This interim report refers to Cidron Delfi Intressenter AB (publ) and the Cidron Delfi Intressenter Group for the period from January 1 to March 31, 2013. At the beginning of 2012, Cidron Delfi Intressenter AB acquired Orc Group through a public tender offer directed to the shareholders in Orc Group AB. Following the sale of Orc’s former subsidiaries and sub-groups CameronTec and Neonet in October 2012, continuing operations in the Cidron Delfi Intressenter Group now consist solely of operations in Orc.
Stable profitability despite challenging market conditions
- Operating revenue for this period from January to March 2013 reached SEK 112m (134), a decrease of 16% that is mainly due to declining demand in the total market. The drop in revenue was offset by lower expenses and CAPEX. Adjusted EBITDA amounted to SEK 55m (58) and EBITDA-CAPEX was SEK 30m (30).
- Expenses and CAPEX for January – March 2013 were down compared to the corresponding period of last year, which is mainly explained by the renegotiation of third party agreements, other rationalization programs and adaptions to the current market conditions.
- A successful bond placement of EUR 60m was carried out in November 2012 and the note loan was listed on Nasdaq OMX in March 2013.
CEO Torben Munch comments:
“The market situation remains challenging and has caused Orc’s revenue to decline for the fifth consecutive quarter. Thanks to several successful rationalization and cost-cutting programs, however, we reported continued high profitability in the first quarter of 2013. For the past six quarters our earnings, measured as EBITDA-CAPEX, have been stable at around SEK 30m.
One major milestone in the first quarter was the renewal of an agreement with one of our most important customers. Under the agreement, which is one of the largest ever for Orc in terms of revenue, we will extend our partnership by four years. Another positive trend during the quarter is that we reported significant growth for the new Professional Services business area, albeit from a previously low level. In addition, the organizational changes that were carried out at the end of 2012, including the regionalization of customer services, have been successful.
We have adopted and are now implementing a revised business strategy entailing a stronger focus on large banks and trading firms. We will also expand Orc’s existing product offering with new solutions for customer-driven trading. Parallel with measures to further enhance efficiency, we are continuing to invest ambitiously in development of new products and services. The number of employees in the product and development organization is around 100, representing close to half of all employees in the company.
On the whole Orc stands strong today, both financially and operationally, as we navigate through these difficult times.”
Orc is a leading provider of technology and services for the global financial industry. Since 1987, Orc delivers trading and market access solutions used by proprietary trading and market making firms, investment banks, hedge funds and brokerage houses worldwide.
Orc develops and provides the tools needed for running profitable trading or brokerage businesses in today’s competitive and ever-changing markets.
With market presence in all major global financial centers, Orc provides sales and support services from its offices across EMEA, the Americas and the Asia-Pacific regions.
Orc is owned by Cidron Delfi Intressenter AB, which is in turn owned by Nordic Capital Fund VII.
CEO Torben Munch, phone: +46 8 506 477 35
CFO Tomas Ljunglöf, phone: +46 8 506 477 24
The information in this interim report is subject to the disclosure requirements of Cidron Delfi Intressenter AB under the Swedish Securities Exchange and Clearing Operations Act and the Financial instruments Trading Act. The information was released for publication on May 29, 2013, 8:00 a.m. CEST.
N.B. The English text is a translation of the Swedish text. In case of discrepancy between the Swedish and the English text the Swedish version shall prevail.