Interim Report: January 1 – March 31 2016
STOCKHOLM, APRIL 27, 2016 – 25 per cent growth and strong cash flow.
Summary of the first quarter, January–March 2016
- Net sales amounted to SEK 540.8 M (431.8), up 25 percent.
- EBITA amounted to SEK 30.6 M (33.7), corresponding to an EBITA margin of 5.7 percent (7.8).
- Operating profit amounted to SEK 18.2 M (24.4) MSEK, representing an operating margin of 3.4 percent (5.7).
- After-tax profit totaled SEK 12.7 M (19.6).
- Earnings per share after dilution amounted to SEK 0.42 (0.66).
- Cash flow from operating activities was SEK 150.2 M (40.5).
Significant events during the first quarter, January–March 2016
- Renewed and expanded agreement with technical engineering company, worth SEK 31 M over three years.
- Renewed and expanded agreement with German car manufacturer; order value of SEK 75 M over three years.
- Acquisition of software company 5D System.
- The Board of Directors proposes an unchanged dividend of SEK 2.25 (2.25) per share.
Significant events after the end of the period
- Letter of allotment for planning and monitoring system worth approximately SEK 35 M, has been filed for appeal.
- The subsidiaries Tekis and Cartesia were merged under the Sokigo brand.
- The subsidiary Cad-Q was renamed Symetri.
- Framework agreement signed with Inera regarding e-health application management.
An international organization that wins new businesses
25 percent growth and 52 percent recurring revenue
We are starting the year by reporting strong first-quarter growth of 25 percent compared with the year-earlier period. The main underlying reason is our July 2015 acquisition of Transcat PLM. Our cash flow is very robust during the period and our recurring revenue from support and maintenance accounted for 52 percent of net sales. This is the highest share on record for a first quarter. The result is affected by the transition of our Autodesk business and that we have not been able to gain full leverage in some our units.
We are continuing the transformation
Over the past number of years, we have gradually transformed Cad-Q in the Design Management business area from a dedicated CAD supplier to a broad-based strategic business partner offering software and services for design, construction and product data information. To highlight the transformation that has occurred, Cad-Q has been renamed Symetri and its profile and organization – with 300 employees in the Nordic region and the UK – has been more clearly defined. We have also strengthened and supplemented our current facility management offering through our acquisition in February of the software company 5D System.
In the Product Lifecycle Management business area, TechniaTranscat’s transformation is ongoing, taking it from a Nordic organization with about 160 employees to a European international organization with more than 400 employees. In parallel with our integration efforts, we are now securing major agreements with customers in the Nordic region, Germany and the US; an achievement that would not have been possible if the companies had continued to act independently, thus demonstrating the strength of the combined company and offering.
Significant potential in public sector
The Process Management business area reported a stable start to the year with several new customer agreements and there is positive momentum throughout the organization. For example, we received a letter of allotment from the City of Gothenburg valued at more than SEK 35 M, which was appealed after the close of the period and we are awaiting the decision of the Administrative Court of Appeal. I believe there is major potential moving forward to further advance the business area’s offering to target public authorities, municipalities and sectors such as schools and health and care services, where our systems can have major societal benefit.
We simplify everyday life for our users
We are one of the leading suppliers in Europe of software and services for design, construction and product data information in an international market where we are continuing to secure customer agreements. In parallel, we contribute to the welfare of society through digitalization of the Swedish public sector by providing IT solutions that can process large volumes of documents and cases. We constantly evaluate acquisitions to strengthen our offering and continue our profitable journey of growth. Together with our customers, we simplify and improve everyday life for the more than 600,000 engineers and administrators across the globe who use one of our software or systems solutions on a daily basis.
Staffan Hanstorp, President and CEO
The information in this interim report is such that the Addnode Group must publish under the Securities Market Act and/or the Financial Instruments Trading Act. The information was released for publication on April 27, 2016 at 10.00 a.m
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