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Year End Report 2015

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SUMMARY FOR JANUARY - DECEMBER 2015

  • Net sales SEK 618,4 M (492,0)
  • Profit before tax SEK 94,7 M (64,5)
  • Operating margin 16 % (14)
  • Earnings per share before dilution SEK 2,66 (1,75)
  • Cash flow from operations SEK 140,3 (129,3)
  • The board proposes an increased dividend of SEK 0,90 (0,67) per share

 SUMMARY FOR OCTOBER - DECEMBER 2015

  • Net sales SEK 170,1 M (141,5)
  • Profit before tax SEK 26,9 M (22,1 )
  • Operating margin 17 % (16)
  • Earnings per share before dilution SEK 0,86 (0,65)
  • Cash flow from operations SEK 33,9 (38,2)
  • Acquisition of Nice AS and share split 5-for-1

CEO´S COMMENTS
2015 was a consistently strong year in which all business areas delivered a higher operating profit than the previous year and a consolidated operating profit of SEK 100 million was reported for the first time. The operating margin for the full year amounted to 16.3 percent, which is the strongest to date. The proposed dividends from the Board of Directors also mean that dividends will have risen for the thirteenth year in a row.

The companies acquired during 2015 have delivered sales and earnings in accordance with expectations and have been rapidly integrated into the group. These acquisitions have also helped to increase our geographical spread, so that Sweden now accounts for less than 50 percent of total revenues. Vitec's financial position and preparedness for future acquisitions is good. We intend to continue to grow through acquisitions and focusing on the Nordic countries, we currently have about a 100 interesting vertical software companies on our prospect list. We thus have good prospects for further acquisitions.

Our business model with its aim of achieving a high proportion of recurring revenue, continues to produce results. Recurring revenue accounted for 78 percent (76) for the full year in 2015. This high portion of recurring revenue gives us the capability to operate with a long-term perspective and consistency, while also providing excellent conditions for absorbing temporary downturns in individual business areas. Long-term, we can achieve a higher proportion of recurring revenue but in the short term, the services production share of revenue will increase, since a large stock of unfilled orders in primarily BA Property Management will require more integration, configuration and training services. At the same time there will be a gradual reduction in recurring revenue during 2016 in the Swedish part of the BA Estate Agents, since Fastighetsbyrån and Svensk fastighetsförmedling have announced that they will be leaving us.

With a clear shift from traditional licensing to a subscription model (SaaS), the proportion of recurring revenue and the operating margin will increase at the same time. Together with our employees' tremendous capacity for renewal and integrating acquisitions, this provides an excellent footing for long-term development throughout our entire organization. With acquisitions of well-established companies and a growing proportion of recurring revenue, Vitec will continue along its fixed path: to operate in a number of independent and specialized niche markets in order to achieve sustainable and profitable growth.

Lars Stenlund, CEO

  

Disclaimer:
Vitec Software Group AB (publ.) is to make the above information public pursuant to the Swedish Securities Market Act or the Swedish Financial Instruments Trading Act. The information will be made public at 08:30 CET on Wednesday, February 17, 2016.

 


Vitec Software Group AB (publ) is a software company that offers industry specific business applications on the Nordic market. The Company, with operations in Sweden, Norway, Finland and Denmark is growing in the mature part of the software industry by consolidating vertical software segments. Clients include facility management companies, construction and real estate companies, banks and insurance companies, utilities and energy traders, healthcare companies, car spare part dealers and newspaper companies. Group turnover has an annual capacity of 670 million SEK and has approximately 440 employees. Vitec is listed on Nasdaq OMX Stockholm.

www.vitecsoftware.com  Address: Box 7965, S-907 19 Umeå, Sweden. Phone +46 90 15 49 00.

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