017, from € 6.6 million in 2016). This was the result of both the organic growth realised and the full year consolidation of Nozhup, plus the consolidation of HTS from June 2017. Strypes Bulgaria recorded higher EBITDA of € 1.9 million (up 12%). In 2017, ICT continued its investments in the organisational effectiveness of Strypes Bulgaria, to safeguard continued and sustainable strong growth of its nearshoring activities. The segment Other recorded EBITDA of € 1.8 million (2016: € 2.0 million). In 2017, Raster experienced margin pressure as a result of the adverse impact of two projects in the second half of 2017, which resulted in substantially lower results. As a result of a good performance in the second half of the year, BMA recorded substantially better results compared to the previous year.

The overall EBITDA margin declined slightly to 11.4% in 2017 from 11.5% in 2016.

Amortisation and depreciation
ICT has valued and is amortising a number of intangible assets, including order backlog, software and the customer relations of its recent acquisitions. Amortisation in 2017 amounted to € 2.7 million (2016:
€ 2.3 million). Depreciation amounted to € 0.9 million in 2017 (2016: € 0.6 million).

Operating profit increased 14% to € 8.4 million in 2017 (2016: € 7.4 million). The operating margin came in at 8.0%, compared with 8.2% in 2016.

The results from joint ventures and associates

The total result from joint ventures and associates amounted to a loss of € 0.4 million (2016: € 0.8 million loss). InTraffic contributed € 0.1 million to the results (2016: € 0.2 million).

In November 2017, the minority stake (25%) in Strypes Nederland B.V. (held by Strypes Bulgaria) was divested to the existing shareholders. This divestment resulted in a book profit of € 0.2 million.

In 2017, LogicNets’ revenue was stable when compared with the previous year. LogicNets did manage to win new reputable customers but the company is still loss-making. ICT still believes in the strategic importance of the platform, but it will take some time before the company realises substantial growth and moves into profit. ICT therefore decided to fully impair its stake in LogicNets in the fourth quarter of 2017. The downward valuation of LogicNets, including our share in its loss for the year, amounted to € 0.5 million.

Interest expenses came in at the same level as last year at € 0.5 million (2016: € 0.5 million).

Taxes
In 2017, corporate income taxes related to the continuing business operations amounted to € 1.9 million, compared with € 1.7 million taxes in 2016. In 2017 there have been no one-off tax items, whereas in 2016, following the official liquidation of the German activities, taxes from discontinued operations for 2016 amounted to a one-off tax credit of € 0.8 million.

Net profit for the full year 2017 came in at € 5.2 million, a slight increase compared to last year (€ 5.0 million). Excluding the one-off tax gain of € 0.8 million recorded in 2016, net profit was up by 24%. Earnings per share amounted to € 0.56 in 2017 (2016: € 0.56). The number of outstanding ordinary shares had increased to 9,411,301 at year-end 2017 (31 December 2016: 9,288,309), due to shares issued for stock dividend and the employee share participation plan.

Cash flow movement
The cash flow from operating activities amounted to € 7.9 million positive in 2017 (2016: € 5.1 million positive). This increase was the result of the growth of the company and the fact that there were no cash tax payments in 2017, as a result of the tax benefits related to the liquidation of the German activities in December 2016. Working capital increased in line with the increased activity levels, as well as the increased average scope of projects. ICT maintains disciplined working capital management.

Cash outflow on investment activities amounted to € 2.9 million in 2017, compared with € 8.4 million in 2016. The purchase price cash consideration for the acquisition of HTS (€ 1.2 million) and investments in office accommodation (€ 1.3 million) had the largest impact. The divestment of Strypes Netherlands had a positive impact of € 0.7 million.

Cash flow from financing activities amounted to € 4.3 million negative (2016: € 2.2 million positive), as a result of the net effect of dividend paid (€ 2.1 million), the repayments of existing acquisition financing (€ 2.6 million) and the proceeds from the issuance of shares (€ 0.5 million cash inflow).
The net cash flow amounted to € 0.7 million (2016: € 1.1 million negative).

Balance sheet structure
As a result of the net effect of the payment of a dividend of € 2.1 million, and net profit of € 5.2 million, shareholders’ equity increased to € 47.7 million in 2017 (2016: € 43.7 million). The balance sheet total increased to € 81.6 million at year-end 2017, from € 79.2 million at year-end 2016. Solvency (shareholders’ equity/total assets) stood at 58% at year-end 2017, compared with 55% at year-end 2016, which represents a sound financial basis.

Dividend proposal
ICT proposes a dividend of € 0.35 per share for the 2017 financial year (2016: € 0.33). The dividend payment is subject to the approval of the Annual General Meeting of Shareholders (AGM) to be held on 9 May 2018. For the calculation of the proposed dividend, the realised net profit is adjusted for the non-cash amortisation amounts and the downward valuation of LogicNets. This results in an adjusted net profit for the full year 2017 of € 8.3 million. The proposed dividend of € 0.35 per share represents a pay-out ratio of 40% of the adjusted net profit. ICT offers an option for payment in cash or in shares.

ICT will determine the dividend payment in shares one day after the end of the optional period on the basis of the average price of ICT shares during the last five trading days of the optional period, which shall end on 28 May 2018. The dividend will be payable, in cash or in shares, on 30 June 2018.

Subsequent events

NedMobiel
On 24 January 2018, ICT completed the purchase of 100% of the shares of NedMobiel B.V. The purchase price amounts to € 2.3 million in cash and a contingent consideration will be payable based on the EBITDA that NedMobiel will achieve in 2018, capped at € 0.5 million.

InTraffic
On 5 February 2018, ICT Group signed a letter of intent with Movares and InTraffic to acquire the remaining 50% of the shares in InTraffic from joint venture partner Movares. Following the acquisition ICT Group will hold 100% of the shares of InTraffic. Acquiring InTraffic in full will allow ICT to strengthen its position in its strategic theme ‘Smarter Cities’.

InTraffic, located in Nieuwegein, designs and builds applications for Public Transport, Infrastructure Monitoring and Travel Information. The company was founded in 2003 as a joint venture between ICT Group and engineering company Movares. InTraffic generates annual turnover of approximately € 19 million. Closing of the transaction is expected end of March 2018. InTraffic will be fully consolidated as from the closing of the transaction, while currently ICT’s 50% stake is reported as ‘result from joint ventures’. The purchase consideration for 50% of the shares will be paid in cash.

Outlook
Industry growth will be driven by multiple trends in 2018 and beyond, including the advent of Digital Transformation. ICT sees the continued expansion of its digital transformation activities as a key priority for 2018. ICT will focus increasingly on building innovative solutions in-house. Again in 2018, we will work hard to create all the right conditions to take additional steps in our transformation into a total solutions provider.

In 2018, ICT will continue to focus on the growth of the company, both organically and through acquisitions. As the company has clearly achieved a substantial position in Smarter Industries, the focus of our acquisition strategy in 2018 will be on increasing the company’s size in Smarter Cities and Smarter Health. ICT will continue to be disciplined and cautious in its acquisition strategy.

ICT expects its capital expenditures and research & development expenditures to increase in 2018, in line with the increased scale of the company. The battle for talent will continue and attracting and retaining the right people continues to be one of our key priorities.

Based on the above, ICT expects a further growth in revenue and EBITDA in 2018 compared to 2017.

 

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 Group 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 Group 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 Group N.V. has no obligation to update the statements contained in this document, unless required by law.

In this press release, where information has been presented in thousands or millions of units, amounts may have been rounded. Accordingly, totals of columns or rows of numbers in tables or charts may not be equal to the apparent sum of the individual items. Actual numbers may differ from those contained herein due to such rounding.

2017 financial information
The 2017 financial information included in the Extracts from Consolidated Financial Statements attached to this press release is derived from the Annual Report 2017, that has been authorized for issue. The Annual Report has not yet been published by law and still has to be adopted by the Annual General Meeting on 09 May 2018. In accordance with section 393, title 9, book 2 of the Netherlands Civil Code, PricewaterhouseCoopers Accountants N.V. has issued an unqualified auditor’s opinion on the Annual Report.

Annexes: Extracts from Consolidated Financial Statements 2017
– Consolidated statement of comprehensive income
– Consolidated balance sheet
– Consolidated statement of changes in equity
– Consolidated statement of cash flows
– Other financial information
– Segment information

Click here to download the Annex of the Annual Results of 2017.

ICT Group wil overige 50% aandelen in InTraffic overnemen van joint-venturepartner Movares

Vertaling van Engelse versie. Engelse versie is leidend.

Als 100%-dochteronderneming gaat InTraffic de positie van ICT in Smarter Cities versterken

ICT Group N.V. (ICT) kondigt vandaag de ondertekening aan van de intentieverklaring tot overname van de resterende 50% aandelen in InTraffic B.V. (InTraffic) die nu nog in bezit zijn van joint-venturepartner Movares Group B.V. (Movares). Na de overname bezit ICT 100% van de aandelen van InTraffic. Met de volledige overname van InTraffic versterkt ICT zijn positie in het strategische thema ‘Smarter Cities’.

InTraffic, dat gevestigd is in Nieuwegein, ontwerpt en bouwt applicaties voor Traffic Management, Infrastructure Monitoring en Travel Information. De onderneming werd opgericht in 2003 als een joint venture van ICT en ingenieursbureau Movares. Met 150 professionals genereert InTraffic een jaaromzet van ongeveer € 19 miljoen.

Jos Blejie, CEO van ICT Group: “Ik ben ervan overtuigd dat deze transactie goed is voor zowel InTraffic als ICT. InTraffic sluit perfect aan bij onze strategie voor Smarter Cities. Door onze krachten te bundelen kunnen we onze positie versterken en onze innovatie en productontwikkeling op het gebied van railinfrastructuur en mobiliteit verder verbeteren. Na 15 jaar nauwe samenwerking met onze joint-venturepartner Movares op het gebied van openbaar vervoer ben ik zeer verheugd over ons streven om InTraffic onderdeel te maken van ICT.”

Sander Eijgenraam, CEO van Movares: “ICT heeft al bijna 15 jaar een strategisch samenwerkingsverband met InTraffic. In die jaren is de rol van IT bij railinfrastructuur en mobiliteit sterk veranderd. Door die verandering is InTraffic nu voor Movares van minder strategisch belang voor onze kernactiviteiten als consultants en ingenieurs. Na afronding van de transactie zullen Movares en InTraffic de samenwerking bij ProRail als belangrijkste klant van beide partijen voortzetten.”

Bert van Elburg, CEO van InTraffic: “We kijken uit naar de volledige overname door ICT Group. Ik denk dat deze transactie voordelen met zich meebrengt voor de werknemers en de klanten van InTraffic. De combinatie van de sterke positie van InTraffic in mobiliteit en railinfrastructuur en die van ICT in openbare infrastructuur heeft een positief effect op beide partijen en zal de positie verder versterken.”

Naar verwachting zal de transactie eind maart 2018 worden afgerond. Vanaf dat moment wordt InTraffic volledig geconsolideerd. Het huidige belang van 50% van ICT zal worden gerapporteerd als resultaat uit joint ventures. De koopsom voor de 50% van de aandelen wordt betaald in cash. Er worden geen nadere financiële details over deze transactie bekendgemaakt.

ICT Group completes acquisition of NedMobiel

Only available in English

ICT Group N.V. (ICT) announces that it has completed the purchase of 100% of the shares of NedMobiel B.V., a Dutch expert consultancy company for complex infrastructures. The purchase consideration has been paid in cash.

NedMobiel has extensive expertise in (tunnel) safety, asset management and project management. NedMobiel will work closely with ICT Netherlands’ business units Water and Infrastructures and Engineering Contractors and will be able to benefit from the strong position that ICT holds in the national rail, road, water and infra sectors. This acquisition supports ICT’s transition from a leading software integrator to a total technology and service provider, by increasing revenue from projects as well as from services.

ICT Group nominates Gina van der Werf for appointment to the Supervisory Board

Only available in English

ICT Group N.V. (ICT) today announces the nomination of Mrs. Gina van der Werf for appointment as member of the Supervisory Board of ICT Group. Her nomination made by the Supervisory Board will be on the agenda of the Annual General Meeting of Shareholders of ICT Group on 9 May 2018. Gina van der Werf is CEO of First Dutch Innovations and has the Dutch nationality. Mr. Jan Sinoo, whose second term ends on 9 May 2018, will not be available for re-election.

Gina van der Werf (46) is CEO of First Dutch Innovations, a multinational company active in the TIC-sector (Testing, Inspection and Certification), Metrology and in Life Sciences. In the past she was Chairman of the Management Board of Priority Telecom NV after corporate positions within the Liberty Global. She also held several Supervisory Board positions within the IT sector and within the Noordelijke Hoge School Leeuwarden (NHL). She holds a degree in Corporate Law and International Organisations from the University of Groningen.

Theo van der Raadt, chairman of the Supervisory Board of ICT Group: “We are very pleased to nominate Gina van der Werf for appointment to the Supervisory Board. With her broad and international management experience and extensive background in the tech sector she will be a valuable addition to our Supervisory Board. I am convinced that ICT Group will benefit from her involvement in developing innovative companies and promoting entrepreneurship. At the same time, I would like to thank Jan Sinoo for his valuable contribution over the past eight years in which ICT made significant steps forward.”

Gina van der Werf will be nominated for appointment for a period of four years until the AGM in 2022. The nomination for appointment will be made under the condition that the general meeting does not make use of its right of recommendation. After her appointment, ICT Group’s Supervisory Board will consist of the following members: Theo van der Raadt (Chairman), Deepak Luthra, Fritz Fröschl and Gina van der Werf. Mrs. van der Werf will become chair of the Remuneration and Appointment committee.

Q3 2017 Results: solid performance

Key developments:

Q3 2017
– Revenue increased 23% to € 25.8 million (Q3 2016: € 21.0 million), organic revenue growth trend continued.
– EBITDA came in at € 2.5 million, an increase of 19% compared to € 2.1 million in Q3 2016.
– Focus on integration and consolidation of acquisitions continued; integration HTS ongoing.

9M 2017
– In the first nine months of 2017 revenue was up 21% to € 76.5 million (9M 2016:
€ 63.1 million), organic revenue growth 8%.
– EBITDA amounted to € 7.8 million (9M 2016: € 6.3 million), an increase of € 1.5 million.

Outlook.
– For the full year 2017 EBITDA expected between € 11.5 million and € 12.5 million.

Jos Blejie, CEO of ICT Group N.V.: “In the third quarter we continued our disciplined approach towards integration and consolidation. The integration process of HTS, which we acquired last June, is ongoing and we completed the integration of Nozhup. All ICT subsidiaries contributed to the growth realized in the past nine months. In particular ICT Nearshoring and BMA performed well in the third quarter. BMA benefited from its delayed launch of a new generation fetal heart monitors. With the continued favorable economic conditions, we expect to pass the € 100 million revenue milestone this year and expect to realize an EBITDA between € 11.5 million and € 12.5 million.”

Financial developments
In the third quarter of 2017 revenue increased 23% to € 25.8 million compared to
€ 21.0 million in Q3 2017. Organically, excluding HTS (acquired in June 2017) and
2 months Nozhup (consolidated as of September 2016), revenue growth was in line with the previous quarters. For the first nine months of the year revenue amounted to € 76.5 million. All subsidiaries contributed to the 21% increase compared to last year. Organic revenue growth year to date is 8%.

Overall productivity levels within ICT Netherlands were in line with last year. Strypes Bulgaria showed a significant increase in revenue compared to Q3 last year. BMA performed above expectations, Improve and Raster performed in line with last year. All ICT subsidiaries recorded positive results. EBITDA came in at € 2.5 million in the third quarter, compared with € 2.1 million in the same period of 2016. Year to date EBITDA was up 24% to € 7.8 million (9M 2016: € 6.3 million), resulting in an EBITDA margin of 10.2% (9M 2016: 10.0%). The positive trend in ICT’s markets continued in the third quarter.

Strategic themes
ICT focuses on the themes Smarter Industries, Smarter Cities and Smarter Health. Within these themes ICT delivers the highest added value to its customers. Due to the acquisitions of Nozhup and HTS, growth in the themes Smarter Industries and especially Smarter Cities was higher than in the Smarter Health theme.

Divestment of minority share in Strypes Nederland B.V.
In October Strypes Bulgaria (ICT Nearshoring) agreed to divest its minority stake (25%) in Strypes Nederland B.V. to the existing shareholders. As a consequence, transfer of the shares will take place early November. As part of this agreement Strypes Bulgaria and Strypes Nederland B.V. will continue their collaboration.

Outlook
ICT will continue to further leverage the strategic platform it has successfully built over the past years, aimed at organic growth combined with acquisitions. ICT’s acquisition strategy is focused on achieving a more balanced position between the three main themes. Our solutions, enabling a digital transformation for our customers, will be deployed in all industries and further internationalized.

Overall ICT has benefited from favorable economic circumstances. The markets in which ICT operates are expected to continue this favorable trend in the fourth quarter of the year. The strong fourth quarter of last year was the first quarter in which the activities of Nozhup were fully consolidated.

Based on the above, ICT expects EBITDA between € 11.5 million and € 12.5 million for the full year 2017.