Centric connect.engage.succeed

Centric profits from new direction

den 7 juni 2016

2015 was a particularly successful year for Centric. Income after taxation was up 20 per cent to 18.6 million euros, with sales down 6 per cent to 463 million euros.

This is in line with expectations and is the result of strategic choices made at Centric. Centric has decided on a keener operational focus in order to ensure a more consistent balance between sales and profit.

(x €1,000)
2015 2014
Net sales 462,739 494,473
EBIT 25,864 20,338
Income/loss after taxation 18,588 15,548

2015 highlights

The new business direction adopted two years ago is starting to pay off. These positive results are the combined outcome of a clear market focus (Public Sector, Supply Chain and Financials), international collaboration, expansion of cloud and managed services propositions and the strong recovery of the outsourcing market. Centric's results were also impacted slightly by the unfavourable exchange rate of the Norwegian krone against the euro.

Focus on Public Sector, Supply Chain and Financials

Centric has chosen a strong market focus, with sector-specific solutions that the company uses to make a real difference for its customers. Centric achieves this by combining its in-depth expertise of the sector with the latest technological advances. Centric's solutions bring customers closer to citizens, consumers and other organisations.

Decentralisation has resulted in local authorities taking on new responsibilities for Employment, Housing and Health Care. Centric's response is to tighten collaboration between its departments that operate in these areas and aim for integration of the corresponding solutions.

For Supply Chain, 2015 was a year of increased focus and internationalisation of the organisation. Centric discontinued several ERP solutions, allowing the organisation to focus even more closely on the continued development of the in-house omnichannel product, StoreWorld, and the Centric warehouse management solution, Locus WMS. These solutions play a key role in helping retailers achieve their e-fulfilment ambitions.

In financial services, Centric is investing continuously in innovative and flexible services for Business Process Outsourcing. Centric offers customers in the financial sector the highest level of assurance, which resulted last year, for example, in BNG Bank extending its contract with Centric for a further ten years.

IT Outsourcing

A key market development is the decrease in demand for hardware, at the same time as a marked increase in the demand for applications and data accessed via the cloud. 2015 saw Centric further apply and enhance its experience of migration projects to the hybrid, private and public cloud.
Centric also successfully provides support to many organisations in the field of IT Outsourcing. Various surveys have shown that Centric is one of the top service providers with the greatest level of customer satisfaction. Centric's customers are particularly pleased with our data centre services and end user support and our expertise in this field is being used to expand the service internationally, with a special focus on Scandinavia.

Outlook for 2016

The new strategy has set out a clear path for growth, which will benefit our organisation in the years ahead. Effective alignment between the various departments and optimum knowledge sharing between the country organisations will give our organisation the fire power we need to innovate our portfolio. The growth of the Romanian site will be decisive in this respect, as software development and infrastructure management for most units and countries is increasingly done in Romania. Centric also expects to see an increase in employee numbers in other countries, particularly in staffing activities. The recently launched Craft programme reinforces Centric’s profile as an organisation that invests in professional development. Under this initiative, colleagues share knowledge with the IT community in order to develop the profession further together.

Standardisation, too, plays a role in international collaboration. Developing software in a uniform manner for various units and countries will enable us to reuse knowledge and methods as well as possible. Combined with our IT outsourcing expertise and the hybrid cloud in particular, this will result in improved innovation of our solutions and ensure that our customers can rely on a solid and modern response to their IT challenges. Centric is therefore confident about 2016.