Dutch computer services firm Getronics, which is about to take over competitor PinkRoccade, posted 2004 core profits below expectations, but announced a cash dividend of €0.01 a share after years without a payout.

"[A dividend of one cent] isn't much, but it comes from a good heart," chief executive Klaas Wagenaar told a news conference, adding that he intended to pay out 25 per cent of clean earnings per share, or a bit more, in years to come.

Analysts said that the dividend showed management's confidence in the future, despite a continued tough market for IT services.

The company, one of Europe's top information technology services firms with 21,000 staff in 30 countries, had a turbulent two years, during which it went through a financial crisis and did not pay dividends.

Getronics said yesterday that 2004 earnings before interest tax and amortisation (EBITA) were €68 million, compared to a year-ago loss of €19 million.

Net profit, however, was €32 million, more than a forecast of €14.1 million, after an unexpectedly high tax gain of €26 million.

Net profit was also boosted by an €8 million gain from the sale of operations and participations.

But revenue dropped slightly more than expected to €2.375 billion, while the poll had shown a median consensus expectation of €2.392 billion, or down 10 per cent after a 9 per cent decline in the first nine months.

Mr Wagenaar, who drew hope from stable services revenues in the fourth quarter, said Getronics was set for growth.

"The euro zone market was the biggest disappointment in 2004, but service revenues were up for the first time in the fourth quarter if currency rates and Japan are excluded," Mr Wagenaar added.

He said that new contracts and merger synergies would boost sales.

While Getronics said it expected "small growth of service revenues" for the ongoing business at constant currency rates, it would continue to lower its emphasis on non-service related product sales with low profitability. - (Reuters)