Hiq´s interim report for january - march 2001

HiQ´S INTERIM REPORT FOR JANUARY - MARCH 2001 HiQ is an IT and management consultancy focusing on high-tech solutions in the fields of telecoms, mobility and simulation technology. The company is a leader in these fields and the Nordic region is its domestic market. HiQ employs 440 people at offices in Sweden, Norway, Denmark and Finland. HiQ is listed on the OM Stockholm Stock Exchange. For more information, please visit our web site at www.hiq.se Quarterly report for HiQ International AB (publ), corporate identity no. 556529-3205 for the period January - March 2001. HiQ's net sales rise 83% with a margin of over 19% · Net sales rose 83% compared with the same period the previous year to 146.5 SEK (79.9) million. · The profit before goodwill climbed 79% to SEK 28.3 (15.9) million compared with the same period the previous year. The profit corresponds to a margin before goodwill depreciation of 19.4%. · The operating profit rose 63% on the same period the previous year, totalling SEK 25.5 (15.7) million. This figure corresponds to an operating margin of 17.4%. · HiQ received a new order from the Swedish Defence Material Administration worth SEK 20 million for the development of training simulators for JAS 39 Gripen. · HiQ developed test tools for mobile phones on behalf of Nokia Mobile Phones in Denmark. · HiQ signed a new frame agreement with Swedia Networks. · HiQ developed a payment card service for Optimal Telecom. · The Board of Directors proposes that the AGM should issue dividend of SEK 0.5 (SEK 0.3) per share. · The Board of Directors proposes the AGM that Anders Ljungh should be elected as an ordinary member of HiQ's Board of Directors. · Market trends The year got off to a good start for HiQ. HiQ has experienced a continued good market the first quarter of 2001. All market segments have developed favourably. Rapid technological progress in the mobile world is contributing to continued growth within industries such as telecoms, finance, motor vehicle and defence. Our longstanding experience of high-tech solutions and business know-how within telecoms means that we can provide many customers in a number of industries with both technological and business expertise. HiQ has been working with training simulators for JAS 39 Gripen since 1992. In March HiQ received a new order worth SEK 20 million, which is the result of one satisfied customer and longstanding experience of simulation technology. HiQ's expertise in simulation technology also secures civil assignments such as the development of environment simulators and test tools. Demand for GPRS and 3G mobile telephony expertise has risen during Q1. This trend has generated a number of assignments for HiQ within both technology and business and service development. HiQ works with GPRS and UMTS at customer premises in the Nordic region, and we also continue to work with a number of assignments relating to existing technology such as GSM. HiQ is represented as an IT and management consultant within telecoms, mobility and simulation technology throughout the entire Nordic region today. HiQ enjoys a strong financial position, boasts highly skilled staff and has forged long-term stable relationships with many customers in different industries. HiQ likes to follow its customer abroad, and continues to deliver high quality consultancy services to them. Our offices in several countries enable our international customers to work with HiQ in several geographical locations. Today we have assignments in more than 10 countries including France, Germany and the UK as well as Japan and Ireland. Invoiced sales and profit HiQ's net sales increased by 83% compared with the same period the previous year, totalling SEK 146.5 (79.9) million. Growth has been wholly organic. The profit before goodwill rose 79% compared with the same period the previous year to SEK 28.3 (15.9) million, corresponding to a margin before goodwill deprecation of 19.4%. The operating profit increased to SEK 25.5 million, corresponding to an operating margin of 17.4%. The operating profit rose 63% compared with the previous year, when the corresponding figure was SEK 15.7 million. The strong growth and excellent financial results have come about thanks to strong demand for HiQ's services, longstanding relationships with key customers and successful recruitment initiatives. The consolidated net financial income amounted to SEK 682 (98) thousand. Converted to a rolling 12-month period (i.e. 1 April 2000 - 31 March 2001), HiQ's net sales amounted to SEK 471.5 million. Profit before goodwill amounted to SEK 85.6 million, corresponding to a margin before goodwill of 18.1%. Accounting principles This interim report has been prepared in accordance with recommendation no. 20 of the Swedish Financial Accounting Standards Council. The accounting principles remain unchanged compared with the previous annual report. Employees There were 434 employees at the end of the period. HiQ continued its recruitment initiatives during the quarter and employed 38 new people. Investments Consolidated net investments were SEK 2.3 million during the period, of which investments in financial leasing accounted for SEK 1.3 million. Financial position HiQ's financial position continues to be very healthy. At the end of the period, consolidated liquid assets totalled SEK 103.0 (28.9) million, and interest-bearing net cash assets were SEK 94.4 (23.1) million. Shareholders' equity amounted to SEK 229.4 million on 31 March 2001 compared with SEK 208.6 million on 31 December 2000, which is an increase of SEK 20.8 million. At the end of the period, the equity/assets ratio was 68.4 (56.1)%. The Board of Directors proposes a dividend of SEK 0.5 per share in accordance with HiQ's long-term dividend policy. The estimated day for payment is 7 May. The proposed record day for the dividend is 2 May. Other key events after the end of the period · HiQ signed a frame agreement with Utfors. · HiQ signed a frame agreement with Saab Automobile. · HiQ extended its collaboration with Ericsson within the framework of the preferred supplier agreement for consultancy services. AGM HiQ's Annual General Meeting of shareholders will be held on the 26 April 2001 at 6.00 p.m. at HiQ's premises, Sveavägen 17, 17th floor, in Stockholm. Outlook HiQ prioritises quality and profitability before growth, and gives top priority to its employees and customers. The general uncertainty surrounding economic developments in the world makes it slightly more difficult than before to assess the market trend. HiQ has enjoyed a continued healthy market during the period. We believe that all our market segments are areas with continued needs for communication-intensive solutions and expertise about technology and about how technology can be converted into business. HiQ enjoys a strong financial position, boasts highly skilled staff and has forged long-term stable relationships with many customers in different industries. We therefore believe that HiQ has excellent opportunities for continued development of the company while maintaining healthy profitability. HiQ continues to develop into a more international company and Europe's leading telecoms and mobility consultancy. An important prerequisite for this is a strong foothold in the Nordic region and close collaboration with leading suppliers and operators. We like to work with international assignments and follow our existing customers into other countries. HiQ's main strategy is organic growth supplemented with strategic acquisitions, and we are continuing to strengthen our operations and invest in Finland and the Nordic region. HiQ continues to develop its initiatives in finance, the motor vehicle industry and simulation technology for both military and civil applications. HiQ keeps working tirelessly on attracting and retaining staff by making HiQ the best workplace with the lowest staff turnover in the industry. We will continue to invest in staff training. HiQ's long-term financial goal is organic growth of at least 30% and an operating margin before goodwill of at least 15%. Telephone conference HiQ will be holding a telephone conference in English on 26 April at 4.00 p.m. CEO Lars Stugemo and CFO Anna Jennehov will be participating on behalf of HiQ. Telephone no.: +46 8 600 53 81 Code: 16 42 42 Presentation material can be retrieved from 2.00 p.m. on 26 April from HiQ's English web site: www.hiq.se/english The next financial report: The interim report for January - June will be presented on 14 August 2001. Stockholm 26 April 2001 The Board of Directors of HiQ International AB This report has not been subject to an auditor's review. For more information, please contact: Lars Stugemo, CEO HiQ International AB, tel.: +46 8 58 90 000 Anna Svensson, CIO and Investor Relations, HiQ International AB, tel.: +46 8 588 90 000 ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/04/26/20010426BIT00240/bit0001.doc The full report http://www.bit.se/bitonline/2001/04/26/20010426BIT00240/bit0001.pdf The full report