Since 2006, Cybercom has been in a significant growth phase, mainly accomplished through two major acquisitions. By achieving a strong cash flow, the company has also amortised the major part of the loans taken out in conjunction with these acquisitions. The company has reduced its net debt to SEK 150 million. Amortisation has steadily continued despite the recession that affected the 2009 and 2010 market. Cybercom has now signed a new loan agreement with improved terms for the coming four years. The agreement calls for an amortisation plan of SEK 11 million per quarter. Cybercom’s equity/assets ratio, 61.5% at 31 December 2010, is solid and cash flow from operating activities is satisfactory.
To prepare for coming years, Cybercom in 2010 streamlined its Group structure by merging its Swedish subsidiaries into one company, and modifying its organisation in Finland. Operations in Finland are somewhat affected by Nokia's new corporate strategy and partnership with Microsoft. However, no ongoing contracts will be broken and agreements will remain in effect until they expire, which for many agreements will happen in Q2. In 2010, Nokia accounted for about four percent of Cybercom's total revenue, and is expected to decrease in 2011, with a modest effect on annual performance. This motivated an impairment test, since the company established a customer relationship with Nokia in conjunction with the acquisition of Plenware Oy. The Board has therefore decided to recognise an impairment loss on the customer relationship of SEK 16 million in conjunction with the company’s interim report for January–March 2011. The impairment loss does not affect cash flow.
The Board of Directors believes that the equity remaining after the proposed distribution of profit for 2010 is in reasonable proportion to the scope of the company and Group's operations, and to its operative risks. The Board proposes dividend of SEK 0.50 per share for fiscal year 2010, a total dividend of SEK 18 million. The proposed dividend amounts to 42% of the Group's profit after tax and 1.9% of the Group's equity.
Find out more, contact:
Patrik Boman, CEO and President +46 73 983 89 79
Odd Bolin, CFO+46 70 428 31 73
Kristina Cato, IR and Communications Director +46 708 644 702