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‘s-Hertogenbosch, 7 February 2024 – Business & Cloud Integrator Ctac N.V. (Ctac) (Euronext Amsterdam: CTAC) has decided to take an impairment of € 2.1 million. This concerns the non-cash effects of the impairment of the intangible fixed assets and a write-down of the deferred tax asset of Technology2Enjoy Holding B.V. (Technology2Enjoy). In addition, Ctac has taken a one-off provision of € 0.8 million for long-term sick employees.
The impairment is taken following the strategic review of Ctac and the reassessment of its activities. As part hereof, it became apparent that for Technology2Enjoy the implementation of current projects requires more time and investments than initially expected. Technology2Enjoy has taken on a number of projects at a fixed contract price that it cannot complete breakeven. Ctac has therefore taken an impairment on the intangible fixed assets of € 0.9 million and a write-down of the deferred tax asset of € 1.2 million. The current focus is on completing the ongoing implementation projects.
The provision for long-term sick employees was formed, because Ctac has been an own risk carrier for the WGA (the return to work scheme for the partially occupationally disabled) up to the end of last year. As from 2024, Ctac has taken out insurance for this risk.
For the full 2023 financial year, Ctac expects to record revenue growth of around 8%, with an expected normalised EBITDA margin of over 9%. Including the aforementioned one-off provision for long-term sick employees and the charge of € 0.6 million for the tightening of the organisation reported in the first quarter of 2023, Ctac expects the EBITDA margin to come in at around 8%.
The impairment and the abovementioned one-off effects do not impact Ctac’s liquidity position, financial covenants or dividend policy. Following the strategic review, Ctac is well positioned for future growth and to support its clients in their digital transformation. On 27 February 2024 Ctac will publish its annual results.