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 percent (4.1).
- After-tax profit increased to SEK 14.4 M (9.9).
- Earnings per share after dilution rose to SEK 0.49 (0.35).
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Cash flow from operating activities amounted to SEK 13.9 M (20.2).
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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 percent (5.2).
- 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).
CEO's comments
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 the UK.
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 business area.
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.
