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Bouvet

Interim / Quarterly Report Aug 24, 2017

3563_rns_2017-08-24_782553cd-a6cc-4870-b6f4-b0c32253270d.pdf

Interim / Quarterly Report

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Key figures

NOK MILLION APR-JUN 2017 APR-JUN 2016 CHANGE % JAN-JUN 2017 JAN-JUN 2016 CHANGE % YEAR 2016
Revenue 385.7 345.3 11.7 % 804.7 668.2 20.4 % 1 330.8
Operating profit (EBIT) 36.8 41.0 -10.2 % 78.0 61.3 27.2 % 106.3
Ordinary profit before tax 37.6 41.0 -8.3 % 79.1 61.4 28.7 % 106.0
Profit for the period 28.3 30.9 -8.2 % 59.8 45.4 31.9 % 79.9
Net cash flow operations 6.2 20.7 -70.0 % -7.1 3.7 -290.5 % 113.5
Cash and cash equivalents 56.0 101.9 -45.0 % 56.0 101.9 -45.0 % 161.7
Number of employees (end of period) 1 166 1 033 12.9 % 1 166 1 033 12.9 % 1 090
Number of employees (average) 1 158 1 037 11.7 % 1 140 1 036 10.0 % 1 050
Earnings per share 2.75 2.98 -7.9 % 5.82 4.38 32.7 % 7.76
Diluted earnings per share 2.72 2.94 -7.7 % 5.75 4.33 32.9 % 7.66
EBIT-margin 9.5 % 11.9 % 9.7 % 9.2 % 8.0 %
Equity ratio 32.0 % 34.4 % 32.0 % 34.4 % 32.9 %

Bouvet in brief

Bouvet is a consultancy delivering digital services. At 30 June, it had 1 166 employees at 15 offices in Norway and Sweden.

The company is a strategic partner for a number of enterprises, and helps them to design digital solutions which create new business opportunities and provide the desired effects. Clients value Bouvet's good understanding of their business and the fact that its broad range of services allows it to act as a turnkey provider. The company is concerned to maintain long-term client relationships.

Bouvet's regional model with local offices provides clear benefits for marketing and competitiveness. Many enterprises regard it as important that their provider of business-critical

systems has local entrenchment and expertise. In addition, this model makes it easier to establish long-term relationships and thereby become acquainted with the client's business and systems.

As a result of the clear attention it pays to principles for managing the business, Bouvet comes across as a solid, well-run and well-regarded company. The company's standards for delivering good solutions are supplemented by strict requirements on ethics, conflicts of interest, security, openness and accountability. Close relations with clients are achieved because the company and its employees implement their assignments with a high degree of integrity.

Bouvet ASA Highlights of the second quarter

CEO's comments Satisfaction and solid expertise

We are continuing to deliver. That is because we continue to invest in job satisfaction and expertise. Our clients notice this, and maintain their collaboration with us. Turnover, profi ts and the workforce therefore grew during the quarter.

A good market and satisfi ed clients able and willing to invest, combined with our committed and capable employees, made this a very good quarter for us. In a market where a number of our clients are now seeing benefi ts from digitalisation, they are following this up with new, exciting and useful projects and showing renewed trust in us. The attention being devoted to digital leadership in the public and private sectors provided us with many interesting challenges and opportunities in the quarter.

We have had the opportunity to participate in development, specialisation, research and innovation with the most interesting clients in Norway and Sweden. It is a particular privilege to be in a company where both clients and employees thrive and remain. We believe that this refl ects our constant investment in well-being and expertise development. We are known both in-house and at our clients for our sharing culture. Combined with our ability to deliver integrated solutions, this undoubtedly explains why we lead the pack in knowledge terms and why new and existing clients choose to collaborate with us.

Our Sesam integration product is making rapid progress, and was described in the latest Gartner report on hype cycle for platform as a service, 2017, as one of the world's few products to provide a data hub integration platform as a service (iPaaS). This is gratifying and important for our commitment to the product. A special version of Sesam is now being offered to overcome most of the technical challenges currently facing all enterprises from the EU's forthcoming general data protection regulation (GDPR).

We hired a number of new colleagues during the quarter, and it is particularly gratifying to see that our good reputation and extra commitment at universities is bearing fruit. Many are newly graduated and a number have signed up to start during the autumn. They contribute new expertise and views on how we can remain the most attractive place to work.

The quarter turned out well. We grew turnover, we achieved a good result, we won a number of new contracts and clients, and – not least – we secured many able and pleasant new colleagues.

Our ability to adapt to changed market conditions has also been demonstrated over the past couple of years. The oil crisis created diffi culties for several of our regions, particularly our big Rogaland region. Its rapid restructuring and commitment to securing new clients outside the oil sector was fantastic, and the region has delivered good results throughout. This quarter was no exception. Our clients continue to invest in utilising new technology. The ability we demonstrate to recruit and build an attractive place to work means we are optimistic, and believe we will continue to make progress.

Sverre Hurum President and CEO

" A good market and satisfied clients able and willing to invest, combined with our committed and capable employees, made this a very good quarter for us. "

Financial results

Operating revenues

Bouvet had operating revenues of NOK 385.7 million for the second quarter, compared with NOK 345.3 million in the same period of 2016. That represented a rise of 11.7 per cent. Fee income generated by the group's own consultants increased by NOK 29.2 million or 10.2 per cent from the second quarter of last year. Revenues generated by sub-contractors rose by NOK 15.3 million or 35.7 per cent from the same period of 2016. Other revenues declined by NOK 4.1 million from the second quarter of last year to NOK 13.2 million.

The second quarter of 2017 had four fewer working days than the same period of last year. That had a negative effect of NOK 17.0 million on operating revenues from Bouvet's own employees. Increased holidays and other absence, caused by Easter holiday, had a further negative effect of NOK 14.2 million. Overall, these factors had an negative effect of NOK 31.2 million compared with the second quarter of 2016.

Operating revenues generated by own employees benefited from an increase of 3.4 percentage points in the billing ratio for the group's consultants compared with the second quarter of 2016. They were also boosted by an 11.7 per cent increase in the average number of employees and a 1.8 per cent rise in rates for the group's hourly based services compared with the same period of last year. In addition, improved progress in fixed-price projects compared with the second quarter of 2016 made a positive contribution.

Viewed overall, sales to existing clients made good progress during the quarter. Clients who also used the group in the second quarter of 2016 accounted for 88.4 per cent of operating revenues. In addition, clients acquired since

30 June 2016 contributed a total of NOK 45.3 million to second-quarter operating revenues.

Bouvet's strategy is to use services from sub-contractors when it lacks the capacity to meet demand with its own personnel or when clients require leading-edge expertise outside the group's priority areas. The sub-contractor share of total revenues was 15.1 per cent in the second quarter, compared with 12.4 per cent in the same period of 2016.

Where the first half-year is concerned, operating revenues amounted to NOK 804.7 million compared with NOK 668.2 million for the same period of 2016. That represents a rise of 20.4 per cent. Fee income generated by the group's own consultants increased by NOK 93.6 million or 16.7 per cent from the first half of last year. This primarily reflects a 10 per cent expansion in the average number of employees, a growth of 2.9 percentage points in the billing ratio for the group's employees, and a 1.8 per rise in rates for its hourly based services. In addition, revenues generated by subcontractors rose by NOK 43.5 million from the same period of 2016.

Operating costs

Bouvet's operating costs, including depreciation and amortisation, were NOK 348.9 million for the second quarter, up from NOK 304.3 million in the same period of 2016. That represented an increase of 14.6 per cent. Payroll costs increased because the average number of employees rose, in addition to the general growth in pay rates. The group experienced a general rise in pay of 2.1 per cent over the past 12 months. The cost of sales was NOK 57.2 million, compared with NOK 47.2 million for the second quarter of

Number of employees (Year end)

2016, and primarily comprised procurement of sub-contractor services and software as well as the hire of course instructors. Other operating expenses grew by 25.8 per cent from the same period of 2016 to NOK 36.9 million. This rise primarily refl ected higher costs for renting and operating premises as well as increased ICT expenses.

Where the fi rst half was concerned, overall operating costs rose by 19.8 per cent from the same period of 2016 to NOK 726.8 million. The cost of sales increased by 41.7 per cent to NOK 124.3 million, primarily because greater use was made of sub-contractors. Payroll costs rose by 13.6 per cent from the fi rst half of last year to NOK 517.3 million. Other operating expenses came to NOK 74.8 million in the fi rst half. This rise of NOK 17.9 million from the same period of 2016 again primarily refl ected higher costs for renting and operating premises as well as increased ICT expenses.

Profi t

Operating profi t (EBIT) for the second quarter came to NOK 36.8 million, compared with NOK 41 million in the same period of 2016. The EBIT margin was thereby 9.5 per cent, compared with 11.9 per cent in the second quarter of last year. Net profi t came to NOK 28.3 million, down from NOK 30.9 million in the same period of 2016. Diluted earnings per share were NOK 2.72, compared with NOK 2.94 in the second quarter of last year.

Cumulative operating profi t for the fi rst half came to NOK 78 million, up by 27.2 per cent from NOK 61.3 million in the same period of 2016. The EBIT margin was thereby 9.7 per cent, compared with 9.2 per cent in the fi rst half of last year. Net profi t came to NOK 59.8 million, up from NOK 45.4 million in the same period of 2016. Diluted earnings per share were NOK 5.75, compared with NOK 4.33 in the fi rst half of last year.

Cash fl ow, liquidity and capital adequacy

Consolidated cash fl ow from operations was NOK 6.2 million for the second quarter, compared with NOK 20.7 million in the same period of 2016. Cash fl ow for the quarter was affected negatively by an increase of NOK 2.3 million from

the fi rst quarter of 2017 in working capital related to client receivables, work in progress and other current receivables. A reduction of NOK 26.7 million in current liabilities from the fi rst quarter of this year also had a negative impact on cash fl ow. Cash fl ow from operations for the fi rst six months was negative at NOK 7.1 million, compared with a positive NOK 3.7 million for the fi rst half of last year. Consolidated cash fl ow from operations over the past 12 months came to NOK 94.4 million, while net profi t over the same period was NOK 94.3 million.

The group's client portfolio consists mainly of large, solid listed companies and public enterprises. No bad debts were suffered in the second quarter, and the group has good oversight and control of its receivables.

The group has no interest-bearing debt. Bank deposits at 30 June totalled NOK 56 million, compared with NOK 101.9 million a year earlier. The group had an undrawn overdraft facility of NOK 50 million at 30 June. Bouvet held 138 682 of its own shares at 30 June. A dividend of NOK 71.8 million was paid in the second quarter. Equity at 30 June totalled NOK 161.1 million, representing an equity ratio of 32 per cent. The corresponding fi gures for 30 June 2016 were an equity of NOK 156.6 million and an equity ratio of 34.4 per cent. Bouvet's long-term target is to maintain an equity ratio in excess of 30 per cent.

Segment reporting

The group does not report internally by business areas or segments in an accounting sense. Its business is homogenous and pursued within the Nordic market for IT consultancy services. Risk and return are followed up at departmental level within homogenous consultancy departments with shared markets, on a project basis and per consultant. This does not provide a basis for segment reporting, which is accordingly not presented. Should changes be made to the group's business, the possibility that these changes might provide a basis for segment reporting will be assessed.

Turnover public/private Turnover per business

Turnover from customer 100 % public owned: 48.7 %

Turnover from customer wholly or partially private owned: 51.3 %

Public admin 27.8 %
Oil & gas 20.7 %
Power supply 9.2 %
Transportation 9.0 %
Retail 7.2 %
Service industry 6.1 %
Industry 5.6 %
Info and communication 5.1 %
Bank & fi nance 3.9 %
Health 3.2 %
Other 2.2 %

Developments and market

The market was good in the quarter. Clients invested in utilising new technology, which generated strong demand for Bouvet's expertise. New contracts were secured, and the company participated in many exciting digitalisation projects.

Assignments secured by Bouvet during the quarter include an agreement with Entur, which delivers services to make life easier for public transport users. Bouvet will support innovation work to develop solutions for planning, comparing and purchasing journeys across all public transport operators in Norway. Another highly interesting contract was won from the E&P Information Management Association (EPIM), a membership organisation for operators on the Norwegian continental shelf, where Bouvet will administer and continue development of a core system.

Bouvet's range of service, delivery capacity and commitment to long-term client relations have led to renewed trust from existing clients and a high degree of continuity. Clients which renewed contracts during the quarter include the Ministry of Foreign Affairs across the full range of the company's services, BarentsWatch for management and further development of key services for coastal industries, and Agder Energi Nett as a key adviser on enterprise architecture, reporting and analyses. Statoil has increased its assignments relating to both consultancy and development.

Development and implementation of good digital solutions have prompted Bouvet's clients to pay greater attention to digital leadership. A number of them took advantage of the company's consultancy expertise when preparing their digitalisation strategy, and demand for its project and process management also increased as a result. Bouvet won very interesting contracts from such clients as the Swedish Legal, Financial and Administrative Services Agency, the Norwegian Courts Administration, the City of Oslo and Flytoget.

Service-driven development, great expectations for integrated user experiences and the need to know more about digitalisation have yielded growth in the customer experience service area. A key role in developing new solutions is played by service design, and Bouvet is contributing this expertise to a number of projects. Examples of clients include the City of Bergen, the Norwegian Directorate of eHealth (NDE) and the Brønnøysund Register Centre.

Technology trends such as the internet of things (IoT), cloud services, artificial intelligence (AI) and machine learning (ML), and robotic process automation (RPA) have become part of everyday life for a number of clients. Enquiries and assignments are increasing in these areas, and in data science and sensor technology. Bouvet is now looking at opportunities for utilising AI together with such bodies as the Norwegian Institute of Public Health. Yara Industrial has chosen the company to contribute to the re-design of its cloud solution, and Sporveien is continuing to involve Bouvet in IoT projects.

The development and application of new technology leads to a greater focus on security and an increased need for expertise in this area. Bouvet delivers across technology, communication and enterprise processes to overcome complex challenges. These include the EU's GDPR. A unique cloud service developed for the company's Sesam data integration product swiftly implements a number of the technical requirements imposed by this regulation.

Opportunities and changes in the value chain demand cross-disciplinary collaboration between different technology players and sectors. Bouvet and its Olavstoppen subsidiary experienced positive synergies during the quarter through their collaboration in the eSmart innovation project, where AI is used to map and monitor the electricity grid with the aid of drones.

Bouvet's clients have a big need to build digital expertise. The course business at the company secured a number of internal educational assignments at clients during the quarter, as well as experiencing good demand for its standard programmes.

High demand for Bouvet's expertise has boosted recruitment. The company hired a number of new employees during the quarter, and its workforce rose by 35 people from the end of March. It had 1 166 employees at 30 June, an increase of 133 from the same date in 2016.

Bouvet's ambition is to be the consultancy with the most satisfied employees, and its regional model has yielded organic growth in a tough labour market. A number of new graduates have chosen the company as their first employer. This group contributes new and relevant expertise, particularly in AI and ML. That in turn will contribute to the quality of deliveries, client satisfaction and lower staff turnover. Bouvet was named climber of the year by Universum in its student IT survey for 2017, which was published during the quarter. At the same time, the company is succeeding in being attractive to all age groups and service areas in order to meet demand in the market.

Through the company's commitment to recruitment and maintaining a presence at conferences, universities and university colleges, people are able to participate in Bouvet's creativity and enthusiasm for technology. Its summer programme, which allowed a number of students to start work on various client projects at the end of the quarter, has been very well received.

As a knowledge-based company, Bouvet pays continuous attention to expertise development. Bouvet.no/Bouvet was launched during the quarter to provide employees with their own platform for professional sharing and for exchanging experience. A digital presence has made employees visible and created opportunities to contribute expert comments in the media. An example is an article on five tricks for avoiding hackers, which was published in a number of media with local or national coverage.

Risk

The group is exposed at any given time to various forms of operational, market and financial risk. The board and executive management work continuously on risk management and control. This is described in more detail under

corporate governance in the annual report for 2016 (section 10: risk management and internal control). In the board's view, no significant changes occurred over the past three months in the various risks to which the group is exposed.

Prospects

A series of positive results from digitalisation projects as well as the increased establishment of digital leadership in enterprises will lead to a continued high level of investment in new solutions.

Growing technology- and service-driven development makes digitalisation a priority area. A number of enterprises are shifting towards becoming data-driven. Altered value chains, digitalisation of products and development of new services, as well as incentives to return production to Norway, are leading to rapid structural changes in the market. The ability to develop good, forward-looking and integrated solutions and to be responsive to change will be critical for success in the public sector and in companies from every industry.

The continued development of Bouvet's expertise and services, its extensive experience of different sectors, its unique sharing culture and its flexible delivery models have demonstrated their value for its clients in this market. At the same time, Bouvet's Sesam product for data integration has been recommended by Gartner after 30 June. It remains to see what opportunities this will provide in a market seeking access to and ownership of the user's own data as well as rapid tailoring of system portfolios in order to realise enterprise strategies.

Bouvet is thereby well positioned and equipped for continued growth.

Contacts

Sverre Hurum President and CEO Tel: +47 23 40 60 00 | +47 913 50 047

Erik Stubø CFO Tel: +47 23 40 60 00 | +47 950 36 011

Declaration by the board and CEO

We hereby confi rm to the best of our knowledge that the interim fi nancial statements for the fi rst half and second quarter of 2017 have been prepared in accordance with IAS 34, and that the information in the fi nancial statements provides a true and fair picture of the overall assets, liabilities, fi nancial position and fi nancial results of the Bouvet ASA group. We also confi rm to the best of our knowledge that the interim report provides a true and fair view of important events in the accounting period and their infl uence on the interim fi nancial statements, the most important risk and uncertainty factors facing the business in the next accounting period, and signifi cant transactions with close associates.

Oslo, 24 August 2017 The board of directors of Bouvet ASA

Pål Egil Rønn Chair of the board

Ingebrigt Steen Jensen

Director

Tove Raanes Deputy chair

Egil Christen Dahl Director

Grethe Høiland Director

Sverre Hurum President and CEO

Consolidated income statement

NOK 1 000 UNAUDITED
APR-JUN
2017
UNAUDITED
APR-JUN
2016
CHANGE CHANGE % UNAUDITED
JAN-JUN
2017
UNAUDITED
JAN-JUN
2016
CHANGE CHANGE % YEAR 2016
Revenue 385 662 345 259 40 403 11.7 % 804 714 668 175 136 539 20.4 % 1 330 811
Operating expenses
Cost of sales 57 218 47 188 10 030 21.3 % 124 253 87 657 36 596 41.7 % 183 002
Personell expenses 249 510 224 252 25 258 11.3 % 517 335 455 345 61 990 13.6 % 897 355
Depreciation fixed assets 3 162 2 497 665 26.6 % 6 120 4 968 1 152 23.2 % 10 001
Amortisation intangible assets 2 062 1 002 1 060 105.8 % 4 245 1 979 2 266 114.5 % 4 588
Other operating expenses 36 938 29 370 7 568 25.8 % 74 806 56 941 17 865 31.4 % 129 567
Total operating expenses 348 890 304 309 44 581 14.6 % 726 759 606 890 119 869 19.8 % 1 224 513
Operating profit 36 772 40 950 -4 178 -10.2 % 77 955 61 285 16 670 27.2 % 106 298
Financial items
Interest income 294 403 -109 -27.0 % 590 826 -236 -28.6 % 1 315
Financial income 683 84 599 713.1 % 888 183 705 385.2 % 553
Interest expense -16 -16 0 0.0 % -41 -104 63 N/A -265
Finance expense -151 -448 297 N/A -294 -753 459 N/A -1 852
Net financial items 810 23 787 3421.7 % 1 143 152 991 652.0 % -249
Ordinary profit before tax 37 582 40 973 -3 391 -8.3 % 79 098 61 437 17 661 28.7 % 106 049
Income tax expense
Tax expense on ordinary profit 9 262 10 116 -854 -8.4 % 19 281 16 071 3 210 20.0 % 26 164
Total tax expense 9 262 10 116 -854 -8.4 % 19 281 16 071 3 210 20.0 % 26 124
Profit for the period 28 320 30 857 -2 537 -8.2 % 59 817 45 366 14 451 31.9 % 79 885
Assigned to:
Shareholders in parent company 27 839 30 475 59 025 44 807 78 887
Non-controlling interests 481 382 792 559 998
Diluted earnings per share 2.72 2.94 -0.23 -7.7 % 5.75 4.33 1.43 32.9 % 7.66
Earnings per share 2.75 2.98 -0.24 -7.9 % 5.82 4.38 1.43 32.7 % 7.76

Consolidated statement of other income and costs

NOK 1 000 UNAUDITED
APR-JUN
2017
UNAUDITED
APR-JUN
2016
CHANGE CHANGE % UNAUDITED
JAN-JUN
2017
UNAUDITED
JAN-JUN
2016
CHANGE CHANGE % YEAR 2016
Profit for the period 28 320 30 857 -2 537 -8.2 % 59 817 45 366 14 451 31.9 % 79 885
Items that may be reclassified through
profit or loss in subsequent periods
Currency translation differences 92 -150 242 N/A 125 -310 435 N/A -346
Sum other income and costs 92 -150 242 N/A 125 -310 435 N/A -346
Total comprehensive income 28 412 30 707 -2 295 -7.5 % 59 942 45 056 14 886 33.0 % 79 539
Assigned to:
Shareholders in parent company 27 931 30 325 59 150 44 497 78 542
Non-controlling interests 481 382 792 559 998

Consolidated balance sheet

NOK 1 000 UNAUDITED
30.06.2017
UNAUDITED
30.06.2016
CHANGE CHANGE % 31.12.2016
ASSETS
NON-CURRENT ASSETS
Intangible assets
Deferred tax asset 0 831 -831 -100.0 % 0
Goodwill 33 401 27 719 5 682 20.5 % 32 782
Other intangible assets 27 137 20 300 6 837 33.7 % 25 032
Total intangible assets 60 538 48 850 11 688 23.9 % 57 814
Fixed assets
Office equipment 17 899 7 799 10 100 129.5 % 13 430
Office machines and vehicles 3 937 2 577 1 360 52.8 % 3 283
IT equipment 16 262 10 642 5 620 52.8 % 14 949
Total fixed assets 38 098 21 018 17 080 81.3 % 31 662
Financial non-current assets
Other financial assets 116 11 105 954.5 % 11
Other long-term receivables 1 951 4 162 -2 211 -53.1 % 859
Total financial non-current assets 2 067 4 173 -2 106 -50.5 % 870
Total non-current assets 100 703 74 041 26 662 36.0 % 90 346
CURRENT ASSETS
Work in progress 134 848 114 351 20 497 17.9 % 97 728
Trade accounts receivable 181 372 143 397 37 975 26.5 % 159 133
Other short-term receivables 31 197 21 635 9 562 44.2 % 26 990
Cash and cash equivalents 56 044 101 932 -45 888 -45.0 % 161 719
Total current assets 403 461 381 315 22 146 5.8 % 445 570
TOTAL ASSETS 504 164 455 356 48 808 10.7 % 535 916

Consolidated balance sheet

NOK 1 000 UNAUDITED
30.06.2017
UNAUDITED
30.06.2016
CHANGE CHANGE % 31.12.2016
EQUITY AND LIABILITIES
EQUITY
Paid-in capital
Share capital 10 250 10 250 0 0.0 % 10 250
Own shares - nominal value -139 -31 -108 348.4 % -99
Share premium fund 10 000 10 000 0 0.0 % 10 000
Total paid-in capital 20 111 20 219 -108 -0.5 % 20 151
Earned equity
Other equity 138 592 132 804 5 788 4.4 % 152 378
Total earned equity 138 592 132 804 5 788 4.4 % 152 378
Non-controlling interests 2 420 3 575 -1 155 -32.3 % 3 629
Total equity 161 123 156 598 4 525 2.9 % 176 158
DEBT
Long-term debt
Deferred tax 389 0 389 N/A 1 521
Other provisions for obligations 0 171 -171 -100.0 % 57
Total long-term debt 389 171 218 127.5 % 1 578
Short-term debt
Trade accounts payable 49 123 34 931 14 192 40.6 % 61 128
Income tax payable 14 963 18 630 -3 667 -19.7 % 21 944
Public duties payable 115 991 103 564 12 427 12.0 % 126 258
Other short-term debt 162 575 141 462 21 113 14.9 % 148 850
Total short-term debt 342 652 298 587 44 065 14.8 % 358 180
Total liabilities 343 041 298 758 44 283 14.8 % 359 758
TOTAL EQUITY AND LIABILITIES 504 164 455 356 48 808 10.7 % 535 916

Consolidated statement of cash flows

NOK 1 000 UNAUDITED
APR-JUN 2017
UNAUDITED
APR-JUN 2016
UNAUDITED
JAN-JUN 2017
UNAUDITED
JAN-JUN 2016
YEAR 2016
Cash flow from operating activities
Ordinary profit before tax 37 582 40 973 79 098 61 437 106 049
Paid tax -13 351 -12 083 -26 547 -24 248 -27 016
(Gain)/loss on sale of fixed assets -166 1 -158 -2 1 257
Ordinary depreciation 3 161 2 497 6 120 4 968 10 001
Amortisation intangible assets 2 062 1 002 4 245 1 979 4 588
Share based payments 1 596 1 451 3 192 2 903 5 826
Changes in work in progress, accounts receivable and accounts payable -8 634 -10 076 -71 364 -32 804 -5 720
Changes in other accruals -16 052 -3 096 -1 647 -10 527 18 476
Net cash flow from operating activities 6 198 20 669 -7 063 3 707 113 462
Cash flows from investing activities
Sale of fixed assets 856 49 856 122 405
Purchase of fixed assets -4 483 -1 778 -13 253 -4 479 -21 696
Purchase of intangible assets -2 913 -2 450 -6 165 -4 708 -9 191
Purchase of business 0 0 0 0 -7 343
Net cash flow from investing activities -6 540 -4 178 -18 562 -9 065 -37 826
Cash flows from financing activities
Purchase of own shares -6 300 0 -6 300 0 -25 095
Sales of own shares 0 0 0 0 8 436
Dividend payments -71 750 -67 010 -73 750 -67 010 -67 395
Net cash flow from financing activities -78 050 -67 010 -80 050 -67 010 -84 054
Net changes in cash and cash equivalents -78 392 -50 519 -105 675 -72 368 -8 419
Cash and cash equivalents at the beginning of the period 134 436 152 451 161 719 174 300 170 138
Cash and cash equivalents at the end of the period 56 044 101 932 56 044 101 932 161 719

Consolidated statement of changes in equity

NOK 1 000 SHARE
CAPITAL
OWN
SHARES
SHARE
PREMIUM
TOTAL
PAID-IN
EQUITY
OTHER
EQUITY
TRANSLATION
DIFFERENCES
TOTAL
OTHER
EQUITY
NON-CON
TROLLING
INTERESTS
TOTAL
EQUITY
Equity at 01.01.2016 10 250 -31 10 000 20 219 151 297 -297 151 000 3 401 174 618
Profit for the period 0 44 807 44 807 559 45 366
Other income and costs 0 -310 -310 -310
Employee share scheme 0 3 935 3 935 3 935
Dividend 0 -66 625 -66 625 -385 -67 010
Equity at 30.06.2016 (Unaudited) 10 250 -31 10 000 20 219 133 414 -607 132 804 3 575 156 598
Equity at 01.01.2017 10 250 -99 10 000 20 151 153 021 -643 152 378 3 629 176 158
Profit for the period 0 59 025 59 025 792 59 817
Other income and costs 0 125 125 125
Purchase/sale of own shares (net) -40 -40 -6 260 -6 260 -6 300
Employee share scheme 0 5 073 5 073 5 073
Dividend 0 -71 750 -71 750 -2 000 -73 750
Equity at 30.06.2017 (Unaudited) 10 250 -139 10 000 20 111 139 109 -518 138 592 2 420 161 123

Notes

Note 1: Accounting principles

The group made no changes to the accounting principles applied in 2017. This interim report is presented in accordance with the International Financial Reporting Standards (IFRS) and interpretations determined by the European Union, and have been prepared in accordance with IAS 34. The interim financial statements have not been audited, do not include all the information required in annual financial statements and should be viewed in conjunction with the group's annual report for 2016.

Key figures Group

NOK 1 000 APR-JUN 2017 APR-JUN 2016 CHANGE % JAN-JUN 2017 JAN-JUN 2016 CHANGE % YEAR 2016
INCOME STATEMENT
Operating revenue 385 662 345 259 11.7 % 804 714 668 175 20.4 % 1 330 811
EBITDA 41 996 44 449 -5.5 % 88 320 68 232 29.4 % 120 887
Operating profit (EBIT) 36 772 40 950 -10.2 % 77 955 61 285 27.2 % 106 298
Ordinary profit before tax 37 582 40 973 -8.3 % 79 098 61 437 28.7 % 106 049
Profit for the period 28 320 30 857 -8.2 % 59 817 45 366 31.9 % 79 885
EBITDA-margin 10.9 % 12.9 % -15.4 % 11.0 % 10.2 % 7.5 % 9.1 %
EBIT-margin 9.5 % 11.9 % -19.6 % 9.7 % 9.2 % 5.6 % 8.0 %
BALANCE SHEET
Non-current assets 100 703 74 041 36.0 % 100 703 74 041 36.0 % 90 346
Current assets 403 461 381 315 5.8 % 403 461 381 315 5.8 % 445 570
Total assets 504 164 455 356 10.7 % 504 164 455 356 10.7 % 535 916
Equity 161 123 156 598 2.9 % 161 123 156 598 2.9 % 176 158
Long-term debt 389 171 127.5 % 389 171 127.5 % 1 578
Short-term debt 342 652 298 587 14.8 % 342 652 298 587 14.8 % 358 180
Equity ratio 32.0 % 34.4 % -7.1 % 32.0 % 34.4 % -7.1 % 32.9 %
Liquidity ratio 1.18 1.28 -7.8 % 1.18 1.28 -7.8 % 1.24
CASH FLOW
Net cash flow operations 6 198 20 669 -70.0 % -7 063 3 707 -290.5 % 113 465
Net free cash flow -342 16 491 -102.1 % -25 625 -5 358 N/A 75 638
Net cash flow -78 392 -50 519 N/A -105 675 -72 368 N/A -8 416
Cash flow margin 1.6 % 6.0 % N/A -0.9 % 0.6 % N/A 8.5 %
SHARE INFORMATION
Number of shares 10 250 000 10 250 000 0.0 % 10 250 000 10 250 000 0.0 % 10 250 000
Weighted average basic shares outstanding 10 134 615 10 218 683 -0.8 % 10 142 920 10 218 683 -0.7 % 10 171 365
Weighted average diluted shares outstanding 10 251 841 10 353 807 -1.0 % 10 260 146 10 353 807 -0.9 % 10 304 661
EBIT per share 3.57 3.96 -9.9 % 7.58 5.92 28.0 % 10.32
Diluted EBIT per share 3.53 3.91 -9.7 % 7.50 5.85 28.2 % 10.19
Earnings per share 2.75 2.98 -7.9 % 5.82 4.38 32.7 % 7.76
Diluted earnings per share 2.72 2.94 -7.7 % 5.75 4.33 32.9 % 7.66
Equity per share 15.72 15.28 2.9 % 15.72 15.28 2.9 % 17.19
Dividend per share 7.00 6.50 7.7 % 7.00 6.50 7.7 % 6.50
EMPLOYEES
Number of employees (year end) 1 166 1 033 12.9 % 1 166 1 033 12.9 % 1 090
Average number of employees 1 158 1 037 11.7 % 1 140 1 036 10.0 % 1 050
Operating revenue per employee 333 333 0.0 % 706 645 9.5 % 1 267
Operating cost per employee 301 293 2.6 % 638 586 8.9 % 1 166
EBIT per employee 32 38 -17.5 % 68 59 15.6 % 101

Definitions

Cash flow margin Net cash flow operations / Operating revenue
Diluted earnings per share Profit for the period assigned to shareholders in parent company / weighted average
diluted shares outstanding
Diluted EBIT per share EBIT assigned to shareholders in parent company / weighted average diluted shares outstanding
Dividend per share Paid dividend per share througout the year
Earnings per share Profit for the period assigned to shareholders in parent company / weighted average basic
shares outstanding
EBIT Operating profit
EBIT per employee EBIT / average number of employees
EBIT per share EBIT assigned to shareholders in parent company / weighted average basic shares outstanding
EBITDA Operating profit + depreciation fixed assets and intangible assets
EBITDA-margin EBITDA / operating revenue
EBIT-margin EBIT / operating revenue
Equity per share Equity / number of shares
Equity ratio Equity / total assets
Liquidity ratio Current assets / Short-term debt
Net free cash flow Net cash flow operations - Net cash flow investments
Number of shares Number of issued shares at the end of the year
Operating cost per employee Operating cost / average number of employees
Operating revenue per employee Operating revenue / average number of employees
Weighted average basic shares outstanding Issued shares adjusted for own shares on average for the year
Weighted average diluted shares outstanding Issued shares adjusted for own shares and share scheme on average for the year

Our regions and offices

The Group has 15 offices in Norway and Sweden. Our philosophy is that competence should be utilized across the company, while projects are attached locally.

OSLO

Sørkedalsveien 8 NO-0369 Oslo Postboks 5327 Majorstuen, NO-0304 Oslo

ARENDAL Frolandsveien 6 NO-4847 Arendal Telephone: +47 23 40 60 00

BERGEN

Solheimsgaten 15 NO-5058 Bergen Telephone: +47 55 20 09 17

GRENLAND

Uniongata 18 Klosterøya NO-3732 Skien Telephone: +47 23 40 60 00 KRISTIANSAND Kjøita 25 NO-4630 Kristiansand

STAVANGER Fabrikkveien 10 NO-4033 Stavanger Telephone: +47 51 20 00 20

Telephone: +47 23 40 60 00

Strandkaien 36 NO-4005 Stavanger Telephone: +47 52 82 10 17

HAUGESUND

Diktervegen 8 NO-5538 Haugesund Telephone: +47 52 82 10 17 TRONDHEIM Kjøpmannsgata 35 NO-7011 Trondheim Telephone: +47 23 40 60 00

SANDVIKA Leif Tronstadsplass 7 NO-1337 Sandvika Telephone: +47 23 40 60 00

SANDEFJORD Klinestadmoen 9 NO-3241 Sandefjord Telephone: +47 23 40 60 00

STOCKHOLM

Östermalmsgatan 87 A SE-114 59 Stockholm Telephone: +46 (0) 771 611 100

BORLÄNGE

Forskargatan 3 SE-781 70 Borlänge Telephone: +46 (0) 771 611 100

ÖREBRO

Storgatan 3 SE-70361 Örebro Telephone: +46 (0) 709 431 411

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