Webstep Q4 and FY 2018: Continued growth in a favourable market
(Oslo, 14 February 2019) Webstep reports another quarter of growth. A strong market for IT experts and digitalisation services is expected to continue in 2019. Several initiatives to increase growth capacity are pursued, hereunder new regional establishments.
Webstep ASA recorded consolidated revenues in the fourth quarter of NOK 175.3[1] million, up 5.7 per cent from the same quarter last year. Full year revenues for 2018 rose by 11.2 per cent from 2017 and ended at NOK 663.2 million.
“Webstep has delivered solid revenue growth in 2018, and the favourable market situation for IT expert services seems to continue in 2019, as last year ended with an order book close to all-time-high”, says Kjetil Bakke Eriksen, CEO of Webstep ASA.
Consolidated EBITDA for the fourth quarter amounted to NOK 17.5 million, compared to NOK 5.6 million in the corresponding quarter of 2017 (NOK 19.5 million excluding non-recurring costs). The EBITDA-margin is solid at 10.0 per cent, but down from 11.8 per cent in Q4 2017 when adjusted for non-recurring costs. EBITDA for the full year ended at NOK 78.8 million, up from NOK 57.1 million in 2017 (NOK 71.0 million excluding non-recurring costs). The EBITDA margin for 2018 ended at 11.9 per cent, compared to last year’s 9.6 per cent (11.9 per cent excluding non-recurring costs).
Net profit for the fourth quarter was NOK 11.8 million (NOK 4.4 million), and net profit for the full year was NOK 56.2 million (NOK 33.9 million).
Total equity 31 December was NOK 376.6 million (NOK 357.7 million), corresponding to an equity ratio of 70 per cent (68 per cent).
Cash flow from operations in 2018 was improved from last year and amounted to NOK 91.9 million (NOK 8 million). Affected by dividend payment of 39.5 million, the net cash flow in 2018 came to NOK 26.9 million. Net cash flow for 2017 was negative NOK 73.7 million, impacted by repayment of borrowings and higher increase of receivables in 2017.
The general outlook for 2019 is positive. Webstep has a strong market position, a solid financial position and a very robust order book. The company will continue its focus on organic growth and recruitment in 2019. However, the growth capacity will be challenged by an already high utilisation and the increasingly competitive recruitment market for IT experts.
“Digitalisation is ongoing everywhere, creating demand in all regions. New regional offices with proximity to customers will create new business opportunities, but also an interesting job offering in places where the competition for recruitment of IT experts is not as fierce as in the largest cities. Geographical expansion will again be an important tool for growth, while continuing regular recruitment efforts. At the same time, we will search for potential M&A-targets which can match Webstep’s high quality standards”, says Kjetil Bakke Eriksen.
As announced on 31 January 2019, Kjetil Bakke Eriksen has decided to step down after serving as the company’s CEO for 13 years. The Board of directors has appointed Arne Norheim as Chief Executive Officer of the Webstep Group to succeed Mr Eriksen. Mr Norheim will assume his new position on 2 May 2019 and Mr Eriksen will continue as CEO until this date.
[1] Numbers in brackets refer to the corresponding reporting period/reporting date in 2017, unless otherwise specified
Contact details for further information:
Liv Annike Kverneland, CFO
Cell: +47 911 51 1190
Email : ir@webstep.com
Website : www.webstep.com
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Webstep ASA is a provider of consultancy services to the private and public sector, with the IT expertise necessary to deliver the most demanding digitalisation and IT services. Since its establishment in 2000, Webstep has delivered profitable growth. The company offers its services to more than 200 customers annually and has been recognised for its work environment.