INTERIM REPORT FOR THE PERIOD JANUARY-SEPTEMBER 2006 HiQ INTERNATIONAL AB (publ) company registration number 556529-3205
HiQ – a strong third quarter
• Net sales in the first nine months of 2006 increase by SEK 66.5 million to SEK 580.7 (514.2) million, an increase of 13 percent
• Operating profit (EBIT) increases by SEK 7.8 million to SEK 108.7 (100.9) million, an operating margin of 18.7 percent
• Pre-tax profit increases to SEK 109.4 (101.7) million
• Profit after tax increases to SEK 77.8 (73.4) million
• Earnings per share increase to SEK 1.57 (1.49)
• A dividend of SEK 2.10 per share, totalling around SEK 103 million, was paid out in May
• In accordance with the decision of the Annual General Meeting, an election committee has been formed comprising Thomas Ehlin, Nordea Funds, Peter Rönström, Lannebo Funds, Ken Gerhardsen and Anders Ljungh.
2006 in brief
HiQ developed well in the first nine months of 2006. Net sales increased by 13 percent and the operating margin is 18.7 percent.
HiQ holds a clear position as a specialised supplier of services within communication, systems development and simulation. HiQ is working in long-term customer relationships with leading clients, including Ericsson, FMV, GTECH, Nokia and Tele 2. At the same time, we are continuing to work on broadening the client base and during the period we won orders from a number of completely new clients. With 740 employees in the Nordic region HiQ is bigger and working with more clients than ever.
New clients include Suomen Hippos (the Finnish Trotting and Breeding Association), Plusdial Oy, FLIR Systems and Ascom Wireless Solutions.
The market for IT services in the Nordic region is characterised by strong demand. The sectors in which HiQ saw the fastest growth during the period are the automotive industry, gaming & entertainment and industry.
During 2006 HiQ has presented a number of new interesting orders and agreements. In March, for example, HiQ won a new SEK 19.7 million order from the Swedish Defence Materiel Administration (FMV) for the development of training simulators for the JAS 39 Gripen, while in April HiQ announced an order from Suomen Hippos for the development of a new information system for equestrian sports and horse breeding. HiQ has also developed interactive training for car dealers for Mazda Scandinavia. During the third quarter HiQ has helped the mobile operator 3 to build up test activities for roaming and has assisted Plusdial Oy with the launch of mobile ticketing for the Mälardalen public transport system in Sweden.
The strong market has brought with it increased mobility of labour. HiQ is continuing to invest in marketing in order to recruit more staff, which has produced good results. HiQ has a strong brand in the labour market and attracts highly capable employees even in a very competitive market. During the period HiQ recruited 169 new employees.
HiQ is developing well in its various geographical markets. The businesses in Gothenburg and the Öresund region are growing strongly. All subsidiaries showed profitability during the third quarter.
HiQ’s position in the Finnish market has been significantly strengthened and in 2006 HiQ has won several orders from clients outside our traditionally strong segments of gaming and telecoms.