Amsterdam, 02 May 2007
Due to lower than expected Q1 2007 results in the Company's operation in the United Kingdom and a reduced forecast for this operation for the full-year 2007 and following years, the Company decided on 1 May 2007 to record a goodwill impairment charge of EUR 25 million.
As a consequence of this goodwill impairment in the United Kingdom, the Group's net profit is also impacted by the same amount. The Company, may, therefore, no longer be able to generate a net profit for the full-year 2007.
In Q1 2007, total revenue decreased by 2% to EUR 630 million (Q1 2006: EUR 642 million), mainly due to the impact of divestments during 2006, changes in currency rates and lower product revenues, which decreased by 14% to EUR 72 million (Q1 2006: EUR 84 million) as the Company continued to de-emphasise product sales. Service revenue was stable at EUR 558 million (Q1 2006: EUR 558 million). On organic basis service revenue increased by 4.7%.
On organic basis, service revenue in the Netherlands was up 4.6% in Q1 2007, in the Rest of Europe up 9.3%, in North America down 6% and in the Rest of the World up 11.4%.
The Company continues to work towards an EBITAE margin of between 4.0% and 4.5%. Although this range becomes challenging as relevant labour markets remain tight, resulting in a relatively high use of subcontractors, the positive effects of the Breakout Programme should become visible in the second half of 2007.
Getronics re-confirms its EBITAE margin target of at least 5% to be achieved by the end of 2008 as well as its target debt/EBITDA ratio of 2 or less by the end of 2008.
With some 25,000 employees in more than 25 countries and approximate revenues of EUR 2.6 billion, Getronics is a leading international provider of Information and Communication Technology (ICT) services and solutions.
Applying its expertise in workspace management, applications, and consulting and transformation services, Getronics helps organisations raise their performance and increase the productivity of their people, by providing them with the ability to share information and to work together efficiently, securely and effectively, wherever and whenever they need.
Getronics headquarters are in Amsterdam, with regional offices in Boston and Singapore. Getronics' shares are traded on Euronext Amsterdam ('GTN'). For further information about Getronics, visit www.getronics.com .