P R E S S R E L E A S E

Ctac books 51% rise in net profit in 2014 Ctac strategy is paying off

's-Hertogenbosch, (the Netherlands), 11 March 2015 – ICT Solution Provider Ctac N.V. (Ctac)(Euronext Amsterdam: CTAC) today announces its full-year results for 2014.

Key figures

	2014	2013	%	Q4	Q4	%
In € million (unless otherwise stated)				2014	2013

Net turnover	83.4	77.0	+8.3	21.6	20.8	+3.7
Operating result	2.6	2.2	+22.1	1.0	1.3	+3.0
Net result	1.7	1.2	+51.0	0.8	0.6	+50.9

Net earnings per share	0.14	0.09
Employees at year-end (hc)	470	464

Highlights

Strategy has positive impact on full-year performance
Net turnover 8% higher at EUR 83.4 million
Operating result up 22% at EUR 2.6 million
Net result 51% higher at EUR 1.7 million
Reduction of (net) bank debt by EUR 0.2 million to EUR 3.2 million at year-end 2014, from EUR 3.4 million at end-2013
Earn-out obligations reduced to EUR 1.4 million at year-end 2014, from EUR 4.1 million at year-end 2013
Solvency ratio improved to 31.1% at year-end 2014, from 24.9% at year-end 2013

Henny Hilgerdenaar, Chief Executive Officer of Ctac:

"Ctac successfully continued its earlier upward trend in 2014, despite the persistently difficult ICT services market. Thanks to a strong focus on margins and cost controls, the operating result improved by more than EUR 0.4 million to EUR 2.6 million. We continued to expand our market know-how and specific expertise and as a result managed to further optimise our solutions and templates, in line with our strategy. The continued integration of various Ctac operations also had a positive impact on our results.

The continued improvement of our operational performance was visible in all four quarters of 2014. The progress we booked last year is an excellent basis to continue on our upward path in 2015. For the full year 2015, we therefore expect to book a higher profit than in 2014."

FINANCIAL DEVELOPMENTS

Turnover and gross margin

Ctac booked net turnover of EUR 83.4 million in 2014, an increase of 8.3% from EUR 77.0 million recorded in 2013.

Turnover in consultancy, hosting and management rose by 8.1% to EUR 69.8 million in 2014, from EUR 64.6 million in 2013. Due to the fact that the cost of external hiring increased by 47.1% to EUR 17.5 million in 2014, from EUR 11.9 million in 2013, the gross margin on this activity remained unchanged at EUR 51.7 million.

Turnover in software also increased by 18.8% to EUR 6.1 million in 2014, from EUR 5.1 million in 2013. The gross margin on this turnover came in at EUR 2.4 million in 2014, compared with EUR 2.2 million in 2013.

Turnover from maintenance contracts also saw a slight increase of 2.1% to EUR 7.5 million in 2014, compared with EUR 7.3 million in 2013. The gross margin on these activities declined by EUR 0.2 million to EUR 2.7 million in 2014.

Turnover per employee (based on the average number of FTEs on an annual basis) came in 7.8% higher at EUR 188,900 in 2014, from EUR 175,300 in 2013.

Operating costs

In 2014 staff costs declined on balance by EUR 1.2 million, or 3.0%, compared with the previous year. The average number of FTEs increased slightly to 441 in 2014, from 439 in 2013.

Other operating costs increased by EUR 0.8 million, or 6.1%, to EUR 13.4 million, from EUR 12.6 million in 2013.

Depreciations were virtually unchanged at EUR 1.3 million. In 2014, this post includes a noncash goodwill impairment of EUR 0.8 million, as well as a positive non-cash valuation difference of EUR 0.8 million related to a capitalised earn-out commitment from the past.

Operating result

The operating result for the full year 2014 came in at EUR 2.6 million, up from EUR 2.2 million in 2013. This 22.1% increase compared to 2013 was almost entirely due to the EUR 0.5 million drop in operating costs in 2014.

The operating result in the fourth quarter of 2014 was EUR 1.0 million. The decline compared to the fourth quarter of 2013 (EUR 1.3 million) was due to the higher costs of hiring external staff.

Financial income and expenses

At year-end 2014, Ctac's net bank debt stood at EUR 3.2 million, down from EUR 3.4 million at year-end 2013. The related interest costs declined by some EUR 0.1 million in 2014, while other financial expenses (including the interest on earn-out obligations) came in EUR 0.2 million lower. This resulted in a charge of EUR 0.2 million in 2014 (2013: EUR 0.5 million).

Taxes

In 2014, the tax rate was 27.3%, down from 30.8% in 2013. The tax rate was higher than the nominal rate largely due to the non-deductibility or limited deductibility of certain items in the Netherlands and Belgium.

Net profit and earnings per share

Ctac booked a net result of EUR 1.7 million in 2014, compared with EUR 1.2 million in the previous year. This translated into earnings per share of EUR 0.14 based on a weighted average number of 12,222,164 outstanding ordinary shares. The total number of outstanding ordinary shares stood at 12,515,497 at 31 December 2014.

Balance sheet

The shareholders' equity had increased by EUR 2.3 million to EUR 11.2 million at year-end 2014, as a result of the addition of net profit of EUR 1.7 million for 2014 and the issuance of shares related to earn-out commitments of EUR 0.6 million.

Intangible fixed assets declined to EUR 14.5 million, partly due to a goodwill impairment of EUR 0.8 million.

Trade receivables and other receivables stood around EUR 0.2 million higher at year-end 2014 and came in at EUR 17.5 million. The balance sheet total showed a small increase of EUR 0.2 million to EUR 36.1 million at year-end 2014, from EUR 35.9 million at year-end 2013.

The solvency ratio (shareholders' equity / total assets) had improved to 31.1% at year-end 2014, from 24.9% at end-2013.

Ctac's net bank debt had dropped slightly to EUR 3.2 million by the end of 2014, from EUR 3.4 million at year-end 2013. The facility agreed with ABN AMRO stood at EUR 7.5 million at the end of 2014. Ctac issued a right of lien on receivables, operating equipment and IP rights as surety.

Cash flow and investments

Ctac recorded a positive cash flow from ordinary operations of EUR 4.4 million in 2014, compared with a positive EUR 4.1 million in 2013. The cash flow from operating activities was a positive EUR 3.8 million in 2014 (2013: EUR 3.5 million positive).

In 2014, EUR 1.7 million was invested in (in)tangible fixed assets, compared with EUR 1.0 million in 2013. These investments were primarily in the replacement of ICT infrastructure and new computers.

The cash flow from financing activities was primarily related to the payment of earn-out commitments of EUR 1.4 million in 2014, compared with EUR 1.1 million in 2013, a payment on third party shares of EUR 0.4 million (2013: 0.4 million) and repayment of long-term debt of EUR 0.2 million (2013: EUR 0.2 million).

The net cash flow came in at a positive EUR 0.1 million in 2014, compared with a EUR 0.9 million positive in 2013.

Proposal profit distribution

After considering the impact of any dividend payment on net cash flow, shareholders' equity, the composition of same and the other balance sheet components, Ctac proposes to the General Meeting of Shareholders not to pay out a dividend over the 2014 financial year and to add the entire result to the (negative) other reserves, included under shareholders' equity.

STRATEGY AND MANAGEMENT OF THE ORGANISATION

Ctac believes its mission is to make its client's ambitions possible by translating every possible information technology option into business value for its clients, while also taking into account the ambitions of its employees.

Ctac has defined the following targets in this respect:

unburdening (international) customers in the (larger) small and medium-sized enterprise sector by providing suitable and reliable ICT solutions at acceptable costs. These solutions should also make a substantial contribution to customers' profitability and the continuity of their operations;
continued transformation from an ERP services provider into a distinctive and recognisable provider of combined ICT solutions (solution provider);
to align the Ctac organisation with market opportunities and safeguard continuity for all stakeholders.

In recent years, Ctac has realigned its organisation and increased the focus of its strategy in such a way that the company has been able to transform itself into a leading ICT Solution Provider. In 2015 and subsequent years, the company will continue to focus on - market and/or know-how focused - integrated business units optimally designed to provide customers with advanced specialist solutions. Ctac has structured its organisation to give the management team in the Netherlands direct control of the organisation and its operations.

The structure of the organisation is such that the management team provides central, integrated management for all sales and delivery activities in all countries. In the Netherlands, services are divided into two sectors: Consultancy (including SAP and Microsoft) and Cloud Services. Ctac manages all sales activities across these sectors centrally.

OUTLOOK

Ctac's improved financial position, the operational progress booked in 2014 and in particular the results improvement, have put the company in a solid starting position for 2015. While the company does not expect to see a full recovery in ICT-services markets in 2015, there is good reason to believe that the upward trend can be continued in the current financial year.

Barring unforeseen circumstances beyond its control, Ctac expects to achieve a higher result for the full year 2015 than in 2014.

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About Ctac

As an innovative ICT Solution Provider, Ctac helps customers realize their ambitions. We do so by developing and implementing industry-focused solutions that fully address customer's needs and business processes in various markets. With a passion for technology and a sharp eye for business processes, we work at the crossroads of business and ICT on a daily basis. Our industry-focused solutions for among others retail, wholesale, manufacturing, real estate and professional services are being developed in close cooperation with our customers. We complement our industry-specific composed solutions with a comprehensive range of services, varying from business consultancy to cloud services and software development, mobility and in-memory computing. For this, we always take a professional approach, with an innovative angle and a focus on transparent personal contact.

Ctac is listed at Euronext Amsterdam (ticker: CTAC). As per end of December 2014, Ctac employs a staff of 470. The head office is located in 's-Hertogenbosch, the Netherlands. Ctac is also active in Belgium and France. For more information: www.ctac.nl.

For more information:

Ctac N.V. Meerendonkweg 11 5216 TZ 's-Hertogenbosch

Postbus 773 5201 AT 's-Hertogenbosch www.ctac.nl

Henny Hilgerdenaar – CEO Douwe van der Werf – CFO T. 073-692 06 92 E. [email protected]

Financial agenda 2015

1 April 2015	Publication annual report
13 May 2015	Publication trading update first quarter 2015
13 May 2015	General Meeting of Shareholders
20 August 2015	Publication half year results 2015
5 November 2015	Publication trading update third quarter 2015

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Addenda:

Key figures 2014 Consolidated balance sheet 2014 Consolidated statement of income 2014 / Consolidated statement of total income 2014 Consolidated cash flow statement 2014 Consolidated statement of changes in shareholders' equity 2014 and 2013 Information per segment 2014 and 2013

KEY FIGURES		2014		2013
PROFIT & LOSS ACCOUNT
Net turnover		83.4 m		77.0 m
Gross margin		56.9 m		56.9 m
Operating result		2.6 m		2.2 m
Result from ordinary activities before taxes		2.4 m		1.7 m
Net result		1.7 m		1.2 m
EMPLOYEES (FTE)
At 31 december		444		438
On average during the year		441		439
Turnover per employee		189 k		175 k
Turnover per direct employee		209 k		193 k
RATIOS
Operating result / net turnover		3.2 %		2.8 %
Net result / net turnover		2.1 %		1.5 %
Net result / shareholders' equity		17.4 %		14.6 %
Shareholders' equity / total assets		31.1 %		24.9 %
FIGURES PER SHARE (EUR 0.24 NOMINAL)
Weighted average number or outstanding ordinary shares		12,222,164	12,089,519
Net result	€	0.14	€	0.09
Turnover	€	0.25	€	0.20
Shareholders' equity	€	0.92	€	0.74

CONSOLIDATED BALANCE SHEET AS PER 31 DECEMBER

(amounts in EUR 1,000)
	2014	2013
ASSETS
FIXED ASSETS
Intangible fixed assets	14,493	15,516
Tangible fixed assets	3,069	2,385
Deferred tax assets	405	558
	17,967	18,459
CURRENT ASSETS
Trade receivables and other receivables	17,540	17,299
Cash and cash equivalents	570	95
	18,110	17,394
	-------------- 36,077	-------------- 35,853
	==========	==========
LIABILITIES
Paid and called up capital	3,004	2,927
Share premium reserve	11,795	11,232
Other reserves	- 5,229	- 6,327
Result financial year	1,657	1,098
SHAREHOLDERS' EQUITY	11,227	8,930
Third party share	386	737
LONG-TERM LIABILITIES
Bank liabilities	31	215
Other liabilities	828	1,028
Deferred tax liabilities	201	325
	1,060	1,568
SHORT-TERM LIABILITIES
Bank liabilities	3,714	3,297
Provisions	410	681
Trade creditors and other liabilties	18,727	20,237
Corporate tax payable	553	403
	23,404	24,618
	--------------- 36,077	--------------- 35,853
	==========	==========

		2014			2013
CONSOLIDATED PROFIT AND LOSS ACCOUNT
(amounts in EUR 1,000)
Net turnover		83,395			77,028
Purchase value hardware and software	9,029			8,267
Outsourced work	17,463			11,871
TOTAL COSTS OF SALES		26,492			20,138
Gross margin		56,903			56,890
Personnel costs	39,629			40,840
Depreciation and amortisation	1,283			1,304
Other operating costs	13,346			12,579
Total operating expenses		54,258			54,723
OPERATING RESULT		--------------- 2,645			-------------- 2,167
Interest income and similar income	7			48
Interest expenses and similar expenses	- 141		-	254
Result from participations	-			-
Other financial expenses	- 103		-	284
FINANCIAL INCOME AND EXPENSES		- 237			- 490
RESULT FROM ORDINARY ACTIVITIES		---------------			---------------
BEFORE TAXES		2,408			1,677
Taxes		- 658			- 517
NET RESULT		1,750			1,160

Third party share		- 93			- 62
ATTRIBUTABLE TO GROUP SHAREHOLDERS		1,657 ===========			1,098 ===========
Number of shares outstanding at year-end		12,515,497			12,195,698
Number of outstanding weighted shares		12,222,164			12,089,519

Average number of outstanding weighted shares
for the calculation of the diluted earnings per share		12,373,130			14,905,761
CTAC N.V.
		2014			2013
CONSOLIDATED STATEMENT OF TOTAL RESULT (amounts in EUR 1,000)
Net result directly accounted for in the shareholders' equity		0			0
Net result for the financial year		1,750			1,160
TOTAL RESULT FOR THE FINANCIAL YEAR		1,750			1,160
		===========			===========

CONSOLIDATED CASH FLOW STATEMENT

(amounts in EUR 1,000)

		2014		2013
Operating result	2,645		2,167
Depreciations	1,275		1,328
		3,920		3,495
Changes in working capital
Receivables	- 239		3,229
Short-term debts	751		- 2,642
		512		587
Cash flow from operations		4,432		4,082
Interest received	7		48
Interest paid	- 141		- 256
Profit tax paid	- 497		- 349
		- 631		- 557
Cash flow from operating activities		3,801		3,525
Investments in fixed assets		- 1,710		- 954
Repayments/withdrawals of long term bank debt	- 184		- 184
Paid earn out obligations	- 1,405		- 1,067
Dividend third parties	- 444		- 429
Divestment subsidiaries	-		-
Cash flow from financing activities		- 2,033		- 1,680
		58		891
		===========		===========
Cash and cash equivalents	95		111
Short-term bank debts	- 3,297		- 4,204
Net balance of cash and cash equivalents as per 1 January		- 3,202		- 4,093
Cash and cash equivalents	570		95
Short-term bank debts	- 3,714		- 3,297
Net balance of cash and cash equivalents as per 31 December		- 3,144		- 3,202
		58		891
		===========		==========

CONSOLIDATED STATEMENT OF CHANGES TO SHAREHOLDERS' EQUITY FOR 2014 (amounts in EUR 1,000)

		Share			Attributable
	Issued	premium	Other	Undistributed	to group	Third party
	capital	reserves	reserves	profit	shareholders		share Group equity
Balance as per 1 January 2014	2,927	11,232 -	5,229	-	8,930	737	9,667
Share issue	77	563			640		640
Transaction/dividend minority shareholders					- -	444 -	444
Net result	-	-	-	1,657	1,657	93	1,750
Balance as per 31 December 2014	3,004	11,795 - ========= =========== ========== =========== ========== ========== ==========	5,229	1,657	11,227	386	11,613

CONSOLIDATED STATEMENT OF CHANGES TO SHAREHOLDERS' EQUITY FOR 2013