Feeds

PinkRoccade: heavy debts and other problems

Hard times

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Shares in Dutch IT outsourcing and services firm PinkRoccade tumbled 6 per cent following its first-half results. The company's cash position has improved since last year, but it is still facing difficult market conditions and is showing signs of buckling under heavy debts.

During the second quarter ended June 30, Netherlands-based PinkRoccade reported a net profit of €5.29m compared to a net loss of€E694,000 in 2002, on revenue that fell 13 per cent to €182.8m. For the six-month period, PinkRoccade reported a net profit of €7.5m, up from a net profit of €351,000 in 2002, on revenue that declined 11 per cent to €372.1m.

Profit during the period was boosted by a €3.5m gain on the sale and leaseback of an office in Apeldoorn. This also helped improve the company's cash position, which stood at €1.58m at the end of the half, compared to zero in the same period in 2002.

However, PinkRoccade is suffering from reluctance by the Dutch government to invest in major outsourcing projects and issues resulting from the country's
labour market. Despite having laid off some 350 staff last December, the company said a collective labour agreement signed in June requires it to increase salaries for staff by an average 1.7 per cent.

The company said it is also suffering from increased competition. CEO Henk Bosma said that the persistent pressure on prices would continue to have a negative impact on turnover for the time being.

Adding to its woes, PinkRoccade is facing concerning levels of debt. Although the company claims that its solvency ratio improved to 39.3 per cent at the end of the half, from 35.2 per cent in December, this only measures its ability to meet long-term obligations.

PinkRoccade managed to halve its bank debt to under €31m, but current liabilities increased 6 per cent to €160.4m. This far outweighs its immediately available funds, which including cash, cash equivalents and other current assets, stand at €41.3m.

Source: Computerwire/Datamonitor

Recommended research: Reuters Business Insight, "The IT Services Outlook"(RBTC0063)

© datamonitor logo

Datamonitor is offering Reg readers some of its technology research FOC. Check it out here.

Choosing a cloud hosting partner with confidence

More from The Register

next story
Musicians sue UK.gov over 'zero pay' copyright fix
Everyone else in Europe compensates us - why can't you?
Bladerunner sequel might actually be good. Harrison Ford is in it
Go ahead, you're all clear, kid... Sorry, wrong film
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
Forget Hillary, HP's ex CARLY FIORINA 'wants to be next US Prez'
Former CEO has political ambitions again, according to Washington DC sources
Euro Parliament VOTES to BREAK UP GOOGLE. Er, OK then
It CANNA do it, captain.They DON'T have the POWER!
prev story

Whitepapers

Free virtual appliance for wire data analytics
The ExtraHop Discovery Edition is a free virtual appliance will help you to discover the performance of your applications across the network, web, VDI, database, and storage tiers.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Website security in corporate America
Find out how you rank among other IT managers testing your website's vulnerabilities.