Netherlands' integrator Ordina's turnover fell in Q1, but it sustained its margin and lowered its debt. Turnover declined by 4.9% to €88.5m (Q1 2014: €93.6m, as Stépan Breedveld, CEO Ordina, comments:"Turnover at our largest division, T&C, fell in the first quarter, while the other divisions managed to realise (normalised) growth in difficult market conditions. The effect on the margin was limited, as a result of our constant focus on costs and a more selective projects intake. Our net debt position improved to €7.0m.”
Recent media reports and the debate related to public sector IT projects have led to a delay in decision-making on IT projects in the public and healthcare markets in the Netherlands, he says. A number of large industrial clients are currently in the midst of cost-cutting exercises, which is having an impact on the hiring in of IT staff.
“Our main priority for the period ahead will be raise productivity. Our salesforce effectiveness programme should result in greater focus and specialisation in our client approach. We are also accelerating our innovation programme by creating increasing our focus in areas that represent value for our clients."
Turnover in the Public Sector and Healthcare segments was down as a result of delays in decision-making following recent media reports and the debate related to government IT projects. Turnover in Financial Services remained relatively stable. The decline in the Industry sector was driven largely by cost cutting at a number of large clients in the energy and telecommunications sectors.
The Technology & Competencies division designs and builds applications for our clients in the form of secondment, sourcing and project contracts for both out of the box and tailor-made solutions. Turnover declined by 12.3% to €41.3m. This decline was largely due to a drop in the number of public sector projects and a decline in demand from a number of large clients in the energy and telecom sectors who are currently implementing cost reduction programmes.
The Business Consulting & Solutions division advises clients on how they can improve their processes and IT systems. The division also combines business know-how and technical expertise to devise sustainable solutions in the field of business intelligence, (digital) client interaction, chain integration and security. Turnover declined by 3.6% to €14.0m. Corrected for the downsizing of the generic activities of Ordina Consulting Public and the sale of Fundation, turnover was up 5.0% as a result of new projects for clients in the carriers and mainports sector and growth at a number of smaller financial institutions.
Turnover in the Belgium/Luxembourg division rose by 4.5% to €18.8m. The increase in turnover was largely on the back of growth at large clients in the industry and financial services sectors in both Belgium and Luxembourg.