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Ordina pushed to loss by redundancy costs

Ordina's Q4 and full year results show that it has halted its decline and lifted earnings. It still made a loss on the full year of €0.4m (2012: profit €0.5m) mainly due to higher redundancy costs of €7.4m (2012: €4.0m).

Ordina's Q4 and full year results show that it has halted its decline and lifted earnings. It still made a loss on the full year of €0.4m (2012: profit €0.5m) mainly due to higher redundancy costs of €7.4m (2012: €4.0m).
 
Revenues in Q4 were 0.8% higher at €99.2m after correction for the loss of the offshore component in the Rabobank contract.  With a cost-saving programme of around €8m per year now complete, it has cut its net debt to €2.2m.

Stepan Breedveld (pictured), CEO of Ordina says: "We are seeing the results of our management agenda. In the final two quarters of 2013, Ordina booked modest revenue growth and a rise in EBITDA. We also improved our debt position and completed our cost-saving programme of around €8m per year. Mainly due to higher redundancy costs, an increase of €3.4m compared to 2012, our recurring result came in at a net loss of €0.4m in 2013. The final net result was affected by two one-off non-cash charges: a provision for vacant office space (€5.9m) and a charge to goodwill (€60.1m)."

In 2013, it celebrated the 40th anniversary of the business. "The programme revolved around our new mission statement, 'Partnerships in sustainable innovation'. We believe this is the only way to ensure that IT works for people again."

"Ordina is well positioned for the future. Our indirect costs are lower, our clients are more satisfied, we have a more innovative portfolio and lower debts. We achieved this together with all our employees, by working together and by sticking to our chosen path."