, August 23, 2011

Half-year results 2011 Ordina N.V.

Ordina realises growth in revenue and results in line with outlook

Highlights for H1 2011

  • Recurring revenue up 4.8% to EUR 219.0 million, recurring EBITDA up 16% to EUR 8.1 million, in line with outlook.
  • Revenue from finance market up 24% on H1 2010; revenue from industry market 5% higher and revenue from public market down 6%.
  • Recurring EBITDA margin up from 3.3% to 3.7% thanks to higher volumes, fees and stringent cost control.
  • Reduction in indirect costs to improve the ratio of support to professional staff progressing according to plan. Target for 2011: reduction by 85 support staff positions.

Financial and operating highlights


 (all figures are exclusive of associates sold, i.e. Integer, Ormit and Finext)

  • Recurring revenue up 4.8% to EUR 219.0 million (H1 2010: EUR 209.0 million), with persistent growth in revenue per business day.
  • 16% increase in recurring EBITDA to EUR 8.1 million (H1 2010: EUR 7.0 million).
  • Successful recruitment campaign yielding about 240 talented new employees, boosting domain knowledge in our chosen specialist areas.
  • Net debt at EUR 52.8 million (at the end of H1 2010: EUR 67.1 million) in line with seasonal patterns; ratio of total net debt to adjusted EBITDA at 2.7 (at the end of H1 2010: 2.6). Interest coverage ratio at 6.0 (at the end of H1 2010: 5.3).
  • EUR 7.2 million in restructuring expenses included in H1 2011 primarily for the support staff headcount reduction programme.
  • Sale of subsidiary Finext.

Ronald Kasteel, Ordina's CEO, on the half-year results


 “We can look back on a satisfactory six-month period, despite the turbulent market conditions, with revenue rising by nearly 5% and recurring EBITDA improving by 16%. In the still challenging Benelux markets, we increased our market share and posted a slight increase in fees. We again won several prestigious projects, reflecting our excellent positioning in the market. With the support staff headcount reduction programme, we will continue to focus on cost control and structural cost reductions. At the same time, we launched a recruitment campaign, targeting specific jobs requiring in-depth market knowledge, which has been a great success.”


In the finance market, we raised our revenue by no less than 23.8% on H1 2010, reaching EUR 67.2 million. Demand from the finance market is for individual capacity and short-cyclical projects in particular. In the industry market, there was a rise in demand in the first half of the year compared with the first half of 2010. In this market segment, we posted EUR 64.9 million in revenue, a 4.8% rise on the same period in 2010. The public market is still feeling the impact of the spending cuts that were announced last year. Government bodies however will need to invest in operational innovations and improvements in their
public services. Targeted use of ICT can help simplify processes and achieve cost cuts. The revenue from the public/healthcare market declined with 6.4% to EUR 86.9 million. In all three segments, Ordina won prestigious projects in the first half of the year.


We launched a branding and recruitment drive in the first half of 2011. We are actively recruiting young professionals and professionals with specialist profiles and in-depth knowledge of particular markets. We welcomed about 240 new staff in the first half of 2011.

Financial position

The debt position at 30 June 2011 amounted to EUR 52.8 million (H1 2010: EUR 67.1 million). Compared with year-end 2010 (EUR 43.3 million), the net debt position was up about EUR 9.5 million in line with seasonal patterns.

Composition of management board


Mr Stépan Breedveld will succeed Mr Ronald Kasteel as CEO of Ordina N.V. on 1 September 2011.


In the first half of 2011, the positive trend in revenue was primarily attributable to the sharp upturn in demand in the finance sector. The current trends on the financial markets, combined with the focus on the debt crisis in a number of Southern European countries, might well impact investments in this sector in the months to come. Furthermore, the public sector market may continue to suffer from a low investment appetite. This mainly concerns investments being postponed rather than being put off altogether, since ICT investments will be needed to create a compact and efficient government. In light of the above developments, we will not give an outlook on the expected revenues and operating profit for the coming period.