Turnaround for PIRONET NDH
PIRONET NDH also had a good start to the year. The specialist in digital content and data management achieved a record turnover for the first three months of the financial year, reaching EUR 15.9 million, some 5% above the previous year (EUR 15.2 million). The section with the strongest growth was Master Data Management, up 38% to EUR 4.0 million. ICT Outsourcing remained the section with by far the highest turnover, with EUR 5.4 million (+4%). At circa EUR 0.1 million, the EBIT was at the same level as the previous year, though there was a considerable increase in profitability: during the same quarter last year, provisions were written back (EUR 0.2 million). Furthermore, work performed by the entity and capitalised fell to EUR 0.9 million in the first quarter of 2010 (previous year: EUR 1.7 million). Financial results improved from EUR -0.2 million to EUR 0.02 million, meaning that, below the line, an EBT of EUR 0.1 million was achieved against EUR -0.1 million.
There were considerable cuts in investment as part of the savings package. Compared with EUR 4.7 million the previous year, EUR 1.5 million were now on the books. This meant that a free cash flow was generated again for the first time in 6 quarters. Liquid assets rose by EUR 0.3 million compared with the end of 2009, to EUR 12.3 million. This sum corresponds to net liquid assets, as PIRONET NDH continues to work without bank loans. Per share, this makes EUR 0.84.
Compared with the disappointing previous year, in 2010 PIRONET NDH is back on target. At the current level of turnover, the company is just above the breakeven point. This means business now needs a boost, especially in the software sector. This would set the scene for creating stronger yields and further raising the cash balance.
The management board