Combitech's interim report for the first quarter 2014
Combitech, the technology consultancy company and an independent subsidiary within the defence and security group Saab AB, has today released its interim report for the period 1 January to 31 March 2014. Combitech continues to grow organically and has taken key steps in the first quarter to ensure its future growth in the Nordic consultancy market. Sales revenue totalled SEK 447 million during the period.
Highlights from the first quarter of 2014:
Sales revenue totalled SEK 447 million, up 5.7 per cent over the corresponding period last year. Currently, the company has 1,420 employees, which is an increase of 18 since the start of the year.*
In January this year, Combitech took over Saab Systems Oy in Finland, with 57 employees and operations in four locations. The company is a systems integration specialist in the defence and security sector. The deal was part of the strategy for growth in the Nordic consultancy market. The company's operations were integrated into Combitech's in the first quarter and are now run under the name of Combitech Oy.
The acquisition of the Norwegian firm, Bayes Risk Management, was completed in March when Combitech purchased the remaining 30% of the company's shares after having acquired 70 % in August 2012. Bayes Risk Management has now been integrated into Combitech AS, which was established in 2010. The entire business is now being operated under the name of Combitech AS.
A number of significant framework agreements were entered into during the period. These include agreements with Transitio and the Swedish National Police Board (RPS).
"Our focus is to grow in the Nordic consultancy market and, in the first quarter, we have taken several important steps in that direction. Market conditions remain subdued, particularly on the industrial market, and this has resulted in slightly lower utilization at the beginning of the year, says Combitech's CEO, Marie Bredberg.
* Comparative figures for 2013 have been restated as a result of organisational and structural changes. Former Saab operations in Finland were transferred to Combitech on 1 January 2014.
KPIs, JANUARY-MARCH 2014:
Orders worth SEK 418 million were secured in the first quarter. This figure is slightly lower than the SEK 424 million last year. Order intake remains stable.
Income from sales amounted to SEK 447 million, up 5.7 percent over the corresponding period in 2013. The improvement is mainly due to increased turnover in the defence sector. The percentage of external sales outside the Saab Group was 60 per cent and 7 per cent of sales were in markets outside of Sweden.
Earnings and margin
Operating profit (EBIT) was SEK 25 million, compared to SEK 44 million in 2013. The operating margin was 5.6 per cent compared to 10.4 per cent in 2013. The lower operating margin is due to lower utilization rate at the start of the year.
Operating cash flow
The operating cash flow was SEK 57 million, which is lower than the SEK 78 million for the corresponding quarter in 2013, but is still well in line with performance.
For further information
Charlotte Magnusson, Head of Communications, Combitech
Phone: +46 734 184 143, e-mail: email@example.com
Ann-Sofi Jönsson, IR Manager, Saab AB
Phone: +46 8 463 02 14, e-mail: firstname.lastname@example.org
Combitech is a Nordic technology consultancy company with more than 1,400 employees in Sweden, Norway and Finland. It is an independent subsidiary within the defence and security group Saab AB. For more information, please visit www.combitech.se