News

, February 28, 2012

Annual Results Ordina N.V. for 2011

Results in line with expectations

KEY DEVELOPMENTS 2011

  • Results in line with the outlook published in the third quarter:
    - Recurring EBITDA EUR 16.3 million (2010: EUR 18.1 million), in line with outlook of approximately EUR 16 million;
    - Net debt reduced to EUR 12.4 million: well within the forecast of around EUR 18 million after refinancing (year-end 2010:  EUR 43.3 million). This brings the net debt/EBITDA ratio to 0.8;
  • Recurring revenue EUR 424.3 million in 2011; a drop of 0.8% compared with 2010 (EUR 427.7 million). Reported revenue 2011 EUR 426.3 million;
  • Net loss of EUR 15.8 million (2010: net loss of EUR 7.0 million) including one-off income and expenses (EUR 13.4 million restructuring costs);
  • Refinancing completed in Q4 2011. The financing facilities of 2009 repaid. The share issue has strengthened the balance sheet by EUR 40 million. New senior debt financing arranged for the coming five years with ABN AMRO, ING and NIBC;
  • Ordina simplified the management structure  by eliminating two management layers and introducing a new divisional structure. This new divisional structure has been operational as of 1 January 2012

OUTLOOK 2012

The current economic outlook and the developments on the European financial markets are unpredictable. On the one hand, ICT is the engine which enables companies to reduce costs, improve customer interaction and  innovation. Yet on the other hand, we are faced with (short-term) cost reduction programmes which also affect our clients’ ICT spending. As a result, development of revenue and financial results is difficult to predict.

STÉPAN BREEDVELD, CEO ORDINA, ON THE RESULTS

Results in line with expectations

“Our full-year 2011 results were in line with the forecast we published in the third quarter. In addition, in 2011 we laid a firm foundation for the future of Ordina. We took significant steps in both financial and operational terms, for instance by working on strengthening the balance sheet and by improving our financial position. We boosted our financial position by arranging a new senior financing facility and by repaying our financing facilities from 2009.

Efficient organisation

In terms of our organisational structure, we also made significant progress towards a flexible, market-focused organisation. We have eliminated two management layers and introduced a new divisional structure, with more individual responsibility. We have also established an Executive Committee, in which the divisional directors have been given a seat. This structure ensures more direct management and an efficient organisation. We introduced greater focus in our portfolio and introduced transfer pricing within the organisation to increase profitability. We also improved the balance between direct and indirect (support) staff. The high number of new employees we welcomed in 2011 shows that we are an interesting employer. No fewer than 459 people joined Ordina in 2011. This influx was partly the result of the successful recruitment campaign we conducted in the first half of 2011.

Market conditions

Market conditions remain uncertain in 2012, partly due to the continuing unrest in the European financial markets. However, even in difficult market conditions, there are sufficient opportunities for us and the services we provide. We demonstrated this in 2011, by winning contracts in the public/healthcare market, the industry market and the financial services sector. Given the foundation we have laid in 2011, we can will be able to decisively respond to changing market conditions.”    

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