News

, May 11, 2011

Ordina N.V. first quarter 2011: EBITDA increases with 14%

Interest on subordinated loan paid in cash

Operational highlights for Q1 2011

  • Positive revenue development in a cautiously recovering market. Strong growth in the finance market, decrease in the public market.
  • Results have improved due to higher fees and increased productivity, as well as a stringent monitoring of indirect costs.
  • The recruitment campaign is showing results. The intake of new recruits is progressing as planned. Approximately 150 new employees were hired in the first quarter of the year.
  • Number of FTEs stood at 3,148 at end of Q1 2011

Financial highlights for Q1 2011

(all figures are exclusive of recently sold subsidiary Finext)

  • Recurring EBITDA for Q1 2011 stood at EUR 4.1 million. This is a 14% increase in comparison with Q1 2010 (EUR 3.6 million).
  • Recurring revenue for Q1 2011 stood at EUR 112.1 million. This is an increase of approximately 4,5% in comparison with the first quarter of 2010 (Q1 2010: EUR 107.5 million).
  • Revenue from the finance market up 27% on Q1 2010, revenue from the industry market remained stable. Revenue from the public market dropped by 7%.
  • Net debt stood at EUR 51.1 million at end of Q1 2011 (Q1 2010: EUR 56.1 million), keeping ratios well within covenants agreed with lenders. Ratio of net debt/adjusted EBITDA stood at 2.7 (maximum 3.25). The interest coverage ratio stood at 6.1 (minimum 4.0).
  • Days Sales Outstanding (DSO) at 56 days in Q1 2011.


Recent developments

  • The fifth interest payment of EUR 0.9 million on the subordinated loan contracted in 2009 was recently made in cash. Ordina has decided not to issue new ordinary shares under the prevailing underwriting agreement.
  • On 20 April 2011, the fully owned subsidiary Finext was sold. With the sale of Finext, all of the subsidiaries of Ordina have been divested. The sale of Finext was completed in the second quarter of 2011. Finext achieved a revenue of EUR 14 million in 2010, the recurring result for 2010 was slightly positive. At a selling price of EUR 4 million, Ordina posted a book gain of approximately EUR 2.6 million. 

Outlook H1 2011

Based on current market developments and the seasonal pattern in the second quarter of 2011 (more days of leave), Ordina expects to generate EUR 217 million of revenue in the first half of 2011. This is an increase of approximately 4% in comparison to H1 2010. Recurring EBITDA is expected to stand at approximately EUR 8 million for H1 2011. This is an increase of approximately 17% in comparison to H1 2010. The recruitment campaign, as started in Q1 2011, will be continued in Q2.

Explanation

Today, Ordina N.V. publishes an update on Q1 2011. The financial information for Q1, including the comparative figures for preceding quarters, are exclusive of Finext, Ordina’s recently sold subsidiary.

Recurring revenue for Q1 2011 stood at EUR 112.1 million. This is an increase of approximately 4.5% on Q1 2010. Revenue per working day increased in comparison with Q1 2010. Fees increased slightly in comparison with Q4 2010.

Revenue from the finance market continued to improve in Q1 2011. In comparison with Q1 2010, revenue from this market increased by 27% in Q1 2011. Recurring revenue from the industry market was stable in comparison with Q1 2010. The public market continues to be characterised by lengthy decision-making processes in tendering large projects. Recurring revenue from the public market for Q1 2011 dropped by 7% in comparison with Q1 2010. Ordina recently won two prestigious projects in the public market. Logius, the digital government service of the Dutch Ministry of the Interior and Kingdom Relations, awarded to Ordina a project for the development and a large portion of the management of DigiInkoop, an e-purchasing system. In cooperation with Inter Access, Ordina will rebuild and manage the basic register for travel documents for the Dutch Ministry of the Interior and Kingdom Relations.

Lengthy decision-making processes caused revenues from long-term contracts to remain stable in Q1 2011 in comparison to Q1 2010, while revenues from short-term projects and time/material increased. The share of revenue from multi-year contracts dropped by approximately 1% in comparison to Q1 2010, to 31% in Q1 2011. The share of revenue from offshoring and nearshoring rose from 5% in Q1 2010 to 6% in Q1 2011.

Recurring EBITDA for Q1 2011 stood at EUR 4.1 million, against EUR 3.6 million for Q1 2010. The improvement of productivity has continued in Q1 2011 as well. Net debt at the end of Q1 2011 was up EUR 7.8 million (EUR 51.1 million) on the end of Q4 2010. This increase was entirely due to the influence of seasonal patterns. At a ratio of total net debt to adjusted EBITDA of 2.7 (maximum at 3.25) and an interest coverage ratio of 6.1 (minimum at 4.0) at the end of Q1 2011, Ordina has stayed within the covenants agreed with its lenders.

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