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Ctac N.V. — Earnings Release 2009
May 20, 2009
3827_iss_2009-05-19_31e39358-1f47-4e0b-8071-8aa6faba551a.pdf
Earnings Release
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P R E S S R E L E A S E
's-Hertogenbosch, 19 May 2009
Higher turnover and lower profit for Ctac in first quarter
Key figures
| EUR million (unless stated otherwise) | Q1 2009 Q1 2008 Q4 2008 | ||
|---|---|---|---|
| Turnover | 20.6 | 17.0 | 19.7 |
| Operating result | 1.0 | 2.1 | 1.8 |
| Net profit | 0.5 | 1.3 | 1.2 |
| Number of staff at year-end (headcount) | 492 | 414 | 480 |
Key points
- Turnover up 21% compared to the first quarter in 2008, of which 8% organic growth
- Operating result decreased to EUR 1.0 million due to pressure on capacity utilisation and lower margin on projects
- Hiring of external staff strongly reduced during the quarter; capacity utilisation of own staff not yet at desired level
- Operational strength increased due to optimalisation of cooperation between Ctac's divisions
- Market conditions will remain difficult in 2009
Bart Hogendoorn, CEO: "The market conditions are challenging and I expect this to continue at least until the end of the year. In 2009, we are focusing primarily on the efficiency of the business and on the quality of our services. To realise further growth in market share and turnover, Ctac will adhere to the strategy adopted in 2008 for its organisational structure, markets and products."
Ctac N.V. (Ctac) realised a turnover of EUR 20.6 million in the first quarter of 2009, an increase of 21% compared to the same period in 2008. EUR 3.1 million of the turnover in the quarter resulted from licence sales and maintenance contracts (Q1 2008: EUR 1.7 million). Approximately EUR 2.0 million of the licence turnover concerns new projects, while the remainder concerns maintenance contracts (Q1 2008: EUR 1.0 million). The organic increase in turnover was 8%. This increase excludes Crossverge and Alpha one, which were acquired in 2008, and Core Consulting, which was acquired early 2009.
Total turnover has also increased compared to the fourth quarter. This is mainly the result of the acquisition of Core Consulting and higher turnover from licences and maintenance contracts (Q4 2008: EUR 1.6 million). The amount of hired external staff has been reduced considerably compared to the fourth quarter. On balance, turnover from consultancy activities has decreased.
The slight pressure on turnover and results in the final quarter of 2008 has clearly increased in the first quarter of 2009. Because of Ctac's strong growth in 2008, this pressure is not directly expressed in the turnover development compared to the first quarter of 2008, but can be observed in the capacity utilisation and decreasing project margins.
Because of this, the operating results decreased from EUR 2.1 million in the first quarter of 2008 to EUR 1.0 million in the first quarter of 2009. The EBIT margin in the first quarter of 2009 was 4.5%. By reducing the amount of hired external staff, the decrease in capacity utilisation of our own employees has remained relatively stable. During the first quarter, the operational strength increased due to the optimalisation of the cooperation between Ctac's divisions. A great deal of attention has been paid to resource planning and sales coordination. In addition, costs are being reduced where possible and a strong emphasis is being placed on working capital management.
In January 2009, the acquisition of the Belgian Core Consulting was completed, consolidating Ctac's leading position in the Belgian market for SAP specialists. In the first quarter, Core Consulting was combined with the existing activities of Ctac Belgium in the field of SAP management. The purchase price was based on an earn-out arrangement, which depends on Core Consulting's results over 2009 and 2010. The final part of the purchase price will therefore only be paid in the first quarter of 2011. EUR 2.2 million in cash was paid at the beginning of January. Depending on the final results, the total purchase price is expected to be approximately 3 times the average EBIT over 2008, 2009 and 2010.
In the beginning of May 2009, Ctac announced that it had purchased the remaining minority interests in its SME activities for an amount of EUR 1.3 million in cash. The solvency ratio still remains at an acceptable level following these acquisitions.
Throughout 2008, Ctac purchased minority interests in several subsidiaries. For purposes of transparency, Ctac has described these transactions in an Information Update. This Information Update can be viewed on Ctac's website, under "Investor Relations" / "aandeelhoudersinformatie".
Year-on-year, April 2009 shows a similar development as the first quarter of 2009. Ctac will continue to follow the developments in all its operations closely and will make additional adjustments to the organisation, depending on the impact of the current recession on the development of demand.
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About Ctac
Ctac is an ICT services provider specialising in ERP solutions. Activities include implementation, integration and management of among other things SAP and Microsoft systems and related activities such as system upgrades and system optimisations. The company is a SAP Gold Partner and Microsoft Gold Partner in the Netherlands and Belgium. Furthermore, Ctac is the largest SAP reseller for medium-sized enterprises in the Netherlands. Ctac's clients include approximately 600 organisations, of each size and in several sectors. Ctac employed a staff of 480 at year-end 2008. Ctac is active in the Netherlands, Belgium and Germany with its corporate headquarters based in 's-Hertogenbosch (the Netherlands). Ctac is listed on Euronext Amsterdam (ticker: CTAC). For more information, please visit: www.ctac.nl.
For further information:
Ctac N.V. Goudsbloemvallei 30 Postbus 773 5201 AT 's-Hertogenbosch www.ctac.nl
Bart Hogendoorn – CEO T. 073-692 06 92 E. [email protected]
Jan-Willem Wienbelt – CFO T. 073-692 06 92 E. [email protected]
Key dates:
20 May 2009 General Meeting of Shareholders 20 May 2009 Publication first quarter 2009 trading statement 22 May 2009 Ex-dividend 01 June 2009 Dividend payment 27 August 2009 Publication semi-annual results 12 November 2009 Publication third quarter 2009 trading statement 11 March 2010 Publication annual results 2009 20 May2010 General Meeting of Shareholders
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