INTERM REPORT JANUARY–MARCH 2010
Sales amounted to MSEK 1,681 (2,002), of which the organic growth was -9 percent (-6). Sales of services amounted to MSEK 794 (833), of which the organic growth was 3 percent (1). A restructuring program was initiated during the quarter. Annual savings amount to MSEK 180, with full effect from the first quarter 2011. Restructuring costs of MSEK 200 were charged to results in the quarter. Operating profit (EBIT), excluding restructuring costs, amounted to MSEK 93 (131), corresponding to an operating margin (EBIT) of 5.5 percent (6.6). Foreign exchange effects impacted operating profit by MSEK -7 (+11). Profit before tax, excluding restructuring costs, amounted to MSEK 91 (122). Net profit amounted to MSEK -76 (84) and earnings per share amounted to SEK -0.21 (0.23). The operating cash flow, including restructuring program, amounted to MSEK 108 (241). CEO, HÅKAN KIRSTEIN’S COMMENTS The first quarter of the year was characterized by a continued weak market situation with low demand and a high degree of price competition, particularly within implementation. Our purposeful investment in sales of services has delivered results and the organic growth within services amounted to 3 percent in the quarter. Activity among our customers continued to be low within implementation and the organic growth amounted to -18 percent in the quarter. The EBITA margin for the group, excluding restructuring costs, amounted to 6.0 percent, which is a decline of one percentage point and is mainly due to lower implementation sales within Mainland Europe. To counter the weak market situation we initiated a restructuring program during the quarter aimed at reducing costs, increasing the centralization within the countries and thereby raising efficiency in the company. The program will deliver annual savings of approximately MSEK 180 with full effect from the first quarter 2011. Restructuring costs related to the program amount to MSEK 200, and are charged to results in this quarter. The general market climate is expected to continue to be weak during 2010, particularly within implementation. We are continuing to focus on refinement of the service offering by generating recurring revenue while at the same time prioritizing margins over growth. Webcast press conference A webcast press conference will be held at Niscayah's head office at Lindhagensplan 70 in Stockholm on May 6, 2010 at 10.30 a.m. CET. Please visit www.niscayah.com for further details. To follow the press conference by phone (and ask questions), please call: Sweden: + 46 (0) 8 50 520 270 UK: +44 (0) 207 509 5139 US: + 1 718 354 1226 For further information please contact: Håkan Kirstein, President and CEO +46 10 458 8000 Håkan Gustavson, CFO +46 10 458 8000 Johan Andersson, Investor Relations +46 10 458 8023 Niscayah Group AB (publ.) is a world-leading security partner offering complete security solutions for clients with high security demands within market segments such as banking and finance, industry, defense, healthcare and retail. Niscayah's services are based on modern technology and include access control, video surveillance, intrusion protection and fire alarm systems. www.niscayah.com Niscayah Group AB discloses the information provided herein pursuant to the Swedish Securities Markets Act and/or the Swedish Financial Instruments Trading Act. This information was submitted for publication on May 6, 2010 at 08.30 a.m.
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