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2014-05-14

Ordina: Ordina N.V. results for first quarter 2014 Ordina improves profit on stable turnover

Nieuwegein, 14 May 2014

Highlights

* Recurring EBITDA rises to EUR 4.8 million (Q1 2013: EUR 2.5 million);
* Recurring EBITDA margin higher at 5.1% (Q1 2013: 2.6%);
* Turnover stable at EUR 93.6 million (Q1 2013: EUR 93.9 million);
* Net debt falls to EUR 12.4 million (Q1 2013: EUR 20.1 million), net debt /
adjusted EBITDA ratio comes in at 0.74 (maximum leverage ratio: less than
or equal to 1.75);
* Ordina 'Top Employer ICT' for second successive year.

Stépan Breedveld, CEO Ordina, on the Q1 results
"We improved our profit substantially on stable turnover. The recurring EBITDA
rose to EUR 4.8 million in the first quarter, compared with EUR 2.5 million
in the same period last year. This improvement was mainly driven by the
cost-saving programme we completed last year. Turnover remained stable thanks
to higher turnover in the financial services sector, healthcare and industry,
which offset the lower turnover in the public sector.

Ordina is bursting with energy. The implementation of our new mission
'Partnerships in Sustainable Innovation' is in full swing. At a number of
clients we have already kicked off highly focused innovation programmes that
will result in new IT applications. For instance, the Google Glass Contest
that we recently organised resulted in an innovative idea for the healthcare
sector. Using an app designed for Google Glass, healthcare providers will
soon be able to consult patient data and scan in the medicines administered
for administrative processing. This is a perfect example of IT really working
for people.

We also took a step towards achieving our ambition of being one of the best
employers in the IT sector. For the second year in a row we were awarded the
title 'Top Employer ICT'."

Outlook
We decline to give a forecast for the coming period.

Turnover

¹Q1 2013 figures have been adjusted for comparison purposes on the basis of
the new division of the market segments.

Turnover was down in the public sector segment, in line with the previous
quarters. This decline was offset by higher turnover in the other market
segments.

¹Q1 2013 figures have been adjusted for comparison purposes on the basis of
the new organisational structure.

The turnover shown in the tables pertains to external turnover. External
turnover is generated directly at our clients and excludes the internal
services delivered between the divisions. For instance, the
Technology&Competences division delivers large numbers of staff to the
Sourcing and Management divisions. Any growth in external turnover at
Sourcing and/or Application Management may therefore be (partly) at the cost
of the external turnover at Technology&Competences and/or Business
Consulting&Solutions. The external turnover therefore is a good
representation of the performance of our various business models at clients.

Technology&Competences
The Technology&Competences division designs and builds applications for our
clients in the form of secondment and project contracts, for both
out-of-the-box and client-specific solutions. The division saw turnover drop
10.8% to EUR 28.7 million in the first quarter (Q1 2013: EUR 32.2 million).
This decline was largely due to the increase in internal deliveries to the
Sourcing and Business Consulting&Solutions divisions, but also to a reduction
in the number of large-scale projects within the public sector market
segment.

Business Consulting&Solutions
The Business Consulting&Solutions division advises clients on how they can
improve their processes and IT. The division combines business know-how with
technical expertise to create sustainable solutions in the fields of business
intelligence, (digital) customer interaction, capital accumulation and
mortgages. The division saw turnover decline by 17.0% to EUR 11.2 million in
the first quarter (Q1 2013: EUR 13.5 million), largely due to a decline in
demand for consulting services in the public sector and to the phasing out of
less profitable activities.

Application Management
The Application Management division is responsible for the management,
maintenance and upgrading of applications and platforms at our clients
through long-term contracts. The division's turnover fell by 7.0% to EUR 12.8
million (Q1 2013: EUR 13.8 million). The drop in turnover was due to the
completion of a number of large (end of life) management contracts and was
not entirely offset for by new turnover.

Sourcing
The Sourcing division helps large clients as a strategic partner by together
improving the added value of the external ICT-staff. Our client-specific
improvement programs with respect to productivity improvement, talent
development, knowledge sharing and innovation, are an integrated part of this
approach. Turnover at the Sourcing division increased by 42.0% to EUR 22.9
million (Q1 2013: EUR 16.1 million). Ordina's focus on long-term contracts
led to an increase in turnover at almost all clients in the Sourcing
portfolio.

Belgium/Luxembourg
The Belgium/Luxembourg division saw turnover decline by 2.3% to EUR 18.0
million (Q1 2013: EUR 18.4 million). The decline in turnover was due to lower
turnover generated by external employees. However, this was partly offset by
the higher turnover from internal staff.

Innovation
Last year, we organised the Ordina Innovation Challenge in the context of our
new mission 'Partnerships in Sustainable Innovation'. Together with the
start-ups that emerged as winners in this challenge, we are now developing
games for children with behavioural problems and medical apps.

We are also working very closely with clients on innovation via our
rejuvenated Connect Cafés. These are sessions in which we and our clients
together investigate how ICT can contribute to solutions for specific
business issues. We held such Connect Café sessions with three of our clients
in the first quarter, and we are now working on the implementation of the
ideas that were developed at the sessions.

Employees
At the end of Q1 2014, the number of employees stood at 2,879 FTEs. The influx
amounted to 47 FTEs while 86 FTEs left the company. Ordina saw an overall
decline of 39 FTEs compared to the end of Q4 2013 (end Q4 2013: 2,918 FTEs).
The decline in indirect FTEs is the result of the cost reduction programme
that we completed in 2013.

Financing
Net debt stood at EUR 12.4 million at the end of Q1 2014, a decline from the
same period of last year (Q1 2013: EUR 20.1 million). When compared to the
end of 2013, net debt increased by EUR 10.2 million as a result of normal
seasonal patterns (Q4 2013: EUR 2.2 million). The ratio of net debt /
adjusted EBITDA stood at 0.74 (maximum leverage ratio: less than or equal to
1.75) and the Interest Cover Ratio came in at 12.4 (minimum interest cover
ratio: bigger than or equal to 5.0). The ratios are therefore well within the
limits agreed in the bank covenants.

# # #

ABOUT ORDINA
Ordina is the largest independent IT services provider in the Benelux. We
design, build and maintain IT solutions for organisations in the public
sector, in financial services, industry and the healthcare sector. We aim to
design IT solutions that help people, IT that matters and that is produced
without wasting precious resources. We do this by forging Partnerships in
Sustainable Innovation with our clients.

Ordina was founded in 1973. The company's shares have been listed on the NYSE
Euronext Amsterdam since 1987 and are included in the Small cap Index (AScX).
In 2013, Ordina recorded turnover of EUR 377 million. For more information
visit the website atwww.ordina.com.

ADDITIONAL INFORMATION
For more information about this press release:

Jolanda Poots-Bijl, CFO
Mail:jolanda.poots@ordina.nl

Telephone: +31 (0)30 663 8906

Stépan Breedveld, CEO
Mail:stepan.breedveld@ordina.nl

Telephone: +31 (0)30 663 7111

PR Ordina N.V. results for first quarter 2014
http://hugin.info/130778/R/1784919/612009.pdf

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Ordina via Globenewswire

HUG#1784919

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