13 July 2015

Interim Report January - June 2015



  • Net sales SEK 296,1 M (217,6)
  • Profit before tax SEK 43,8 M (24,3)
  • Operating margin 16 % (12)
  • Earnings per share before dilution SEK 5,77 (3,43)
  • Cash flow from operations SEK 99,4 M (90,5)


  • Net sales SEK 152,7 M (116,7)
  • Profit before tax SEK 22,2 M (12,4)
  • Operating margin 15 % (11)
  • Earnings per share before dilution SEK 2,83 (1,85)
  • Cash flow from operations SEK 25,8 M (26,2)
  • Revolving credit facility of SEK 250 M for acquisitions

On 30 June, Vitec signed a SEK 250 million credit facility with Nordea that is intended for acquisitions. This runs over a period of four years. In addition, preexisting borrowing from Nordea has been renegotiated so that the repayment rate will now be SEK 25 million per year over the next four years, instead of the previous rate that was closer to SEK 50 million per year. All in all, this will provide additional cash flow of SEK 25 million per year that can be used for investments. Accordingly, Vitec has created the potential for about SEK 350 million of new investments and acquisitions over the course of the four-year period.

Vitec's growth is driven by acquisitions. Since 1998 we have acquired about 25 profitable, well-functioning, vertically strongly niched companies with a significant share of recurring revenue. As a result, we have increased our turnover by an average of 20 per cent per year since the year 2000 and our profits have grown an average of over 20 per cent over the course of the same period. We intend to continue growing through acquisitions, and with a Nordic focus we currently have a list of prospects containing about 100 interesting computer software companies, with a total turnover in excess of SEK 4 billion. The conditions for continued acquisitions appear to be good and two new acquisitions, one in Denmark and one in Norway, have taken place following the end of the period. Both will be incorporated into the business area Auto, which will turn over approximately SEK 100 million per year following these transactions.

Having purposefully and rigorously applied our business model for several years, aiming for a high proportion of recurring revenue, we can conclude that the transformation continues. Recurring revenue made up 79 % (77 % same period last year) of the total revenue for the quarter and for the first six-month period the equivalent number was 78 % (73 %). Within the business area Estate Agents, a large package of measures have been implemented resulting in a charge on the quarterly results of approximately SEK 2.6 million. The staff reduction implemented is due to Sweden's biggest chain of real estate agents, Swedbank Fastighetsbyrå AB, informing us of a transfer to a system it has developed in-house.

With a clear shift from traditional licensing to a more up-to-date contract model (SaaS), the proportion of revenue that is recurring and the operating margin increase simultaneously. Together with our employees' huge capacity for renewal and integrating acquisitions, this provides good conditions for long-term development of our entire organization. Backed up by frequent acquisitions of well-established companies and an increasing proportion of recurring revenue, Vitec will continue along the path on which it has set out; operating in several independent and specialized niches in order to achieve enduring profitable growth.

Lars Stenlund CEO


Vitec Software Group AB (publ.) is to make the above information public pursuant to the Swedish Securities Market Act or the Swedish Financial Instruments Trading Act. The information will be made public at 08:30 CET on Monday, July 13, 2015.


Vitec Software Group AB (publ) is a software company that offers industry specific business applications on the Nordic market. The Company, with operations in Sweden, Norway, Finland and Denmark is growing in the mature part of the software industry by consolidating vertical software segments. Clients include facility management companies, construction and real estate companies, banks and insurance companies, utilities and energy traders, healthcare companies, car spare part dealers and newspaper companies. Vitec is listed on Nasdaq OMX Stockholm. Group turnover has an annual capacity of SEK 660 million and has approximately 470 employees. Vitec is listed on Nasdaq OMX Stockholm.

www.vitecsoftware.com   Address: Box 7965, S-907 19 Umeå, Sweden. Phone +46 90 15 49 00