Combitech's half-year report for January–June 2014

Technology consultancy company Combitech, part of the defence and security group Saab AB, is continuing to grow organically. During the second quarter, a number of significant framework agreements were signed, and sales rose to SEK 908 million.

Highlights from the second quarter of 2014:

• Combitech signed framework agreements with two major vehicle manufacturers. The framework agreements are strategic to the development of the vehicle segment.
• A number of framework agreements were signed within the area of public agencies and authorities. We have for example won a framework agreement within Risk and crisis management, which encompasses the Swedish Transport Administration, Swedish Transport Agency, Swedish Maritime Administration, Swedish Energy Agency and LFV. Other examples are Project management and environment at the Swedish Transport Administration, and Secure energy at the Swedish Energy Agency.
• The defence segment is developing positively, with a number of major orders being placed under existing framework agreements from the Swedish Defence Materiel Administration, FMV. A new framework agreement within system security has also been signed with FMV.
• Within product information, Green Cargo has chosen Combitech's UpTime information solution to streamline the handling of operating and maintenance information for rail traffic. A collaboration agreement has also been signed with Dassault Systèmes concerning 3D VIA Composer, which will enhance Combitech's ability to deliver turnkey solutions within product information.
• Sales revenue totalled SEK 908 million, up 7.2 percent over the corresponding period last year. Currently, the company has 1,436 employees, which represents an increase of 38 since the start of the year.

– The market has developed positively within the defence, aerospace and vehicle sectors. The industrial and telecom sectors remain sluggish, however, although we have seen some encouraging signs during the past month," says Combitech's CEO Marie Bredberg.

KEY FIGURES, JANUARY-JUNE 2014:

Order situation
Order intake for the first half-year was SEK 863 million, up 5.0 percent compared with the preceding year. Order intake remains stable. 

Sales income
Income from sales amounted to SEK 908 million, up 7.2 percent over the corresponding period in 2013. The increase in sales is organic and sales rose both within and outside the Saab Group. The proportion of external sales outside the Saab Group was 56 percent.

Earnings and margin
Operating profit (EBIT) was SEK 49 million, compared with SEK 77 million during the same period last year. The operating margin was 5.4 percent (8.9 percent in 2013). The drop in operating margin was due to a lower utilisation rate at the start of the year.

Operating cash flow
The operational cash flow was lower during the first half-year 2014 (SEK 35 million) compared to the corresponding period in 2013 (SEK 165 million). The differences between the years are the result of increased working capital due to higher sales income.

For further information
Marie Bredberg, CEO Combitech
Phone: +46 734-189 801, e-mail: marie.bredberg@combitech.se

Ann-Sofi Jönsson, IR Manager, Saab AB
Phone: +46 8-463 02 14, e-mail: ann-sofi.jonsson@saabgroup.com 

About Combitech
Combitech is a Nordic technology consultancy company with more than 1,400 employees in Sweden, Norway and Finland. It is an independent company within the defence and security group Saab AB. For more information, please visit www.combitech.se

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