TMC: Growth in Revenues and Expansion Market Position

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TMC: Growth in Revenues and Expansion Market Position PR Newswire EINDHOVEN, Netherlands, August 6, 2012 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).

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• Publié par: tmc-group-n-v
• Nombre de lectures: 12
• Langue: English

Extrait

TMC: Growth in Revenues and Expansion Market Position PR Newswire EINDHOVEN, Netherlands, August 6, 2012

EINDHOVEN,Netherlands,6, 2012A ugust /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 inthe Netherlands. This is an absolute necessity, but we are not there yet. The profession of engineer is invaluable tothe Netherlandsand 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 ofJune 2011) to 503 (at the end ofJune 2012). The number of engaged freelancers increased from 21 at the end ofJune 2011to 26 at the end ofJune 2012. In addition, the number of employed indirect employees rose from 63 at the end ofJune 2011to 65 at the end ofJune 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 wereEur 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% toEur 8.9 million(first half 2011:Eur 10.0 million). A s 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 A ct and the related employer's contributions have risen. This has caused the national insurance contributions to rise by circaEur 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 receivedEur 504 thousandless 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 toEur 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 toEur 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 A t the end ofJune 2012the net cash position rose toEur 5.2 million(at the end ofJune 2011:Eur 3.5 million). The net cash flow from operations over the reporting period wasEur 1.2 million(first half 2011:Eur 1.8 million). The dividend distribution ofEur 3.7 millionover 2011 has caused the net cash flow to fall to a negativeEur 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. A ll business cells have contributed to this growth. The policy-related focus on growth in the west ofthe Netherlandsand 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. A t 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 ofJune 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 realisedEur 23.4 millionin 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 byEur 0.1 million(2.0%) toEur 6.3 millionover 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 SA P 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 SA P 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 ofEur 1.7 millionover 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 toEur 98 thousand. In the first half of 2011 this amounted toEur 262 thousand. This is a decrease of 62.7%. A t the end ofJune 2012the Member Company ICT has 20 Employeneurs (at the end ofJune 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 ofthe Netherlandswe shall move from Hoogvliet to new premises in Rotterdamin the second half of 2012. Revenues from the Member Company TMC Construction fell by 15.7% toEur 2.9 millionin 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% fromEur 596 thousandover the first half of 2011 toEur 388 thousandover 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%. A t the end ofJune 2012this Member Company had 50 Employeneurs (at the end ofJune 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. A nd 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 of6 A ugust 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. ************* Financial calendar: 19 March 2013annual report 2012 Publication Mnemo : A LTMC 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 A cademy all these competencies are developed further. A s 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: 1. Key figures 2. Condensed consolidated income statement 3. Condensed consolidated statement of financial position 4. Condensed consolidated statement of cash flows 5. 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:Condensedconsolidated 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:Condensedconsolidated 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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