TMC: Growth in Revenues and Expansion Market Position
EINDHOVEN, Netherlands, August 6, 2012 /PRNewswire/ --
2012 2011
RESULTS to 30 June to 30 June
Amounts x Eur 1,000
Revenue 27,978 26,319
Growth 6.3% 36.4%
Gross profit 8,876 10,007
% of the revenue 31.7% 38.0%
EBIT 3,417 3,970
% of the revenue 12.2% 15.1%
Result for the period 2,648 2,971
% of the revenue 9.5% 11.3%
Key facts
- Revenues increased in first half 2012 by 6.3% to Eur 28.0 million (first half 2011: Eur 26.3 million).
- Gross profit decreased to 31.7% of revenues (first half 2011: 38.0%), due in part to significant influence of lower revenues from government grants and higher national insurance contributions as a result of government measures.
- Indirect costs as a percentage of revenues decreased to 19.5% (first half 2011: 22.9%).
- Number of Employeneurs rose by 5.2% to 503 (at year-end December 2011: 478), mainly due to the 14.9% increase in the number of Employeneurs at TMC Technology.
- Average number of Employeneurs rose by 11.7% to 497 (first half 2011: 445).
- Ratio direct/indirect personnel at the end of June 2012 was 7.7 (end of June 2011: 7.2).
- Growth in the number of projects in the west of the Netherlands of 12.0% in comparison with year-end 2011.
- Decreased dependency on top-3 clients through growth with new clients.
- Solvability increased to 74.2% (at the end of December 2011: 71.5%).
Thijs Manders, Chairman of the Board of Directors of TMC Group:
"Despite a hesitant market we have once again increased our revenues. The good news for the coming period is that our customers' demand for high quality engineers will increase and that we are unparalleled in being able to mobilise these tight technological labour markets by using our unique business model of Employeneurship. Together with our clients we are currently defining an answer to the demand for exceptionally highly educated technical knowledge workers. I am therefore highly positive about TMC's future. Furthermore it pleases me to see that people educated in the exact sciences are becoming increasingly more appreciated in the Netherlands. This is an absolute necessity, but we are not there yet. The profession of engineer is invaluable to the Netherlands and its future. The fact that still no more than two in ten graduates has a technical background, is no longer acceptable. I am relying on the government to invest more heavily and more cleverly in Technology & Innovation than in other sectors. In that regard our Brainport region is a wonderful worldwide reference."
SUMMARY FIRST HALF 2012
RESULTS 2012 2011
to 30 June to 30 June
Amounts x Eur 1,000
Revenue 27,978 26,319
Growth 6.3% 36.4%
Gross profit 8,876 10,007
% of the revenue 31.7% 38.0%
EBITDA 3,687 4,247
% of the revenue 13.2% 16.1%
Operating result (EBIT) 3,417 3,970
% of the revenue 12.2% 15.1%
Result for the period 2,648 2,971
% of the revenue 9.5% 11.3%
EMPLOYENEURS & INDIRECT PERSONNEL 2012 2011
to 30 June to 30 June
Number of Employeneurs at the end of the period 503 455
Average number of Employeneurs 497 445
Number of indirect employees at the end of
the period 65 63
Ratio direct / indirect 7.7 7.2
SHARE INFORMATION 2012 2011
to 30 June to 30 June
Basic earnings per share (in Eur) * 0.72 0.81
Diluted earnings per share (in Eur) * 0.70 0.79
Cash flow per share (in Eur) ** 0.79 0.88
* 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.
FINANCIAL INFORMATION
Employees
The number of Employeneurs rose by 10.5% from 455 (at the end of June 2011) to 503 (at the end of June 2012). The number of engaged freelancers increased from 21 at the end of June 2011 to 26 at the end of June 2012. In addition, the number of employed indirect employees rose from 63 at the end of June 2011 to 65 at the end of June 2012, causing the ratio direct versus indirect over the same period to rise from 7.2 to 7.7. In the first half of 2012 an average of 497 Employeneurs were employed compared to 445 in the first half of 2011. This is an increase of 11.7%.
Increase in revenues
In the first half of 2012 revenues were Eur 28.0 million, an increase of 6.3% in comparison with the same period last year. This increase is primarily the result of a higher average number of Employeneurs and to a lesser extent the result of a slight increase in rates. Lower productivity in comparison with the same period last year has had a dampening effect on revenues.
Gross profit
The gross profit fell by 11.3% to Eur 8.9 million (first half 2011: Eur 10.0 million). As a percentage of revenues this is a decrease to 31.7% (first half 2011: 38.0%). This decrease is in part the result of the lessened productivity due to a lower amount of overtime and a higher decrease of productivity of Employeneurs. The policy is geared towards increasing the average stay of Employeneurs, which will permit frictional vacancies of Employeneurs. Furthermore, in comparison to the same period last year the thresholds for maximum income assessable for social insurance under the Healthcare Insurance Act and the related employer's contributions have risen. This has caused the national insurance contributions to rise by circa Eur 260 thousand. We have also been able to claim far less WBSO grants due to lower grant percentages and a lowered graduated scale. In comparison with the same period last year, we received Eur 504 thousand less in government grants. The change in graduated scale is mainly of consequence in the first half of the year as a result of the method of the graduated scales. Without the increased national insurance contributions and the decrease in government grants the gross profit as a percentage of revenues would have amounted to 34.5%.
Indirect costs
Despite the slight rise in the number of indirect employees, the indirect costs went down by 9.6% compared to the same period last year. This decline is due to lower provisions for bonuses to be paid out to indirect employees. The costs connected with doubtful debtors have also fallen sharply due to tightened policy on accounts receivable. Finally the ICT and telephone costs decreased compared to the same period last year. The overhead costs move with the gross profitability.
Operating result
The operating result over the first half of 2012 amounted to Eur 3.4 million (first half 2011: Eur 4.0 million). The operating result as a percentage of the revenue was 12.2% in the first half of 2012 against 15.1% in the first half of 2011. The operating result without government grants amounted to 9.1% compared to 9.9% over the same period last year.
Profit
The profit over the period amounted to Eur 2.6 million (first half 2011: Eur 3.0 million). Compared to the first half of 2011, this is a 13.3% decline.
Cash flow
At the end of June 2012 the net cash position rose to Eur 5.2 million (at the end of June 2011: Eur 3.5 million). The net cash flow from operations over the reporting period was Eur 1.2 million (first half 2011: Eur 1.8 million). The dividend distribution of Eur 3.7 million over 2011 has caused the net cash flow to fall to a negative Eur 2.5 million.
REPORT AND RESULTS PER MEMBER COMPANY
TMC TECHNOLOGY
The Member Company Technology has exhibited growth both in revenues and in the number of Employeneurs. All business cells have contributed to this growth. The policy-related focus on growth in the west of the Netherlands and a number of new clients have contributed to this.
A collaboration has been formed with the Technical University Eindhoven, whereby we take on the obligation to employ PhD candidates and help them and coach them towards an assignment. Focus Orange and TMC have developed a 'strategic sourcing' model together which offers insight into the difference in costs between permanent employees and flexworkers. It offers HR departments and budget holders a tool for personnel planning with flexible sourcing.
At the end of the reporting period the Member Company Technology had 433 Employeneurs, a growth of 56 Employeneurs (14.9%) in comparison with the end of June 2011. On average there were 425 Employeneurs in the first half of 2012 against 364 over the same period last year. The growth was realised throughout this entire Member Company. The share in the group revenue rose to 83.8%, against 78.6% in the first six months of 2011.
TMC Technology realised Eur 23.4 million in revenues over the first half of 2012. This rise of 13.3% compared to the same period last year is the result of a higher average number of Employeneurs and slightly increased rates.
The operating result excluding the charging on of corporate expenses fell by Eur 0.1 million (2.0%) to Eur 6.3 million over the reporting period. Decreased productivity, increased employer's contributions and fewer government grants have had a negative effect on the profitability in comparison with the same period last year.
TMC ICT
The market in which the Member Company ICT operates, is experiencing difficult times. On the one hand a transition is taking place from the traditional SAP module implementation to more business system optimisation; on the other hand we see that clients are postponing investments, or are investing in short cycle projects. A characteristic of Employeneurs within TMC ICT is that they have a senior profile, enabling them to operate in process re-engineering. This means their deployment is not limited to regular SAP consultancy but that our Employeneurs increasingly fulfil a 'business consulting' role. The postponement of investments by our clients has had a negative effect on the revenue development in the first half of 2012.
TMC ICT realised revenues of Eur 1.7 million over the first half of 2012, 19.9% lower than over the same period last year. The decreased activity level in the ICT market translates into a decreased average number of Employeneurs, lower sales rates and productivity. The Member Company contributes 6.2% to the group revenue (2011: 8.3%).
The operating result before the charging on of corporate expenses fell in the first six months of 2012 to Eur 98 thousand. In the first half of 2011 this amounted to Eur 262 thousand. This is a decrease of 62.7%.
At the end of June 2012 the Member Company ICT has 20 Employeneurs (at the end of June 2011: 24). On average there were 21 Employeneurs over the reporting period against 23 in the same period last year.
TMC CONSTRUCTION
The activities in the construction sector remain unchanged and at a continued low level. The number of Employeneurs within the business cell TMC Construction however, remained stable during the first six months of 2012. The market for civil engineering on the other hand appears more promising. The business cell TMC Civil Engineering shows a slight growth in the number of Employeneurs in the first half of 2012. For that reason we have decided to integrate the commercial activities within TMC Construction and TMC Civil Engineering. The commercial activities within TMC Oil & Gas have been expanded by hiring a new account manager. We already see signs of successful placements in the near future. In order to support our growth ambitions in the west of the Netherlands we shall move from Hoogvliet to new premises in Rotterdam in the second half of 2012.
Revenues from the Member Company TMC Construction fell by 15.7% to Eur 2.9 million in the first half of 2012. Both TMC Construction and TMC Civil Engineering encountered a drop in the average number of Employeneurs compared to the same period in 2011. In addition TMC Construction experienced a decrease in productivity and rates. TMC Oil & Gas shows an entirely different picture with greatly increased revenues. The share of the Member Company TMC Construction in total revenues for TMC decreased to 10.4% (2011: 13.1%).
Ultimately the operating result before the charging on of corporate expenses fell by 34.9% from Eur 596 thousand over the first half of 2011 to Eur 388 thousand over the reporting period.
The average number of Employeneurs over the first six months of 2012 was 51 versus 58 over the same period last year. This is a decline of 12.1%. At the end of June 2012 this Member Company had 50 Employeneurs (at the end of June 2011: 54).
OUTLOOK
During the first six months of 2012 TMC has continued to grow, despite uncertain market conditions. For the Member Company Technology in particular, the TMC proposition is successful both with clients and with candidates. And despite the current economic uncertainty the outlook for the technology sector is positive. Recent developments with our clients confirm this. Looking at the investment in the number of new account managers we expect to profit from these developments.
In regards to the construction and ICT market we do not expect any substantial change in the market situation in the short term and in the medium term. For the civil engineering market we see a slight recovery for the niches we are geared towards.
We will continue to advocate the assessment and appreciation of workers educated in the exact sciences on their merits and we are delighted to find we are increasingly explicitly supported in this in public debate. With its Employeneurs and distinctive business model TMC is excellently positioned in the market.
Abridged semi-annual report
This information is taken from the 2012 semi-annual report for TMC Group N.V., on which a review report has been issued. The complete semi-annual report will be available on the TMC Group N.V. website as of 6 August 2012. (http://www.tmc.nl).
Forward-looking statements
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.
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Financial calendar:
19 March 2013 Publication annual report 2012
Mnemo : ALTMC
ISIN : NL0000290997
Employeneurship model
The driving force behind TMC is the unique Employeneurship model. This enables us to bind top talent to our company. The model features the following five principles:
- Long-term employment relationship
TMC values employing its Employeneurs and offering them long-term employment. By doing this we emphasise the faith we have in our people and that we would like to enter into a long-term working relationship together. Furthermore, this way of working offers our customers the correct quality of Employeneurs and continuity in R&D projects. This clearly deviates in relationship to project deployment agencies, job agencies and other intermediaries.
- Individual profit sharing
On commencing employment the Employeneur's rate, as it will be charged to the customer by TMC, is determined transparently and in consultation with the Employeneur. Depending on his experience and seniority, the Employeneur shares in the profit. This can accumulate to 50%. This variable component is paid out monthly, depending on the actual rate and the hours worked. The variable reward makes our terms and conditions of employment highly competitive.
- 1-on-1 career coaching /TMC Academy
One of the principles of our business model is aimed at the individual development of our Employeneurs by way of coaching. This will primarily be geared towards the inter and intrapersonal skills and enhancement of the entrepreneurial behaviour. Within the TMC Academy all these competencies are developed further. As far as the substantive professional knowledge is concerned, all our people are extremely highly developed. This is a part of the selection procedure when recruiting.
- Specialised business cells
TMC is formed by various business cells. Each cell represents a certain area of competencies. The advantage of this structure is that the people in a cell feel connected with their peers. In addition they can share and request knowledge. For TMC the advantage is that we can enter both the customer market and the candidate market. Within the business cells we involve our Employeneurs in company policy and strategy development. This increasingly enables them to become an Employeneur.
- Entrepreneurial Lab
In the Entrepreneurial Lab Employeneurs from various business cells work together on various projects. This way knowledge is shared and entrepreneurship is put into practice, with the accompanying budget and marketing plans. This is how we introduce our Employeneurs to true entrepreneurship, in a safe environment.
- Long-term employment relationship
Appendices:
- Key figures
- Condensed consolidated income statement
- Condensed consolidated statement of financial position
- Condensed consolidated statement of cash flows
- Information by segment
Appendix 1: Key figures
RESULTS 2012 2011
to 30 June to 30 June
Amounts x Eur 1,000
Revenue 27,978 26,319
Growth 6.3% 36.4%
Gross profit 8,876 10,007
% of the revenue 31.7% 38.0%
EBITDA 3,687 4,247
% of the revenue 13.2% 16.1%
Operating result (EBIT) 3,417 3,970
% of the revenue 12.2% 15.1%
Result for the period 2,648 2,971
% of the revenue 9.5% 11.3%
TOTAL CASH FLOW -2,514 118
BALANCE SHEET DATA 2012 2011
to 30 June to 30 June
Amounts x Eur 1,000
Shareholders' equity 21,860 19,775
Balance sheet total 29,462 27,904
Net cash position 5,170 3,525
EMPLOYENEURS & INDIRECT PERSONNEL 2012 2011
to 30 June to 30 June
Number of Employeneurs at the end of the period 503 455
Average number of Employeneurs 497 445
Number of indirect employees at the end of the period 65 63
Ratio direct / indirect 7.7 7.2
SHARE INFORMATION 2012 2011
to 30 June to 30 June
Number of shares issued at year-end 3,687,766 3,687,766
Basic earnings per share (in Eur) * 0.72 0.81
Diluted earnings per share (in Eur) * 0.70 0.79
Cash flow per share (in Eur) ** 0.79 0.88
Market capitalisation at end of
period (x Eur 1.000) 52,514 44,106
Highest closing price in reporting period (in Eur) 15.70 12.30
Lowest closing price in reporting period (in Eur) 9.65 9.36
Closing price at period end (in Eur) 14.24 11.96
* 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 consolidated income statement
2012 2011
to 30 June to 30 June
Amounts x Eur 1,000
Revenue 27,978 26,319
Direct personnels costs -19,102 -16,312
Gross profit 8,876 10,007
Indirect personnels costs -3,642 -3,920
Other operating costs -1,817 -2,117
Operating result (EBIT) 3,417 3,970
Finance income 53 6
Finance costs -9 -10
Result before income tax 3,461 3,966
Income tax expense -813 -995
Result for the period 2,648 2,971
Attributable to
Owners of the company 2,648 2,971
Non controlling interest - -
Result for the period 2,648 2,971
Earnings per share (in Eur)
Basic earnings per share* 0.72 0.81
Diluted earnings per share * 0.70 0.79
* Calculated on the average number of shares in issue.
Appendix 3: Condensed consolidated statement of financial position
(before profit appropriation)
2012 2011 2011
30 June 31 Dec 30 June
Amounts x Eur 1,000
ASSETS
Tangible fixed assets 663 705 711
Intagible assets and goodwill 10,284 10,403 10,857
Trade and other receivables 48 47 77
Noncurrent assets 10,995 11,155 11,645
Trade and other receivables 12,085 12,354 11,337
Other taxes and social security premiums - - 159
Other current assets 1,212 784 1,238
Cash and cash equivalents 5,170 7,684 3,525
Current assets 18,467 20,822 16,259
TOTAL ASSETS 29,462 31,977 27,904
2012 2011 2011
30 June 31 Dec 30 June
Amounts x Eur 1,000
EQUITY
Share capital 315 315 315
Share premium 14,439 14,439 14,439
Reserves -1,995 -1,995 -1,995
Retained earnings 9,101 10,099 7,016
Equity attributable to shareholders of the
Company 21,860 22,858 19,775
LIABILITIES
Deferred tax liabilities 297 327 441
Long-term liabilities 297 327 441
Trade and other payables 703 743 703
Corporation tax 624 714 585
Other taxes and social security premiums 3,070 3,138 2,828
Other liabilities and accruals 2,908 4,197 3,572
Short-term liabilities 7,305 8,792 7,688
TOTAL EQUITY AND LIABILITIES 29,462 31,977 27,904
Appendix 4: Condensed consolidated statement of cash flows
2012 2011
to 30 June to 30 June
Amounts x Eur 1,000
Result for the period 2,648 2,971
Adjustments for
# depreciation 151 130
# amortisation of intangible assets 119 147
# net finance costs -44 4
# equity-settled share-based payment
transactions 42 41
# income tax expense 813 995
3,729 4,288
Change in:
# trade and other receivables 269 -789
# other current assets -428 -684
# trade and other payables -40 -215
# other taxes and social security premiums -68 -19
# other liabilities and accruals -1,289 -73
2,173 2,508
Interest paid -9 -10
Income tax paid -933 -652
Net cash from operating activities 1,231 1,846
Interest received 53 6
Acquisition of tangible fixed assets -109 -124
Loans granted -1 -
Repayment of loans granted - 572
Net cash flow from investing activities -57 454
Dividends paid -3,688 -1,844
Repayment of recognised loans - -338
Net cash flow used in financing activities -3,688 -2,182
Cash flow during the period -2,514 118
Cash and cash equivalents at 1 January 7,684 3,407
Cash flow during the period -2,514 118
Cash and cash equivalents at 30 June 5,170 3,525
Appendix 5: Information by segment
INFORMATION BY SEGMENT 2012 2011
to 30 June to 30 June
Amounts x Eur 1,000
TMC Technology 23,438 20,678
TMC ICT 1,744 2,178
TMC Construction 2,920 3,463
Other -124 -
Revenue 27,978 26,319
TMC Technology 3,687 3,859
TMC ICT -117 47
TMC Construction -153 64
Other - -
Operating result (EBIT) 3,417 3,970
Finance income and expense 44 -4
Income tax expense -813 -995
Result for the reporting period 2,648 2,971
2012 2011
to 30 June to 30 June
Amounts x Eur 1,000
TMC Technology 14,326 11,935
TMC ICT 969 1,184
TMC Construction 1,811 1,459
Other 12,356 13,326
Assets 29,462 27,904
TMC Technology 4,845 4,769
TMC ICT 383 546
TMC Construction 594 656
Other 1,780 2,158
Liabilities 7,602 8,129
TMC Technology - -
TMC ICT - -
TMC Construction - -
Other 109 124
Investments 109 124
TMC Technology - -
TMC ICT - -
TMC Construction - -
Other 270 277
Depreciations & amortisation intangible assets 270 277
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