Summary of the fourth quarter, October – December 2015
- Net sales amounted to SEK 614.4 M (461.4), an increase of 33 percent.
- EBITA increased to SEK 69.5 M (63.4), an EBITA margin of 11.3 percent (13.7).1)
- Operating profit increased to SEK 58.0 M (54.2), an operating margin of 9.4 percent (11.7).2)
- After-tax profit amounted to SEK 45.5 M (47.6).
- Earnings per share after dilution amounted to SEK 1.50 (1.61).
- Cash flow from operating activities amounted to SEK 98.0 M (96.7).
1) Excluding revaluation of conditional purchase considerations of SEK 0.00 M (34.3).
2) Excluding revaluation of conditional purchase considerations of SEK 0.0 M (34.3) and SEK 0.0 M (-30.0) for goodwill impairment.
Summary of the twelve month period, January – December 2015
- Net sales increased to SEK 1,900.8 M (1,598.6), an increase of 19 percent.
- EBITA increased to SEK 168.0 M (159.0), an EBITA margin of 8.8 percent (9.9).1)
- Operating profit increased to SEK 126.0 M (124.2), an operating margin of 6.6 percent (7.8).2)
- After-tax profit increased to SEK 95.5 M (100.2).
- Earnings per share after dilution rose to SEK 3.18 (3.38).
- Cash flow from operating activities amounted to SEK 143.8 M (152.5).
1) Excluding revaluation of conditional purchase considerations of SEK 0.0 M (34.3).
2) Excluding revaluation of conditional purchase considerations of SEK 0.0 M (34.3) and SEK 0.0 M (-30.0) for goodwill impairment.
Significant events during the fourth quarter of 2015
- Parts of Cad-Q's business model are changing.
- Extended agreement with the Swedish Transport Administration (Trafikverket), order value of SEK 12 M.
Significant events after the end of the period
- Renewed agreement with technical consultancy company, order value of SEK 31 M.
- Renewed agreement with German car manufacturer, order value of approximately SEK 75 M.
- Acquisition of software company 5D System.
- The Board of Directors proposes an unchanged dividend of SEK 2.25 (2.25) per share.
CEO's comments
Strong growth in a market with major opportunities
We ended 2015 with strong growth of 33 percent in the fourth quarter. Our recurring revenue is continuously growing and amounted to 48 percent of net sales during the quarter, and we improved EBITA by ten percent, all compared with the year-earlier period.
We are a leading supplier in Europe of systems for design and lifecycle management of products and services via our two business areas – Design and Product Lifecycle Management (PLM). Design Management has growth of ten percent, mainly driven by positive developments in the Swedish construction and property market. PLM is showing growth of a full 171 percent and greatly improved earnings compared with the same quarter in the preceding year, which is mainly an effect of the acquisition of the German company Transcat PLM. The acquisition – which was completed July 1, 2015 and is our largest so far – will have an impact on the Group's total EBITA margin as the company has a product mix with lower margins than the Group as a whole. However, we are already noticing synergy effects with our sister company, Technia, and major potential to increase the margin and profitability in this business area over time.
The Process Management business area is continuing to show good profitability and I am proud that our case management and management systems are contributing to a better society through our deliveries of innovative IT solutions to municipalities and authorities in Sweden and Norway. Over 90 percent of Sweden's municipalities use system solutions provided by us, which creates a good platform and excellent opportunities to reach out with new offers to the public sector.
Increased digitization leads to new business models
In 2016, we will continue to push for increased digitization of our customers' daily lives and we will introduce new business models. This will create both challenges and opportunities. As we summarize 2015 and look ahead, I note that we have a strong system solutions offering in niched areas, which simplifies and improves the daily lives of over half a million engineers and employees in the public sector across the globe.
Staffan Hanstorp, President and CEO
The information in this interim report is such that the Addnode Group must publish under the Securities Market Act and/or the Financial Instruments Trading Act. The information was released for publication on February 5, 2016 at 08.30 a.m CET.
