Earnings Release • Aug 24, 2018
Earnings Release
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| NOK MILLION | APR-JUN 2018 | APR-JUN 2017 | CHANGE % | JAN-JUN 2018 | JAN-JUN 2017 | CHANGE % | YEAR 2017 |
|---|---|---|---|---|---|---|---|
| Revenue | 453.7 | 385.7 | 17.6 % | 915.9 | 804.7 | 13.8 % | 1 607.4 |
| Operating profit (EBIT) | 55.7 | 36.8 | 51.5 % | 106.3 | 78.0 | 36.3 % | 144.1 |
| Ordinary profit before tax | 55.3 | 37.6 | 47.2 % | 105.1 | 79.1 | 32.8 % | 145.9 |
| Profit for the period | 42.9 | 28.3 | 51.5 % | 81.5 | 59.8 | 36.3 % | 112.0 |
| Net cash flow operations | 31.8 | 6.2 | 412.5 % | 17.2 | -7.1 | N/A | 149.0 |
| Cash and cash equivalents | 87.7 | 56.0 | 56.4 % | 87.7 | 56.0 | 56.4 % | 205.4 |
| Number of employees (end of period) | 1 304 | 1 166 | 11.8 % | 1 304 | 1 166 | 11.8 % | 1 215 |
| Number of employees (average) | 1 287 | 1 158 | 11.2 % | 1 268 | 1 140 | 11.2 % | 1 171 |
| Earnings per share | 4.23 | 2.75 | 53.9 % | 8.02 | 5.82 | 37.8 % | 10.92 |
| Diluted earnings per share | 4.19 | 2.72 | 54.2 % | 7.94 | 5.75 | 38.1 % | 10.79 |
| EBIT-margin | 12.3 % | 9.5 % | 11.6 % | 9.7 % | 9.0 % | ||
| Equity ratio | 31.9 % | 32.0 % | 31.9 % | 32.0 % | 34.2 % |
Bouvet is a consultancy delivering digital services. At 30 June, it had 1 304 employees at 14 offices in Norway and Sweden.
The group 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 group 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. Its 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 group and its employees implement their assignments with a high degree of integrity.
| Bouvet was chosen to develop a new solution for public-service pensions for the Norwegian Public Service Pension Fund |
|---|
| Bouvet was approved as a Microsoft Mixed Reality Partner |
| Bouvet presented mixed reality technology together with Microsoft at the Spark + AI Summit in San Francisco |
| Operating revenues up by NOK 68 million or 17.6 per cent from the second quarter of 2017 to NOK 453.7 million |
| Operating profit (EBIT) up by 51.5 per cent from the second quarter of 2017 to NOK 55.7 million |
| Employees up by 44 from 31 March and 138 over the past 12 months |
Big investments continued to be made in digitalisation and implementation of new technology in both Norway and Sweden during the second quarter. That led to increased demand for our expertise from existing and new clients in both private and public sectors.
We are focusing attention on recruiting able new colleagues, and the number of "Bouveteers" is higher than ever today. The quarter turned out well. Both turnover and profit improved from the same period of last year.
Digitalisation, modernisation and innovation are words we hear daily from our clients. They want a close collaboration in their strategy work, formulation of action plans and implementation of digitalisation work. During the quarter, we have executed a number of projects jointly with our clients which have challenged our creativity, innovativeness and ability to deliver. We also saw positive results during the quarter from the work already done. Many of our clients have achieved productivity increases by making the right use of new technology. In turn, that leads us jointly to identify and realise new and exciting opportunities. Roughly 50 per cent of our revenues come from clients in the public sector. We find that they both want and make provision for a closer collaboration in the work of creating and adopting efficient, socially beneficial solutions.
Success with innovation and digitalisation calls for new expertise at clients and here at us as the provider. We are making an uncompromising commitment to developing and sharing expertise. During the quarter, we were present at various conferences and staged in-house conferences where our consultants shared their knowledge with each other. In addition, we conducted various breakfast seminars and client events
where we shared expertise with our clients. This forms an important part of our culture, and is greatly valued by clients.
We have been joined by a number of new colleagues during the quarter. Many are young and bring with them highly interesting expertise and not least ideas and thoughts on how we can become even better.
Demand for assistance among our clients was great during the quarter, resulting in much work and a good result. Our clients still have many digitalisation plans, and will require further support. We will continue to devoting attention to employee satisfaction as well as to expertise development and sharing, and will naturally be hands-on with our clients and generous in sharing our experience and knowledge. That means we take a positive view of the future, both for our clients and for ourselves.
Sverre Hurum President and CEO
"Many of our clients have achieved productivity increases by making the right use of new technology."
Bouvet had operating revenues of NOK 453.7 million for the second quarter, compared with NOK 385.7 million in the same period of 2017. That represented a rise of 17.6 per cent. Fee income generated by the group's own consultants came to NOK 377.9 million, compared with NOK 318.3 million in the same period of last year – an increase of 18.7 per cent. Income generated by sub-contractors came to NOK 60 million, up by 10.8 per cent from the same period of 2017. Other revenues came to NOK 15.8 million, up by NOK 2.6 million from the second quarter of last year.
The second quarter of 2018 had two more working days than the same period of last year. That had a positive effect of NOK 10.8 million on fee income generated by Bouvet's own employees. Fee income from own employees also benefitted by NOK 34.7 million from an 11.2 per cent in the average workforce and by NOK 11 million from a 3.5 per cent increase in rates for the group's hourly based services compared with the second quarter of 2017. It was also boosted by NOK 2.8 million from an increase of 0.7 percentage points in the billing ratio for the group's consultants compared with the same period of last year. In addition, fewer days of holiday and time off in lieu as well as lower sickness absence increased fee income by a total of NOK 7.3 million. Overall, the positive effect of these contributions on operating revenues totalled NOK 66.6 million.
Income for the second quarter was negatively affected by changes in estimates related to fixed-price projects since the previous quarter. The overall negative effect was NOK 7 million.
Viewed overall, sales to existing clients made good progress during the quarter. Clients who also used the group in the second quarter of 2017 accounted for 93.5 per cent of operating revenues. In addition, clients acquired since 30 June 2017 contributed a total of NOK 29.3 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 13.2 per cent in the second quarter, compared with 14 per cent in the same period of 2017.
Operating revenues for the first half came to NOK 915.9 million, compared with NOK 804.7 million in the same period of 2017. That represented a rise of 13.8 per cent.
Fee income generated by the group's own consultants came to NOK 765.9 million, up by 16.2 per cent from the first half of last year. This increase is primarily attributable to an 11.2 per cent rise in the number of employees, a 2.1 percentage point rise in the billing ratio for the group's consultants and 3.4 per cent
Number of employees (end of quarter)
growth in the rates for the group's hourly based services compared with the same period of 2017.
Income generated by sub-contractors came to NOK 118 million, up by two per cent from the first half of last year. Other revenues came to NOK 32.1 million, up by 7.9 per cent from the same period of 2017.
Bouvet's operating costs, including depreciation and amortisation, were NOK 397.9 million for the second quarter, up from NOK 348.9 million in the same period of 2017. That represented an increase of 14.1 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 1.7 per cent over the past 12 months. The cost of sales rose to NOK 62.9 million, compared with NOK 57.2 million for the second quarter of 2017, and primarily comprised procurement of sub-contractor services, software, and hire of course instructors. Other operating expenses grew by 24 per cent from the second quarter of 2017 to NOK 45.8 million. This rise primarily reflected higher costs for leasing and operating premises as well as higher ICT expenses.
Operating costs totalled NOK 809.7 million for the first half, up by 11.4 per cent from the same period of 2017. The cost of sales rose by 2.2 per cent to NOK 126.9 million. Payroll costs increased by 12.6 per cent from the first half of last year to NOK 582.5 million. Other operating expenses came to NOK 87.5 million, up by 12.7 million from the same period of 2017. This rise was again primarily attributable to higher costs for leasing and operating premises as well as increased ICT expenses.
Operating profit (EBIT) for the second quarter came to NOK 55.7 million, compared with NOK 36.8 million in the same period of 2017. The EBIT margin thereby rose to 12.3 per cent, compared with 9.5 per cent in the second quarter of last year. Net profit came to NOK 42.9 million, compared with NOK 28.3 million in the same period of 2017. Diluted earnings per share were NOK 4.19, compared with NOK 2.72 in the second quarter of last year.
Cumulative operating profit for the first half amounted to NOK 106.3 million, compared with NOK 78 million in the same period of 2017. That represented an increase of 36.3 per cent. The EBIT margin thereby rose to 11.6 per cent, compared with 9.7 per cent in the first half of last year. Net profit came to NOK 81.5 million, compared with NOK 59.8 million in the same period of 2017. Diluted earnings per share were NOK 7.94, compared with NOK 5.75 for the first half of last year.
Revenue from customer 100 % public owned: 49.3 %
Revenue from customer wholly or partially private owned: 50.7 %
| Public admin | 26.2 % |
|---|---|
| Oil & gas | 25.1 % |
| Power supply | 10.0 % |
| Transportation | 8.2 % |
| Retail | 6.1 % |
| Info and communication | 5.6 % |
| Service industry | 5.4 % |
| Industry | 4.3 % |
| Bank & finance | 4.0 % |
| Health | 2.7 % |
| Other | 2.4 % |
Consolidated cash flow from operations was at NOK 31.8 million for the second quarter, compared with NOK 6.2 million in the same period of 2017. Cash flow for the quarter was affected positively by a reduction of NOK 0.8 million from the first quarter of 2018 in working capital related to accounts receivable from customers, work in progress and other current receivables. Furthermore, a reduction of NOK 21 million in current liabilities from the first quarter of 2018 had a negative effect on cash flow. Consolidated cash flow from operations in the first half was NOK 17.2 million, compared with a negative NOK 7.1 million in the same period of 2017. Consolidated cash flow from operations over the past 12 months was NOK 173.3 million, while net profit for the same period came to NOK 133.7 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 87.7 million, compared with NOK 56 million a year earlier. Since the account for employee tax deductions totalled NOK 43.6 million at 30 June, disposable bank deposits amounted to NOK 44.1 million at that date compared with NOK 20.8 million a year earlier. The group had an undrawn overdraft facility of NOK 100 million at 30 June. Bouvet held 97 053 of its own shares at 30 June. A dividend of NOK 87.1 million was paid by Bouvet during the second quarter. Equity at 30 June totalled NOK 195.5 million, representing an equity ratio of 31.9 per cent. The corresponding figures for 30 June 2017 were an equity of NOK 161.1 million and an equity ratio of 32 per cent. Bouvet's long-term target is to maintain an equity ratio in excess of 30 per cent.
The group does not report internally by separate business areas. Its business is homogenous and pursued within the Scandinavian market for IT consultancy services. Risk and return are followed up for the business as a whole, with shared markets, on a project basis and per consultant. On that basis, the group has one reportable segment.
A high pace of digitalisation and innovation in the market produced good progress for Bouvet and created a good market for its services during the quarter. The attention devoted by the group to long-term client relationships yields trust and continuity. Existing clients have extended contracts and involved Bouvet in new and highly interesting assignments which call for expertise from all parts of the group's range of services. The State Agency for the Recovery of Fines, Damages and Costs, which is now part of the Norwegian Tax Administration, has renewed the agreement on management and further development of its recovery system. At the Norwegian Environment Agency (NEA), Bouvet is involved in developing a solution to provide compensation for damage caused by predators.
Bouvet works closely with digitalisation efforts in the public sector. It is helping to develop a new solution for public-service pensions for the Norwegian Public Service Pension Fund, and working to renew the registration systems for the Brønnøysund Register Centre. In Sweden, the Legal, Financial and Administrative Services Agency has awarded Bouvet a frame agreement on system development and management in its southern region. The group has also secured new assignments from existing public-service clients such as Bane NOR, the armed forces, the City of Oslo, Statnett, Sykehuspartner, the NEA, Sporveien, the Swedish Post and Telecom Authority, Vinmonopolet and the Norwegian University of Science and Technology (NTNU).
Many enterprises are moving towards becoming more data driven, and demand increased during the quarter for expertise about data platforms, artificial intelligence (AI) and machine learning. As a result, the need for analysis services which can provide the basis for machine learning and AI is growing. During the quarter, Bouvet further developed services for delivering data-oriented solutions which combine technology, advice and communication. These can help clients to secure greater expected value. With its wide range of services and business insight, Bouvet also acts as the system integrator in this work.
Extensive digitalisation is under way in the oil and gas sector, where Bouvet's deliveries grew during the quarter. A number of its clients there are introducing such technologies as mixed reality for land-based control of offshore equipment, operational monitoring, drilling and inspection. Bouvet has extended contracts with and won a number of new assignments from such important players as the Norwegian Petroleum Directorate,
Aker BP, Point Resources, Hydro, Aibel and Equinor. The group is also contributing to Equinor's big commitment to virtual and augmented reality.
Demand for system development remains high. Attention in the market is concentrated on service development and innovation. A closer relationship between commercial and technological progress led during the quarter to increased demand for platform concepts and the development of digital ecosystems. This type of assignment is changing delivery models and providing continuous and long-term progress at such clients as Telia and Servicegrossistene. Greater use of cloud solutions is also relevant in this context. In addition, Bouvet is seeing rising awareness of the internet of things (IoT).
Focus on end users has led to a high level of demand for service design and design-related services. Examples of clients include Tine, the Norwegian Institute of Meteorology, Trønderenergi, the Norwegian Labour Inspection Authority and the Norwegian Directorate for Education and Training. The wholly owned Olavstoppen subsidiary, with its leading team of specialists in developing digital services, secured a number of high-profile assignments both nationally and internationally.
Bouvet contributes to the development of business-critical systems which call for expertise on providing advice and on change, project and test management. Demand for these services rose during the quarter at the NTNU, the Brønnøysund Register Centre, the Norwegian Institute of Public Health, Entur and the City of Oslo's health agency. To speed up the pace of development, a number of clients are hiring cross-disciplinary teams. Sbanken is a case in point, and has given Bouvet turnkey responsibility for developing its internal processing client for loan applications.
The EU's general data protection regulation (GDPR) comes into force during the third quarter. Bouvet's Sesam arm delivers a digitalisation platform which increases the accessibility of data by dissolving the silos which contain them. With the aid of its GDPR platform, Sesam delivered a number of transparency portals and consent processing solutions in the Nordic region related to the new regulation during the quarter. Demand for data governance is growing in light of the GDPR and the need to facilitate data-sharing across processes and business areas.
A culture-driven organisation and high job satisfaction among employees, combined with Bouvet's regional model, yielded organic growth during the quarter. The workforce increased by 44 people from the previous period, and the company had 1 304 employees at 30 June – up by 138 from the same date in 2017.
A continued high level of demand for Bouvet's expertise and broad range of services has created a continuous need for recruitment. Securing the right expertise in a market characterised by strong competition is demanding, but Bouvet manages to be attractive to relevant candidates in all age groups and service areas.
Bouvet's commitment to recruitment and to being present at conferences, universities and university colleges allows people to share in its creativity and technology enthusiasm. The group's presence in higher education institutions is a success. A number of new graduates have chosen Bouvet as their first employer. Its summer programme, which a number of students started at the end of the quarter to work on various client projects, has been very well received.
As a knowledge-based company, Bouvet concentrates attention on professional development through a strong culture for sharing expertise across disciplines, projects and regions. Important arenas have been established for expertise development and learning, such as in-house schools, conferences and courses. The professional commitment by employees secured a fourth place in the 2018 Paranoia Challenge and the award for the best concept in the hackathon at the Bergen International Festival.
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 2017 (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.
The digital transformation is a general phenomenon in the market, and a number of industries are now experiencing an increase in productivity. Digitalisation has become fundamental for the growth in prosperity and increased competitiveness. Commercial chains and business models are changing, since technology is driving greater adaptation in enterprises and working life in general. This social trend, with growing technology- and service-driven business development in private and public enterprises, means a shift towards demand for more expertise on design, technology and change.
Bouvet has this breadth and a regional model which allows it to be present at the local level and able to adapt to the pace of client change and innovation. That has proved valuable for the company's clients.
Continuous recruitment is required to ensure the right delivery capacity in a market characterised by a high level of demand, and will continue to be pursued in the face of strong competition from other players.
Bouvet is well positioned for continued growth.
President and CEO Tel: +47 23 40 60 00 | +47 913 50 047
CFO Tel: +47 23 40 60 00 | +47 950 36 011
We hereby confirm to the best of our knowledge that the interim financial statements for the first half and second quarter of 2018 have been prepared in accordance with IAS 34, and that the information in the financial statements provides a true and fair picture of the overall assets, liabilities, financial position and financial results of the Bouvet ASA group. We also confirm 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 influence on the interim financial statements, the most important risk and uncertainty factors facing the business in the next accounting period, and significant transactions with close associates.
Oslo, 24 August 2018 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
| NOK 1 000 | UNAUDITED APR-JUN 2018 |
UNAUDITED APR-JUN 2017 |
CHANGE | CHANGE % | UNAUDITED JAN-JUN 2018 |
UNAUDITED JAN-JUN 2017 |
CHANGE | CHANGE % | YEAR 2017 |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | 453 661 | 385 662 | 67 999 | 17.6 % | 915 937 | 804 714 | 111 223 | 13.8 % | 1 607 353 |
| Operating expenses | |||||||||
| Cost of sales | 62 879 | 57 218 | 5 661 | 9.9 % | 126 949 | 124 253 | 2 696 | 2.2 % | 247 346 |
| Personell expenses | 282 922 | 249 510 | 33 412 | 13.4 % | 582 501 | 517 335 | 65 166 | 12.6 % | 1 035 043 |
| Depreciation fixed assets | 4 439 | 3 162 | 1 277 | 40.4 % | 8 986 | 6 120 | 2 866 | 46.8 % | 12 994 |
| Amortisation intangible assets | 1 898 | 2 062 | -164 | -8.0 % | 3 750 | 4 245 | -495 | -11.7 % | 8 149 |
| Other operating expenses | 45 797 | 36 938 | 8 859 | 24.0 % | 87 492 | 74 806 | 12 686 | 17.0 % | 159 684 |
| Total operating expenses | 397 935 | 348 890 | 49 045 | 14.1 % | 809 678 | 726 759 | 82 919 | 11.4 % | 1 463 216 |
| Operating profit | 55 726 | 36 772 | 18 954 | 51.5 % | 106 259 | 77 955 | 28 304 | 36.3 % | 144 137 |
| Financial items | |||||||||
| Interest income | 385 | 294 | 91 | 31.0 % | 872 | 590 | 282 | 47.8 % | 1 291 |
| Financial income | 42 | 683 | -641 | -93.9 % | 149 | 888 | -739 | -83.2 % | 1 497 |
| Interest expense | -18 | -16 | -2 | 12.5 % | -51 | -41 | -10 | 24.4 % | -137 |
| Finance expense | -796 | -151 | -645 | 427.2 % | -2 164 | -294 | -1 870 | 636.1 % | -852 |
| Net financial items | -387 | 810 | -1 197 | -147.8 % | -1 194 | 1 143 | -2 337 | -204.5 % | 1 799 |
| Ordinary profit before tax | 55 339 | 37 582 | 17 757 | 47.2 % | 105 065 | 79 098 | 25 967 | 32.8 % | 145 936 |
| Income tax expense | |||||||||
| Tax expense on ordinary profit | 12 422 | 9 262 | 3 160 | 34.1 % | 23 525 | 19 281 | 4 244 | 22.0 % | 33 914 |
| Total tax expense | 12 422 | 9 262 | 3 160 | 34.1 % | 23 525 | 19 281 | 4 244 | 22.0 % | 33 914 |
| Profit for the period | 42 917 | 28 320 | 14 597 | 51.5 % | 81 540 | 59 817 | 21 723 | 36.3 % | 112 022 |
| Assigned to: | |||||||||
| Shareholders in parent company | 42 917 | 27 839 | 81 540 | 59 025 | 110 632 | ||||
| Non-controlling interests | 0 | 481 | 0 | 792 | 1 390 | ||||
| Diluted earnings per share | 4.19 | 2.72 | 1.47 | 54.1 % | 7.94 | 5.75 | 2.19 | 38.1 % | 10.79 |
| Earnings per share | 4.23 | 2.75 | 1.48 | 53.8 % | 8.02 | 5.82 | 2.20 | 37.8 % | 10.92 |
| NOK 1 000 | UNAUDITED APR-JUN 2018 |
UNAUDITED APR-JUN 2017 |
CHANGE | CHANGE % | UNAUDITED JAN-JUN 2018 |
UNAUDITED JAN-JUN 2017 |
CHANGE | CHANGE % | YEAR 2017 |
|---|---|---|---|---|---|---|---|---|---|
| Profit for the period | 42 917 | 28 320 | 14 597 | 51.5 % | 81 540 | 59 817 | 21 723 | 36.3 % | 112 022 |
| Items that may be reclassified through profit or loss in subsequent periods |
|||||||||
| Currency translation differences | -244 | 92 | -336 | -365.5 % | -707 | 125 | -832 | -666.7 % | 171 |
| Sum other income and costs | -244 | 92 | -336 | -365.5 % | -707 | 125 | -832 | -666.7 % | 171 |
| Total comprehensive income | 42 673 | 28 412 | 14 261 | 50.2 % | 80 833 | 59 942 | 20 891 | 34.9 % | 112 193 |
| Assigned to: | |||||||||
| Shareholders in parent company | 42 673 | 27 931 | 80 833 | 59 150 | 110 803 | ||||
| Non-controlling interests | 0 | 481 | 0 | 792 | 1 390 |
| NOK 1 000 | UNAUDITED 30.06.2018 |
UNAUDITED 30.06.2017 |
CHANGE | CHANGE % | 31.12.2017 |
|---|---|---|---|---|---|
| ASSETS | |||||
| NON-CURRENT ASSETS | |||||
| Intangible assets | |||||
| Deferred tax asset | 852 | 0 | 852 | N/A | 0 |
| Goodwill | 32 429 | 33 401 | -972 | -2.9 % | 33 460 |
| Other intangible assets | 30 419 | 27 137 | 3 282 | 12.1 % | 27 764 |
| Total intangible assets | 63 700 | 60 538 | 3 162 | 5.2 % | 61 224 |
| Fixed assets Office equipment |
17 899 | 3 438 | 19.2 % | ||
| Office machines and vehicles | 21 337 5 203 |
3 937 | 1 266 | 32.2 % | 16 973 3 425 |
| IT equipment | 19 867 | 16 262 | 3 605 | 22.2 % | 17 755 |
| Total fixed assets | 46 407 | 38 098 | 8 309 | 21.8 % | 38 153 |
| Financial non-current assets | |||||
| Other financial assets | 116 | 116 | 0 | 0.0 % | 116 |
| Other long-term receivables | 1 911 | 1 951 | -40 | -2.1 % | 2 009 |
| Total financial non-current assets | 2 027 | 2 067 | -40 | -1.9 % | 2 125 |
| Total non-current assets | 112 134 | 100 703 | 11 431 | 11.4 % | 101 502 |
| CURRENT ASSETS | |||||
| Work in progress | 100 887 | 134 848 | -33 961 | -25.2 % | 84 787 |
| Trade accounts receivable | 265 449 | 181 372 | 84 077 | 46.4 % | 224 645 |
| Other short-term receivables | 45 919 | 31 197 | 14 722 | 47.2 % | 27 783 |
| Cash and cash equivalents | 87 660 | 56 044 | 31 616 | 56.4 % | 205 371 |
| Total current assets | 499 915 | 403 461 | 96 454 | 23.9 % | 542 586 |
| TOTAL ASSETS | 612 049 | 504 164 | 107 885 | 21.4 % | 644 088 |
| NOK 1 000 | UNAUDITED 31.06.2018 |
UNAUDITED 31.06.2017 |
CHANGE | CHANGE % | 31.12.2017 |
|---|---|---|---|---|---|
| EQUITY AND LIABILITIES | |||||
| EQUITY | |||||
| Paid-in capital | |||||
| Share capital | 10 250 | 10 250 | 0 | 0.0 % | 10 250 |
| Own shares - nominal value | -97 | -139 | 42 | -30.2 % | -47 |
| Share premium fund | 10 000 | 10 000 | 0 | 0.0 % | 10 000 |
| Total paid-in capital | 20 153 | 20 111 | 42 | 0.2 % | 20 203 |
| Earned equity | |||||
| Other equity | 175 342 | 138 592 | 36 750 | 26.5 % | 197 186 |
| Total earned equity | 175 342 | 138 592 | 36 750 | 26.5 % | 197 186 |
| Non-controlling interests | 0 | 2 420 | -2 420 | -100.0 % | 3 019 |
| Total equity | 195 495 | 161 123 | 34 372 | 21.3 % | 220 408 |
| DEBT | |||||
| Long-term debt | |||||
| Deferred tax | 0 | 389 | -389 | -100.0 % | 218 |
| Total long-term debt | 0 | 389 | -389 | -100.0 % | 218 |
| Short-term debt | |||||
| Trade accounts payable | 57 650 | 49 123 | 8 527 | 17.4 % | 56 865 |
| Income tax payable | 31 756 | 14 963 | 16 793 | 112.2 % | 31 593 |
| Public duties payable | 126 491 | 115 991 | 10 500 | 9.1 % | 158 026 |
| Deferred revenue | 16 460 | 10 138 | 6 322 | 62.4 % | 17 275 |
| Other short-term debt | 184 197 | 152 437 | 31 760 | 20.8 % | 159 703 |
| Total short-term debt | 416 554 | 342 652 | 73 902 | 21.6 % | 423 462 |
| Total liabilities | 416 554 | 343 041 | 73 513 | 21.4 % | 423 680 |
| TOTAL EQUITY AND LIABILITIES | 612 049 | 504 164 | 107 885 | 21.4 % | 644 088 |
| NOK 1 000 | UNAUDITED APR-JUN 2018 |
UNAUDITED APR-JUN 2017 |
UNAUDITED JAN-JUN 2018 |
UNAUDITED JAN-JUN 2017 |
YEAR 2017 |
|---|---|---|---|---|---|
| Cash flow from operating activities | |||||
| Ordinary profit before tax | 55 339 | 37 582 | 105 065 | 79 098 | 145 936 |
| Paid tax | -11 610 | -13 351 | -23 463 | -26 547 | -25 582 |
| (Gain)/loss on sale of fixed assets | 42 | -166 | 32 | -158 | -98 |
| Ordinary depreciation | 4 439 | 3 162 | 8 986 | 6 120 | 12 994 |
| Amortisation intangible assets | 1 898 | 2 062 | 3 750 | 4 245 | 8 149 |
| Share based payments | 1 793 | 1 596 | 3 585 | 3 192 | 6 449 |
| Changes in work in progress, accounts receivable and accounts payable | 6 690 | -8 634 | -56 119 | -71 364 | -56 834 |
| Changes in other accruals | -26 823 | -16 052 | -24 677 | -1 647 | 58 020 |
| Net cash flow from operating activities | 31 767 | 6 198 | 17 159 | -7 063 | 149 035 |
| Cash flows from investing activities | |||||
| Sale of fixed assets | 41 | 856 | 91 | 856 | 971 |
| Purchase of fixed assets | -13 344 | -4 483 | -17 363 | -13 253 | -20 358 |
| Purchase of intangible assets | -2 716 | -2 913 | -6 463 | -6 165 | -10 540 |
| Investment in subsidiaries - net cash | 0 | 0 | -13 390 | 0 | 0 |
| Net cash flow from investing activities | -16 019 | -6 540 | -37 125 | -18 562 | -29 927 |
| Cash flows from financing activities | |||||
| Purchase of own shares | 0 | -6 300 | -10 620 | -6 300 | -11 190 |
| Sales of own shares | 0 | 0 | 0 | 0 | 9 484 |
| Dividend payments | -87 125 | -71 750 | -87 125 | -73 750 | -73 750 |
| Net cash flow from financing activities | -87 125 | -78 050 | -97 745 | -80 050 | -75 456 |
| Net changes in cash and cash equivalents | -71 377 | -78 392 | -117 711 | -105 675 | 43 652 |
| Cash and cash equivalents at the beginning of the period | 159 037 | 134 436 | 205 371 | 161 719 | 161 719 |
| Cash and cash equivalents at the end of the period | 87 660 | 56 044 | 87 660 | 56 044 | 205 371 |
| NOK 1 000 | SHARE CAPITAL |
OWN SHARES |
SHARE PREMIUM |
TOTAL PAID-IN EQUITY |
OTHER EQUITY |
TRANSLATION DIFFERENCES |
TOTAL OTHER EQUITY |
NON CONTROLLING INTERESTS |
TOTAL EQUITY |
|---|---|---|---|---|---|---|---|---|---|
| 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 31.03.2017 (Unaudited) | 10 250 | -139 | 10 000 | 20 111 | 139 109 | -518 | 138 592 | 2 420 | 161 123 |
| Equity at 01.01.2018 | 10 250 | -47 | 10 000 | 20 203 | 197 659 | -472 | 197 186 | 3 019 | 220 408 |
| Profit for the period | 0 | 81 540 | 81 540 | 81 540 | |||||
| Other income and costs | 0 | -707 | -707 | -707 | |||||
| Purchase/sale of own shares (net) | -50 | -50 | -10 570 | -10 570 | -10 620 | ||||
| Employee share scheme | 0 | 5 389 | 5 389 | 5 389 | |||||
| Payment from non-controlling interests | 0 | -10 371 | -10 371 | -3 019 | -13 390 | ||||
| Dividend | 0 | -87 125 | -87 125 | -87 125 | |||||
| Equity at 31.03.2018 (Unaudited) | 10 250 | -97 | 10 000 | 20 153 | 176 522 | -1 178 | 175 342 | 0 | 195 495 |
The group made no changes to the accounting principles applied in 2018. 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 2017.
The accounting policies applied are consistant with those applied in previous financial year, except for the implementation of IFRS 9 - Financial Instuments and IFRS 15 - Revenue from Contracts with Customers. IFRS 9 includes revised guidance on classification and measurement, impairment and hedge accounting. IFRS 9 replaces IAS 39 Financial Instruments: Recognition and Measurement. The adoption of IFRS 9 has not had significant impact on the Group financial statement. IFRS 15 replaces all existing standards and interpretations relating to revenue recognition. The core principle of IFRS 15 is for companies to recognise revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration (that is, payment) to which the company expects to be entitled in exchange for those goods or services. The Group has performed analyses of customer contracts and revenue streams in accordanse with the accounting standards 5-step
model, and concluded that the new standard have no significant impact on the Group`s revenue recognition principles.
IFRS 16 Leases replaces existing IFRS leases requirements, IAS 17 Leases. IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract, ie the customer ('lessee') and the supplier ('lessor'). IFRS 16 is effective for financial yearannual periods beginning on or after 1 January 2019. The implication of the new standard is that the Group will have to recognise assets and liabilities in the balance sheet for several leases. The new leases standard requires lessees to recognise assets and liabilities for most leases, which is a significant change from current requirements.
An estimation on current leases per 30 June 2018 indicates a balance recognition of MNOK 230. This will reduce the equity ratio with 9 percentage points. Under today's IFRS regulations lease amounts for operational leases are recognised as operating expenses. In accordance with the new regulations leases recognised in the balance sheet will be depreciated over the lease period and recognised together with the Group's remaining depreciations. Interest effect from the discount calculation will be recognised as financial items. Due to the new regulations the Group's EBIT will slightly increase, provided the same type and number of lease objects. See note 20 Annual Report 2017 for information on the group`s lease commitments.
The Group is primarily delivering its services based on time and material used and has in most cases legal rights for payment for services delivered at date. The Group has some income from projects where the Group shall deliver a predefined result at a price that is either fixed or has elements causing income per hour not to be known before the projects are
finalised. For these projects the income is recorded in correlation with the degree of completion. Progress is measured as incurred hours in relation to totally estimated hours. For these projects the customer controles the asset being made or improved. The Group is therefore very little affected by the changes caused from adoption of IFRS 15.
| NOK 1 000 | APR-JUN 2018 | APR-JUN 2017 |
|---|---|---|
| Contract category | ||
| Fixed- and target price | 10 519 | 11 271 |
| Variable contracts | 443 142 | 374 391 |
| Total revenue | 453 661 | 385 662 |
| Business sector | ||
| Bank & finance | 18 329 | 15 045 |
| Power supply | 45 482 | 35 086 |
| Health | 12 352 | 12 716 |
| Industry | 19 472 | 21 471 |
| Info and communication | 25 321 | 21 058 |
| Public admin | 118 966 | 106 523 |
| Oil & gas | 113 949 | 79 583 |
| Service industry | 24 425 | 24 069 |
| Transportation | 37 286 | 34 394 |
| Retail | 27 648 | 27 459 |
| Other | 10 432 | 8 256 |
| Total revenue | 453 661 | 385 662 |
| Public/privat sector | ||
| Public sector (100% owned) | 223 474 | 191 150 |
| Privat sector | 230 187 | 194 512 |
| Total revenue | 453 661 | 385 662 |
| Work in progress | 100 887 | 134 848 |
| Deferred revenue | 16 460 | 10 138 |
At the balance sheet date, processed but not billed services amounted to NOK 100.89 million (2017.06.30: NOK 134.85 million). This is mainly services delivered on running account, invoiced to customers at the beginning of the next month.
| SHARES IN THOUSANDS | APR-JUN 2018 | APR-JUN 2017 |
|---|---|---|
| Ordinary shares, nominal value NOK 1 | 10 250 | 10 250 |
| Total number of shares | 10 250 | 10 250 |
The nominal value of the share is NOK 1. All shares in the company have equal voting rights and are equally entitled to dividend.
| NO. OF SHARES | SHARE CAPITAL | |||||
|---|---|---|---|---|---|---|
| NOK 1 000 | APR-JUN 2018 | APR-JUN 2017 | APR-JUN 2018 | APR-JUN 2017 | ||
| Ordinary shares issued and fully paid at 31.12. | 10 250 | 10 250 | 10 250 | 10 250 | ||
| Own shares at nominal value | -97 | -139 | -97 | -139 |
In the period, Bouvet ASA, has not bought any own shares. The company owns 97 053 own shares at the end of the period.
The company has paid the following dividends:
| NOK 1 000 APR-JUN 2018 |
|||
|---|---|---|---|
| Ordinary dividend for 2017: NOK 8.50 per share | 87 125 | ||
| Ordinary dividend for 2016: NOK 7.00 per share | 71 750 | ||
| Total | 87 125 | 71 750 |
Shares in the company directly or indirectly owned by the Board and management
| NO. OF SHARES | ||||||
|---|---|---|---|---|---|---|
| NAME | ROLE | 31.03.2018 | BUY | SALE | 30.06.2018 | |
| Pål Egil Rønn | Chairman of the Board | 0 | 0 | |||
| Tove Raanes | Vice-chairman of the Board | 895 | 895 | |||
| Grethe Høiland | Board member | 0 | 0 | |||
| Ingebrigt Steen Jensen | Board member | 0 | 0 | |||
| Egil Christen Dahl | Board member | 453 502 | 453 502 | |||
| Sverre F. Hurum | CEO | 508 366 | 508 366 | |||
| Erik Stubø | CFO | 237 866 | 237 866 | |||
| Total | 1 200 629 | 0 | 0 | 1 200 629 |
In the third quarter the Group has entered into an agreement with a customer to terminate an ongoing delivery. This will negatively effect the EBIT with NOK 7.4 million as a one-time effect in the third quarter.
There have been no other events after the balance sheet date significantly affecting the Group's financial position.
The European Securities an Markets Authority ("ESMA") issued guidelines on Alternative Performance Measures ("APMs") that came into force on July 3, 2016. Bouvet discloses APMs that are frequently used by investors, analysts, and other interested parties. The management believes that the disclosed APMs provide improved insight into the operations, financing, and prospects of Bouvet. Bouvet has defined the following APMs:
EBITDA is short for earnings before interest, taxes, depreciation, and amortization. EBITDA is calculated as profit for the period before tax expense, financial items, depreciation, and amortization.
EBIT is short for earnings before interest and taxes. EBIT corresponds to operating profit in the consolidated income statement.
Net free cash flow is calculated as net cash flow from operations plus net cash flow from investing activities. EBITDA-margin is calculated as EBITDA divided by revenue.
EBIT-margin is calculated as EBIT divided by revenue.
Cash flow margin is calculated as Net cash flow from operations divided by revenue.
Equity ratio is calculated as total equity divided by total assets.
Liquidity ratio is calculated as current assets divided by short-term debt.
| NOK 1 000 | APR-JUN 2018 | APR-JUN 2017 | CHANGE % | JAN-JUN 2018 | JAN-JUN 2017 | CHANGE % | YEAR 2017 |
|---|---|---|---|---|---|---|---|
| INCOME STATEMENT | |||||||
| Operating revenue | 453 661 | 385 662 | 17.6 % | 915 937 | 804 714 | 13.8 % | 1 607 353 |
| EBITDA | 62 063 | 41 996 | 47.8 % | 118 995 | 88 320 | 34.7 % | 165 280 |
| Operating profit (EBIT) | 55 726 | 36 772 | 51.5 % | 106 259 | 77 955 | 36.3 % | 144 137 |
| Ordinary profit before tax | 55 339 | 37 582 | 47.2 % | 105 065 | 79 098 | 32.8 % | 145 936 |
| Profit for the period | 42 917 | 28 320 | 51.5 % | 81 540 | 59 817 | 36.3 % | 112 022 |
| EBITDA-margin | 13.7 % | 10.9 % | 25.6 % | 13.0 % | 11.0 % | 18.4 % | 10.3 % |
| EBIT-margin | 12.3 % | 9.5 % | 28.8 % | 11.6 % | 9.7 % | 19.8 % | 9.0 % |
| BALANCE SHEET | |||||||
| Non-current assets | 112 134 | 100 703 | 11.4 % | 112 134 | 100 703 | 11.4 % | 101 502 |
| Current assets | 499 915 | 403 461 | 23.9 % | 499 915 | 403 461 | 23.9 % | 542 586 |
| Total assets | 612 049 | 504 164 | 21.4 % | 612 049 | 504 164 | 21.4 % | 644 088 |
| Equity | 195 495 | 161 123 | 21.3 % | 195 495 | 161 123 | 21.3 % | 220 408 |
| Long-term debt | 0 | 389 | -100.0 % | 0 | 389 | -100.0 % | 218 |
| Short-term debt | 416 554 | 342 652 | 21.6 % | 416 554 | 342 652 | 21.6 % | 423 462 |
| Equity ratio | 31.9 % | 32.0 % | -0.1 % | 31.9 % | 32.0 % | -0.1 % | 34.2 % |
| Liquidity ratio | 1.20 | 1.18 | 1.9 % | 1.20 | 1.18 | 1.9 % | 1.28 |
| CASH FLOW | |||||||
| Net cash flow operations | 31 767 | 6 198 | 412.5 % | 17 159 | -7 063 | N/A | 149 035 |
| Net free cash flow | 15 748 | -342 | N/A | -19 966 | -25 625 | N/A | 119 108 |
| Net cash flow | -71 377 | -78 392 | N/A | -117 711 | -105 675 | N/A | 43 652 |
| Cash flow margin | 7.0 % | 1.6 % | 335.7 % | 1.9 % | -0.9 % | N/A | 9.3 % |
| 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 | 10 152 947 | 10 134 615 | 0.2 % | 10 165 820 | 10 142 920 | 0.2 % | 10 133 943 |
| Weighted average diluted shares outstanding | 10 251 455 | 10 251 841 | 0.0 % | 10 264 328 | 10 260 146 | 0.0 % | 10 248 708 |
| EBIT per share | 5.49 | 3.57 | 53.9 % | 10.45 | 7.58 | 37.9 % | 14.04 |
| Diluted EBIT per share | 5.44 | 3.53 | 54.2 % | 10.35 | 7.50 | 38.1 % | 13.89 |
| Earnings per share | 4.23 | 2.75 | 53.9 % | 8.02 | 5.82 | 37.8 % | 10.92 |
| Diluted earnings per share | 4.19 | 2.72 | 54.2 % | 7.94 | 5.75 | 38.1 % | 10.79 |
| Equity per share | 19.07 | 15.72 | 21.3 % | 19.07 | 15.72 | 21.3 % | 21.50 |
| Dividend per share | 8.50 | 7.00 | 21.4 % | 8.50 | 7.00 | 21.4 % | 7.00 |
| EMPLOYEES | |||||||
| Number of employees (year end) | 1 304 | 1 166 | 11.8 % | 1 304 | 1 166 | 11.8 % | 1 215 |
| Average number of employees | 1 287 | 1 158 | 11.2 % | 1 268 | 1 140 | 11.2 % | 1 171 |
| Operating revenue per employee | 352 | 333 | 5.8 % | 723 | 706 | 2.4 % | 1 373 |
| Operating cost per employee | 309 | 301 | 2.6 % | 639 | 638 | 0.2 % | 1 250 |
| EBIT per employee | 43 | 32 | 36.3 % | 84 | 68 | 22.6 % | 123 |
| 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 | ||
| EBIT-margin | EBIT / operating revenue | ||
| EBITDA | Operating profit + depreciation fixed assets and intangible assets | ||
| EBITDA-margin | EBITDA / 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 | ||
The Group has 14 offices in Norway and Sweden. Our philosophy is that competence should be utilized across the company, while projects are attached locally.
Sørkedalsveien 8 NO-0369 Oslo P. O. Box 5327 Majorstuen NO-0304 Oslo Tel: (+47) 23 40 60 00
Frolandsveien 6 NO-4847 Arendal Tel: (+47) 23 40 60 00
Solheimsgaten 15 NO-5058 Bergen Tel: (+47) 55 20 09 17
Uniongata 18 Klosterøya NO-3732 Skien Tel: (+47) 23 40 60 00
Kjøita 25 NO-4630 Kristiansand Tel: (+47) 23 40 60 00
Laberget 28 NO-4020 Stavanger P. O. Box 130 NO-4065 Stavanger Tel: (+47) 51 20 00 20
Diktervegen 8 NO-5538 Haugesund Tel: (+47) 52 82 10 17
Kjøpmannsgata 35 NO-7011 Trondheim Tel: (+47) 23 40 60 00
SANDEFJORD Klinestadmoen 9 NO-3241 Sandefjord Tel: (+47) 23 40 60 00
Östermalmsgatan 87 A 114 59 Stockholm Tel: (+ 46) 0 771 611 100
Forskargatan 3 781 70 Borlänge Tel: (+46) 0 771 611 100
Kungsgatan 1 702 11 Örebro Tel: (+46) 0 709 431 411
en.bouvet.no
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