At the beginning of 2012, Cidron Delfi Intressenter AB acquired Orc
Group (STO:ORC) 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 at the beginning of
October, continuing operations in the Cidron Delfi Intressenter group
now consist solely of operations in Orc. Cidron Delfi Intressenter AB
was formed on November 28, 2011, and Orc Group AB is consolidated as of
January 1, 2012. There is no historical information for the Cidron group
and the comparative figures for 2011 have been taken from Orc’s
operations in Orc Group. CameronTec and Neonet are reported as
discontinuing operations for all of the periods covered in this report.
OPERATING REVENUE FOR THE PERIOD FROM JANUARY TO SEPTEMBER REACHED SEK
391M (432), A DECREASE OF 9%. THE DROP IN REVENUE WAS PARTLY
COMPENSATED BY LOWER EXPENSES AND CAPEX. ADJUSTED EBITDA WAS SEK 178M
(205) AND EBITDA-CAPEX WAS SEK 96M (115).
OPERATING REVENUE FOR THE QUARTER FROM JULY TO SEPTEMBER AMOUNTED TO
SEK 127M (140), DOWN BY 9%. THE DROP IN REVENUE WAS LARGELY
COMPENSATED BY LOWER EXPENSES AND CAPEX. ADJUSTED EBITDA WAS SEK 60M
(64) AND EBITDA-CAPEX WAS SEK 33M (34).
A SUCCESSFUL BOND PLACEMENT OF EUR 60M WAS CARRIED OUT IN NOVEMBER.
THE LAUNCH OF AN EFFICIENCY IMPROVEMENT PROGRAM WILL REDUCE THE NUMBER
OF EMPLOYEES BY AROUND 20 DURING DECEMBER, EQUAL TO JUST UNDER 10% OF
THE TOTAL NUMBER OF EMPLOYEES.
AS A RESULT OF THE EFFICIENCY IMPROVEMENT PROGRAM, TOGETHER WITH
REFINANCING AND RESTRUCTURING OF THE FORMER ORC GROUP, INCOME FOR THE
QUARTER FROM OCTOBER TO DECEMBER WILL BE CHARGED WITH SUBSTANTIAL
CEO TORBEN MUNCH COMMENTS:
"As previously announced during our meetings with investors, revenue for
the quarter from July to September 2012 was down somewhat from the
preceding quarter as result of challenging market conditions. Although
revenue has fallen by nearly 10% during the past year, EBITDA-CAPEX for
the last four quarters has held steady at around SEK 30m. This is mainly
explained by the wind-up of group-wide functions and successful
renegotiation of third-party agreements.
In November Orc launched an initiative mainly aimed at realizing the
expected synergies from regionalization of customer service and adapting
the sales and service organizations to the current market conditions.
The number of employees will be reduced by around 20 and the office in
Frankfurt will be closed. At the same time, Orc is continuing to invest
aggressively in new products and services. After the reorganization, the
number of employees active in the product and development organization
will be around 100, i.e. close to half of all employees in the company.
Also in November, Orc successfully placed a EUR 60m five-year Senior
Secured High Yield bond. The offering was fully subscribed already
before completion of the management’s investor roadshow.
The market climate during the quarter from October to December remained
weak. At the same time, the secured long-term financing together with
the implemented organizational changes and cost adaptations provide
excellent scope to continue developing and positioning Orc as a leading
provider of technology and services for the global financial industry.”
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
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 in turn is owned by
Nordic Capital Fund VII.
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
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