, March 1, 2011

Annual Results Ordina N.V. for 2010: Market recovery continues

Investing in growth in personnel in 2011


  • Results exceeded the outlook provided in Q3 2010.
  • Previously announced market recovery is continuing. This is being confirmed by positive revenue development in the second half of 2010.
  • Improved revenue per working day visible quarter-on-quarter.
  • Improved productivity as from the second quarter of 2010 against the same period in 2009.
  • Average fees for 2010 are stable.
  • Higher-than-planned cost savings due to strict control of overheads and out-of-pocket expenses.
  • Sale of subsidiaries Integer and Ormit completed in Q4 2010.


  • Revenue from continued operations for 2010 stood at EUR 436.6 million (2009: EUR 513.4 million). This is a decrease of 15%.
  • Sharp rise in revenue in the Finance market, with a 17.3% increase in H2 2010 in comparison with H1 2010.
  • Recurring EBITDA stood at EUR 18.1 million (2009: EUR 40.4 million). Recurring EBITDA margin at 4.2% in 2010 (2009: 7.9%).
  • Positive cash flow from operations at EUR 4.8 million for 2010.
  • Net debt at year-end 2010 stood at EUR 43.3 million (2009: EUR 37.7 million; H1 2010: EUR 67.1 million).
  • Total net debt to adjusted EBITDA at 2.4, keeping Ordina well within the covenants agreed with lenders.
  • Net profit before amortisation of intangible assets arising on acquisitions stood at EUR 3.4 million in 2010 (2009: EUR 11.6 million).
  • Including non-recurring items, Ordina reported a net result for 2010 of EUR 7.0 million negative
    (2009: EUR 0.2 million).
  • In accordance with its prevailing dividend policy, Ordina distributes 25% of profit for the year as dividend. In view of the result for 2010, Ordina will propose to the Annual General Meeting of Shareholders that, in accordance with the dividend policy, no dividend will be distributed.


  • Ordina expects the market to continue to recover in 2011.
  • Ordina expects to generate between EUR 115 million and EUR 120 million in revenue for the first quarter of 2011. This represents an increase in revenue of between 5% and 10% in comparison with the first quarter of 2010.
  • Ordina will invest in growth in personnel in 2011. In the first quarter of 2011, Ordina launched a campaign to strengthen its position as an employer and to recruit professionals, in order to achieve its growth ambitions. Recurring EBITDA is expected to land at approximately EUR 4 million for the first quarter of 2011. This represents an increase of approximately 10% in comparison with recurring EBITDA for the first quarter of 2010.


Market recovery
“For the market and Ordina, 2010 was a turning point. It is now safe to say that the signs seem to be indicating that we have come through the worst of the economic crisis and that the height of its impact on our operations is now behind us. Market conditions improved in the course of 2010. There was a noticeable upturn in the market, particularly in the second half of the year. In comparison with the first half of the year, revenue increased by 4.3% in the second half of 2010. As from the second quarter of 2010, productivity increased and pressure on fees for time/material eased noticeably. Also revenue per working day increased quarter-on-quarter. Demand increased particularly in the Finance market in 2010. Revenue in this market increased by no less than 17.3% in the second half of the year in comparison with the first half of 2010. The Public market suffered from great uncertainty in 2010, due to the fall of the coalition government and the subsequent lengthy formation of a new one. With a new coalition government now in office, we can see the first cautious signs of recovery in this market as well.

Investing in growth
Our productivity was structurally higher in 2010 than in 2009. To meet growing demand, we took ourfirst steps in 2010 to recruit new staff with specific industry knowledge. Demand for staff who combine specialised business knowledge with ICT skills is continuing to rise. We have therefore increased our recruitment activities in 2011. To intensify the recruitment drive, we launched a large-scale labour market campaign at the beginning of this year.

The market must know Ordina to be a local player with in-depth knowledge of specialty topics in specific industries. We make clear choices in what services we offer. A positioning analysis carried out in 2010 again revealed our strengths: we are close to our clients, and we bring about improvements through the connections we make. This is what differentiates us. Our new campaign highlights this promise to our clients and to new staff. The launch of this campaign in early 2011 marks the start of a new phase. We are more visible in the market and we are targeting growth in 2011.”