Cybercom Group Year-end financial report 2010

2011-02-08, 07:30

October – December

· Sales reached SEK 402.7 million (446.3)
· EBITDA totalled SEK 36.9 million (49.3)
· EBITDA margin of 9.2% (11.0)
· EBIT amounted to SEK 24.4 million (38.7)
· EBIT margin of 6.1% (8.7)
· EPS of SEK 0.67 (0.74)

January – December

· Sales reached SEK 1,528.9 million (1,751.6)
· EBITDA totalled SEK 112.2 million (144.1)
· EBITDA margin of 7.3% (8.2)
· EBIT amounted to SEK 61.5 million (-177.7)
· EBIT margin of 4.0% (-10.1)
· EPS of SEK 1.21 (-6.23)
· Total of 1,727 employees (1,818)
· Improved equity/assets ratio of 61.8% (53.3)

Efficient organisation for improved profitability

For the fourth quarter, sales totalled SEK 402.7 million (446.3), with an EBITDA of SEK 36.9 million (49.3), giving an EBITDA margin of 9.2% (11.0). We started recovering in the Nordic market, but our relatively weak trend continued in Tampere, Finland. Market conditions gradually improved toward the end of the year, and we rate our conditions for organic growth as favourable.

In 2010 we focused extensively on optimising our Group structure, which was essential after years of major acquisitions. During the second half of the year, we therefore devoted time to introducing a new organisation. In Sweden we merged three companies into one and organised our operations in nationwide business areas around our core offerings. We have created an equivalent organisation in Finland and see substantial opportunities for future synergies. With a more efficient organisation, we improve our profitability in the long-term but we must also reduce our cost base in the short-term.

We have started strengthening our sales capacity in the Nordic countries and have also established a clearer strategy for our offshore units that are linked to our Swedish and Finnish business areas. We’re now gearing up for 2011. The market has improved, in particular for consulting assignments, and we are now increasing numbers of business discussions for larger undertakings. A predominant proportion of these enquiries request delivery from low-cost countries, which benefits Cybercom.

We also took a strategic step during the year by creating a broad portfolio of cloud service offerings. This is a long-term investment along with key partners. It has paved the way for broader opportunities in the public sector, but will also yield business opportunities in other industries.

In my opinion, Cybercom's conditions for 2011 are good. We have grouped our operations to create a more homogenous focus and clarity in our offerings. The market in the Nordics, where Cybercom has the largest proportion of its operations, is now more stable. With a continued focus on profitability, we are building an international Cybercom for long-term business.

Stockholm, 8 February 2011

Patrik Boman

President and CEO

For more information, please contact:

Patrik Boman, president and CEO +46 73 983 89 79

Odd Bolin, CFO +46 70 428 31 73

Kristina Cato, communications and IR manager +46 70 864 47 02

Cybercom Group is an IT consultancy that offers global sourcing for local and international business transactions. The Group is a recognised supplier in security, internet and mobile services, embedded systems, and telecom management. Thanks to its extensive industry and operations experience, Cybercom offers strategic and technical expertise in telecom, industry, media, the public sector, retail, and banking and finance. Cybercom’s consultants operate around the world and the company has 25 offices in 10 countries. Cybercom was founded in 1995 and has been quoted on the NASDAQ OMX Nordic exchange since 1999. 

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