Mandator AB (publ): Year-end Report 2003

*Positive cash flow. Profit before non-recurring costs.
- Sales during the fourth quarter: SEK 112 (157) million
- EBITA for fourth quarter before non-recurring costs: SEK 1 (-12) million
- Non-recurring costs for superfluous rented office space and optimisations burdened earnings in the amount of SEK 44 (0) million
- Liquid assets increased by SEK 9 million to SEK 16 million during the fourth quarter

*Continued improvements in all key ratios
- Compared to the fourth quarter of the previous year:
-Sales per employee increased by 7%
-Utilisation rate increased by five percentage points to 72%
-Parent company costs more than halved

*Renewed general agreements with important clients
- Mandator has signed new general agreements with Volvo Car, Vodafone, Sandvik, Korsnäs, Lantmäteriverket (Swedish National Land Survey) and FMV.

*Board proposes new share issue
- The Board intends to convene an extraordinary shareholders' meeting in the near future in order to implement a new share issue. The purpose is to strengthen Mandator's strained liquidity, which has worsened during 2004 as a result of extended payment times for several of Mandator's larger clients.
- The company reports a positive earnings trend. The raising of capital will provide an opportunity to reach a final settlement concerning certain superfluous rented office space and to implement limited optimisation measures within the group.
- The raising of capital will also create the stability required for Mandator to be able to actively participate in the continued consolidation of the industry.
- According to the Board of Directors a reduction in the level of financial risk in the company is advantageous to the shareholders. The restructuring that has been decided is assessed to be able to reduce financial and other costs within the group by at least SEK 20 million per year.

*With a strengthened balance sheet the company has identified opportunities for growth through:
-Offering the outsourcing of systems development, validation and testing to Mandator Estonia
-Complementary acquisitions and recruitments
-The opportunity to implement a structural deal

*The period January-December 2003
- Sales SEK 421 (713) million
- Profit/loss after tax SEK -106 (-353) million
- Earnings per share SEK -1.35 (-1.89)


The full report including tables can be downloaded from the following link: