Cegeka Group has achieved revenue growth for the thirteenth year in a row. With a 12 percent increase in revenue, the group has again presented its shareholders with double-digit growth figures. The IT service provider closed the 2016 financial year with a revenue of 414 million euros, compared to 369 million euros the previous year. The operating profit grew by 19 per cent to 25 million euros or 6.5 per cent of the revenue. In 2017 Cegeka Group marks 25 years in business.
In contrast to the previous year, the growth was mainly achieved autonomously. Organic growth amounted to 8 per cent or 28 million euros and is therefore stable compared to 2015 (9 per cent autonomous growth). In addition, Cegeka enjoyed additional income from its acquisition of Edan, worth about 10 million euros (for the first two quarters of 2016), and of the Austrian DanubeIT, which contributed about 7.5 million euros (as from the second quarter).
The three major divisions all shared in the revenue growth. The infrastructure arm of the company grew by about 10 per cent to 164 million euros, the services for application development increased by 19 per cent to 160 million euros and Cegeka scored just under 90 million euros, a growth of 7 per cent, from secondment services.
In 2016 Cegeka invested in software development for its own portfolio, its branch in the Netherlands moved to new offices and it also invested in nexuzhealth, the joint venture with Leuven University Hospital. Even so, the operating result increased sharply by 19 per cent and rose – after a slight fall the previous year – by 0.2 percentage points to 6.5 per cent of the revenue.
“With these figures we are confirming our results of the record year of 2015. In 2016 we also extended contracts with major customers such as Argenta and Delta in Belgium. Over 65 per cent of our revenue is now recurrent and this ensures a very sound basis,” says CFO Stephan Daems. “What’s more, we have adapted our organization for a new leap forward. In Europe we have become more deeply embedded locally and are going to the market with a new positioning and visual identity. This confirms our approach of always being close to our customer and combines the two poles of reason and empathy. Cegeka stands for professionalism and humanity. Even after 25 years and with 4,000 employees, this does not change.”
This year Cegeka aims, among other things, to benefit from its investment in new services such as blockchain. Together with Microsoft and KPMG, Cegeka has entered into a tripartite agreement to commercialize complementary services around blockchain.Strong growth in operating resulta
In 2016 Cegeka innovated with a new initiative. Cegeka became the first commercial organization to provide its own software developer training course. The first wave of trainees graduated at the end of last month. The company already has a second edition of its Cegeka School planned, which starts after the summer. The Cegeka School is helping the group to tackle the shortage of IT workers in Belgium and equip itself to deal with the growth operationally.
Stephan Daems is 53 years old. He has held the position of Chief Financial Officer at the Cegeka group since 1997. A beer aficionado, Stephan enjoys a glass of Duvel now and then. He stays fit by putting on his sports shoes and tracker, and going for a run.