Vitec Software Group AB: Vitec Interim Report January - June 2017
Earnings per share up 33%
Summary for January-June 2017
- Net sales MSEK 388 (318)
- Profit before tax MSEK 54,2 (40,5)
- Operating margin 14,9 % (13,6)
- Earnings per share before dilution SEK 1,44 (1,08)
- Cash flow from operations MSEK 134,1 (105,8)
Summary for April-June 2017
- Net sales MSEK 197 (161)
- Profit before tax MSEK 29,8 (22,5)
- Operating margin 16,1 % (14,8)
- Earnings per share before dilution SEK 0,80 (0,60)
- Cash flow from operations MSEK 35,3 (21,8)
- Vitec expands revolving credit facility with MSEK 200
Significant events after the period
- Vitec acquires MV-Nordic A/S in Denmark
The positive trend in the first quarter continued in the second quarter. Cash flow and earnings have increased faster than sales, which means that for the first six months of the year we basically meet our fifteen percent operating margin target.
We have expanded our revolving credit facility with SEK 200 million, after the increase the total is SEK 450 million. 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 are solid, we see good conditions for continued acquisition-based growth. After the period, the Danish company MV Nordic A / S has been acquired. The company has a turnover of approximately DKK 110 million with an EBITDA of approximately DKK 11 million and the acquisition will directly contribute to increasing Vitec's earnings per share.
Of the Group's approximately 75 percent recurring revenue, 40 percent emerge from SaaS agreements according to a modern subscription model. Vitec continues to convert towards an increasing share of SaaS agreements in new sales or when existing customers upgrade their products. The customer benefits of the SaaS model are becoming more widely known as digitalization continues. This general trend strengthens our potential in transforming our business model.
A clear shift from traditional license sales to subscription of cloud-based products reduces reliance on individual license sales, which increases our long-term ability to control our business. This, together with our people's capacity to innovate and integrate acquisitions, provides good conditions for long-term development of our business. 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.
Lars Stenlund, CEO
For more information, please contact
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 and the Swedish Securities Market Act. The information was submitted for publication at 08:30 CET on Thursday, July 13, 2017.