STOCKHOLM--(BUSINESS WIRE)--Regulatory News:
Cybercom Group (STO:CYBE)
October – December
- Sales were SEK 353.7 million (393.1).
- EBITDA was SEK -3.2 million (42.8) and the EBITDA margin was -0.9% (10.9).
- EBIT was SEK -10.4 million (33.2) and the EBIT margin was -2.9% (8.4).
- EBITDA from operating activities was SEK 25.2 million (42.8) and the EBITDA margin was 7.1% (10.9).
- EBIT from operating activities was SEK 18.0 million (33.2) and the EBIT margin was 5.1% (8.4).
- Earnings per share were SEK -0.24 (0.36).
January – December
- Sales were SEK 1,339.2 million (1,481.0).
- EBITDA was SEK 30.2 million (65.4) and the EBITDA margin was 2.3% (4.4)
- EBIT was SEK -11.4 million (-125.4) and the EBIT margin was -0.9% (-8.5).
- EBITDA from operating activities was SEK 63.6 million (93.4) and the EBITDA margin was 4.7% (6.3).
- EBIT from operating activities was SEK 33.8 million (53.6) and the EBIT margin was 2.5% (3.6).
- Earnings per share were SEK -0.67 (-2.58).
- The board proposes no dividend.
Comments from the CEO
As we leave 2012 behind us, I note that it has been a year of unsatisfactory economic development, but with a high rate of change internally to create a more efficient Cybercom with higher profitability. During the year we have expanded our business in the areas and with the clients we regard as strategically important in the future, and we have left those markets and offerings within which we have not met with success. The changes have been costly, but necessary, and we are addressing our clients with strong offerings in Connectivity, where we see a good market.
With ever more connected devices, mobile phones, machines and people, demand for secure technical solutions continues to increase. The digital journey is still in its infancy. It is predicted that by 2020 the number of mobile devices will have risen to 50 billion. People's behaviour is changing rapidly, transactions are going digital and expectations of what technology can achieve are expanding all the time. Cybercom plays a key role in this; it is our home ground – the increased interaction between people and organisations, services and systems in the new demands for cooperation, exchange and mobility.
We won new contracts during the fourth quarter, including with the Swedish Social Insurance Agency (Försäkringskassan), HSB, Inera, the City of Copenhagen, Lantmännen, LG Electronics, Mobill, Outotec, Sectra, the Swedish Transport Administration (Trafikverket), the Swedish Transport Agency (Transportstyrelsen) and Volvo Car Corporation. Our success with these leading companies and organisations demonstrates the potential in the expertise and experience of Cybercom's consultants.
Cybercom's sales for the fourth quarter amounted to SEK 353.7 million (393.1). Earnings were charged with SEK 28.4 million in non-recurring costs. Excluding these costs EBIT amounted to SEK 18 million, giving a margin of 5.1%. This is half way to our long-term profitability objective of 10%. It is towards this goal that we are steering, and once we achieve a stable profitability trend, we will also be able to turn our attention to increased growth. During the fourth quarter of 2012 we initiated a cost-cutting programme within the group to increase our efficiency and to manage the low utilisation rate the company has long had in certain areas of business. The programme has now been completed and is expected to generate annual savings of SEK 45 million by 2013.
Our actions began to have some effect in the Swedish operations during the final months of the year. We strengthened our position in the public sector and industry, and our sub-consultant business continued to grow. We secured many of our assignments with our major clients through extended contracts that run throughout 2013. Our operations in Gothenburg and Linköping have experienced continued high demand and good profitability growth. But we still have challenges to overcome, including in Finland.
From 2012 we have been developing Cybercom with a clear focus on our main market in the Nordic region, on profitability over growth, and on an offering in Connectivity. In line with this, we have reduced our cost structure and discontinued operations that were unprofitable or too far from our core competencies. Cybercom's expertise and business is within Connected Engineering, Connectivity Management, Digital Solutions and Secure Connectivity. In these areas, most clients have opted to sign new framework agreements with us in 2012, to address a connected world with effective and commercial solutions. There is a growing market here.
In the short term we have to deal with the economic weakness that continues to reign, even in 2013. With the changes that we have implemented in the company, the capital injection provided by the rights issue, and a more stable financing solution, Cybercom is better equipped. We have a good opportunity to focus on developing our business and through this to achieve our strategic and financial objectives.
Stockholm, February 13, 2013
Niklas Flyborg, President and CEO
Cybercom is an IT consulting company that assists leading companies and organisations to benefit from the opportunities of the connected world. The company’s areas of expertise span the entire ecosystem of communications services. Cybercom’s domestic market is the Nordic region, and in addition the company offers global delivery capacity for local and international business. Cybercom was founded in 1995 and has been quoted on the NASDAQ OMX Stockholm exchange since 1999.
This information was brought to you by Cision http://www.cisionwire.com