Continued growth and strong cash flow
Summary of interim period, January–June 2019
- Net sales SEK 569.8 million (465.2)
- EBITA SEK 125.3 million (94.7), with an EBITA margin of 22.0% (20.4)
- Operating profit SEK 73.2 million (53.2), with an operating margin of 12.8% (11.4)
- Profit after net financial items was SEK 67.8 million (48.1)
- Earnings per share before dilution SEK 1.56 (1.29)
- Cash flow from operating activities SEK 185.4 million (119.8)
Summary of the period, April–June 2019
- Net sales SEK 290.8 million (242.8)
- EBITA SEK 66.8 million (50.1), with an EBITA margin of 23.0% (20.6)
- Operating profit SEK 37.3 million (25.9), with an operating margin of 12.8% (10.7)
- Profit after net financial items was SEK 34.4 million (23.0)
- Earnings per share before dilution SEK 0.76 (0.62)
- Cash flow from operating activities SEK 3.0 million (6.9)
- Acquisition of WIMS AS and Odin Systemer AS
We see a favorable trend in the second quarter with stronger margins and higher sales. The percentage of recurring revenues continues to grow, which is in line with our strategy. Essentially all parts of the Group are delivering better earnings and sales than the same period last year. There is no single explanation for the improved performance, but rather it is the result of diligent and focused efforts throughout the Group.
From this report onwards, we are presenting an additional performance measure, EBITA. EBITA is often used when analyzing companies that include acquisitions as an important aspect of their growth strategy. An explanation and calculation can be found on page 25 of this report.
We made two acquisitions during the second quarter. On May 8 we acquired the Norwegian software company WIMS AS, which develops software to the insurance industry in Norway and Sweden. On June 12, we acquired the Norwegian software company Odin Systemer AS, which offers products for hair and beauty salons in Norway.
With these acquisitions, we have continued to strengthen our position as the Nordic region’s leading vertical-market software company, while gaining more than SEK 85 million in annual sales and about 50 new employees. We now operate through 21 business units in an equal number of vertical software segments, which gives a good risk diversification.
With our solid financial position, we are well prepared for future acquisitions and for continued acquisition-based growth. Supported by acquisitions of well-established companies and a high and increasing percentage of recurring revenues, Vitec will stay on its course – to be a vertical software company with excellent risk diversification, as well as sustainable and profitable growth.
For more information, please contact
Patrik Fransson, Investor relations
This information is information that Vitec Software Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 08:30 CET on Thursday July 11, 2019.
Vitec is market leader for Vertical Market Software in the Nordic region. We develop and deliver standard niche software. Vitec grows through acquisitions of well-managed and well-established software companies. The Group's overall processes together with the employees' in-depth knowledge of the customer's local market enables continuous improvement and innovation. Our 700 employees are based in Denmark, Finland, Norway and Sweden. Vitec is listed on Nasdaq Stockholm and had net sales of SEK 1 017 million in 2018. Find more at www.vitecsoftware.com.