Integrator hit by poor IT investment by Dutch public sector Integrator Ordina has reported “disappointing results” in the Netherlands; better in Belgium/Luxembourg. The firm reports a loss after having to restructure. The public sector in particular has been slow to re-engage with IT investment
In the full year 2015, it saw revenue down 5.1% at €348.3m with sales in the Netherlands dropping 8% to €272.0m. Revenue in the smaller Belgium/Luxembourg market rose by 6.9% to €76.3m. There was also the cost of an internal investigation totalling €1.6m and redundancy costs of €7.8m. The net loss of €3.2m followed the 2014:net profit of €1.0m.
Ordina CEO Stépan Breedveld (above): "The year 2015 was a disappointing year in which Ordina had to adapt rapidly to drastically changing market conditions. We closed the year with a loss, largely due to the sharp decline in revenues from the public sector in the Netherlands. In the fourth quarter, this decline abated on the back of our increased focus on key accounts. Thanks to tight monitoring of working capital, we once again closed the year free of debt. Ordina performed well in Belgium and Luxembourg with growth in both revenue and profitability.”
“Our tightened strategy now includes both the adjustments of the Executive Committee, growth initiatives and savings, as well as investments in Young Professionals and innovation. The measures we have taken are aimed at moving from decline to structural revenue growth. The cost-savings programme of €15m annually is on track and the cost savings will be completed as of Q4 2016.”