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Bouvet

Quarterly Report Aug 25, 2016

3563_rns_2016-08-25_689fe1d6-05a2-4019-9ed3-78334c4bd0f4.pdf

Quarterly Report

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QUARTERLY REPORT

About Bouvet

Bouvet delivers services related to information technology, digital communication and enterprise management. At 30 June, it had 1 033 employees at 14 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. 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 aims 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 learn 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, wellrun 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.

Highlights of the second quarter 2016

  • · Strong growth in demand for system development
  • · Important frame agreements secured
  • · Combination of user-orientation and technology at clients continues
  • · Operating revenues up by NOK 29.6 million or 9.4 per cent from the second quarter of 2015 to reach NOK 345.3 million
  • · Operating profit (EBIT) up by 18.4 per cent from the same period of last year to NOK 41 million
  • · Three extra working days compared with the second quarter of 2015 boosted revenues by NOK 13.6 million
  • · Cash flow from operations came to NOK 24.8 million, compared with NOK 28.6 million in the same period of last year
  • · Workforce down by three people from 31 March and up by 15 over the past 12 months

Key figures

MILLIONS NOK APR-JUN 2016 APR-JUN 2015 CHANGE % JAN-JUN 2016 JAN-JUN 2015 CHANGE % YEAR 2015
Revenue 345,3 315,7 9,4 % 668,2 642,7 4,0 % 1 232,5
Operating profit (EBIT) 41,0 34,6 18,4 % 61,3 66,6 -8,0 % 99,4
Ordinary profit before tax 41,0 35,4 15,6 % 61,4 67,7 -9,2 % 101,8
Profit for the period 30,9 25,4 21,5 % 45,4 49,8 -8,9 % 74,7
Net cash flow operations 24,8 28,6 -13,2 % 7,9 28,9 -72,8 % 127,9
Cash and cash equivalents 106,1 89,7 18,3 % 106,1 89,7 18,3 % 174,3
Number of employees (end of period) 1 033 1 018 1,5 % 1 033 1 018,0 1,5 % 1 036
Number of employees (average) 1 037 1 010 2,7 % 1 036 1 007,0 2,8 % 1 016
Earnings per share 2,98 2,44 22,0 % 4,38 4,80 -8,6 % 7,21
Diluted earnings per share 2,94 2,41 22,0 % 4,33 4,74 -8,6 % 7,12
EBIT margin 11,9 % 11,0 % 9,2 % 10,4 % 8,1 %
Equity ratio 34,4 % 35,8 % 34,4 % 35,8 % 35,9 %

Financial results

Operating revenues

Bouvet had operating revenues of NOK 345.3 million in the second quarter, compared with NOK 315.7 million in the same period of 2015. That represented a rise of 9.4 per cent. Fee income generated by the group's own consultants increased by NOK 18.2 million or 6.8 per cent from the second quarter of last year. Revenues generated by sub-contractors rose by NOK 12.6 million or 41.4 per cent over the same period. Other revenue declined by NOK 1.2 million from the second quarter of 2015 to NOK 15.5 million.

Operating revenues from Bouvet's own employees were negatively affected by a reduction of 1.8 percentage points in the billing ratio for the group's consultants compared with the second quarter of 2015. Other negative effects were some increase in parental leave and rather slower progress with fixed-price projects. These factors collectively reduced operating revenues by NOK 8.5 million.

At the same time, operating revenues were positively affected by three additional working days in the quarter compared with the same period of last year. Positive effects were also provided by a 2.7 per cent increase in the average number of employees and a rise of 0.4 per cent in rates for the group's hourly based services from the second quarter of 2015. In addition, a reduction in the number of days off for holidays and sickness had a positive impact. These factors collectively boosted operating revenues by NOK 26.7 million.

Viewed overall, sales to existing clients made good progress during the quarter. Clients who also used the group in the second quarter of 2015 accounted for 89.4 per cent of operating revenues. In addition, clients acquired since 30 June 2015 contributed a total of NOK 36.6 million to secondquarter 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 12.4 per cent in the second quarter, compared with 9.6 per cent in the same period of 2015.

Operating revenues for the first half of 2016 totalled NOK 668.2 million, compared with NOK 642.7 million in the same period of 2015. That represented an increase of four per cent.

Operating costs

Bouvet's operating costs, including depreciation and amortisation, were NOK 304.3 million for the second quarter, up from NOK 281.1 million in the same period of 2015. That represents an increase of 8.2 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 1.4 per cent over the past 12 months. The cost of sales was NOK 47.2 million, compared with NOK 40.2 million for the second quarter of 2015, and primarily comprised procurement of sub-contractor services and software as well as the hire of course instructors. Other operating expenses rose by 2.4 per cent from the same period of last year to NOK 29.4 million.

Profit

Operating profit (EBIT) for the second quarter came to NOK 41 million, compared with NOK 34.6 million in the same period of 2015. The EBIT margin was thereby 11.9 per cent, compared with 11 per cent in the second quarter of the year before. Net profit came to NOK 30.9 million, up from NOK 25.4 million in the same period of 2015. Diluted earnings per share were NOK 2.94, compared with NOK 2.41 in the second quarter of 2015.

Cumulative operating profit for the first half was NOK 61.3 million, compared with NOK 66.6 million in the same period of 2015. That represents a decline of eight per cent. The EBIT margin was thereby 9.2 per cent, compared with 10.4 per cent in the first half of last year. Net profit for the first six months was NOK 45.4 million, down from NOK 49.8 million in

EMPLOYEES (END OF PERIOD)

OPERATING PROFIT (EBIT)

50 NOK MILLION

January-June 2015. Diluted earnings per share were NOK 4.33, compared with NOK 4.78 in the first half of last year.

Cash flow, liquidity and capital adequacy

Consolidated cash flow from operations was NOK 24.8 million for the second quarter, compared with NOK 28.6 million in the same period of 2015. Cash flow for the quarter was affected negatively by an increase of NOK 2.7 million in working capital related to client receivables, work in progress and other current receivables from the first quarter of 2016. Furthermore, cash flow was negatively affected by a reduction of NOK 8.3 million in current liabilities from the first quarter of this year. For the first half, consolidated cash flow from operations came to NOK 7.9 million. That compares with NOK 28.9 million in the same period of 2015. Consolidated cash flow from operations for the past 12 months was NOK 106.8 million, while net profit for the same period was NOK 69.7 million.

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

Developments and market

Bouvet experienced good demand for its services during the second quarter. Digitalisation of the public and private sectors is continuing at high speed. Turnover from government bodies rose by 40.8 per cent from the same period of last year, while demand for Bouvet's services also increased in the transport, banking/finance and health sectors.

The company is involved in everything from analyses and strategy to design and technical development. Its way of working, in-depth expertise in a number of specialist disciplines and insight into technological trends underpin innovative force and ability to deliver. In addition, Bouvet is involved in a number of core business projects aimed at

The group has no interest-bearing debt. Bank deposits at 30 June totalled NOK 106.1 million, compared with NOK 89.7 million a year earlier. The group had an undrawn overdraft facility of NOK 50 million at 30 June. Bouvet held 31 317 of its own shares at 30 June. A dividend of NOK 67 million was paid in the second quarter. Equity at 30 June totalled NOK 156.6 million, representing an equity ratio of 34.4 per cent. The corresponding figures for 30 June 2015 were an equity of NOK 155.6 million and an equity ratio of 35.8 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.

helping its clients to take advantage of technological opportunities in their digitalisation and restructuring work.

Good solutions are produced with aid of the company's unique knowledge of creating positive user experiences.

Demand for developing business-critical solutions has been high, and Bouvet's system developers had plenty to do during the quarter.

Inquiries relating to data protection and security increased during the quarter as a result of the EU's general data protection regulation.

REVENUES – CLIENT SPLIT

Regional development

Eastern region

ARENDAL SANDEFJORD KRISTIANSAND SKIEN The breadth of the region's services and the attention it pays to long-term client relationships led to the renewal of contracts with and increased call-offs from a number of its clients. Bouvet's expertise supports clients in various

parts of their digitalisation processes, and the region is involved in business, system and organisational development.

TRONDHEIM ÖREBRO STOCKHOLM MALMÖ The Norwegian National Rail Administration is one of several clients who made use of Bouvet during the quarter for project management, organisational development, architecture, integration and system development. Similar assignments have been won from the ICT arm of the Norwegian Defence Materiel Agency (NDMA), Flytoget, DNV GL and Sporveien. The police force also purchased leading-edge expertise on mobile telephony in addition to an existing project.

Bouvet is increasingly becoming a partner in digitalisation work by its clients, and thereby a preferred supplier who helps the client to reap benefits. Examples of such assignments include strategy development at the Student Welfare Service (SIO) in Oslo, development the launch programme at Sparebank 1 Forsikring and brand development at DNV GL.

During the quarter, Bouvet won frame agreements from such bodies as the Arts Council Norway, Nato, the Norwegian Tax Administration, the Norwegian armed forces, the Norwegian Water Resources and Energy Directorate (NVE) and the Agency for Public Management and eGovernment (Difi). At the last of these, the region is taking a step further in positioning itself in the field of service design, change management and realising benefits.

The launch of the new website and app for the Norwegian State Wine and Spirit Monopoly in June is an example of the way the region has worked closely with the client to improve the customer experience across channels. Mobile solutions have been a criterion for achieving this.

In June, the region entered into an agreement where Statnett and Svenska Kraftnätt intend to pursue the joint development of Fifty, their Nordic marketing system. HAUGESUND

The course department did well during the quarter, providing both open and specially tailored programmes. FORUS

Rogaland region

BERGEN The region's contribution to digitalisation processes at strategic and operative levels created opportunities during the quarter. A number of clients extended and expanded their collaboration with Bouvet. The region is now

OSLO SANDVIKA ARENDAL SANDEFJORD SKIEN winning more assignments in sectors other than oil and gas, thanks to the breadth of the services it provides. The commitment to mobility, for example, resulted in increased demand and a growing number of assignments from such clients as Statoil and the Norwegian Government Agency for Financial Management.

ÖREBRO Altibox, Statoil and Den Norske increased their call-outs during the quarter. Other clients who have awarded contracts to the region or shown it renewed confidence include the Central Norway Regional Health Authority, Aibel, Rogaland county council, Teknograd, TV2, IKT Agder, Flytoget and DNB Markets. FORUS

TRONDHEIM MALMÖ Bouvet's Olavstoppen subsidiary provides services related to digital communication. It secured a number of interesting new assignments during the period and delivered good results. Collaboration with the Montaag industrial design company has opened new market opportunities. OSLO SANDVIKA ARENDAL SANDEFJORD KRISTIANSAND SKIEN

Northern region

ÖREBRO STOCKHOLM MALMÖ The region had a very good quarter in a market with substantial activity. Demand for system development was particularly high. A steady increase is being seen in assignments concerning service design. Work with the City of

Trondheim on "digital first" provides an example of this.

Existing clients for the region are extending their contracts. This includes major clients such as Statoil, Det Norske, the Central Norway Regional Health Authority, the Norwegian Patient Registry and the Norwegian University of Science and Technology (NTNU). Demand relates to such areas as project and test management in addition to development.

Bergen region

The level of activity in the region was particularly high in the public sector and bank and finance. A number of existing clients extended their contracts and assignments during the quarter. Clients include TV 2, the City

of Bergen and Skandiabanken. In addition, the Norwegian Gaming and Foundation Authority entered into an exclusive frame agreement for Sharepoint governance.

During the quarter, the region delivered a new website for Bybanen Utgygging and initiated work on a new information portal for Altinn/the Brønnøysund Register Centre. Other projects include the development of a new website for the Nordic Patent Institute and a new website/intranet in connection with the merger of the Bergen, Sogn og Fjordane and Stord/Haugesund university colleges. BERGEN

Southern region

The volume of assignments for the southern region from existing clients remained stable. Clients who extended contracts and assignments include Agder Energi Nett and the development of its AMS programme, and Statoil in

connection with the development of the ProCoSys solution.

ÖREBRO STOCKHOLM A substantial frame agreement was secured by the region during the period from the Directorate for Civil Protection and Emergency Planning and the Norwegian Directorate of Elections, which will now share premises in Tønsberg. SANDEFJORD SKIEN

Growing demand is being experienced for data capture and analysis. KRISTIANSAND

Sweden region

Demand for the region was good, with frame agreements and assignments won across its whole service range during the quarter. Existing clients with extended or increased call-offs included the Swedish Public

Employment Service, the Swedish Meteorological and Hydrological Institute (SMHI), the Swedish Museum of Natural History, the Swedish Economic Crime Authority and the Swedish Transport Agency. The last of these is now one of the region's largest clients.

During the quarter, the region signed a new frame agreement with the Swedish National Agency for Education. This involves serving as the agency's strategic adviser for developing new and existing digital channels.

The frame agreement with the Legal, Financial and Administrative Services Agency continued to generate a high level of activity. In addition to its own consultants, the region uses a number of sub-consultants in order to be able to deliver in the individual assignments.

New clients include the Swedish Higher Education Authority (UKÄ) and Swedish Foundation for Nature and Culture.

New intranets for Järfälla and Jönköping local authorities were launched during the quarter. These solutions support employees of these clients in their everyday work and are delivered on SiteVision. Leading-edge expertise with the latter is important for the region. A major commitment was initiated during the quarter to position Bouvet as the leading supplier.

Sesam

Sesam is a business unit in Bouvet which develops and sells an integration platform. This is delivered in an "integration platform as a service" (iPaaS) model, either in the cloud or locally at the client. It acquires data in an easy way from different sources and integrates them in a hub which serves as a common data source for other systems. Sesam also supports data analysis and enterprise searching.

The unique properties of the Sesam platform were recognised by Gartner during the quarter in its annual trend analysis for application infrastructure. A data hub-based integration platform is regarded as very valuable in an IT landscape experiencing ever faster change. Integration between cloud-based and traditional IT services is becoming more and more important.

Sesam is experiencing steady growth. The Norwegian National Rail Administration opted during the quarter to use the solution as the preferred platform for exchanging administrative data across its many IT systems.

Employees

Bouvet works continuously to create job satisfaction, professional development, social cohesion and team spirit among its personnel, who are drawn from 45 different nationalities. The diversity of nationalities, personalities and expertise enriches the company. That emerges from the annual employee survey

conducted under the auspices of the Great Place to Work Institute.

The company had 1 033 employees at 30 June, down by three from 31 March and up by 15 from the same date in 2015.

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

Prospects

Technology is a highly important instrument for our clients in all parts of their organisation in order to enhance their efficiency and to differentiate them in their market. Understanding the opportunities offered by technology is essential in order to be relevant and competitive. All Bouvet's clients face continuous demands to change and develop.

Long-term relationships mean that the company knows its clients well. Its strategy and regional model make it adaptable corporate governance in the annual report for 2015 (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.

and flexible in meeting client requirements for expertise and services. Bouvet is perceived to a greater extent as a partner and a company able to handle large, complex projects and solutions.

Bouvet is well positioned to grow within its service areas and in the sectors where its commitment is concentrated.

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 confirm to the best of our knowledge that the interim financial statements for the first half and second quarter of 2016 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 25 August 2016 The board of directors of Bouvet ASA

Åge Danielsen Chair of the board Tove Raanes Deputy chair

Grethe Høiland Director

Ingebrigt Steen Jensen Director

Egil Christen Dahl Director

Sverre Hurum President and CEO

Consolidated income statement

NOK 1 000 UNAUDITED
APR-JUN
2016
UNAUDITED
APR-JUN
2015
CHANGE CHANGE % UNAUDITED
JAN-JUN
2016
UNAUDITED
JAN-JUN
2015
CHANGE CHANGE % YEAR 2015
REVENUE 345 259 315 695 29 564 9,4 % 668 175 642 696 25 479 4,0 % 1 232 486
OPERATING EXPENSES
Cost of sales 47 188 40 220 6 968 17,3 % 87 657 76 520 11 137 14,6 % 148 200
Personell expenses 224 252 209 088 15 164 7,3 % 455 345 436 453 18 892 4,3 % 848 200
Depreciation fixed assets 2 497 2 522 -25 -1,0 % 4 968 5 124 -156 -3,0 % 10 032
Amortisation intangible assets 1 002 610 392 64,3 % 1 979 1 601 378 23,6 % 3 505
Other operating expenses 29 370 28 681 689 2,4 % 56 941 56 403 538 1,0 % 123 195
Total operating expenses 304 309 281 121 23 188 8,2 % 606 890 576 101 30 789 5,3 % 1 133 132
Operating profit 40 950 34 574 6 376 18,4 % 61 285 66 595 -5 310 -8,0 % 99 354
FINANCIAL ITEMS
Other interest income 403 722 -319 -44,2 % 826 1 152 -326 -28,3 % 2 074
Other financial income 84 317 -233 -73,5 % 183 371 -188 -50,7 % 1 166
Other interest expense -16 -168 152 -90,5 % -104 -260 156 -60,0 % -272
Other finance expense -448 -5 -443 N/A -753 -170 -583 N/A -552
Net financial items 23 866 -843 -97,3 % 152 1 093 -941 -86,1 % 2 416
Ordinary profit before tax 40 973 35 440 5 533 15,6 % 61 437 67 688 -6 251 -9,2 % 101 770
Income tax expense
Tax expense on ordinary profit 10 116 10 036 80 0,8 % 16 071 17 907 -1 836 -10,3 % 27 032
Total tax expense 10 116 10 036 80 0,8 % 16 071 17 907 -1 836 -10,3 % 27 032
Profit for the period 30 857 25 404 5 453 21,5 % 45 366 49 781 -4 415 -8,9 % 74 738
Assigned to:
Shareholders in parent company 30 475 25 000 44 807 49 075 73 639
Non-controlling interests 382 404 559 706 1 099

Statement of other income and costs

NOK 1 000 UNAUDITED
APR-JUN
2016
UNAUDITED
APR-JUN
2015
CHANGE CHANGE % UNAUDITED
JAN-JUN
2016
UNAUDITED
JAN-JUN
2015
CHANGE CHANGE % YEAR 2015
Items that may be reclassified
through profit or loss
in subsequent periods
Currency translation differences -150 68 -217 -322,1 % -310 -77 -233 N/A 41
Sum other income and costs -150 68 -217 -322,1 % -310 -77 -233 N/A 41
Profit for the period 30 857 25 404 5 453 21,5 % 45 366 49 781 -4 415 -8,9 % 74 738
Total profit 30 707 25 472 5 236 20,6 % 45 056 49 704 -4 648 -9,4 % 74 779
Assigned to:
Shareholders in parent company 30 325 25 068 44 497 48 998 73 679
Non-controlling interests 382 404 559 706 1 099
Diluted earnings per share 2,94 2,41 0,53 22,0 % 4,33 4,74 -0,41 -8,6 % 7,12
Earnings per share 2,98 2,44 0,54 22,0 % 4,38 4,80 -0,41 -8,6 % 7,21

Consolidated balance sheet

NOK 1 000 UNAUDITED
30.6.2016
UNAUDITED
30.6.2015
CHANGE CHANGE % 31.12.2012
ASSETS
NON-CURRENT ASSETS
INTANGIBLE ASSETS
Deferred tax asset 831 1 066 (235) -22,0 % 368
Goodwill 27 719 31 213 -3 494 -11,2 % 27 909
Other intangible assets 20 300 16 302 3 998 24,5 % 17 414
Total intangible assets 48 850 48 581 269 0,6 % 45 691
FIXED ASSETS
Office equipment 7 799 9 227 -1 428 -15,5 % 8 685
Office machines and vehicles 2 577 2 642 -65 -2,5 % 2 417
IT equipment 10 642 11 231 -589 -5,2 % 10 526
Total fixed assets 21 018 23 100 -2 082 -9,0 % 21 628
FINANCIAL NON-CURRENT ASSETS
Other long-term receivables 11 11 0 0,0 % 11
Total financial non-current assets 11 11 0 0,0 % 11
Total non-current assets 69 879 71 692 -1 813 -2,5 % 67 330
CURRENT ASSETS
Work in progress 114 351 113 933 418 0,4 % 80 193
Trade accounts receivable 143 397 133 314 10 083 7,6 % 144 463
Other short-term receivables 21 635 25 367 -3 732 -14,7 % 19 928
Cash and cash equivalents 106 094 89 716 16 378 18,3 % 174 300
Total current assets 385 477 362 330 23 147 6,4 % 418 884
TOTAL ASSETS 455 356 434 022 21 334 4,9 % 486 214

Consolidated balance sheet

NOK 1 000 UNAUDITED
30.6.2016
UNAUDITED
30.6.2015
CHANGE CHANGE % 31.12.2012
EQUITY AND LIABILITIES
EQUITY
PAID-IN CAPITAL
Share capital 10 250 10 250 0 0,0 % 10 250
Own shares - nominal value -31 -20 -11 55,0 % -31
Share premium fund 10 000 10 000 0 0,0 % 10 000
Total paid-in capital 20 219 20 230 -11 -0,1 % 20 219
EARNED EQUITY
Other equity 132 804 131 475 1 329 1,0 % 150 998
Total earned equity 132 804 131 475 1 329 1,0 % 150 998
Non-controlling interests 3 575 3 880 -305 -7,9 % 3 401
Total equity 156 598 155 585 1 013 0,7 % 174 618
DEBT
LONG-TERM DEBT
Other provisions for obligations 171 399 -228 -57,1 % 285
Total long-term debt 171 399 -228 -57,1 % 285
SHORT-TERM DEBT
Trade accounts payable 34 931 31 427 3 504 11,1 % 34 643
Income tax payable 18 630 14 383 4 247 29,5 % 27 109
Public duties payable 103 564 94 960 8 604 9,1 % 118 539
Other short-term debt 141 462 137 268 4 194 3,1 % 131 020
Total short-term debt 298 587 278 038 20 549 7,4 % 311 311
Total liabilities 298 758 278 437 20 321 7,3 % 311 596
TOTAL EQUITY AND LIABILITIES 455 356 434 022 21 334 4,9 % 486 214

Consolidated statement of cash flows

NOK 1 000 UNAUDITED
APR-JUN 2016
UNAUDITED
APR-JUN 2015
UNAUDITED
JAN-JUN 2016
UNAUDITED
JAN-JUN 2015
YEAR 2015
CASH FLOW FROM OPERATING ACTIVITIES
Ordinary profit before tax 40 973 35 440 61 437 67 688 101 770
Paid tax -12 083 -13 988 -24 248 -27 888 -23 247
(Gain)/loss on sale of fixed assets 1 -105 -2 -105 -106
Ordinary depreciation 2 497 2 522 4 968 5 124 10 032
Amortisation intangible assets 1 002 610 1 979 1 601 3 505
Share based payments 1 451 1 338 2 903 2 677 5 430
Changes in work in progress, accounts receivable and accounts payable -10 076 21 028 -32 804 -14 799 11 008
Changes in other accruals 1 066 -18 244 -6 365 -5 394 19 483
Net cash flow from operating activities 24 831 28 602 7 869 28 905 127 874
CASH FLOWS FROM INVESTING ACTIVITIES
Sale of fixed assets 49 130 122 130 175
Purchase of fixed assets -1 778 -2 345 -4 479 -3 904 -7 383
Purchase of intangible assets -2 450 -1 188 -4 708 -2 733 -5 635
Net cash flow from investing activities -4 178 -3 403 -9 065 -6 507 -12 842
CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of own shares 0 0 0 0 -14 880
Sales of own shares 0 0 0 0 7 702
Dividend payments -67 010 -51 250 -67 010 -51 250 -52 122
Net cash flow from financing activities -67 010 -51 250 -67 010 -51 250 -59 300
Net changes in cash and cash equivalents -46 357 -26 052 -68 206 -28 852 55 732
Cash and cash equivalents at the beginning of the period 152 451 115 768 174 300 118 568 118 568
Cash and cash equivalents at the end of the period 106 094 89 716 106 094 89 716 174 300

Consolidated statement of changes in equity

NOK 1 000 SHARE
CAPITAL
OWN
SHARES
SHARE
PREMIUM
TOTAL
PAID-IN
EQUITY
OTHER
EQUITY
NON-CON
TROLLING
INTERESTS
TOTAL
EQUITY
Equity at 01.01.2015 10 250 -20 10 000 20 230 130 128 3 174 153 532
Total comprehensive income 0 0 0 0 48 998 706 49 704
Employee share scheme 0 0 0 0 3 501 0 3 501
Dividend 0 0 0 0 -51 152 0 -51 152
Equity at 30.06.2015 (Unaudited) 10 250 -20 10 000 20 230 131 475 3 880 155 585
Equity at 01.01.2016 10 250 -31 10 000 20 219 150 998 3 401 174 618
Total comprehensive income 0 0 0 0 44 497 559 45 056
Employee share scheme 0 0 0 0 3 935 0 3 935
Dividend 0 0 0 0 -66 625 -385 -67 010
Equity at 30.06.2016 (Unaudited) 10 250 -31 10 000 20 219 132 804 3 575 156 598

Notes

Note 1: Accounting principles

The group made no changes to the accounting principles applied in 2016. 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 2015.

Key figures Group

NOK 1 000 APR-JUN 2016 APR-JUN 2015 CHANGE % JAN-JUN 2016 JAN-JUN 2015 CHANGE % YEAR 2015
INCOME STATEMENT
Operating revenue 345 259 315 695 9,4 % 668 175 642 696 4,0 % 1 232 486
EBITDA 44 449 37 706 17,9 % 68 232 73 320 -6,9 % 112 891
Operating profit (EBIT) 40 950 34 574 18,4 % 61 285 66 595 -8,0 % 99 354
Ordinary profit before tax 40 973 35 440 15,6 % 61 437 67 688 -9,2 % 101 770
Profit for the period 30 857 25 404 21,5 % 45 366 49 781 -8,9 % 74 738
EBITDA-margin 12,9 % 11,9 % 7,8 % 10,2 % 11,4 % -10,5 % 9,2 %
EBIT-margin 11,9 % 11,0 % 8,3 % 9,2 % 10,4 % -11,5 % 8,1 %
BALANCE SHEET
Non-current assets 69 879 71 692 -2,5 % 69 879 71 692 -2,5 % 67 330
Current assets 385 477 362 330 6,4 % 385 477 362 330 6,4 % 418 884
Total assets 455 356 434 022 4,9 % 455 356 434 022 4,9 % 486 214
Equity 156 598 155 585 0,7 % 156 598 155 585 0,7 % 174 618
Long-term debt 171 399 -57,1 % 171 399 -57,1 % 285
Short-term debt 298 587 278 038 7,4 % 298 587 278 038 7,4 % 311 311
Equity ratio 34,4 % 35,8 % -4,1 % 34,4 % 35,8 % -4,1 % 35,9 %
Liquidity ratio 1,29 1,30 -0,9 % 1,29 1,30 -0,9 % 1,35
CASH FLOW
Net cash flow operations 24 831 28 602 -13,2 % 7 869 28 905 -72,8 % 127 874
Net free cash flow 20 653 25 198 -18,0 % -1 196 22 398 -105,3 % 115 032
Net cash flow -46 357 -26 052 N/A -68 206 -28 852 N/A 55 732
Cash flow margin 7,2 % 9,1 % -20,6 % 1,2 % 4,5 % -73,8 % 10,4 %
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 10 218 683 10 230 312 -0,1 % 10 218 683 10 230 312 -0,1 % 10 208 354
Weighted average diluted shares outstanding 10 353 807 10 362 120 -0,1 % 10 353 807 10 362 120 -0,1 % 10 340 661
EBIT per share 3,96 3,33 19,0 % 5,92 6,41 -7,6 % 9,59
Diluted EBIT per share 3,91 3,28 19,0 % 5,85 6,33 -7,7 % 9,47
Earnings per share 2,98 2,44 22,0 % 4,38 4,80 -8,6 % 7,21
Diluted earnings per share 2,94 2,41 22,0 % 4,33 4,74 -8,6 % 7,12
Equity per share 15,28 15,18 0,7 % 15,28 15,18 0,7 % 17,04
Dividend per share 6,50 5,00 30,0 % 6,50 5,00 30,0 % 5,00
EMPLOYEES
Number of employees (year end) 1 033 1 018 1,5 % 1 033 1 018 1,5 % 1 036
Average number of employees 1 037 1 010 2,7 % 1 036 1 007 2,8 % 1 016
Operating revenue per employee 333 313 6,5 % 645 638 1,1 % 1 213
Operating cost per employee 293 278 5,4 % 586 572 2,5 % 1 115
EBIT per employee 39 34 15,4 % 59 66 -10,5 % 98

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
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

Local presence gives closeness to our customers

The Group has offices in Oslo, Trondheim, Bergen, Haugesund, Stavanger, Kristiansand, Arendal, Skien, Sandvika, Sandefjord, Malmö, Örebro and Stockholm. Our philosophy is that competence should be utilized across the company, while projects are attached locally. This means that our customers will have a local account manager and project manager, but access to competence independent of its location.

OSLO

Sandakerveien 24c, bygg D11 Box 4430 Nydalen 0403 Oslo Tel: (+47) 23 40 60 00

ARENDAL

Frolandsveien 6 4847 Arendal Tel: (+47) 23 40 60 00

BERGEN

Solheimsgaten 15 5058 Bergen Tel: (+47) 55 20 09 17

GRENLAND

Klostergata 33 Klosterøya 3732 Skien Tel: (+47) 23 40 60 00

KRISTIANSAND

Kjøita 25 4630 Kristiansand Tel: (+47) 23 40 60 00

STAVANGER Fabrikkveien 10 4033 Stavanger

Strandkaien 36 4005 Stavanger Tel: (+47) 52 82 10 17

Tel: (+47) 51 20 00 20

HAUGESUND Diktervegen 8 5538 Haugesund Tel: (+47) 52 82 10 17

TRONDHEIM Kjøpmannsgata 35 7011 Trondheim Tel: (+47) 23 40 60 00

SANDVIKA Leif Tronstadsplass 7 1337 Sandvika Tel: (+47) 23 40 60 00

SANDEFJORD Klinestadmoen 9 3241 Sandefjord Tel: (+47) 23 40 60 00 STOCKHOLM Arenavägen 45, 16 tr 121 77 Johanneshov Tel: (+46) 8 578 771 00

MALMÖ

Södergatan 3 211 34 Malmö Tel: (+46) 40 636 60 00

ÖREBRO

Storgatan 3 70361 Örebro Tel: (+46) 0 709 431 411

WWW.BOUVET.NET

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