ZALARIS: 2016 First Quarter Results
Major projects on track
Zalaris' Q1/16 revenues up 4.6% to NOK 98.5 million, with EBIT of 9.4%. Positive pipeline of new opportunities and major prospects on track.
Zalaris, a leading provider of payroll and HR services, generated solid results for its Q1/16, continuing to advance the financial performance. The company grew sales 4.6% to NOK 98.5 million for Q1/16 with a corresponding EBIT of NOK 9.3 million (9.4%) before extraordinary items for the period.
"The results for the first three months of 2016 prove our ability to deliver continued growth. In addition, we are delivering margins approaching our target", says Hans-Petter Mellerud, Zalaris' CEO and founder.
Zalaris successfully launched outsourced payroll services for a Swedish Fortune 500 company in Sweden and Finland on the Zalaris' Platform in Q1/16. In addition, the company entered into a multi-country payroll services agreement with a global company to deliver a comprehensive set of payroll services to their more than 4,000 employees in the Nordics and Poland. The project is already under implementation.
"Our major projects are on track. In the first quarter we had successful go-lives with two large customers also including the Norwegian Railways. In addition, we are seeing strong interest in our mobile solutions. This is supported by Telenor as one of our large customers adopting and rolling out the solution for their more than 10,000 employees in Scandinavia. Furthermore, we see continued positive development in our pipeline of deals and visibility in the market during the first quarter of 2016", says Mellerud.
Zalaris' operations serve more than 196,000 employees today, including some of the largest companies in the Nordic region. The total number of employees covered by Zalaris solutions was 10.5% higher at the end of the first quarter compared to the same period in 2015. This implies continued strong growth in employees covered by Zalaris' solutions.
Zalaris continues to follow up strategic growth opportunities. Extraordinary costs related to these efforts amounted to NOK 1.6 million in the quarter.
"These are exciting times for Zalaris. We will continue in pursuing growth opportunities in the European markets going forward, says Mellerud.
Zalaris announced in previous quarter that it increases its offshoring target from 20 percent to 25 percent, with further cost and headcount reductions planned in the Nordics. Zalaris' new Chennai, India-based service center, provides many other advantages and represents in Q1/16 14% of the company's total service and support hours.
"In order to offer competitive priced services to our customers, our goal is to increase the offshore component of our services to 20 percent by the end of 2016", says Mellerud.
Hans-Petter Mellerud, CEO and founder
Mobile: +47 928 97 276
Nina Stemshaug, CFO
Mobile: +47 982 60 394
Zalaris excels in delivering comprehensive cloud- based HR and payroll services. The company is certified as a SAP Business Process Outsourcing (BPO) Partner and is a leading SAP Human Capital Management (HCM) and SuccessFactors consulting partner. Founded in 2000, Zalaris today operates in Denmark, Estonia, Finland, India, Latvia, Lithuania, Norway, Poland and Sweden, including local-language service centers with extensive expertise in HR- related laws and regulations. Learn more about Zalaris at www.zalaris.com