Interim Report, January – June 2010

​Growth and good profitability

January – June 2010 

• Net sales of SEK  556.1 (570.3) million.
• Operating profit (EBIT) of SEK 74.7 (78.6) million, operating ­margin of 13.4 percent.
• Pre-tax profit of SEK 73.9 (78.1) million.
• Profit after tax of SEK 53.1 (57.1) million.
• Earnings per share of SEK 1.03 (1.11).
• Cash flow from operations of SEK 21.4 (81.2) million.

April – June 2010

• Net sales of SEK 282.5 (272.7) million.
• Operating profit (EBIT) of SEK 34.2 (34.0) million, operating margin of SEK 12.1 percent.
• Pre-tax profit of SEK 34.1 (33.4) million.
• Profit after tax of SEK 24.7 (24.4) million.
• Earnings per share of SEK 0.48 (0.47). On 25 March the AGM decided on a dividend of SEK 1.10 per share, totalling around SEK 57 million, in the form of a split and compulsory redemption procedure.

Significant events

• HiQ won a large application management contract for Orc Software, one of the world's leading providers of solutions for advanced securities trading and fast connectivity.
• HiQ received a new order from FMV (the Swedish Defence Materiel Administration). The SEK  14 million order is for the maintenance of simulators for training fighter pilots on the JAS 39A Gripen.
• HiQ has won a total contract from Trafikförsäkringsföreningen (Swedish Motor Insurers) to build a complete new IT system to support the insurance business.
• HiQ is forming HiQ Finland by merging its two subsidiaries HiQ Softplan and HiQ Quality Services. The new company will employ nearly 200 people in the Helsinki region and its Managing Director will be Jukka Rautio.
• In June an iPhone and iPad app produced by HiQ in cooperation with Saab was launched. The application gives users a unique opportunity to experience and be inspired by Saab’s new 9-5 model and includes a 360° Spin function.

2010 in brief 

Net sales for the first half 2010 were SEK 556.1 million and operating profit SEK 74.7 million, a margin of 13.4 percent. The cash flow from operations was SEK 21.4 million. 

Net sales in the second quarter amounted to SEK 282.5 million and operating profit (EBIT) to SEK 34.2 million, an operating margin of 12.1 percent. Liquid assets amounted to SEK 93.5 million. The cash flow from operations was SEK 9.3 million during the second quarter. 

The first half of 2010 was generally characterised by a satisfactory market for IT consulting services, with good demand for HiQ’s services. As a result, HiQ has intensified its recruitment of new employees in the Group. 

Demand in industry and retail is now very good, being driven by a great need to develop business-critical IT solutions in companies in the sector. In 2010 HiQ is intensifying its efforts in respect of the financial sector, with good results so far and with a number of Nordic and international projects. In sectors such as entertainment and multimedia we are seeing strong demand and market potential. The automotive industry is developing well, while the restructuring that has been, and to some extent is under way, among mobile phone manufactures, has affected HiQ in particular the Öresund region. 

In central Sweden, where the Group has offices in Stockholm, Arboga/Västerås and Linköping, HiQ is performing well.

HiQ’s business in Gothenburg is currently developing very well and is equipped for growth in 2010. 

The creation of HiQ Öresund has borne fruit with intensified sales initiatives and greater cooperation between the offices in the region. Although there is still some uncertainty surrounding the telecoms market in the region, but HiQ’s business is developing well in view of the situation.

In Finland HiQ is continuing to successfully expand its client base and develop the business with many new clients. By forming HiQ Finland this spring, HiQ’s position has been further strengthen and the Finnish business employs close to 200 people in the Helsinki region.

Demand for projects combining specialist expertise on the client’s or near the client’s site with near-shore development (i.e. in Russia) continues to increase in the first half of 2010, particularly for clients in finance, gaming and entertainment and telecoms. 

HiQ is characterised by clearly defined values – results, responsibility, simplicity and enjoyment. Sound values are a competitive advantage for our clients, for our employees and for HiQ. 

HiQ was during the first quarter named IT Consultant of the Year 2010 in the magazine Veckans Affärer’s annual survey of buyers of consulting services. This is the fourth year in succession that HiQ has topped the list.

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