Combitech's interim report for the first quarter 2017

Technical consultancy company, Combitech, an independent subsidiary of the defence and security company Saab AB, releases its interim report for January-March 2017 today. Sales and margins have all grown strongly during the period. 

Highlights of the first quarter of 2017: 

• In January, Combitech took over operations at the technical information consultancy firm Tikab, which employs around 70 people. Combitech thus broadened its service portfolio and strengthened its position as the biggest player in Sweden when it comes to technical product information.
• Combitech has signed a framework agreement with Scania and is its new preferred supplier of consultancy services in research and development. The agreement covers all aspects of Scania's development work and includes expertise such as material strength calculations, design and construction, integrated systems, production development and technical documentation.
• Together with partners, Combitech has signed a framework agreement concerning IT security with the Swedish Defence Materiel Administration (FMV). The FMV has appointed a partner in the field via the agreement, which forms the basis for a strategic and long-term collaboration on IT security.
• LFV and Combitech has developed innovative technology that increases safety and security at airports through reducing the risk of Runway Incursions.
• The number of employees now stands at 1,850 and has increased by 90 persons since the beginning of the year.

“This has been one of Combitech’s strongest quarters ever. Demand for consultancy services is very strong at the moment from customers across all industries who want to respond to ongoing digital transformation. We have a major requirement to recruit further expertise, primarily in terms of engineers specialising in systems development, product development and information security,” said Hans Torin, CEO of Combitech.

KPIs, JANUARY-MARCH 2017:

Order situation
The order intake during the first quarter was SEK 527 million, a reduction of 7 per cent compared with the same period in 2016 (SEK 569 million). This reduction is primarily due to several major, multi-year orders being placed during 2016.  The order intake remains stable.

Sales revenues
Sales revenues were SEK 607 million, an increase of 40 per cent compared with the same period in 2016 (SEK 433 million). This significant increase is largely due to the acquisitions in the last six months, as well as taking on 300 Ericsson engineers in October of last year.

Earnings and margin
Operating profit (EBIT) was SEK 73 million, an increase of 78 per cent compared to the same period in 2016 (SEK 41 million). The operating margin was 12.0 per cent compared to 9.5 per cent in 2016. This substantial improvement in the operating profit is due to a positive market situation and hence good investment, as well as the fact that the Easter weekend occurred during the second quarter of the year, which resulted in more working days during the first quarter compared to last year.

Operating cash flow
The operating cash flow was SEK 68 million, which is an improvement compared to the first quarter in 2016 (SEK 41 million). The improvement is primarily due to an increased earning capacity.

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 02 14, e-mail: ann-sofi.jonsson@saabgroup.com  

About Combitech
Combitech is a Nordic technology consulting firm with almost 1,900 employees in Sweden, Norway and Finland, with special focus on digitalisation and cyber security. The company is an independent enterprise in the defence and security group Saab AB.

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