“After applying stress scenarios, Coface calculations indicate that the next years must bring solutions to increase the revenue, otherwise, the sector risks to register an extension of payment terms to suppliers, which fuels the risk of insolvency,” the report reads.
The survey included the 2013 financial statements of 1,263 companies operating in the IT and software distribution sector.
Thus, the companies reported an overall turnover of RON5.2 billion in 2013, down nearly 5% on the year. Nevertheless, 68% of the companies posted profit in 2013, while half of them posted higher profit.
“The significant difference between the negative evolution of turnover and the positive dynamics of the net result indicates a change in the financial structure of the companies, which faced a significant process of restructuring,” the report reads.
In 2013, there were 5,898 jobs in the IT distribution sector, up 7% on the year but down 18% compared with 2008.
According to Coface Romania, in 2013, IT companies continued the previous year’s trend, assigning significant investments to extend fixed assets.
The lower revenue and the above-average competition registered within the sector impacted the evolution of the companies in 2013. Thus, a risk analysis reveals that 15% of the analyzed companies have ceased their activity, with an average of 10 years of activity, an aggregate turnover of RON313 million and debts totaling RON336 million.
French group Coface provides solutions of protection against the risk of financial default of own clients, both on the domestic and the international market.