Published: April 12, 2012 20:31
Groenlo, 10 April 2012 - The executive board of N.V. Nederlandsche Apparatenfabriek “Nedap” expects for the 1st half year 2012 - notwithstanding unforeseen circumstances - a further growth in revenue and profits. The expected marked* growth in revenue will be realised despite the phasing out of the traditional supplier activities. These supplier activities still amounted to more than 8% of total revenue in the 1st half year 2011. With this expected growth in revenue, the profit after tax will show a strong to considerable increase compared to the first half of 2011. The executive board is basing these expectations on the positive developments in the first months of the current financial year. The growth in revenue in this period came from virtually all market groups, namely Agri, AVI, Healthcare, Library Solutions, Power Supplies, and Retail Support. Only the market group Security Management was somewhat flat.
The predictability of revenue and profits in the short to middle term is not helped by the uncertain and volatile economic conditions in a number of regions and sectors. By continuing to invest in a broad product portfolio and worldwide marketing, Nedap is trying to reduce its susceptibility to such developments. The expected organic growth during the first half of 2012 can be financed with the currently available funds. The solvency position remains undiminished strong at 39%.
The market group Agri (ICT systems for the dairy farming industry that help dairy farmers to optimise their operational processes and to improve animal welfare) realised a sizeable increase in revenue in the first months of 2012. This was the result of a combination of continuous development of new, innovative products and a much greater visibility in a growing number of markets. Examples of this on the product side are the new in-season detection products for the dairy farming industry and a new sorting system for the pork farming industry, which on the market side were combined with the establishment of new sales channels and the further expansion of the dedicated sales organisation in China. The improved market situation in the dairy farming industry, primarily due to stable milk prices, has also boosted the willingness to invest in this sector.
The market group AVI (products for vehicle and driver identification and wireless parking systems) also started the year 2012 with an excellent increase in revenue. Within this group, with its worldwide dealer network, sharp investment took place in new products and marketing.
The market share of the market group Healthcare (computerisation of time registration for the healthcare sector, which frees up more time for care) also increased further in the segments where it is active. More and more care professionals, clients, and home carers are making everyday use of the applications of this group. The operating territory of the market group is gradually expanding beyond extramural care to include intramural care, elderly care, and disabled care. PEP® (computerised time registration for employment agencies) also contributed to the growth in revenue.
The market group Library Solutions (RFID self-service check-in/checkout systems for libraries) showed an increase in revenue once more in the first months of 2012. The market group no longer concentrates solely on implementing integrated library projects, acting as a systems integrator combining a mix of in-house components and third-party products. It is now concentrating on the development and supply of a cutting-edge product portfolio, which allows business partners in an increasing number of countries to carry out tailor-made projects.
The market group Power Supplies (switch-mode power supplies for lighting and renewable energy systems) was able once more to achieve an impressive growth in revenue during the first months of 2012. The investment in product development and marketing has resulted in a well-rounded, robust product portfolio designed to meet the needs of specific market segments, as well as new sales channels in North America. The turnover for the PowerRouter, which makes it possible for private homes and estates to generate, store, and consume energy independently and effectively, is also growing steadily.
In the first months of 2012, the market group Retail Support (anti-shoplifting systems, control and information systems to combat stock losses) saw its revenue grow further, despite the very competitive market. The market group is now reaping the rewards of its investment in product innovation and marketing, the development of an extensive partner network, and the Global Label Center of Nedap in Hong Kong.
The revenue of the Security Management market group (systems for access control, registration, payment, fire and intruder alarms, observation, locker management, and biometrics) was somewhat flat in the first months of 2012. This decline is partly explained by the ending of the activities in relation to attendance registration systems for students. Another part of the explanation for the relatively flat performance of the market group is the several large projects that were completed at the start of 2011. The activity level within this market group, both in terms of product development and market development, has nonetheless remained high.
The above expectations for the 1st half year 2012 are based on the facts known at the time of writing of this press release. Due to the project-based character of a large part of the revenue, however, considerable changes may still occur in the final weeks of this period.
The financial half-yearly report for 2012 will be published on 7 August 2012 after trading hours.
* Nedap has applied to the ‘scale of Mock’ in this press release.