Interim Report January - September 2014
SUMMARY OF THE PERIOD JANUARY - SEPTEMBER 2014
- NET SALES 38,9 MEuro (31,0)
- OPERATING PROFIT 4,7 MEuro (3,2)
- OPERATING MARGIN WAS 13 % (11)
- EARNINGS PER SHARE BEFORE DILUTION 0,61 Euro (0,49)
- OPERATING CASH-FLOW 10,1 MEuro (3,6)
- VITEC ACQUIRES AUTODATA NORWAY AS AND ALOC A/S IN DENMARK
SUMMARY OF THE PERIOD JULY - SEPTEMBER 2014
- NET SALES 14,8 MEuro (9,6)
- OPERATING PROFIT 2,0 MEuro (1,5)
- OPERATING MARGIN WAS 15 % (16)
- EARNINGS PER SHARE BEFORE DILUTION 0,22 Euro (0,22)
- OPERATING CASH-FLOW 0,07 MEuro (-0,82)
The transformation towards increased recurring revenue continues. Third quarter reached a record high percentage – 78,5 %, compared to 73,2 % in the corresponding period last year. Revenue continues to increase through the year's acquisitions but mainly the profit increases. Before acquisition related costs the profit increases for the period by 44 % and accumulated for the period January - September by 58 %.
The increase in earnings for the third quarter is due to improved results in the business areas Real Estate and Energy as well as a positive contribution from the new business areas Health and Auto. Finance & Insurance has a negative result due to the Danish Aloc charging full labor costs in the third quarter despite the holiday period, also the revenue distribution in their case is more service oriented than in the Group as a whole.
Earnings were also charged with the integration costs of the new acquisitions, which among other things includes establishment of common reporting systems and an integrated IT environment. The integration process, which in the current situation typically can last for a couple of quarters, is constantly improving for each new acquisition with the goal to be streamlined and shortened in future.
Vitec’s business model with a high percentage of recurring revenue reduces the risk and operating in several niches and several countries maintains a good diversification of the risk.
With continuous acquisitions of mature companies and increasing recurring revenue, Vitec continues on the chosen path to act in several independent and specialized niches to achieve sustainable profitable growth.
Lars Stenlund, CEO
The information in this interim report is such that Vitec Software Group must publish under the Securities Market Act and/or the Financial Instruments Trading Act. The information was released for publication on October 22, at 08.30 a.m.
Vitec Software Group (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 575 million SEK and has approximately 400 employees. Vitec is listed on Nasdaq OMX Stockholm.
www.vitecsoftware.com Main office: PO-Box 7965, S-907 19 Umeå, Sweden. Phone +46 90-15 49 00