Benelux IT specialist Ordina is finding continuing sales issues in the public sector as it hunts for business. Earnings (EBITDA) fell to €3.7m (Q3 2014: €5.3m); EBITDA margin 4.3% (Q3 2014: 6.0%). Turnover declined by 3.8% to €84.8m (Q3 2014: €88.2m). Turnover in the Netherlands was down 6.0% to €66.6m, while the business in Belgium / Luxembourg rose 3.6% to €18.2m.
Stépan Breedveld, CEO Ordina: “"Despite the improvement in margin compared to the second quarter of the year, our results are lagging when compared to the third quarter of 2014. This is largely due to the delays in the public sector market in the Netherlands. Although we are winning new business in certain areas in the public sector, this was not enough to compensate for the lag in turnover in the segment as a whole. We booked slight growth in Financial Services and Healthcare sectors. Ordina continues to perform well in Belgium and Luxembourg, both in terms of turnover and profitability.”
“Ordina is in transitional phase and wants to adapt more rapidly to developments in the (public sector) market. By streamlining and simplifying our organisation, we have extended the previously announced cost savings programme from €8m to €15m on a structural basis per year. The proposed integration of Sourcing and Commerce means we can now place more focus in the commercial development of our clients. We are also boosting our operational effectiveness by placing all delivery units in the Netherlands under the management of a single Operational Director. We continue to focus strongly on productivity, costs and operational excellence.”
In the coming period, Ordina will accelerate the roll-out of its innovation strategy, he says looking for growth in fields such as Smart Technology, Security and Digital Services.