10% growth in both the second quarter and first half-year, with improved margins
Summary of the second quarter, April – June 2014
· Net sales amounted to SEK 371.3 M (337.9), up 10 percent.
· EBITA rose to SEK 27.3 M (19.5), an EBITA margin of 7.4 percent (5.8).
· Operating profit increased to SEK 18.5 M (13.9), an operating margin of 5.0
· After-tax profit increased to SEK 14.4 M (9.9).
· Earnings per share after dilution rose to SEK 0.49 (0.35).
· Cash flow from operating activities amounted to SEK 13.9 M (20.2).
· The acquisition of Symetri in the UK, with annual sales of approximately SEK
80 M, was completed.
Summary of the first six months of the year, January – June 2014
· Net sales amounted to SEK 782.7 M (708.6), up 10 percent.
· EBITA rose to SEK 61.6 M (48.1), an EBITA margin of 7.9 percent (6.8).
· Operating profit increased to SEK 44.9 M (37.2), an operating margin of 5.7
· After-tax profit increased to SEK 33.6 M (28.0).
· Earnings per share after dilution rose to SEK 1.13 (0.99).
· Cash flow from operating activities amounted to SEK 85.7 M (65.8).
Increased sales, improved margins and a new market
In the second quarter, we noted growth of 10 percent, we improved our margins
and we opened up a new geographic market through the acquisition of Symetri in
Although the market remains cautious, demand is nevertheless stable in most
areas. The prevailing macroeconomic climate has resulted in some restraint in
the willingness to invest of our customers active in more capital-intensive
industries, such as oil and gas, maritime industry and the construction sector.
Consequently, order bookings were slightly weaker in the Design Management
Despite this, we are experiencing growth that is both organic and originating
from previously implemented acquisitions. In general, we are involved in several
favorable transactions and have a solid underlying business strengthened by the
fact that the proportion of recurring revenue from support and maintenance
agreements, as well as from SaaS solutions, is increasing.
The profitability improvement is attributable to increased sales, as well as
efficiency enhancements and cost adaptations in operations, primarily in the PLM
and Content Management business areas.
We are continuing to execute our strategy, which involves building in our
selected areas of operation brick by brick. The acquisition of Symetri is in
line with our strategy, in which we aim to expand an existing business area into
a new geographic market. We are busy transferring our product portfolio, our
service offering and our sales models for customers with global operations.
Symetri gains us a foothold in a market that is expected to become one of
Europe’s most rapidly expanding economies in 2014.
Staffan Hanstorp, CEO and President
The information in this Interim Report is such that Addnode Group must disclose
in accordance with the Swedish Securities and Clearing Operations Act and/or the
Financial Instruments Trading Act. The information was released on July 18, 2014
at 11:10 a.m.
For more information please contact:
CEO and President
Phone: +46 733 772 430
CFO and IR
Phone: +46 704 205 831
Addnode Group provides mission-critical IT solutions to selected markets in both
private and public sectors. We acquire, build and manage companies that deliver
mission-critical IT solutions for the specific needs of our clients.
Every day, 250,000 engineers use our systems to develop and maintain products,
buildings and facilities. 100,000 civil servants in the public sector use our
solutions for municipal and state administration.
We are 950 employees in Sweden, Norway, Finland, Denmark, UK, USA, India and
Serbia. In 2013 net sales totaled SEK 1 444 M. Addnode's Series B share is
listed on the OMX Nordic List, Small Cap.
More information about Addnode Group on www.addnodegroup.com.
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