Orc Q2 revenues fall

Source: Orc Group Holding AB

This interim report refers to Orc Group Holding AB (publ) - (formerly Cidron Delfi Intressenter AB (publ)) - and the Orc Group Holding Group for the period from January 1 to June 30, 2013.

At the beginning of 2012, Orc Group Holding AB acquired Orc Group through a public tender offer directed to the shareholders in Orc Group AB (publ). Following the sale of Orc's former subsidiaries and sub-groups CameronTec and Neonet in October 2012, continuing operations in the Orc Group Holding Group consist solely of operations in Orc. As a result, the comments in this report refer only to developments in Orc, and the tables that are presented on pages 1-6 refer to continuing operations in Orc adjusted for the impact of discontinued operations. The financial year of the Parent Company, and therefore also the Group, is now the calendar year.

Strong finances support investment in new strategy

  • Operating revenue for the period from April to June 2013 reached SEK 109M (130), a decrease of 16%. Adjusted EBITDA was SEK 52M (60) and EBITDA-CAPEX was SEK 22M (33).
  • Operating revenue for the period from January to June 2013 amounted to SEK 221M (264), down by 16%. Adjusted EBITDA amounted to SEK 106M (118) and EBITDA-CAPEX was SEK 52M (61).
  • The revenue was down compared to the corresponding periods last year as a result of declining demand in the total market. Expenses and CAPEX were cut back, which is mainly explained by the renegotiation of third party agreements, other rationalization programs including adaptions to the current market conditions.
  • The set-off issue that was carried out in June 2013 has strengthened the Group´s equity by SEK 209M to 653M and reduced interest bearing liabilities by the same amount. The equity/assets ratio was 31% (13).

CEO Torben Munch comments:
"The market situation in the second quarter remained difficult for Orc and revenue was down compared to the preceding quarter. At the same time, net income (EBITDA-CAPEX) has decreased somewhat as a result of higher development expenses. This is a consequence of our determined efforts to strengthen the organization so that we can successfully realize Orc's revised business strategy.

Our new strategy features an increased focus on large banks and trading firms, together with expansion of the existing product portfolio with new solutions for customer-driven trading. The strategy has been presented to customers in all regions, and has received very positive feedback. I am also satisfied with development of the various internal projects that are being driven to support the new strategy.

During the period we recruited several new members to the Executive Management and I am convinced that our current management team - where everyone has invested in Orc - is well equipped to meet the opportunities we face."

Report can be viewed here

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