January – March 2014
· Sales amounted to SEK 309.1 million (319.2)
· EBIT was SEK 15.8 million (15.7)
· EBIT margin was 5.1% (4.9)
· Net profit after tax for the period was SEK 11.4 million (11.1)
· Earnings per share were SEK 0.06 (0.06)
· 18% growth and improved profitability in Finland
· Stronger position in public sector
· Good results from Mobile World Congress, Barcelona
· New client 4T Sweden regarding WyWallet service
· New international client Cable & Wireless Communications
· Outsourcing deal for development of infotainment with Volvo Group Trucks Technology
Comments from the CEO
The first quarter of the year has developed in line with our expectations. We are seeing a good underlying market, with Connectivity having an increasing impact in more areas and in all sectors. The internet of things is no longer just a concept but a reality to enable product innovation, efficiency gains, sustainability gains, and to strengthen the competitiveness of our clients. Our expertise is attractive.
General market trends in the Nordic countries were similar to those in the previous quarter, with somewhat cautious but stable demand. We have a good base business that is growing through both the extension and the expansion of ongoing assignments. The current macroeconomic situation and concern around the world is leading to a degree of caution in the propensity to invest, and to long decision-making processes for our clients. The competition remains tough. These are challenges that we consider ourselves equipped to meet.
In the whole group, sales in the first quarter amounted to SEK 309.1 million (319.2). This is a decrease of 3%, compared with the rate of decrease of 11% we experienced during full-year 2013. Our Finnish business has developed very well, with sales increasing by 18%.
EBIT for the quarter was SEK 15.8 million (15.7), which is in line with last year, but this year also includes a number of proactive investments made in areas such as recruitment and marketing. For example, we participated in the Mobile World Congress in Barcelona with our own stand. The operating margin amounted to 5.1% (4.9). Net profit after tax for the period increased slightly, to SEK 11.4 million (11.1).
We continue to deliver on our strategy, and step by step we are expanding in selected client accounts, and we are balancing our client portfolio towards a more even distribution between the public sector, industry and telecom. We are developing our business in the right direction, and during the period we strengthened our offering in advisory services and e-health. These are activities in areas where we see good potential.
Our strong offering in Connectivity led during the quarter to new clients and new assignments, including a Connectivity Management assignment with operator Cable & Wireless Communications, development of a BI solution for the Swedish International Development Cooperation Agency, software development of some core elements of TomTom’s solutions and the development of a security service for Karolinska Institutet.
The exciting development of both Cybercom and our clients in the connected world continues.
We have further work to do to improve, and I see good prospects for this during the year.
Stockholm, May 5, 2014
President and CEO
For additional information, please contact:
Niklas Flyborg, President and CEO +46 70 594 96 78
Camilla Öberg, CFO +46 73 398 50 01
Kristina Cato, Communications Director and IR Manager +46 70 864 47 02