Interim Report January – September 2007
Third quarter 2007
• Sales: SEK 119 (109) million
• Operating profit: SEK 8 (8) million
• Operating margin: 7% (7%)
January – September 2007
• Sales: SEK 403 (355) million
• Operating profit: SEK 18 (17) million
• Operating margin: 4% (5%)
• Profit after tax: SEK 17 (17) million
• Earnings per share: SEK 0.10 (0.09)
Comments from CEO Katarina Mellström
Mandator exhibited good development in the third quarter. We continue to win new business and grow. Mandator achieved organic growth of 14% compared with the first nine months of last year. The improvement in profit in the third quarter is also a result of the measures to increase profits taken in the second quarter.
Mandator’s three prioritised sectors, the manufacturing industry, the telecom industry and the public sector, now generate three quarters of our sales. Most growth was seen in telecoms, which on a rolling 12-month basis increased by 40% compared with the third quarter of last year. In industry, Mandator recently won an assignment from Sandvik to maintain an application used to handle special orders from Sandvik customers. With our solid business know-how, we can broaden our client base in our prioritised sectors. One example is Holmen Paper, which has chosen Mandator to supply a system to manage all internal projects with a focus on costs and cost control.
In the public sector, Mandator Estonia with its 100 employees has long been a leading player in the local market, boasting clients such as Tallinn Technical University, the Estonian Ministry of External Affairs and the Estonian police and tax authorities. Expansion is now underway in the public sector in West Sweden, with the aim of doubling sales in 2008. Important clients include the City of Gothenburg, Vägverket (Swedish National Road Administration), Fiskeriverket (Swedish National Board of Fisheries) and various Swedish municipalities. We also recently gained new business in e-learning from Försäkringskassan (Swedish Social Insurance Agency).
Demand for IT services is high. Due to the favourable business climate and Mandator’s strong market position, we can now actively refine our pricing models and develop new service offerings to achieve further growth and improve margins, concludes CEO Katarina Mellström.
Offer to Mandator’s shareholders from Fujitsu Services
On 8 October 2007, Fujitsu Services announced a bid for Mandator. A cash sum of SEK 3 is offered for each share in Mandator, corresponding to a premium of 30 percent compared with the volume-weighted average price of Mandator shares for the ten trading days prior to the offer being announced. The total value of the offer is about SEK 508 million. Mandator’s board has unanimously recommended all shareholders to accept the offer. Shareholders representing more than 30% of the shares in Mandator support the offer. The offer expires on 31 October. More information can be found at www.mandator.com.
Questions regarding this report may be addressed to:
Katarina Mellström, CEO, +46 703 092 250, katarina.mellstrom@mandator.com
Robert Karlsson, CFO, +46 709 565 141, robert.karlsson@mandator.com