Combitech's interim report for January-September 2014

The Nordic technology consultancy company Combitech, a part of the defence and security group Saab AB, continues to grow. During the third quarter several new agreements have been signed and sales have increased to SEK 1.283 billion.

Events during the third quarter:

• The open source platform AGA (Automotive Grade Android) that provides new capabilities for app developers in the automotive industry was launched in September. The platform has been developed by Combitech in partnership with Swedspot on behalf of Vehicle ICT Arena.
• After an international procurement process, the Danish Air Force chose Combitech's Wing system, which is used within among other things, aviation operations for resource allocation, planning and follow-up. The agreement encompasses more than 400 user licenses as well as training and services for implementing Wing within all units of the Danish Air Force. 
• Combitech has entered a collaborative agreement with Savantic, a leading-edge company in image analysis. With the agreement, Combitech strengthens its capabilities for delivering advanced all-embracing solutions in image analysis.
• Combitech has signed an agreement with the domestic appliance manufacturer Whirlpool regarding the transfer of skills from the company's operations in Norrköping to Italy, the US and China. In return, Combitech gains access to advanced expertise within microwave technology.
• Sales revenue totalled SEK 1.283 billion, up 8.4 percent compared to the corresponding period last year. The company currently has 1,420 employees, which is an increase of 37 since the beginning of the year.

“We see continued cautious development in the industrial market with relatively low growth,” says Combitech's CEO Marie Bredberg. “We are noticing signs of recovery but are not expecting any rapid changes.”

KEY FIGURES, JANUARY–SEPTEMBER 2014:

Order situation
Orders worth SEK 1.188 billion were secured during the period. This figure is slightly lower than the SEK 1.209 billion from last year. Order intake remains stable.

Sales revenues
Revenues from sales amounted to SEK 1.283 billion, up 8.4 percent compared to the corresponding period in 2013. Sales growth is organic and sales increased both outside and within the Saab Group. The portion of external sales outside the Saab Group was 56 percent.

Earnings and margin
Operating profit (EBIT) was SEK 58 million, compared with SEK 94 million during the same period last year. The operating margin was 4.5 percent (7.9 percent in 2013). The lower operating margin is primarily due to a reduced utilisation rate at the start of the year.

Operating cash flow
The operating cash flow was at a lower level during the first three quarters of 2014 (SEK 32 million) compared to the same period in 2013 (SEK 142 million). This is mainly due to lower earnings but also the result of increased working capital due to higher sales income.

For further information
Charlotte Magnusson, Head of Communications, Combitech
Phone: +46 734 184 143, e-mail: charlotte.magnusson@combitech.se

Ann-Sofi Jönsson, IR Manager, Saab AB
Phone: +46 8 463 0214, 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.

Tags: