EINDHOVEN, The Netherlands, August 2, 2011 /PRNewswire/ --
SUMMARY FIRST HALF 2011
RESULTS (x Eur 1.000) Growth 2011 2010 percentage Until 30 Until 30 June June Revenues 36.4% 26,319 19,289 Gross profit 46.2% 10,007 6,847 Gross profit as % of the revenues 38.0% 35.5% EBIT 123.5% 3,970 1,776 EBIT as % of the revenues 15.1% 9.2% Result for the period 127.3% 2,971 1,307 % of the revenues 11.3% 6.8%
- Revenues in first half 2011 increased by 36.4% to Eur 26.3 million.
- Gross profit increased to 38.0% of the revenues.
- EBITDA as a percentage of the revenues increased to 16.1%.
- Strong increase of EBIT by 123.5% to Eur 4.0 million.
- Increase of basic earnings per shares to Eur 0.81 (first half 2010: Eur 0,35).
- Average number of employeneurs increased to 453 (first half 2010: 403).
- Ratio direct / indirect personnel at the end of June 2011: 7.4 (at year-end 2010: 7.9).
- Solvability increased to 70.9% (at year-end 2010: 68.8%).
- Net cash position at the end of June 2011: Eur 3.5 million (at year-end 2010: Eur 3.1 million).
Thijs Manders, Chief Executive Officer of TMC Group:
"We are proud of our results over the first six months of 2011. Record revenues and a largely improved profitability show us we are on the right track. The demand for highly educated technical specialists is high and the supply is becoming more scarce. Over the coming years those service providers who manage to bring in the right candidates will be the ones who manage to win the battle for the customers and, in doing so, increase their market share. In only a few months time we have found ourselves well and truly back in a candidate's market, as was the case between 2004 and 2007. Back then we proved we were capable of successfully mobilising job markets.
We are also going to implement the recently founded TMC Academy, in which we have further developed the employeneurship 2.0, as an instrument with which to bind our employeneurs to us for an ever longer period of time. We are optimally focussed on growth in headcount and maintaining current TMC personnel. I am enthusiastic about the results we have achieved in cell transcending activities. The appointment of a director for the development of the Western region will also give an impulse to the realisation of further growth. The market situation remains uncertain in certain areas in the medium term, but when I see the wonderful and fundamental R&D projects our people are working on, I look towards the future with great confidence."
KEYFIGURES OVER THE FIRST HALF YEAR 2011
2011 2010 RESULTS (x Eur 1.000) Until 30 June Until 30 June Revenue 26,319 19,289 Growth 36.4% -1.9% Gross profit 10,007 6,847 % of the revenue 38.0% 35.5% EBITDA 4,247 2,049 % of the revenue 16.1% 10.6% Result from operating activities (EBIT) 3,970 1,776 % of the revenue 15.1% 9.2% Result for the period 2,971 1,307 EMPLOYENEURS & INDIRECT PERSONNEL Number of employeneurs end of period 466 423 Average number of employeneurs 453 403 Number of indirect employees end of period 63 62 SHARE INFORMATION Basic earnings per share (Eur) * 0.81 0.35 Cash flow per share (Eur) ** 0.88 0.43 Diluted earnings per share (Eur) * 0.79 0.35 * Berekend over het gemiddeld aantal uitgegeven aandelen. ** Resultaat na belastingen verhoogd met afschrijvingen, amortisatie en bijzondere waardevermindering, berekend over het gemiddeld aantal uitgegeven aandelen.
Increase in revenues
Revenues increased by 36.4% to Eur 26.3 million. In the first six months of 2010 revenues were Eur 19.3 million. This increase is a result of an increase of the average number of employeneurs and hirers, higher rates and higher productivity. The increase in productivity is primarily due to the fact that in 2010, contrary to 2011, the so called Kenniswerkersregeling (KWR) was used. As a result, employeneurs were employed on non-billable projects. These employees were largely deployed commercially in 2011, creating an increase in revenues.
Increase in gross profit
Gross profit increased by Eur 3.2 million. In the first half of 2011 the gross profit amounted to 38.0% of the revenues. In the same period last year gross profit amounted to 35.5% of revenues. The absolute increase of gross profit is partly the result of increased revenues; the increase of gross profit in terms of percentage is primarily due to the replacement of employeneurs to billable projects, who were subject to the 'Kenniswerkersregeling' in 2010 and a higher average billed rate. As a result of the termination of the 'Kenniswerkersregeling', the grants for the first half of 2011 have decreased in comparison to the same period last year.
The number of employeneurs has risen from 423 (at the end of June 2010) to 466 at the end of June 2011. The total number of TMC employees at the end of June 2011 was 529. The ratio direct versus indirect personnel came to 7.4. In addition to these direct employees, TMC deployed more hirers who worked a higher average amount of hours. In the first half of 2011 this number was 21, compared to 16 in the same period in 2010. The average number of employeneurs came to 453 in the first six months of 2011, against 403 in the same period last year.
The operating result over the first half of 2011 amounted to Eur 4.0 million. Compared to the first half of 2010, this is an increase of 123.5%. The operational result as a percentage of revenues was 15.1% in the first half of 2011, compared to 9.2% in the first half of 2010.
Result for the period
The result for the reporting period was Eur 3.0 million. Compared to the first half of 2010 this is an increase of 127.3%. The ordinary result per share rose from Eur 0.35 over the period ending 30 June 2010 to Eur 0.81 over the period ending 30 June 2011.
At the end of June 2011 the bank balances and cash came to Eur 3.5 million. At the end of June 2010 they were Eur 2.2 million. The cash flow from operating activities amounted to Eur 1.8 million in the first half of 2011 compared to Eur 1.7 million in the first half of 2010.
REPORT AND RESULTS PER MEMBER COMPANY
Over the first six months of 2011 all the business cells within the member company Technology experienced growth, compared to the same period last year. This illustrates the need for our services with clients throughout the chain and it shows that the cells responded accordingly, both on the client side and on the candidate side. In 2010 we foresaw the 'war for talent'. The demand for specialists is high and the supply is becoming more scarce. Anticipating this, the account managers and cell directors have built up a solid network, also using the current employeneurs, which has enabled them to recruit the best candidates.
TMC Technology's revenues rose by 54.6% from Eur 13.4 million to Eur 20.7 million. The increase of the average number of employeneurs, the billed rates and higher productivity have a positive effect on revenues. The higher productivity is partly due to the fact that the 'Kenniswerkersregeling' is no longer made use of. All competencies have contributed to the growth in revenues.
The operating result increased by 77.4% from Eur 1.8 million to Eur 3.2 million. The profitability within Technology increased, partly as the result of a rise in the average number of employeneurs. In the first half of 2010 the operating result as a percentage of revenues amounted to 13.3%, after the charge on of holding and plc costs. In the first half of 2011 this percentage came to 15.2% of revenues. The charged on costs in the first half of 2011 were Eur 2.2 million against Eur 1.5 million in the first half of 2010.
The number of employeneurs within the member company Technology was 386 at the end of June 2011 (at the end of June 2010: 318). This is a rise of 21.4%. On average there were 369 employeneurs in the first half of 2011, compared to 294 in the first half of 2010. An average of 14 people were employed in a 'risk-reward' structure.
Within the member company ICT we have also realised a rise in revenues. Parts of the ICT market have shown small signs of recovery over the past months. The consequences of the various strategies which companies chose at the start of the economic crisis are now becoming apparent and the competition arena has altered. Being a relatively small, specialised player with a clear niche focus, TMC seems to be reaping the benefits of this at this stage of the economic recovery.
TMC ICT's revenues rose by 16.3% compared to the same period last year, to Eur 2.2 million (2010: Eur 1.9 million). This rise is the result of higher productivity and higher billed rates compared to the same period last year.
The operating results dropped to Eur 56 thousand in the first half of 2011. In the first six months of 2010 the operating results amounted to Eur 147 thousand. This drop is partly a result of the rise of the charge on costs. The charge on costs were Eur 191 thousand in the first half of 2011 against 124 thousand in the first half of 2010.
The number of employeneurs within the member company ICT was 24 at the end of June 2011 (at the end of June 2010: 23). On average 24 employeneurs were employed in the first half of 2011, as well as in the first half of 2010.
The Dutch construction and civil-engineering sector, in which TMC Construction works, is still experiencing hard times and has not yet shown convincing signs of recovery. "The expected development in turnover and staff numbers is not looking positive, despite the improved economic situation" (Monitor Bouwketen). This negative sentiment is still of great influence on the results within Construction and Civil Engineering cells. We can however see that the focus we put on Oil & Gas in the first months has already shown a positive result.
Revenues for TMC Construction totalled Eur 3.5 million in the first half of 2011. In the first period of 2010 revenues amounted to Eur 4.0 million. This decrease is the result of a fall in the average number of employeneurs. On the other hand, the higher billed rates, both in Construction and Civil Engineering and in Oil & Gas, and higher productivity have had a positive effect on revenues.
The operating result rose from Eur 7 thousand in the first half of 2010 to Eur 143 thousand in the first half of 2011. The first half of 2010 included Eur 78 thousand in redundancy costs. The charge on costs in the first half of 2011 were Eur 465 thousand against Eur 535 thousand in the first half of 2010.
The number of employeneurs within the member company Construction at the end of June 2011 was 56 (at the end of June 2010: 81). On average 60 employeneurs were employed in the first half of 2011 compared to 85 in the first half of 2010.
From a financial and operational perspective the first six months of 2011 have been strong for TMC. This offers a good starting point for the coming period. We do foresee the level of activity within the technology sector being put under pressure over the coming period. We base this on signals from our clients' markets and those of other technology companies.
ASML has already indicated that the accounts in the third quarter will not exceed Eur 500 million, due to customers' caution. This caution stems from economic uncertainty and the fact that customers are able to postpone their investment decisions. Philips and TomTom have already indicated that the consumer electronics market has been poor over the last period and that this appears to be a trend for the coming period. The question remains, however, to which degree these developments will also influence companies' R&D expenditures in the shorter term. TMC focuses on its clients' core development.
As a part of the new policy of the Ministry of Economic Affairs, Agriculture and Innovation for the business sector, a new plan was recently presented by sector focussed top teams. These teams have made recommendations to further stimulate R&D on top of the current fiscal measures. The minister has responded positively to these suggestions and has agreed to explore the possibility to bring them into legislation. Possible new legislation will have a positive effect on the R&D expenditure, which fits seamlessly with TMC Technology's activities.
The economic developments within the ICT sector appear to have more or less stabilised. The postponed investments in ICT are being executed again, little by little. We do not expect this trend to alter significantly over the coming months and we expect the rates to remain at a stable level.
The construction and civil-engineering market still faces uncertainty. The fiscal stimulating measure concerning the transfer tax primarily effects the existing housing and implicitly has a negative effect on new-build. On the other hand we see many opportunities and future assignments in the semi-public sector concerning climate and sustainability. Water boards are an example of this. Within construction and civil-engineering there is an increasing shortage of personnel and a growing demand for proactive, creative engineers with good communication skills. We see many opportunities in the Oil & Gas sector. The demand for scarce and highly educated personnel is a given in this stable and financially strong sector.
Condensed interim consolidated financial statements
The financial information is based on International Financial Reporting Standards, as adopted within the European Union (EU-IFRS). The information included in the appendices 2 through to 4 is taken from the reviewed condensed interim consolidated financial statements of TMC Group N.V., for which a review report has been issued. The complete condensed interim consolidated financial statements will be available on the TMC Group N.V. website as of 2 August 2011.
This press release contains a number of forward-looking statements. These statements are based on current expectations, estimations and prognoses by the management and the information available to the company at the present time. The statements are subject to certain risks and uncertainties which are difficult to assess. Therefore TMC Group accepts no obligation to update the statements made in this press release.
- 20 March 2012 Publication annual report 2011
- 18 April 2012 General Meeting of Shareholders
Mnemo : ALTMC
ISIN : NL0000290997
TMC deploys highly skilled professionals in technical environments. We distinguish ourselves by supplying rare competencies needed for the development of complex products and projects. Our focus lies with projects of vital importance to our clients. In addition we contribute to the project continuity and flexibility of our clients and we are able to supply them continually with strategic knowledge. We work for clients who are specialised in high-tech, R&D, ICT en construction & civil-engineering.
TMC manages to bind the right specialists to the company, with the employeneurship model, which combines employment and entrepreneurship in a new working relationship.
Employeneurship: the business model of the 21st century!
The driving force behind TMC Group is our distinctive and proven business model. We call this model the 'employeneurship model'. The model features the following five principles:
- Long-term employment relationship
- Individual profit sharing
- 1-on-1 career coaching
- Specialised business cells
- Entrepreneurial lab
This unique employeneurship formula enables us to bind enterprising professionals to our company who are frequently deployed by our clients to the most vital and critical projects.
- Key figures
- Condensed interim consolidated income statement
- Condensed interim consolidated statement of financial position
- Condensed interim consolidated statement of cash flows
- Segment reporting
Appendix 1: Key figures
2011 2010 RESULTS (x Eur 1.000) Until 30 June Until 30 June Revenue 26,319 19,289 Growth 36.4% -1.9% Gross profit 10,007 6,847 % of the revenue 38.0% 35.5% EBITDA 4,247 2,049 % of the revenue 16.1% 10.6% Result from operating activities (EBIT) 3,970 1,776 % of the revenue 15.1% 9.2% Result for the period 2,971 1,307 % of the revenue 11.3% 6.8% Total cash flow 118 423 Balance sheet data (x Eur 1.000) Shareholders' equity 19,775 16,420 Balance sheet total 27,904 24,707 EMPLOYENEURS & INDIRECT PERSONNEL Number of employeneurs end of period 466 423 Average number of employeneurs 453 403 Number of indirect employees end of period 63 62 SHARE INFORMATION Number of shares issued at year-end 3,687,766 3,314,845 Number of shares in issue and shares issued A (convertible shares) - 372,921 Basic earnings per share (Eur) * 0.81 0.35 Cash flow per share (Eur) ** 0.88 0.43 Diluted earnings per share (Eur) * 0.79 0.35 Market capitalisation at end of period (x Eur 1,000) (excluding convertible shares) 44,106 22,209 Highest closing price (Eur) 12.30 7.20 Lowest closing price (Eur) 9.36 6.33 Closing price at period end (Eur) 11.96 6.70 * Calculated on the average number of shares in issue. ** Result after taxes plus depreciations, amortisation and impairment, calculated on the average number of shares in issue.
Appendix 2: Condensed interim consolidated income statement
Amounts x Eur 1.000 2011 2010 Until 30 June Until 30 June Revenue 26,319 19,289 Direct personnel costs -16,312 -12,442 Gross profit 10,007 6,847 Indirect personnel costs -3,920 -3,303 Other operating costs -2,117 -1,768 Result form operating activities (EBIT) 3,970 1,776 Finance income 6 21 Finance costs -10 -40 Result before income tax 3,966 1,757 Income tax expense -995 -450 Result for the period 2,971 1,307 Result attributable to: Owners of the company 2,971 1,307 Non controlling interest - - Result for the period 2,971 1,307 Earnings per share (Eur) Basic earnings per ordinary share* 0.81 0.35 Diluted earnings per ordinary share* 0.79 0.35 * Calculated on the average number of shares in issue.
Appendix 3: Condensed interim consolidated statement of financial position
(before profit appropriation)
Amounts x Eur 1.000 30-Jun-11 31-Dec-10 30-Jun-10 ASSETS Tangible fixed assets 711 717 809 Intangible assets 10,857 11,004 11,151 Other receivables 77 649 839 Total non-current assets 11,645 12,370 12,799 Trade and other receivables 11,337 10,548 9,270 Current tax assets - - 1 Other taxes and social security premiums 159 178 - Other current assets 1,238 535 389 Cash and cash equivalents 3,525 3,407 2,248 Total current assets 16,259 14,668 11,908 TOTAL ASSETS 27,904 27,038 24,707 Amounts x Eur 1.000 30-Jun-11 31-Dec-10 30-Jun-10 EQUITY Share capital 315 315 315 Share premium 14,439 14,439 14,439 Reserves -1,995 -1,995 -1,995 Retained earnings 7,016 5,848 3,661 Total equity attributable to shareholders of the Company 19,775 18,607 16,420 LIABILITIES Deferred tax liabilities 441 487 525 Total non-current liabilities 441 487 525 Loans and borrowings - 338 1,851 Trade and other payables 703 918 799 Tax liabilities 585 196 - Other taxes and social security premiums 2,828 2,847 2,736 Other liabilities and accruals 3,572 3,645 2,376 Total current liabilities 7,688 7,944 7,762 TOTAL EQUITY AND LIABILITIES 27,904 27,038 24,707
Appendix 4: Condensed interim consolidated statement of cash flows
Amounts x Eur 1.000 2011 2010 Until 30 June Until 30 June Result for the period 2,971 1,307 Adjustments for: Depreciation 130 126 Amortisation of intangible assets 147 147 Net finance costs 4 19 Equity-settled share-based payment transactions 41 45 Income tax expense 995 450 4,288 2,094 Change in trade and other receivables -789 -2,804 Change in other current assets -684 2,040 Change in trade and other payables -215 293 Change in other taxes and social security premiums -19 467 Change in other liabilities and accruals -73 160 2,508 2,250 Interest paid -10 -40 Income tax paid -652 -482 Net cash from operating activities 1,846 1,728 Interest received 6 21 Acquisition of tangible fixed assets (minus disposals) -124 -8 Loans granted 572 13 Net cash from investing activities 454 26 Dividends paid -1,844 - Repayment of borrowings -338 -1,331 Net cash used in financing activities -2,182 -1,331 Cash flow during the period 118 423 Cash and cash equivalents at 1 January 3,407 1,825 Cash flow during the period 118 423 Cash and cash equivalents at 30 June 3,525 2,248
Appendix 5: Segment reporting
Amounts x Eur 1.000 2011 2010 Until 30 June Until 30 June TMC Technology 20,678 13,376 TMC ICT 2,178 1,872 TMC Construction 3,463 4,041 Other - - Revenues 26,319 19,289 TMC Technology 3,153 1,777 TMC ICT 56 147 TMC Construction 143 7 Other 618 -155 Result from operating activities (EBIT) 3,970 1,776 Finance income and expense -4 -19 Income tax expense -995 -450 Result for the period 2,971 1,307 Amounts x Eur 1.000 2011 2010 30 June 30 June TMC Technology 11,935 8,463 TMC ICT 1,184 897 TMC Construction 1,459 1,875 Other 13,326 13,472 Assets 27,904 24,707 TMC Technology 4,748 3,889 TMC ICT 546 550 TMC Construction 630 1,004 Other 2,205 2,844 Liabilities 8,129 8,287 Amounts x Eur 1.000 2011 2010 Until 30 June Until 30 June TMC Technology - - TMC ICT - - TMC Construction - - Other 124 7 Investments 124 7 TMC Technology - - TMC ICT - - TMC Construction - 18 Other 277 255 Depreciation and amortisation intangible assets 277 273
SOURCE TMC Group N.V.