Interim Report: January 1 – June 30 2016
STOCKHOLM, JULY 22, 2016 – 36% growth and strong earnings improvement in the quarter
Second quarter summary, April – June 2016
- Net sales grew 36 per cent to SEK 528.4 m (387.3).
- EBITA increased to SEK 37.0 m (22.6), corresponding to an EBITA margin of 7.0 per cent (5.8).
- Operating profit increased to SEK 23.3 m (12.8), corresponding to an operating margin of 4.4 per cent (3.3).
- Profit after tax increased to SEK 15.6 m (8.7).
- Earnings per share after dilution increased to SEK 0.51 (0.29).
- Cash flow from operating activities was SEK -28.2 m (23.3).
First half year summary, January – June 2016
- Net sales grew 31 per cent to SEK 1,069.2 m (819.1).
- EBITA increased to SEK 67.6 m (56.3), corresponding to an EBITA margin of 6.3 per cent (6.9).
- Operating profit increased to SEK 41.5 m (37.2), corresponding to an operating margin of 3.9 per cent (4.5).
- Profit after tax was SEK 28.3 m (28.3).
- Earnings per share after dilution were SEK 0.93 (0.96).
- Cash flow from operating activities was SEK 122.0 m (63.8).
Significant events during the second quarter, April – June 2016
- PLM services agreement signed with globally leading provider of transportation systems - order value worth more than SEK 20 m.
- Framework agreement signed with Inera for e-health application management.
- Contract award decision for planning and monitoring system with order value of approximately SEK 35 m appealed for review.
- Subsidiaries Tekis and Cartesia merged under the Sokigo brand.
- The subsidiary Cad-Q renamed to Symetri.
Significant events after the end of the reporting period
- Acquisition of software company EssVision.
- Establishment of new software company in Norway focusing on the pharmacy and e-health sectors.
A good quarter with organic growth
Organic growth and stronger margins
During the second quarter we had growth of 36 per cent, a stronger EBITA margin, and a sharp improvement in earnings per share compared with the same quarter a year ago. Organic growth for comparable units was six per cent, and recurring revenue from support and maintenance agreements and SaaS solutions accounted for nearly half of net sales – in other words a good quarter!
Further focus on the public sector
In the Process Management business area we are contributing to societal benefit by being a driver of digitalisation in the public sector. We have won new agreements and are making exciting inroads into new areas. During the quarter we signed a framework agreement in e-health with Inera, and we are awaiting a decision on the appealed contract award decision from the City of Gothenburg, worth more than SEK 35 m. After the end of the period we launched the subsidiary Pharmasolutions AS, which will focus on system solutions for the e-health and pharmacy market in Norway. IT deliveries to the Norwegian pharmacy market amounted to approximately NOK 500 m in 2015, and demand is expected to accelerate in pace with increased digitalisation in the e-health sector, and thus we see major business potential in this area.
International arena for Design and PLM
In the Design Management business area, the shift from the Cad-Q brand to Symetri has made it clear that we are one of northern Europe’s leading suppliers of software and services for design and product data information. We have had good demand from the construction and property market in Sweden and favourable performance for our Interaxo project tool in Norway. Through the acquisition of Transcat in 2015 we expanded our international reach in the Product Lifecycle Management (PLM) business area. We are attracting a growing number of customers both in Europe and the USA, who attach a premium to the fact that we have a level of competence, size and international organisation that sets us apart from our competitors. Among other achievements, during the quarter we signed a service agreement worth more than SEK 20 m with an internationally leading US-based supplier of transport systems.
We are continuing our acquisition journey
During 2016 we continued on our acquisition journey and welcomed an additional two software companies to the Group. In February we acquired 5D Systemkonsult, a niche provider of systems for the property management sector, and after the end of the second quarter we acquired the software company EssVision, which broadens our information management product portfolio and strengthens our comprehensive offering to municipalities and authorities. Our acquisition prospects remain good, and we are continuously evaluating a large number of acquisition candidates.
We work in markets with good opportunities for profitable growth. By developing our existing operations and successively acquiring companies, we are leveraging our niche offerings to be even more competitive in an international arena.
Staffan Hanstorp, President and CEO
The information in this press release is such that Addnode Group AB (publ) must disclose in accordance with the Market Abuse Regulation, the Swedish Securities Market Act and/or the Financial Instruments Trading Act. The information was released on July 22, 2016 , at 11:00 AM CET.
For more information, please contact:
Staffan Hanstorp, President and CEO Addnode Group AB
Tel: +46 (0) 73 377 24 30, e-mail: firstname.lastname@example.org
Johan Andersson, CFO Addnode Group AB
Tel: +46 (0) 704 205 831, e-mail: email@example.com
About Addnode Group
Addnode Group acquires, operates and develops entrepreneur-driven companies that supply software and services to markets in which we have or can achieve a leading position. We are one of Europe’s leading suppliers of software and services for design, construction and product data information, and a leading supplier of document and case management systems to public sector clients in Sweden and Norway. More than 600,000 engineers and officials use our system solutions on a daily basis.
We are 1,200 employees in Sweden, Austria, Denmark, Finland, Germany, India, Norway, Slovakia, UK, US and Serbia. Net sales in 2015 amounted to SEK 1,900 M. Addnode Group's Series B share is listed on Nasdaq Stockholm. For more information, please visit www.addnodegroup.com