NTT takeover hits Integralis' half year profit

EBITDA for Integralis fell to €0.9m at the end of June

Management and consultancy costs associated with its takeover by Japanese telephony giant NTT Com has taken its toll on Integralis’ profit for the first half of 2009.

The security integrator bucked the economic downturn by posting a 2.3 per cent year-on-year turnover increase, but earnings before interest tax and amortisation (EBITDA) fell to €0.9m at the end of June compared with €2.5m in the first half of 2008. This was attributed to the cost of consultancy and management fees relating to the €75m NTT takeover, as well as general currency pressures.

On a more positive note, group turnover stood at €82.3m, compared with €80.4m in 2008, bolstered by the recurring revenues generated by Integralis Services. Within those results, managed services and support services were strong with growth of almost 25 per cent and more than 10 per cent respectively, and consulting integration and training also achieved an above-average revenue increase.

Technology sales were down due to what the firm labelled ‘unfavourable economic conditions’ and the weakness of sterling also affected this segment.

Although the UK accounted for the ‘lion’s share’ of turnover on a regional basis, it actually saw sales drop to €29.6m, compared with €34.8m the year before. However Germany, Austria and Switzerland all reported a revenue increase. The biggest growth region was the UA Emirates, which saw turnover increase by 66 per cent to €3.5m.

In its financial statement, the firm said its management board continues to project a slight increase in turnover for the remainder of the year. But it does not expect the company to repeat the previous year’s record earnings, mainly due to the expense of the controlled sales process, which is estimated to hit €2m for the year.

However, chief executive Georg Magg remained bullish for the future.

“Looking forward, Integralis as NTT Com’s IT security unit will assume group-wide responsibility for this segment,” he said. “In this way, our employees will be able to demonstrate their acknowledged expertise and skills in substantially larger and more international projects. In my view, Integralis faces excellent prospects in the efforts which it has already commenced to build up its presence in Asia."

The integrator’s UK division also underwent further changes this month with the appointment of a new managing director. Simon Church took over from Graham Jones, who left Integralis to join Synectics earlier this month.