Press release 2006 results

Transics confirms growth in new top year with turnover increase of 36%

Transics, one of the largest European players in the field of on-board computers and fleet management solutions for the transport and logistics sector, has realized a top year in 2006. The turnover increased by 36% to EUR 25.26 million and the company profit increased by 43.5% to EUR 5.13 million. Transics confirms the growth pattern of previous years. Transics realized its growth particularly in its home markets of the Benelux and France. As well as successes in the Benelux and French markets, Transics is also increasingly more active in Spain, Germany and Sweden. Major contracts illustrate the economic and social importance that transport companies give to fleet management systems and the on-board computer. In 2006, Transics also entered the East European markets for the first time, particularly Poland and the Czech Republic. At the end of 2006 Transics was awarded the ‘Flemish Government Prize for the Most Promising Company of 2006’.

Record year confirms growth trend

The turnover of Transics increased from EUR 18.57 million in 2005 to EUR 25.26 million in 2006, an increase of 36%. With this, Transics confirms its growth pattern where its turnover tripled over the past 5 years. The EBITDA(2) saw an increase of more than 50% from EUR 4.74 to EUR 7.22 million, the EBIT(3) showed an increase of almost 45% to EUR 5.13 million. The pre-tax profit dropped from EUR 3.38 million to EUR 2.30 million. This fall is the result of the leveraged buy-out transaction in 2006 and the accompanying higher financial costs.

2006 milestones contribute to strong growth

In May 2006 the Carlyle Group, one of the largest investment funds in the world, became a Transics shareholder. The Carlyle Group now holds 80% of the shares. Together with the senior management, Walter Mastelinck and Ludwig Lemenu, who together hold 20% of Transics, are actively working on further expansion of the European activities of Transics.

As well as the growth in its home market of the Benelux and France, in the second half of 2006 Transit entered the growth markets in Eastern Europe for the first time. Transics started up activities in Poland and the Czech Republic with a team of 7 persons and is currently realizing the first contracts.

In December 2006 Transics was, among other things, able to win a major order in Spain from Pañalon to equip its 500 trucks with Transics on-board computers. This trendsetting transportation company opted for Transics because of the increase of the gain in efficiency and cost-effectiveness that the company expects to achieve with the Transics computers. As well as these economic impacts, an on-board computer also has a societal influence.
Road safety therefore increases because there is even better monitoring of the driving and rest times and the time spent in traffic congestion. By analyzing the driving styles of drivers, the transport companies are also able to monitor the environmental impact of their activities.
The Transics performance was also crowned in October 2006 by the award of the ‘Flemish Government Prize for the Most Promising Company of 2006’. With this prize the Flemish government wants to recognise a first-generation company that clearly distinguishes itself in one of the various criteria of the ‘Company of the Year’. Transics won the award partly because of its strategic vision and the innovative nature of the company.

Transics has strong start in 2007

At the start of 2007, Transics concluded a major contract with the Dutch transport company De Rijke. The latter decided to equip 460 trucks in future with Transics systems. With this, Transics confirms its leading position in the Dutch market.
In addition, at the beginning of 2007 Transics was able to realize the takeover of the French Delta Industry Service (DIS). DIS is active in the development and commercialisation of innovative IT solutions for driving time registration on the basis of tachographs. Through this takeover, Transics expands its existing product range further and reinforces its position in the transport market.

  1. Figures calculated according to IFRS, 2006 pro forma 12 months consolidated figures.
  2. Earnings before interest, taxes, depreciations and amortizations
  3. Earnings before interest and taxes

Transics NV develops and commercialises fleet management systems (on-board computers, software and services) for the transport and logistics sector. With more than 35,000 installed on-board computers, Transics is one of the largest European players in its sector. As well as the head office in Ieper (Belgium) and branches in the Netherlands, France, Germany and Spain, Transics is active in Scandinavia and is continually expanding its European organization. In 2006 Transics expanded for the first time in the direction of Eastern Europe with an agency in Poland and the Czech Republic. At the start of 2007 Transics realised the takeover of sector colleague DIS with which it completes its product range. DIS specializes in the development and commercialisation of innovative IT solutions for driving time registration on the basis of tachographs.