14 February 2018

Vitec Software Group AB: Continued growth, increased profit and stronger cash flow

Summary for January-December 2017

  • Net sales MSEK 855 (675)
  • Profit before tax MSEK 98,1 (81,9)
  • Operating margin 12,5 % (13,1)
  • Earnings per share before dilution SEK 2,70 (2,27)
  • Cash flow from operations MSEK 187,6 (158,5)
  • The Board of Directors proposes increased dividend to SEK 1.10 per share (1.00)

Summary for October-December 2017

  • Net sales MSEK 247 (193)
  • Profit before tax MSEK 28,6 (24,3)
  • Operating margin 12,6 % (13,3)
  • Earnings per share before dilution SEK 0,86  (0,71)
  • Cash flow from operations MSEK 29,4 (34,7)
  • Personnel convertible bond subscribed for MSEK 20,8

CEO's comments
Vitec is growing and the progress for 2017 is sound and in comparison with previous years' development. It is especially the cash flow that develops strongly. Profit is also developing well, but is currently behind cash flow due to deliberately aggressive amortization.

Major events during the year includes our move to the OMX Stockholm Mid Cap list, the expansion of the acquisition facility by MSEK 200 and the acquisition of MV Nordic in Denmark. The Group's risk diversification has continued to improve during the year. Sales of MSEK 855 are currently distributed to 15 operating units of which the largest represents 18 percent of total sales.

With 600 employees in 4 countries and nearly 20 offices, our internal communication has increasingly become a high priority. With persistent dialogue about our key performance indicators, focus on the development of standardized products, forums to share best practices, and our core values; Our products - our foundation, Keep it simple and Trust and transparency; work on company culture has become a central part of the Group governance. Our branding promise; To rely on - today and tomorrow; along with our core values and key performance indicators, gives us good opportunities to build a strong Vitec culture. It also provides opportunities to decentralize decisions in daily operations, which is necessary for commitment, increased efficiency and, in the long run, increased competitiveness. Therefore - with a strong culture, decentralized decisions, motivated employees and a well-defined business model, we are strengthening our competitiveness for the future.

The number of active acquisition dialogues remains high, and we continuously put resources in place to maintain and further develop these dialogues. Vitec's financial position and readiness for future acquisitions is good, which provides for continued acquisition-based growth. With the acquisition of well-established companies and a high proportion of recurring revenues, Vitec continues on the path to act in several independent and specialized niches, to achieve sustainable profitable growth. And we will raise the dividend, for the 16th consecutive year.

Lars Stenlund, CEO

For more information, please contact
Patrik Fransson, Investor Relations

This information is of such a kind that Vitec Software Group AB (publ.) is legally required to disclose pursuant to the EU's Market Abuse Regulation. The information was submitted for publication at 08:30 CET on Wednesday, February 14, 2018.

About Vitec
Vitec is market leader for Vertical Market Software in the Nordic region. We develop and deliver standard niche software. Vitec grows through acquisitions of well-managed and well-established software companies. The Group's overall processes together with the employees' in-depth knowledge of the customer's local market enables continuous improvement and innovation. Our 600 employees are based in Denmark, Finland, Norway and Sweden. Vitec is listed on Nasdaq Stockholm and had net sales of MSEK 855 in 2017. Find more at www.vitecsoftware.com.