Acando Interim report January 1-September 30, 2018

Third quarter, July 1–September 30, 2018

• Net sales totaled SEK 590 m (518)
• Operating profit amounted to SEK 31 m (27)
• Operating margin was 5.2% (5.2)
• Profit after tax was SEK 32 m (17)
• Earnings per share were SEK 0.30 (0.17)

Accumulated, January 1–September 30, 2018

• Net sales totaled SEK 2,029 m (1,753)
• Operating profit amounted to SEK 181 m (157)
• Profit before non-recurring items SEK 186 m
• Operating margin was 8.9% (8.9)
• Profit after tax was SEK 147 m (113)
• Earnings per share were SEK 1.41 (1.09)
• Cash and cash equivalents totaled SEK 51 m (59)

Statement by Carl-Magnus Månsson, CEO

In the third quarter of 2018, we continued to grow in a market where the demand for our services remains healthy. Profit and sales posted a year-on-year increase of 14 percent and were up 16 percent for the first nine months. Our trainee program continues to attract talent and during the summer, the largest batch of trainees ever began their careers at Acando, and we are grateful that they have chosen us. At the same time as competition for talent is intensifying and we are proud that at the end of the quarter our employee numbers are at a new high, almost 200 more than at the start of the year and 70 more than at the start of the quarter. Our ability to attract and retain the best employees will be critical for our continued journey, and for continuing to create clear and empathetic environments in which our employees are encouraged to challenge and develop — as professionals and as people.

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 daily operations is key to creating the best solutions. Regulatory requirements and the importance of creating sustainable societal benefit 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.

We are strengthening our offering by adding new talent and can thereby always capture a stronger and more innovative market position. The acquisition of Alterview makes us not only the leading partner in cloud-based business systems and NetSuite, it also provides us with access to some of the most innovative and fastest growing customers in the digital service-based industry.

We can also see how innovative processes and technology’s possibilities require the integration of a design mindset across the entire process. Through the acquisition of Inventas, we have created a full-range technology chain, from sensors and embedded software to award-winning industrial design, and not least, access to advanced analytics skills and industrial system integration. This provides us with a unique position in industrial digitalization and application of the Internet of Things.

We are also looking forward to continued exciting developments in a few of Acando’s strategically focused growth areas, such as Retail and Healthcare. We are proud of developing together with new and well-established customers and the confidence invested in us, and we share in their journey in a changeable world. MQ’s vision of a more engaging customer experience and Avonova’s ambition to create a new type of data-driven healthcare are just a few examples.

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 following contacts for publication on October 26, 2018 at 08:00 a.m. (CEST).

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 2,100 employees allocated over five countries. Acando had sales of more than SEK 2.4 billion in 2017 and is listed on Nasdaq Stockholm.