Gouda (the Netherlands), November 16, 2023 – After a period of managerial challenges, Centric is again looking ahead with confidence. A governance crisis and much media attention made 2022 a very eventful year, in which results lagged behind. In 2023, calm and stability returned.
While regaining the trust of customers and other stakeholders, we laid a solid foundation for operational continuity, growth and new business in 2023. A temporary new leadership was put in place, and two non-executives joined the board.
Centric has been investing in product development at its own risk and expense since its inception, without external financing. However, given the operating result, cost management remains a key priority for the period ahead and it is important to strike a healthy balance between expenses and operations.
The 2022 annual report, approved by auditor RSM, provides a transparent overview of financial management in a particularly challenging year for Centric, while showing the prospect of an upward trend in 2023 and beyond. Solvency remains high and the slight increase in revenue over 2022 continues in the current fiscal year.
Sales and earnings
Although turnover for 2022 (424.5 million euros) was slightly higher than in the previous fiscal year, the operating result comes to a loss of 4.6 million euros. This is partly due to the relocation of our data centers to a new state-of-the-art data center in Amsterdam. The costs of this migration, which was completed in 2023, exceeded budget and will also affect the result for the current financial year.
Like other employers, Centric faced a tight labor market. This forced us to temporarily fill vacancies with more expensive temporary hires. In addition, necessary legal costs impacted the result, as did increased housing costs due to significantly higher energy prices. A positive operating result is expected for the current fiscal year, although the focus on cost management remains important.
Peter Wakkie, CEO of Centric: "Together, employees and management have ensured that after a turbulent transition phase, Centric can now return its full focus to what it is most important: our service to customers. Customers appreciate the fact that we collectively put our shoulders to the wheel, so that they can continue to count on the high-quality support they are used to."
Board chairman Willem Meijer: "The municipalities, companies and other organizations Centric serves need specialist services and innovative solutions. With our combination of expertise, industry-specific software, high-quality IT services and qualified professionals, Centric is uniquely positioned to support customers in their digital transformation."
With a new strategy expected to be presented in 2024, Centric will focus more than ever on innovative strength and customer service. Based on this vision, Centric expects to further expand its market position over the coming years in the European countries where we operate.