Interim Report January - June 2012
Published: 20 July, 2012
• Net sales rose by 7 percent
• The calendar effect and a tough market in Finland have had a negative impact on results
• The 7 startups of the past year have improved results
• 2 acquisitions and 1 divestment have improved results
January – June 2012
- Net sales rose to SEK 1,022.9 (956.4) million
- The operating profit before amortization of intangible assets (EBITA) was SEK 87.3(102.3) million
- Results after taxes were SEK 49.0 (61.3) million
- Earnings per share were SEK 2.73 (3.55)
- The operating margin was 8.5 (10.7) percent
- Cash flow from operating activities was SEK -26.8 (17.5) million
April – June 2012
- Net sales rose to SEK 489.5 (468.7) million
- The operating profit before amortization of intangible assets (EBITA) was SEK 26.5 (39.2) million
- Results after taxes were SEK 11.4 (21.2) million
- Earnings per share were SEK 0.61 (1.21)
- The operating margin was 5.4 (8.4) percent
- Cash flow from operating activities was SEK -15.7 (23.9) million
Comments from the CEO
During the first six months of the year, we have seen strong demand on the markets where we operate. We get queries regarding new competencies from our traditional client categories. One way of meeting changed demand is to adapt existing operations, starting new companies or acquiring the competence needed.
The companies we have founded or acquired over the past year have contributed to net sales and results. Startups have proved to be an effective and safe way of expanding our operations, although they often take more time than acquisitions.
Net sales and results
Despite fewer working days, we have increased net sales by 7 percent during the first six months of the year. The calendar effect, combined with a tougher market, particularly in Finland, has had a negative impact on results. This year we have, as mentioned before, focused on organic growth, a new branding platform and transfer of our IT systems to cloud services, which affects results in the short term.
Profitability in focus
Even though the decreased results can to some extent be explained by external factors, We are not pleased with our profitability. Therefore, we have increased focus on operations not performing in line with group targets. Our divestment of Knowit HT is part of this drive. Knowit Solutions Syd has new management who delivers much better results than before.
The investments we are making in 2012 are necessary and create good conditions for the future. Knowit has grown quickly over a number of years and with these investments we are facilitating a continued positive development, i.e. growth combined with profitability. We already have good conditions thanks to our geographic dispersion on many local markets, combined with having clients in many segments and industry fields.
CEO and President
Read the full report.