, March 2, 2010

Ordina N.V. reports solid financial results for difficult 2009

Challenging start in 2010 despite positive signals


  • Revenue from continued operations came at EUR 542.3 million in 2009. In 2008, revenue from continued operations was EUR 632.6 million. This is a decrease of 14%.
  • Revenue share deriving from multi-year contracts was up from 18% in 2008 to 27% in 2009.
  • Recurring EBITDA from continuing operations stood at EUR 41.4 million compared to EUR 59.4 million in 2008. This resulted in a relative margin for 2009 of 7.6% compared to 9.4% in 2008.
  • Total net debt, including the subordinated loan with a face amount of EUR 27.5 million, was EUR 37.7 million at 31 December 2009. Net debt stood at EUR 85.1 million at year-end 2008. Total net debt to adjusted EBITDA amounted to 0.9 (1.6 at year-end 2008) and remains very well within the convenants.
  • Net profit for the year on continuing operations, including non-recurring expenses at the sum of EUR 9.0 million, amounted to EUR 1.3 million, compared to a net profit of EUR 15.6 million for 2008 (2008 was inclusive of a profit at EUR 10.4 million resulting from the sale of technical automation activities).
  • Net earnings per share before amortisation of intangible assets due to acquisitions was EUR 0.25 (2008: EUR 1.66 negative). Recurring net earnings per share before amortisation of intangible assets due to acquisitions stood at EUR 0.43 (2008: EUR 0.50).
  • Ordina’s dividend policy stipulates that 25% of the net profit for the year is to be distributed as a cash dividend. Considering the modest net profit for 2009, it will be proposed to the Annual General Meeting of Shareholders, in line with Ordina’s policy, not to pay-out dividend over 2009.
  • To what extend and at what pace positive signals in the market will crystallize into an upturn in demand, continues to be difficult to predict. It is also worth noting that Ordina’s employee base is smaller at the beginning of 2010 than the average number of employees in 2009. All in all, it is realistic to assume that 2010 as well will be a challenging year. It is therefore too early to provide a definite outlook for revenue and profit at this time.


“2009 will be remembered as a special year for Ordina in our more than 35-year history. A year that was off to a rough start, but that we managed to pull through rather well in the end considering the circumstances. This is in part thanks to the 32% increase in revenue share deriving from long-term contracts. The first half of the year was characterised most of all by taking measures in order to address the severely deteriorated market. We implemented a reorganisation that resulted in the loss of about 300 employment positions. We completed the sale of our severely lossmaking BPO activities and we made preparations for the strengthening of our capital base and the broadening and renewal of our financing facilities. The strengthening of our financial position was finalized in the second half of the year. In the same period we also saw the first signs of stabilisation in the market. By maintaining our strong focus during the year on both cost control and the existing opportunities the market still had to offer, we were able to end the year relatively good considering the circumstances.

The economy is showing some positive signs, although they do not give us cause to believe that market conditions in our industry will improve quickly and robustly. For the time being, we expect 2010 to be another challenging year. The start of 2010 confirms this. But 2010 will also be a year in which we plan to further shape our profile as a locally based specialist service provider. Our sound financial base and our close client relations are a strong base on which we can step into the year 2010 with confidence and to go all-out together in order to deliver the best possible results again in 2010.”