Zalaris with strong third quarter revenue growth
Zalaris sees companies increasingly look to outsource payroll and HR solutions, resulting in a third quarter revenue growth of 16.5 % compared to the same quarter in 2013.
Zalaris, a leading provider of payroll and HR services, continued its momentum in the third quarter of 2014, concluding the period that ended 30 September with strong overall results in line with expectations. Revenue grew 16.5 per cent compared to Q3 2013 – to NOK 83.6 million in the quarter and year-to-date NOK of 228,8 million, equivalent to year-over-year growth of 20.4 per cent compared to the first nine months of 2013.
“We delivered solid overall performance in line with targets for the third quarter of 2014. Zalaris has a very bright future in the markets we serve, especially considering our strong position in HR outsourcing, where many large blue-chip companies see major cost-saving opportunity”, says Hans-Petter Mellerud, CEO and founder of Zalaris.
Operating profit (EBIT), before IPO-related costs was NOK 8.3 million, up 24.2 per cent from to Q3 last year. Year-to-date EBIT of 19.9 million was also in line with expectations.
Recurring revenue increased significantly from Q2 2014 as Zalaris in August successfully commenced delivery of the landmark agreement with oil and gas industry leader Statoil, which operates in 36 countries across the world. Key actions associated with the multi-year agreement included opening a new service centre in Stavanger, transferring designated Statoil staff to Zalaris to support our delivery of outsourced payroll and HR services to the North Sea oil industry.
“Many favourable factors correlate to our solid current performance and encouraging long-term outlook. For example, companies increasingly look to outsource payroll and HR solutions, regardless of economic conditions. The reason is simple – these functions are not their primary core competencies. Zalaris delivers such services more cost effectively as well as more reliably because of the extensive experience and laser focus we have on them“, Mellerud says.
Zalaris 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.