YEAR-END RELEASE 2005 – HiQ INTERNATIONAL AB
HiQ 2005 – somewhat faster than the surroundings
• Net sales increase to SEK 720.5 (512.9) million, an increase of 40 percent • Operating profit (EBIT) increases to SEK 148.3 (71.1) million, corresponding to an operating margin of 20.6 (13.9) percent. • Pre-tax profit increases to SEK 149.5 (73.3) million • Profit after tax increases to SEK 108.5 (51.7) million • Earnings per share increase to SEK 2.20 (1.08) • The Board's dividend proposal to the AGM is SEK 2.10 per share. • In February 2005 HiQ announced a new order from the Swedish Defence Materiel Administration (FMV) for development of simulators to train combat pilots for the JAS 39A Gripen. The order amounts to SEK 21.1 million • In March HiQ announced a cooperation agreement with GTECH Corporation to develop a new gaming platform for Veikkaus in Finland. The order is worth around SEK 160 million over three years • In October HiQ launched a new testing centre for mobile terminals • HiQ signed 16 new general agreements in 2005 with clients such as the National Post and Telecom Agency, Scania and the Swedish Defence Materiel Administration. 2005 in brief In 2005 HiQ had its strongest year to date. HiQ shows sales growth of 40 percent and simultaneously achieves an operating margin of 20.6 percent. Because of our strong performance and our positive cash flow we have an outstanding financial situation today, with liquidity totalling SEK 133.7 million. The Board of Directors proposes a dividend of SEK 2.10 per share. The market for specialised IT consulting services has experienced strong demand during the year. HiQ holds a clear position with a specialized offering that is in demand from customers in many industries, which when combined with a stable organization, strong driving force, good delivery capacity and an very cost-effective organization, enables us to achieve very strong results. Developments have been good in all subsidiaries and geographic markets in 2005, with strong growth and good margins. Finance, telecoms, gaming and entertainment, and the automotive industry are important growth sectors for HiQ in which we continue to develop very well. We dedicated our efforts in 2005 to expanding our presence in all of the industries in which we are active. As a result, today we are a key player in many industries. HiQ is growing under profitability and has recruited many new employees; 187 people began working at HiQ during the year. Recruitment has occurred with continued high capacity utilisation at all subsidiaries. For further information, please contact: Lars Stugemo, President and CEO, tel. +46 (0)8-588 90 000 Annika Billberg, Head of Corporate Communications and Investor Relations Manager, tel +46 (0)8-588 90 015, +46 (0)704-200 103.