Acando Interim report January 1-June 30, 2018

Second quarter April 1–June 30, 2018

• Net sales totaled SEK 736 m (613)
• Operating profit amounted to SEK 74 m (55)
• Operating margin 10.1% (9.0)
• Profit after tax was SEK 56 m (41)
• Earnings per share were SEK 0.54 (0.40)

Accumulated January 1–June 30, 2018

• Net sales totaled SEK 1,439 m (1,234)
• Operating profit amounted to SEK 151 m (130)
• Profit before non-recurring items SEK 155 m
• Operating margin 10.5% (10.5)
• Profit after tax was SEK 115 m (95)
• Earnings per share were SEK 1.11 (0.93)
• Cash and cash equivalents totaled SEK 27 m (56)

Statement by Carl-Magnus Månsson, CEO

The second quarter of 2018 remained positive; we grew by 20 percent compared with the year-earlier period, and growth for the first half of the year was 17 percent. Operating profit increased 35 percent in the quarter, and operating profit for the first half of the year totaled SEK 155 m, the highest result for a first half-year in Acando’s history. While all geographies contributed both growth and increased profit, we have the potential to capitalize further on the strong market in which we operate, above all by remaining an attractive company for highly talented employees. Our trainee program continues to attract talents; during the summer the largest batch of trainees ever began their careers at Acando. We are proud that they chose us.

The world around us is being driven more and more quickly by the opportunities technology provides. At the same time, understanding human behavior and applying that knowledge in our everyday operations is key to creating the best solutions. Regulatory requirements and the importance of creating public benefit with staying power are becoming increasingly important components in many of our assignments.   Acando’s strategy of being “Technology Driven and Behavior Centric” remains highly relevant, and we continue to deepen and broaden our offering in order to retain that relevance in a rapidly changing world.

A completely new solution, built on cloud-based components with both in-store and internet-based traffic, was launched for one of Acando’s largest customers in the retail segment during the quarter — a project implemented in record time. This is one of many examples of how the combination of system integration ability, an agile working method and insights into industry-specific challenges can shorten lead times and create scalable solutions.

Rapidity in terms of implementing and managing insights from available data is becoming more and more important to our customers. Through the acquisition of September BI in Norway, we have gained access to an established informational and analytical platform specifically adapted to the retail industry and the opportunity to pursue growth in that segment both in Norway and in other geographies. Acando’s focus cloud-based business systems is also being reinforced through the acquisition of Alterview, who in partnership with Acando’s own operations is creating the leading partner for implementing Netsuite solutions in northern Europe.

The health sector is one of Acando’s most rapidly growing segments, and we are proud to have contributed to the digitalization and automation of the processes for patient journeys in Norway. In addition to creating cost efficiency and more rapid handling, the project has also resulted in more equal treatment. This is one of many examples of how technology not only provides efficiency and new opportunities, but also creates greater value.

This report comprises information that Acando AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Market Act. This information was submitted through the agency of the contacts for publication on August 17, 2018 at 08:00 p.m. (CET).

For further information, please contact:
Carl-Magnus Månsson, President and CEO, +46 (0)8 699 70 00
Anneli Lindblom, CFO, +46 (0)8 699 70 00

Acando is a consulting company that leverages an equal balance of specialist technical expertise and human behavioral insight to innovate, streamline and mobilize organizations for sustainable change. The Group has approximately 2,000 employees allocated over five countries. Acando had sales of more than SEK 2.4 billion in 2017 and is listed on Nasdaq Stockholm.