Niscayah Interim Report January–September 2010
- Sales amounted to MSEK 4,870 (5,660), of which the organic growth was -8 percent (-10).
- Sales of services amounted to MSEK 2,381 (2,459), of which the organic growth was 3 percent (1).
- Operating profit (EBIT), excluding restructuring costs of MSEK 200 in Q1, amounted to MSEK 253 (402), corresponding to an operating margin (EBIT) of 5.2 percent (7.1). Foreign exchange effects impacted operating profit by MSEK -21 (29).
- Profit before tax, excluding restructuring costs of MSEK 200 in Q1, amounted to MSEK 241 (381).
- The operating cash flow, excluding restructuring program, amounted to MSEK 203 (731).
- Net profit amounted to MSEK 29 (265) and earnings per share amounted to SEK 0.08 (0.72).
CEO, Håkan Kirstein’s comments:
The third quarter was characterized by challenging market conditions, particularly in the southern parts of Europe and in the countries within the US/UK/Ireland segment. Customers in these regions are postponing their security investments. Our sales of services are strengthening and the organic growth within services amounted to 1 percent during the third quarter, and to 3 percent during the period, compared with the preceding year.
We continued to implement the restructuring program during the third quarter with the aim of reducing costs, increasing the centralization within the countries and thereby raising efficiency in the company significantly. The program is expected to deliver annual savings of approximately MSEK 180 from the first quarter 2011.The savings amounted to approximately MSEK 25 during the third quarter.
The execution of the restructuring program is proceeding as planned, but continued to cause productivity disruptions in Sweden, Norway and Germany during the third quarter. This primarily impacted implementation, where the organic growth amounted to -14 percent. These productivity disruptions will gradually cease in line with the completion of the program. We are in a transformation process which will strengthen Niscayah in the long-term.
For further information please contact:
Håkan Kirstein, President and CEO +46 10 458 8000
Håkan Gustavson, CFO +46 10 458 8000
Johan Andersson, Investor Relations +46 10 458 8023
A press conference will be held at Niscayah's head office at Lindhagensplan 70 in Stockholm on November 4, 2010 at 10.30 a.m. CET. To follow the press conference by phone (and ask questions), please call:
Sweden: +46 (0)8 505 598 53
UK: +44 (0)203 043 24 36
US: +1 866 458 40 87
The press conference may also be followed online via the link: http://storm.zoomvisionmamato.com/player/niscayah/objects/yw5jmr9t/
Niscayah Group AB (publ) is a world-leading security partner offering complete security solutions for clients with high security demands within market segments such as banking and finance, industry, defense, healthcare and retail. Niscayah's services are based on modern technology and include access control, video surveillance, intrusion protection and fire alarm systems. www.niscayah.com
Niscayah Group AB discloses the information provided herein pursuant to the Swedish Securities Markets Act and/or the Swedish Financial Instruments Trading Act. This information was submitted for publication on November 4, 2010 at 8.30 a.m CET.