The Synergon Group reached a sales revenue of 8,139 million HUF in H1 2010. The 6% deficit of Q1 was decreased during Q2. The modest, 3% deficit was reached in a business environment of very moderate impetus.

Beside the drop of the sales revenue, the structure of the sales revenue also decreased the EBITDA value; the EBITDA margin could be maintained on the level of 2009 thanks to the fast adaptability of the Company. The consolidated, half-year value of the EBITDA margin was 4%, which shows a minimal, 1% divergence, while its quarterly value was 3%, which is identical with the corresponding result of 2009.

The operating profit was 97 million HUF. In case of the in-year distribution of the earnings, it must be taken into account that year 2010 returns partly to pre -2009 experiences, when the first half of the year used to be of lower performance - with negative performance throughout several quarters -, of which 2009 deviated for the first time with a strong year-opening. Although H1 2010 does not live up to the outstanding performance of the corresponding period of 2009, this was the second year in which H1 closed with positive results. Moreover, new investments were neither launched in the private, nor in the public sphere, while both the private sphere and the public sphere of Hungary were dominated by austerity measures and cutbacks.

Márk Lazarovits, the CEO of the company announced:

“While the beginning of 2009 was about momentum, in the majority of cases throughout the past period of 2010 we could only meet opportunities that were slow to evolve and to receive a concrete form. We made significant efforts and continue to make such efforts towards understanding the altered needs of the different sectors, like the situation of the financial and the private sectors. In the financial and private sectors, we have continued to perceive a stand-by; only agreements aimed at replacement investment were concluded at the most. In the public sphere, the system, which undergoes a transformation after the elections, is naturally slow, however this year the situation is aggravated by the strict budgetary undertaking that has led almost every kind of investment to a halt. Due to the moderate nature of investments, there are currently no long-term, larger, service-oriented projects, thus the service level of the revenue dropped — although the current level of 57% can still be considered high.

In spite of the above, we practically maintained the level of our turnover. We managed to compensate for the loss of contribution resulting from the 3% deficit of the revenue with the help of the adaptability of the Company, which is also operable in the crisis, thus our half-year result continued to be positive.

Based on the experiences of the past months, the recovery predicted to take place following the election will be delayed and slower than originally expected. Still, it gives good reasons for optimism that a slow recovery is perceptible in the Czech Republic, where there are difficulties arising from the election and the crisis similarly to Hungary. The escalation of investment tendencies, which would mark the turn for better, is expected to take place later, around the end of this year and the beginning of next year.”

Synergon Information Systems Plc.

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