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Ctac N.V. — Earnings Release 2010
May 14, 2010
3827_iss_2010-05-14_83b7acc1-9ae1-44c8-a244-7d6c34a494fb.pdf
Earnings Release
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P R E S S R E L E A S E
's-Hertogenbosch, 14 May 2010
Ctac sees cautious recovery of returns in first quarter of 2010
Key figures
| € million (unless otherwise stated) | Q1 2010 Q4 2009 Q1 2009 | ||
|---|---|---|---|
| Turnover | 18.0 | 15.8 | 20.6 |
| Operating result | 0.5 | -2.0 | 1.0 |
| Operating result before exceptional items | -0.5 | ||
| Net result | 0.2 | 0.5 | |
| Number of employees at the end of (headcount) |
481 | 465 | 492 |
Key developments
- Cautious increase in demand for ICT services; slight recovery first months 2010
- Turnover increases by 14% compared to the fourth quarter of 2009; organic turnover up by 8%
- Slightly positive operating result of € 0.5 million
- Focus 2010 on strengthening market position and further recovery of returns
Henny Hilgerdenaar, CEO: "In the first months of 2010, Ctac saw a slight recovery in demand for ICT services. Turnover and operating result in the first quarter of this year increased compared to the last quarter of 2009 as a result of higher capacity utilisation levels and improved results on projects. As a consequence, last year's downward quarterly trend turned positive. In the past months we have seen more signs of movement in the market and therefore also an increased interest in our services. We will continue to strengthen the organisation by improving our efficiency and optimising the quality of our services. For that purpose, retaining specialist knowledge and expertise and intensive internal cooperation are important fundamentals.
Development of turnover and result
In the first quarter of 2010, Ctac N.V. (Ctac) has realised a turnover of € 18.0 million, an increase of 14% compared to the fourth quarter of 2009. Organic turnover increase was 8% compared to the fourth quarter of 2009. The remaining 6% in turnover growth was due to the acquisition of the Yellow group (Y2b and Y&R) and the acquisition of Meridian IT (business one).
Turnover dropped 13% compared to the first quarter of 2009. The organic turnover decrease was 17% compared to the first quarter in 2009.
€ 2.3 million of the turnover in the quarter was attributable to license sales and maintenance contracts (Q1 2009: € 3.1 million). Approximately € 0.9 million of license turnover came from new projects, the remainder was attributable to maintenance contracts (Q1 2009: € 2.0 million).
The operating result in the first quarter of 2010 came in at € 0.5 million positive (Q4 2009: € 0.5 million negative; Q1 2009: € 1.0 million positive). The negative trend in results during 2009 has turned positive in the first quarter of 2010. This is the result of higher capacity utilisation levels and improved results on projects.
In the first months of 2010, there were no significant changes in the financial position of Ctac.
New initiatives in the first quarter
By the end of January 2010, Ctac completed the acquisition of 52% of the shares of Yellow2B and Yellow & Red. The figures of Yellow2B and Yellow & Red have been consolidated as of January. In addition, Ctac announced the opening of an office in Paris. The new organization, named Ctac France, will particularly focus on providing Ctac retail solutions to medium sized businesses. With respect to further international expansion of the XV Retail Multi Channel solution, Ctac also acquired a 50.5% stake in Alpha Distri. This organisation has been consolidated as of January.
On 11 March 2010, Ctac acquired a majority stake in Meridian IT, a SAP Business One supplier to small and medium sized enterprises. The acquisition is in line with Ctac's strategy to increase the scale of its Business One services. With this acquisition, Ctac strengthens its position in the market for SAP-based solutions for small and medium sized enterprises. Meridian has been consolidated as of March.
Outlook
In addition to further recovery of returns, Ctac will focus on improving its market position in 2010. In this context, growth through acquisitions is not excluded. Ctac will devote attention to expansion of its position in the Dutch SAP market. In Belgium, Ctac will work closely with the Dutch Managed Services organisation to further develop its hosting and management business. In addition to secondment, more attention will be devoted to the development of the project business in Belgium and greater emphasis will be put on SAP licence sales, as in the Netherlands. In Germany and France, Ctac will focus on the expansion of the currently still small-scale activities. In general, Ctac will continue the in house development of more specific ERP solutions. In addition, the sale of Ctac's successfully in house developed solutions, such as XV Retail, will be expanded to other countries.
Presuming that the cautious recovery in the first quarter will continue in the rest of the year, Ctac will return to profitability in 2010, and will be able to fully benefit from its sharp market positioning and specialist know-how and expertise.
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About Ctac
Ctac is an ICT services provider specializing 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 optimizations. 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 organizations, of each size and in several sectors. Ctac employed a staff of 481 at the end of March 2010. Ctac is active in the Netherlands, Belgium, Germany and France. Its corporate headquarters are based in 's-Hertogenbosch (the Netherlands). Ctac is listed on Euronext Amsterdam (ticker: CTAC). For more information, please visit: www.ctac.nl.
For more information:
Ctac N.V. Goudsbloemvallei 30 Post Box 773 5201 AT 's-Hertogenbosch www.ctac.nl
Henny Hilgerdenaar – CEO T. 073-692 06 92 E. [email protected]
Jan-Willem Wienbelt – CFO T. 073-692 06 92 E. [email protected]
Harrie van Groenendael – COO T. 073-692 06 92 E. [email protected]
Key dates
31 August 2010 Publication semi annual results 2010 11 November 2010 Publication third quarter 2010 trading statement