YEAR-END REPORT 1 January–31 December 2006

Strong growth and profitability in the fourth quarter

Period 1 January - 31 December 2006 compared with the corresponding period 2005:

• Net sales were SEK 1,116 million (646), representing an increase of 73 percent.
• Operating profit reached SEK 83m (48), giving a rise of 73 percent.
• Profit after tax amounted to SEK 84m (54), an increase of 56 percent.
• Earnings per share were SEK 1.01 (0.86), representing an increase of 17 percent.
• Cash flow from operations increased to SEK 39m (31).

Fourth quarter 2006 compared with fourth quarter 2005:
• Net sales amounted to SEK 339m (200), representing an increase of 70 percent.
• Operating profit reached SEK 43m (24), giving a rise of 79 percent.
• Profit after tax was SEK 44m (30), an increase of 47 percent.

Significant events further to the end of the year:
• Acquisition of Deva Management Consulting in Stockholm.
• Establishment of a new subsidiary in Denmark together with subsidiary company Webmedia partly owned by Acanda.

Overview of the capital structure and dividend policy:
• The Board of Directors has resolved to propose to the Annual General Meeting of Shareholders the adoption of a share split of 2:1 combined with a mandatory redemption procedure. The procedure will imply that each share will be divided into one ordinary share and one redemption share.

The redemption shares will be redeemed for SEK 1.30 per share, representing a transfer of SEK 100 million to the Company's shareholders.
•The Board of Directors has adopted the following dividend policy with effect as of the financial year 2007: "The objective is that the long-term dividend level shall amount to at least one third (1/3) of the Group's reported profit after tax pertaining to the Parent Company's shareholders."


SUMMARY OF THE PERIOD 1 JANUARY – 31 DECEMBER
The growth rate in Group sales for the year amounted to 73 percent in comparison with the corresponding period last year. Growth in Sweden was 34 percent, of which the organic growth in the previous AcandoFrontec represented 20 percent.

Results for the fourth quarter have been significantly marked by a positive trend of capacity utilisation in Sweden, further to the strengthening of sales efforts in the third quarter.

Profitability in the acquired Resco operations in Sweden and e-motion has significantly improved and contributed in the fourth quarter to improved margins.

Good growth can be witnessed for operations outside Sweden. This growth, pro forma, has been as follows compared with last year:
• Germany, +32 percent.
• Finland, +43 percent.
• The Baltic States and Eastern Europe, +101 percent (through the partly owned Webmedia).

For further information, please contact
Lars Wollung, President and CEO tel. +46 (0)8-699 72 11
Per Killiner, CFO tel. +46 (0)8-699 74 06

About Us

Acando is the consulting company who with equal parts of technical excellence and insight into human behavior - innovates, streamlines and mobilizes organizations for sustainable change. The Group has approximately 1700 employees allocated over five countries. Acando had sales of more than 2 billion SEK in 2016 and is listed on Nasdaq Stockholm.

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