INTERIM REPORT JANUARY – MARCH 2009
Strong development in a tough market
January – March 2009
• Net sales increase to SEK 297.6 (286.1) million, an increase of 4 percent
• Operating profit (EBIT) amounts to SEK 44.7 (45.7) million, an operating margin of 15.0 (16.0) percent
• Pre-tax profit amounts to SEK 44.7 (46.5) million
• Profit after tax amounts to SEK 32.7 (33.6) million
• Earnings per share amount to SEK 0.63 (0.66)
• Cash flow from operations amounted to SEK 30.5 (42.4) million
• The Board proposes that SEK 1.40 per share, totalling around SEK 72 million, is distributed to the shareholders through a split and compulsory redemption procedure
Significant events during the period
• HiQ named "IT Consultant of the Year 2009" in Veckans Affärer’s survey
• HiQ invested in expansion in the Mälaren Valley and established operations in Västerås
• HiQ signed a new agreement with mobile company Scalado
• HiQ assisted Danaher Motion with developing systems for laser- and voice-controlled trucks
• HiQ developed AirFight, a new games application for the iPhone
• HiQ signed an extensive framework agreement with Danish SKI
• HiQ signed a framework agreement with Ascom Sweden AB
• HiQ signed a two-year framework agreement with Stockholm Local Transport (SL)
• HiQ signed a framework agreement with Teracom and its subsidiary Comet Networks
• HiQ took part in a research project to develop a simulator for dentistry students at Karolinska Institute
2009 in brief
The current market situation is tough, but HiQ is in a very strong position and we are working continually and consistently on developing and strengthening our offering and at the same time further streamlining the business. This work is having results and 2009 has started well for HiQ. Net sales have increased to SEK 297.6 million and operating profit is SEK 44.7 million, a margin of 15.0 percent. Cash flow amounted to SEK 30.5 million.
In a tougher market, the importance of fine-tuning and adapting operations to ensure continued high efficiency, good profitability and thus increased freedom of action, increases.
At the same time, it is even more important to continue to develop HiQ’s offering and focus on future core areas in order to ensure that HiQ remains the industry’s best supplier of specialist IT services. One example is the further development of HiQ Quality Services’ offering within quality assurance of major IT projects for the Swedish market. Another example is HiQs increased activities in the Mälaren Valley and Linköping regions through increased cooperation, intensified sales efforts by establishing HiQ in Västerås. Furthermore an increased cooperation between the two subsidiaries in Finland is prioritised.
The economic situation has led to restructuring in a number of sectors and is affecting a number of HiQ’s key clients. Discussions regarding prices through volume discounts are being held. All in all this is creating opportunities for HiQ to win new business and further strengthen its market position.
During the period we signed a number of important framework agreements and won new orders from a large number of clients such as Scalado, Danaher Motion and Stockholm Local Transport (SL).
HiQ was named "IT Consultant of the Year 2009" in the magazine Veckans Affärer’s annual survey of buyers of consulting services. This is the third year in succession that HiQ has been top ranked. Those taking part in the survey are asked to assess their suppliers as regards confidence, customer orientation, expertise and results – areas that have always had high priority for HiQ.
HiQ is in a good position in the current recession and is continuing to deliver strong results. HiQ’s strong financial situation, good customer relations and strong brand enable us to strengthen our customer relations further in today’s difficult market.
HiQ has a strong position as a specialist service provider with broad geographical and market coverage, as well as very strong customer relationships with leading international companies and established authorities in the Nordic region. HiQ has a flexible delivery model and offers specialist expertise in projects on site with customers, in its own facilities, via HiQs student pool or via a development centre in Russia.
HiQ works with technology that makes communication possible in our daily lives – at home, at work, in our cars, etc. Technology that enables communication is constantly developing, regardless of the economic situation. The need for communication is increasing – a development that creates both high demand and many opportunities for HiQ and its clients.
HiQ works with clients in many industries, including Veikkaus, Nokia, Ericsson, the Swedish National Tax Board, SEB, Tekes (the National Technology Agency of Finland), Tele2 and Volvo.