Press releases

Interim Report 1 January - 30 September 2017

10/26/2017 Press releases

Stockholm October 26, 2017

THIRD QUARTER SUMMARY, JULY–SEPTEMBER 2017

  • Net sales increased to SEK 534.5 m (467.1), representing growth of 14 per cent.
  • EBITA was SEK 24.3 m (39.6), corresponding to an EBITA margin of 4.5 per cent (8.5).
  • Operating profit was SEK 2.7 m (24.6), corresponding to an operating margin of 0.5 per cent (5.3).
  • Profit after tax was SEK 0.6 m (17.2).
  • Earnings per share after dilution were SEK 0.02 (0.57).
  • Cash flow from operating activities was SEK -78,7 m (-37.2).

SUMMARY OF SIGNIFICANT EVENTS DURING THE THIRD QUARTER, JULY–SEPTEMBER 2017

  • Acquisitions of Service Works Group, Intrinsys and Adtollo add approximately SEK 256 m in annual sales (pro forma 2016).

SUMMARY OF NINE-MONTH PERIOD, JANUARY–SEPTEMBER 2017

  • Net sales increased to SEK 1,742.7 m (1,536.3), representing growth of 13 per cent.
  • EBITA increased to SEK 110.7 m (107.2), corresponding to an EBITA margin of 6.4 per cent (7.0).
  • Operating profit was SEK 54.1 m (66.1), corresponding to an operating margin of 3.1 per cent (4.3).
  • Profit after tax was SEK 35.8 m (45.5).
  • Earnings per share after dilution were SEK 1.18 (1.50).
  • Cash flow from operating activities was SEK 81,7 m (84.8)

SUMMARY OF SIGNIFICANT EVENTS AFTER THE END OF THE REPORTING PERIOD

  • Acquisition of software company Apricon.

 

Strategic acquisitions driving growth

We had growth of 14 per cent during the third quarter, with a 1 per cent decrease in sales for comparable units. Our recurring revenue from support and maintenance agreements, and SaaS solutions ac­counted for 56 per cent (51) of net sales during the quarter. Earnings for the third quarter were affected by lower sales and impairment losses for customer projects in the PLM business area. On top of this we had, large external acquisition costs.

BUSINESS AREA PERFORMANCE

The Design Management business area is experiencing favourable demand primarily from the construction and property sectors. A year has now passed since the changeover to the new business model for Autodesk software, and we are replacing previous licence-based sales with subscription-based contracts, which is increasing the share of recurring revenue.

The PLM business area had lower sales during the third quarter, and we recognised impairment losses for two larger projects in Ger­many. This had a negative impact on earnings, and we have taken measures to restore profitability. At the same time we have been awarded several contracts in which our breadth of expertise in the PLM field and our global delivery organisation have been decisive for customers’ decisions to work with us.

The Process Management business area is experiencing good demand above all for case management in public sector administra­tion, and we have made complementary acquisitions that strengthen our offering in this area. 

STRATEGIC ACQUISITIONS

We have acquired the companies Service Works Group (SWG) and Intrinsys – both based in the UK – thereby we are increasing our offerings and becoming more international in areas where we see major opportunities.

Through the acquisition of SWG – with operations in the UK, Australia, Canada and the Gulf states – we are expanding to new geographies and strengthening our portfolio with products and services for property management and the management of Public Private Partnership (PPP) and performance-based con­tracts. In the Design Management business area we already have a sizeable market position in the Nordic countries, and following this acquisition we can deliver a more comprehensive portfolio of solutions to our customers in a global market.

Through the acquisition of Intrinsys the UK becoming a new home market for our global PLM offering. We can now even better meet our customers’ needs as the world’s largest and lead­ing partner to Dassault Systèmes, with a strong service offering and complementary proprietary products. Intrinsys is the UK’s largest supplier of PLM software and services, with head offices in England and a branch office in South Africa.

ADDNODE GROUP STANDS STRONG

"We are steadily winning new business, which confirms that we are doing the right things for our customers. We have carried out eight acquisitions thus far during the year, with approx­imately SEK 350 m in annual net sales. We have a solid foun­dation to further develop the Group and I look with confidence toward the year’s final quarter as well as 2018". Johan Andersson, President and CEO


This information is inside information that Addnode Group AB (publ) is obligated to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out to the left, at 8.30 a.m. CET on 26 October 2017. 

 

For more information please contact:
Johan Andersson, CEO and President, Addnode Group
Tel: +46 (0) 70 420 58 31, e-mail: johan.andersson@addnodegroup.com 

Helena Nathhorst, CFO, Addnode Group
Tel: +46 (0) 70 607 63 23, e-post: helena.nathhorst@addnodegroup.com 



About Addnode Group
Addnode Group acquires, operates and develops entrepreneur-driven companies that supply software and services to markets in which we have or can achieve a leading position. We are one of Europe’s leading suppliers of software and services for design, construction and product data information, and a leading supplier of document and case management systems to public sector clients in Sweden and Norway.

We are 1 400 employees in Sweden, Germany, UK, Australia, Denmark, Finland, India, Canada, Netherlands, Norway, Serbia, Slovakia, South Africa, USA and Austria. Net sales in 2016 amounted to SEK 2,195 M. Addnode Group's Series B share is listed on Nasdaq Stockholm. For more information, please visit: www.addnodegroup.com