The year 2019 was a successful one for technology company Simac. Turnover rose by 6%, from € 259 million to € 276 million. This rise was for the most part autonomous. The operating result reached €11.2 million. Net profits for 2019 reached €7.0 million, further strengthening the cash position.
“We’re satisfied with the operating result, although it was lower than that of 2018,”, CEO Eric van Schagen explains. “The reason for this is that we've invested heavily in new technology such as cloud services, two service centers for performance management and security and in various software solutions. We also continuously invest in updating technology and the organization of the Smart Solutions segment. These developments are directly included in the costs. However, in time, they are expected to yield additional long-term income for Simac.
IT companies in the Netherlands
On 1 January 2020, the various IT companies in the Netherlands were officially merged into a single company, Simac IT NL bv. Van Schagen: “It enables us to further standardize our services and make maximum use of our knowledge. The specialist competencies are organized in knowledge clusters, which are presented to our customers via five market segments. hmb (specialist SAP services), which was acquired in 2019, is also included in Simac IT NL, as a high-quality knowledge cluster.”
Abroad
The IT companies in Belgium, Luxembourg, the Czech Republic and France continued their good results. Van Schagen continues: “We feel that innovation should be ingrained in the organization, which is why investments in innovation have not been centralized. Interesting and important developments are taking place, especially also outside the Netherlands. In the next few years, we will devote more attention to the international commercialization of these available competencies.”
Results other Simac companies
Most of the other Simac companies concluded 2019 with a profit. They also form the foundation for Simac’s stability. Simac Masic experienced interesting growth and secured wonderful orders from international customers. Simac Document Solutions grew, thanks in part to taking over an external contract portfolio. Simac Triangle made considerable investments in software for the registration and supervision of customers within the social domain. Simac Electronics reinforced its excellent position as a supplier of optical fiber solutions and, apart from providing high-quality consultancy services to external customers, Aranea also made an important contribution to a number of IT innovations of Simac.
Partnership with customers
“Aiming for a partnership with our customers is still very important,” Van Schagen adds. “Especially with a view to the complexity of the technology and the significance of technology for their operating processes. It demands in-depth knowledge, a flexible approach and internal and external teamwork (at Simac, we refer to it as Teamnology). The shortage on the labor market means the workload was high again in 2019. Increasing the number of employees while maintaining quality remains a challenge.”
Expectations
Van Schagen also says that there is more uncertainty about the general prospects for 2020 as a result of recent global developments such as the coronavirus and geopolitical relations. “Nevertheless, our current expectations are for 2020 to be yet another stable and profitable year. The extent of return is difficult to estimate. Investments in innovation and knowledge remain crucial. Given our solid basis with long-term contracts, our corporate culture that focuses on integrity and loyalty and an excellent financial position, we are full of confidence for the future.”
