Utrecht-based Volmac Software Groep NV, the Dutch software house currently in merger talks with Cap Gemini Sogeti SA, reported 1991 turnover up 3.5% to the equivalent of $321.9m, a growth it describes as not satisfactory and lagging behind expectations. Net profit for the period fell 7.1% to $40.4m. Amsterdam-quoted Volmac blamed overall slackness in the Dutch economy for the disappointing figures, but also noted a widespread reluctance to invest in information technology. Customers aren’t sure what type of computing to invest in at the moment, and feel they can’t afford to make a mistake, said communications manager Hans van Grieken after a press conference yesterday. Volmac derives nearly 90% of its revenues from multi-vendor customised software systems and consultancy, and experienced a sharp drop in sales to the industrial, trade and services sector. This drop in turnover was, however, counter-balanced by increases in sales to the banking, insurance and public sectors. Non-Dutch sales were up 11% to $36.4m, with 70% of that figure realised across the border in Belgium. Of the proposed merger between Volmac and the Benelux activities of Cap Gemini, van Grieken stresses that a letter of intent to merge activities has been written, but the exact share structure of the new entity – dubbed Newco during discussions – has still not been agreed upon between Cap Gemini and Volmac parent company World Software Group. The Volmac perspective on the talks is that it would take over Cap Gemini’s Benelux operations, with Cap Gemini receiving an unspecified stake in the new company in return. Talking generally of the benefits to Volmac in concluding such a deal – which, he comments, was encouraged right from the start from its pan-European clients in the banking sector – van Grieken emphasised Volmac’s interest in collaboration with Cap Gemini’s majority-owned – and in due course to be wholly-owned – UK software and services company Hoskyns Plc. Volmac believes that Hoskyns’ speciality, facilities management is ready to take off in the Netherlands this year, and is keen to share knowledge with Hoskyns on the subject – Volmac knows the Dutch market better than most, Hoskyns how to manage facilities efficiently.
