Acando Interim report January 1-June 30, 2017

Second quarter April 1 – June 30, 2017

• Net sales totaled SEK 613 m (578)
• Operating profit amounted to SEK 55 m (62)
• The operating margin was 9.0% (10.7)
• Profit after tax was SEK 41 m (62)
• Earnings per share were SEK 0.40 (0.60)

Accumulated January 1 – June 30, 2017

• Net sales totaled SEK 1,234 m (1,104)
• Operating profit amounted to SEK 130 m (96)
• The operating margin was 10.5% (8.7)
• Profit after tax was SEK 95 m (86)
• Earnings per share were SEK 0.93 (0.83)
• Cash and cash equivalents totaled SEK 56 m (64)

Statement by Carl-Magnus Månsson, CEO

A continued healthy financial trend with strong growth and rising profits was posted for the first half of the year. Altogether, we grew our sales by 12 percent to SEK 1,234 m and increased profits 35 percent to SEK 130 m. At 10.5 percent, our operating margin is the highest ever for the first six months of the year. In the year’s second quarter, we grew our sales to SEK 613 m, our highest second quarter sales to date, despite the negative effect of fewer working days compared with last year.

The positive financial trend is a result of our capacity to develop and thereby remain relevant for customers, partners and employees.

Acando’s innovation survey was launched during the quarter, and clearly shows that many larger companies are focusing their innovation capacity on increasing their customer relevance in a world that is rapidly and continuously changing, not least due to all the possibilities opened by digitalization. Acando’s strategy of combining technology, as the driver, together with behavioral insights is thus becoming increasingly relevant. The acquisitions of Transformator Design and Daytona strengthen our capabilities in terms of understanding the customer perspective and securing capacity to design a full omnichannel customer experience, digital and analog. Altogether, this gives us a unique position from which we can not only support definitions of strategies with a strong customer focus, but are also able to realize these through transformative projects ranging from the creation of in-house digital capabilities to the realization of technical solutions. Our compiled expertise makes us unique in the Nordic market.

Acando’s strategy of providing customers with a unique possibility for capitalizing on our partner relationships is based on a portfolio of strong, relevant partners and long-standing partner relationships. During the quarter, we expanded our partner portfolio to strengthen our capabilities in the retail/fashion segment and in the cloud-based business systems solution area, both of which are experiencing vigorous growth. More importantly, we were presented with the Partner of the Year award for Sweden by Microsoft for our ability to create innovative and transformative solutions based on Microsoft’s products and services. Moreover, Acando has once again been chosen as an Inner Circle Partner for Microsoft Dynamics, an exclusive global selection of Microsoft’s most strategic partners.

Our success relies entirely on our employees’ ambition and capacity to create relations of trust with our customers and their employees. These relationships engender the security to challenge one another and, through shared experiences, abilities and skills, to identify innovative solutions and approaches. We are growing and take pride in the increasing numbers that wish to join us and to continue this quest of creating the most challenging and developing environment for those that have the desire and the courage to match.

This report comprises information that Acando AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Market Act. This information was submitted through the agency of the above contacts for publication on August 17, 2017 at 08:00 a.m. (CEST).

For further information, please contact:
Carl-Magnus Månsson, President and CEO +46 (0)8 699 70 00
Anneli Lindblom, CFO +46 (0)8 699 70 00

Acando is a consulting company that leverages an equal balance of specialist technical expertise and human behavioral insight to innovate, streamline and mobilize organizations for sustainable change. The Group has approximately 1,700 employees allocated over five countries. Acando had sales of more than SEK 2 billion in 2016 and is listed on Nasdaq Stockholm.