October – December 2014
- Sales amounted to SEK 354.1 million (313.4)
- EBIT was SEK 23.7 million (22.2)
- EBIT margin was 6.7% (7.1)
- Net profit after tax for the period was SEK 18.6 million (16.3)
- Earnings per share amounted to SEK 0.10 (0.09)
January – December 2014
- Sales amounted to SEK 1,262.9 million (1,195.1)
- EBIT was SEK 65.8 million (60.2)
- EBIT margin was 5.2% (5.0)
- Net profit after tax for the period was SEK 48.8 million (41.5)
- Earnings per share were SEK 0.27 (0.23)
Key events during the year
- Cybercom returned to growth and showed 6% (-11) organic sales growth for the year and 13% (-11) for the fourth quarter
- Outstanding business during the year included the numerous agile teams for Ericsson, secure identification services for the Swedish Tax Agency and the Finnish Population Register Centre, Cybercom's Compliance Portal for SLL and AB Svenska Spel, infotainment solutions for Volvo Group Trucks Technology, Connectivity Management for Cable and Wireless Communication's mobile networks in the Caribbean, implementation of a payment solution for WyWallet and SF Bio's payment app
- Cybercom was recognised for Connectivity, sustainability and international labour during a visit by the UN's Ban Ki-moon
- Our financial position improved and the equity ratio amounted to 72.8% (69.7)
- The debt ratio was lowered to 6% (10)
- The board of directors proposes a dividend of SEK 0.05 per share, totalling SEK 9,021,974.75, equivalent to 18.5% of net profit
- The company's financial targets remain unchanged
Comments from the CEO
When we look back on 2014, it is gratifying to note that we are back to showing growth, in line with our strategic plan. We are in a stronger financial position, with good cash flow and a good equity ratio. I am pleased that the board has decided to propose a dividend to our shareholders, which is an important milestone for us and affirmation that our business development is resulting in a stronger and better Cybercom.
With SEK 354.1 million (313.4) in sales in the fourth quarter, we continued with the good growth we turned to in the third quarter. For the full year, we therefore grew by nearly 6%, adding up to sales of SEK 1,262.9 million (1,195.1). This is a consequence of positive performance by all segments and favourable subcontractor business in the public sector, where we are benefitting from our valuable framework agreements.
We are successfully focusing on selected clients for whom we add value and can broaden our Connectivity business. The Swedish Tax Agency, the Swedish National Police Board, the Finnish Population Register Centre and the Finnish National Board of Education are examples of clients in the public sector where our relationships developed well during the year. We are seeing the same thing among our industrial and telecom clients such as ASSA ABLOY, Cable and Wireless Communication, Doro, Ericsson, SF Bio, TomTom and Volvo Cars, as well as Finnish MTV and Itella. During the year we have also formed many new relationships where we see great potential in increasing our cooperation, such as with Atlas Copco, Autoliv, Bravida, Husqvarna, the Swedish Film Institute and WyWallet.
Our EBIT profitability improved by 7% in the fourth quarter to SEK 23.7 million (22.2), resulting in a margin of 6.7% (7.1). The full-year margin strengthened to 5.2% (5.0) through EBIT of SEK 65.8 million (60.2). Net financial income developed well and we increased net profit after tax for the period to SEK 18.6 million (16.3).
We are working in the right direction, but we can deliver better results by continuing to develop our strategic sales efforts, our focus on packaged services, our successful specialisation in Secure Connectivity and our cost structure.
Throughout 2014, we experienced a market of both initiatives and restraint. There were many large procurements, and we held many interesting business dialogues with both existing and new clients. At the same time, the business climate was subdued by the troubled macroeconomic situation. We do not expect this market situation to change in the near term, and we are continuously adapting. During the year, we implemented changes to increase competitiveness, including in the Stockholm operations and in the Öresund region, where we strengthened the management and streamlined the organisation. We are very confident about the entire Öresund region, and we see good opportunities.
Overall, we are living in exciting times with ever new opportunities. Our clients are always looking for ways to drive business transformation, deliver competitive differentiation and improve their customer experience. There is a great realisation that the connected world, digitisation and the Internet of Things can help them deliver on new goals. Cybercom is involved in developing public services for the online connected citizen, we are enhancing the user experience and accessibility for the connected consumer. We are helping communities to become smarter through online infrastructure and we are helping industry to improve the efficiency of resources and energy. We have a strong position with our service offering in Connectivity, which we regard as the route to better business and a more sustainable future. There is great market potential here for the coming years. This is what inspires me and my colleagues.
We brought ourselves closer to our goals in 2014. Looking ahead, we do so with confidence, but also well aware that we have to deal with the many challenges of the market. Our goal in 2015 is to generate more profitable growth and improved value for our shareholders.
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 and IR Manager +46 70 864 47 02