INTERIM REPORT FOR THE PERIOD JANUARY – SEPTEMBER 2008
Good profitability, high growth and strong financial position
January – September 2008
• Net sales increase by SEK 171.2 million to SEK 862.1 (690.8) million, an increase of 25 (19) percent
• Operating profit (EBIT) amounts to SEK 143.4 (127.2) million, an operating margin of 16.6 (18.4) percent
• Pre-tax profit amounts to SEK 145.8 (127.9) million
• Profit after tax amounts to SEK 104.5 (91.4) million
• Earnings per share amount to SEK 2.05 (1.82)
• Cash flow from operations amounted to SEK 111.0 (35.4) million
July – September 2008
• Net sales increase by SEK 52.0 million to SEK 266.7 (214.6) million, an increase of 24 (23) percent
• Operating profit (EBIT) amounts to SEK 45.6 (36.9) million, an operating margin of 17.1 (17.2) percent
• Pre-tax profit amounts to SEK 46.1 (37.0) million
• Profit after tax amounts to SEK 32.8 (26.4) million
• Earnings per share amount to SEK 0.63 (0.52)
• The acquired company TSG Test Solutions, now HiQ Quality Services, has been consolidated with effect from 2 July 2008
Significant events in 2008
• HiQ acquired Ace Simulation of Linköping, Sweden
• HiQ acquired TSG Test Solutions (HiQ Quality Services) of Espoo, Finland
• HiQ received a new order worth SEK 34 million from FMV (the Swedish Defence Materiel Administration)
• HiQ signed a new framework agreement with PTS (the Swedish National Post and Telecom Agency)
• HiQ was approved as a supplier by Verva (the Swedish Administrative Development Agency), allowing framework agreements to be signed with 80 authorities and government agencies in the county of Stockholm
• HiQ signed a framework agreement with Veikkaus, the Finnish state lottery
• HiQ signed a framework agreement with BAE Systems Bofors
2008 in brief
HiQ is continuing to develop well in 2008. Sales for the period increased by 25 percent to SEK 862.1 million and the operating result amounted to SEK 143.4 million, a margin of 16.6 percent. There has been a strong improvement in cash flow, which amounts to SEK 111.0 million.
HiQ is growing organically, supplemented with acquisitions. In February we acquired Ace Simulation AB, based in Linköping, which employs around 30 people. HiQ Ace’s clients are internationally leading players in the defence, automotive and telecoms sectors. HiQ Ace was consolidated with effect from mid-February.
In June we announced the acquisition of TSG Test Solutions, a specialist IT consultancy with offices in Espoo, Finland. TSG, now known as HiQ Quality Services, specialises in quality assurance and project management. Its clients include leading companies in manufacturing, telecoms and in banking and finance. HiQ Quality Services has been consolidated with effect from 2 July 2008. The acquisition strengthens HiQ’s offering within quality assurance, and with approaching 200 employees HiQ Finland has reached a critical mass that opens up new business opportunities.
HiQ has a strong position as a specialist service provider with broad geographical and market coverage, as well as very strong customer relationships with both leading international companies and established authorities in the Nordic Region. Clients include GTECH, the Swedish Emergency Management Agency (SEMA), Nokia, Ericsson, Saab, the Swedish National Tax Board, SEB, Tekes (the National Technology Agency of Finland), Tele2 and Volvo.
HiQ works with the technology that makes communication possible in our daily lives – at home, at work, in our cars, etc. And the need for communication is increasing – a development that is creating both high demand and many opportunities. The technology that allows communication is constantly developing, regardless of the economic situation.
The effects of the general slowdown in the global economy favour strong, specialist players with good client relations and a reputable brand. The turbulence during the past twelve months, seen mainly on the financial markets, is clearly also having an effect in other sectors. Among other things, the recession is resulting in the restructuring of a number of sectors, which creates opportunities for HiQ to win new assignments and market share.
In times of economic recession it is more important than ever to be a stable supplier in a strong financial position. With no borrowing against our balance sheet, strong cash flows and good liquidity, HiQ has great freedom to further advance its position in the market.
For further information, please contact:
Lars Stugemo, President and CEO, HiQ
tel. +46 (0)8-588 90 000
Annika Billberg, Head of Corporate Communications and Investor Relations
tel. +46 (0)8-588 90 015, +46 (0)704 200 103
HiQ International AB (publ) company registration no. 556529 -3205
Mäster Samuelsgatan 17, 9th Floor
SE-103 91 STOCKHOLM
tel.: +46 (0)8-588 90 000
fax: +46 (0)8-588 90 001