Net sales increase by 8.4% and EBITDA increases by 54%
The Netherlands’ largest international employment agency OTTO Work Force posted net group turnover in 2016 of € 265 million, representing an increase of 8.4% compared to 2015. EBITDA increased in 2016 compared to 2015 by 54% to € 9.7 million. The sales and profit increase resulted both from the growing demand for personnel as a result of strong economic sentiment in the Netherlands and the strong commercial performance of OTTO.
Key financial results:
- Net group sales in 2016 rose by 8.4% to €265 million (2015: €244.8 million)
- EBITDA rose in 2016 by 54% to €9.7 million (2015: €6.3 million)
- Net profit rose in 2016 by 103.4% to €5.9 million (2015: €2.9 million)
Frank van Gool, Chairman of the Board OTTO Work Force: ‘We are very pleased with the sales and profit growth we achieved in 2016. On a commercial level, OTTO performed strongly, and particularly in the Netherlands and Poland we managed to bind more companies to us and achieve more sales. Each day, over 16 thousand experienced and well-trained employees of OTTO work for our customers. With our specialization in such fields as logistics, we ensure maximum return and continuity for our customers. We also expect to continue growing in the years to come.’
E-commerce and logistics push up sales
The turnover of OTTO was boosted by increased demand for logistical personnel by e-commerce companies. OTTO specialized in providing logistical personnel. In addition to the fact that economic cycles have less effect on the customers of OTTO, the firm also benefits from a better economic sentiment in Europe. In Poland, sales of OTTO rose by more than 40% due to increased demand for administrative and logistical personnel. In the past year, OTTO has looked at the profit contribution of its customers, which meant increased profitability of the company. OTTO managed to strengthen its market position in both the Netherlands and Poland.
In the last year, OTTO invested heavily in innovations such as ‘Best Match’ and ‘Virtual Warehousetrainer’. By using new online recruitment methods, OTTO ensures that the quality of the influx of employees continues to improve. A training course using a virtual workplace ensures that employees are even better prepared for their new working environment on their first workday. In addition, OTTO has developed a simple online tool that can give customers and flexible employees feedback. With these data, service is improved repeatedly with the goal of further increasing satisfaction among employees and customers.
Reinforcement of Board of Directors
In February, the Board of Directors of OTTO was reinforced with the arrival of Yolanda de Both (36) in the position of CFO. Before assuming this position, Yolanda de Both held various management positions at Mars and Philips. By the addition of Yolanda de Both, OTTO fulfils its ambition to have at least 50% of the (sub) top positions held by women.
OTTO has taken a provision in connection with a discussion of the company with the tax authorities concerning the application of the Wet Vermindering Afdracht (Dutch Act on Reducing Contributions: (WCL). OTTO made use of the WVA as a government scheme for fiscally promoting the education of personnel. The situation at OTTO is not unique; currently, many companies are in discussion with the Dutch authorities on this issue. In the current procedure, it has been provisionally stipulated that OTTO will have to pay an additional tax over the period 2008-2011. OTTO has appealed against this decision and the company looks forward with confidence to the good outcome of this appeal.
Should OTTO nonetheless be ruled against and be required to pay the additional tax, OTTO is sufficiently robust to fulfil this obligation. This will not compromise the management of OTTO.