Benelux integrator Ordina has closed a difficult year with a profit even though turnover fell and it was involved in a costly internal investigation. 2014 saw a net profit of €1m (2013: recurring net loss of €0.4m), as it squeezed recurring EBITDA margin to 4.9% (2013: 4.3%).
Stépan Breedveld, CEO Ordina, on the results: "Last year was a year with two distinct sides for Ordina. Despite a turbulent and disappointing fourth quarter, Ordina ended 2014 in a stronger financial position compared to a year earlier. Our profitability continued to increase and we closed 2014 with a net profit. We also successfully turned our net debt position into a net cash position, which makes the company more financially robust for the future. However, despite our efforts revenues continued to decline due to a drop-off in the number of large-scale projects and lower demand from our clients in the telecom and energy sectors, which has an impact on the results.
In the past few months, much of its management attention has been devoted to the internal investigation conducted by De Brauw Blackstone Westbroek. This investigation followed questions from television programme Zembla about potential irregularities in tender procedures in the period 2004-2010. Ordina published the main results of the investigation on 27 January 2015. The investigation revealed one case with clear indications of potential irregularities.
“The investigation did not reveal any indications of structural irregularities. Ordina's Management Board, we are committed to ensuring that Ordina is a company with integrity and we condemn any form of inappropriate behaviour. We will evaluate any signs of potential irregularities and take measures if we deem them necessary. In addition, we tightened our compliance and started an intensive integrity programme.”
“In the past year, we assisted numerous clients in their efforts to get a grip on new technological developments. We are proud to be helping companies such as the Rotterdam port company to respond to technological advances and help make those developments relevant and applicable in the context of their own business goals. Clients appreciate the fact that we are a local player and thus close to the market and that we are familiar with any relevant regulations and the specific situation of our clients. The path we have chosen is gaining increasing recognition.”
“In the coming period, we will continue to work with our employees on regaining the trust in our company. Against this background, in 2015 we will continue to do our utmost to achieve our goal of working with our clients to forge partnerships in sustainable innovation."