Combitech's quarterly report for January–March 2013

Combitech continues to grow with good profitability. During the first quarter of the year, among other things the company has signed agreements with the Swedish Gambling Authority and the Swedish Defence Materiel Administration, and received several larger assignments from Swedish industrial companies. Sales during the period amounted to SEK 410 million.

Highlights from the first quarter of 2013:

• Combitech signed a general agreement with the Swedish Gambling Authority for security audits of technical equipment. The general agreement in effect from February is for two years with an option for a one-year extension and is expected to involve about 10 staff members at Combitech.
• Combitech signed a general agreement with the Swedish Defence Materiel Administration relating to military capability development. Combitech was the only company chosen as a supplier for all 22 service areas covered by the agreement. The general agreement is for two years with an option for an additional four years.
• The company began a major technical information assignment at a leading Swedish industrial company. About ten consultants will be involved in the multi-year delivery.
• Combitech is deepening collaboration with another leading Swedish industrial company. The assignment involves creating demarcated and well-defined job packages, a project that concerns several areas of expertise and that entails that Combitech will serve as a project partner with responsibility for a number of undertakings. Work will be underway throughout 2013.
• Sales amounted to SEK 410 million, up 32 percent compared to the same period the preceding year. The total number of employees has increased by 18 since the beginning of the year to 1,305 employees. The company sees continued recruiting needs for qualified staff.

“We are continuing to focus on utilising our entire breadth in our sales work, and are striving towards an increased portion of assignment business,” says Combitech's CEO Marie Bredberg. “The market is taking a cautious approach, but certain signals indicate that the decline in the industrial sector has levelled out.”

KEY FIGURES, JANUARY–MARCH 2013:

Order situation
Order intake for the first quarter was SEK 387 million, up 57 percent compared to the preceding year. Order intake continues to be stable.

Sales income
Income from sales amounted to SEK 410 million, up 32 percent compared to the same period in 2012. The substantial increase was mainly due to the establishment of a development centre in Trollhättan, the acquisition of Sörman Information in January 2012 and the acquisition of 70 percent of the shares in the Norwegian company Bayes Risk Management in August 2012. Sales increased both outside and within the Saab Group. The portion of external sales outside of the Saab Group was 60 percent.

Sales during the most recent 12-month rolling period exceeded SEK 1.5 billion for the first time in the history of the company.

Earnings and margin
Earnings (EBIT) amounted to SEK 44 million, up 13 percent compared to the same period the preceding year. The operating margin was 10.7 percent, which is somewhat lower than the preceding year (12.5 percent). The reduced operating margin was mainly due to fewer working days and higher absence figures compared to the same period the preceding year.

Operating cash flow
The operating cash flow was SEK 82 million, a significant increase compared to the first quarter of 2012. The increase was mainly due to the acquisition of Sörman Information during the first quarter of 2012 and affecting the cash flow negatively during the quarter.

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 one of Sweden's largest consulting firms, combining technology, the environment and security. The company, which is an independent company within the defence and security company Saab AB, has approximately 1300 employees at 20 locations in Sweden, as well as offices in Norway. Read more at www.combitech.se

Tags: