DPA FLEX GROUP N.V. TRADING UPDATE

 | Source: DGNV N.V. i.l. DGNV N.V. i.l.

AMSTERDAM - 30 May 2008
 
 
Turnover and result development
In the first 4 months of 2008, DPA Flex Group N.V. turnover decreased compared to the same period in 2007. The EBIT achieved in the first four months is positive but shows the same development. The development per operating company is as follows:
  •         The decrease in activities in the financial segment that started at DPA Flex Nederland at the end of last year, has continued in the beginning of 2008. DPA Flex Nederland has not been sufficiently able to compensate this decrease by growth in other segments. This resulted in a turnover decrease in the first four months compared to the same period in 2007. DPA Flex Nederland has achieved a reduction of operational costs. This does not sufficiently compensate for the reduced gross margin, so that the EBIT contribution of DPA Flex Nederland to the group's result has become negative.
  •         The turnover of GEOS has decreased a little compared to the same period last year, which is the result of the reduced number of projects and the increased number of non-productive hours. Under these circumstances, as a result of cost reduction, the EBIT-margin has only slightly declined.
  •         The combination of Supply Chain People and Conink Consultants shows excellent growth figures. The integration, now completed, has temporarily resulted in a higher cost level, which reduced the EBIT margin.
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    Steps towards the future
    Mr. Michel van Hemele was appointed interim CEO of DPA Flex Group and has been fulfilling this role since May 1st this year. This temporary appointment of Michel van Hemele allows the Company to search for a new CEO in the next months.
     
    Based on the first assessment of the current situation, the new board has already identified a number of targets in order to achieve improvements in several areas. These targets are:
    - increasing name recognition;
    - communicating an unambiguous market positioning;
    - increasing commercial strength;
    - introducing a more direct command and control model;
    - increasing the efficiency of administrative processes.
     
    In order to achieve these targets various improvement processes were initiated recently. By focussing on these commercial and operational improvements, the board expects to be able to improve EBIT margins in the future. Depending on the uncertain market situation (credit crisis, decreased economic prospects) the first visible effects are expected in the second half of 2009. Therefore, 2008 will be a transitional year.
     
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    Profile of DPA
    DPA Flex Group N.V. is a specialist secondment provider listed on Amsterdam Euronext. The company is an ambitious and trend-setting supplier of knowledge, providing value-creating flex professionals.
    The operating companies, trading under the names of DPA [Flex Professionals], DPA Supply Chain People, Geos IT Professionals and Conink Consultants, predominantly meet temporary needs for knowledge and expertise in the areas of Finance, IT, Supply Chain and Banking & Insurance within companies and institutions.
     
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    Note for the editor (not for publication):
     
    For further information:
    Jan van Duijn, CFO
    +31 (0)20 515 15 55
     
    Visiting address
    Thomas R. Malthusstraat 3-B 1066 JR Amsterdam
    The Netherlands
     
    Postal address
    PO Box 9396 1006 AJ Amsterdam
    The Netherlands
    Telephone: +31 (0)20 515 15 55 Fax: +31 (0)20 515 15 52 E-mail: investorrelations@dpaflex.com
    Website: http://www.dpaflex.com/ir