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Vitec Software Group B — Interim / Quarterly Report 2017
Feb 14, 2018
2988_10-k_2018-02-14_2fea98e7-5467-4983-8f05-5685926a9f72.pdf
Interim / Quarterly Report
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Year End Report January-December 2017
Continued growth, increased profit and stronger cash flow
Summary for January-December 2017
- Net sales MSEK 855 (675)
- Profit before tax MSEK 98,1 (81,9)
- Operating margin 12,5 % (13,1)
- Earnings per share before dilution SEK 2,70 (2,27)
- Cash flow from operations MSEK 187,6 (158,5)
- The Board of Directors proposes increased dividend to SEK 1.10 per share (1.00)
Summary for October-December 2017
- Net sales MSEK 247 (193)
- Profit before tax MSEK 28,6 (24,3)
- Operating margin 12,6 % (13,3)
- Earnings per share before dilution SEK 0,86 (0,71)
- Cash flow from operations MSEK 29,4 (34,7)
- Personnel convertible bond subscribed for MSEK 20,8
CEO's comments
Vitec is growing and the progress for 2017 is sound and in comparison with previous years' development. It is especially the cash flow that develops strongly. Profit is also developing well, but is currently behind cash flow due to deliberately aggressive amortization.
Major events during the year includes our move to the OMX Stockholm Mid Cap list, the expansion of the acquisition facility by MSEK 200 and the acquisition of MV Nordic in Denmark. The Group's risk diversification has continued to improve during the year. Sales of MSEK 855 are currently distributed to 15 operating units of which the largest represents 18 percent of total sales.
With 600 employees in 4 countries and nearly 20 offices, our internal communication has increasingly become a high priority. With persistent dialogue about our key performance indicators, focus on the development of standardized products, forums to share best practices, and our core values; Our products – our foundation, Keep it simple and Trust and transparency; work on company culture has become a central part of the Group governance. Our branding promise; To rely
on - today and tomorrow; along with our core values and key performance indicators, gives us good opportunities to build a strong Vitec culture. It also provides opportunities to decentralize decisions in daily operations, which is necessary for commitment, increased efficiency and, in the long run, increased competitiveness. Therefore - with a strong culture, decentralized decisions, motivated employees and a welldefined business model, we are strengthening our competitiveness for the future.
The number of active acquisition dialogues remains high, and we continuously put resources in place to maintain and further develop these dialogues. Vitec's financial position and readiness for future acquisitions is good, which provides for continued acquisition-based growth. With the acquisition of well-established companies and a high proportion of recurring revenues, Vitec continues on the path to act in several independent and specialized niches, to achieve sustainable profitable growth. And we will raise the dividend, for the 16th consecutive year.
Lars Stenlund, CEO
January-December 2017
When we summarize 2017, sales and earnings have grown. Revenues have increased by 27 % and profit by 20 %. The Group's recurring revenues have increased by 17 % in the last quarter and 18 % for the full year. A good development, and as industrialists we have a constant focus on continuing to streamline and refine our operations, which will continue in 2018. During the year, MV-Nordic A/S has been acquired and is included as of Q3 in the business area Education & Health
Business Area Auto
The business area Auto increases profit and sales compared to 2016. All operations within Auto deliver according to or close to plan. In Norway, we upgraded our server infrastructure to latest technology and centralized the operations to our common computer center in Oslo. In Norway and Finland, we are in the process of modernizing our products. The initiatives will continue for a long time and is a normal part of our business. In Denmark, during the second half of the year we launched a few complementary products that strengthen our overall offer. Recurring revenues increased by 33 % compared to 2016. Note that the Finnish part of Auto was included late 2016.
Business Area Energy
The business area Energy has a corresponding turnover and an increased operating profit compared to 2016. With a high rate in our product development and an increasingly focused sales work, we still see high demand for our forecast products. Recurring revenues increased by 4 % compared to 2016.
Business Area Real Estate
The business area Real Estate increases profit and sales compared to 2016. The business area have had a strong development in recent years and we still see high demand for our new product suit. The integration of our business in Norway, acquired in December 2016, is coming to its end according to plan. Recurring revenues increased by 22 % compared to 2016.
Business Area Finance & Insurance
The business area Finance & Insurance increases profit and sales compared to 2016. Finance & Insurance had a strong 2017. Denmark has moved its positions forward with a number of major sales. We have also had success with our complementary offer for customers to implement the new MiFID 2 Financial Regulation. Sweden and Norway have also had a sound progress. Recurring revenues increased by 5 % compared to 2016.
Business Area Education & Health
The business area Education & Health increases profit and sales compared to 2016. Vitec MV is included in the Group from the third quarter of 2017. Vitec MV has a higher share of third-party products and hardware in its sales than the Group in general. This affects the business area's total distribution of recurring revenues, licenses and other income. From the second half of 2017, Health in Finland has completed two major installation projects and has since focused on operational improvements and new customer implementations. Recurring revenues increased by 53 % compared to 2016.
Business Area Environment
The business area Environment increases profit and sales compared to 2016. The business area Environment, acquired in July 2016, has had a solid year. Integration of the business area is in its final stages and is proceeding according to plan. Recurring revenues increased by 128 % compared to 2016.
Business Area Estate Agents
The business area Estate Agents reduces profit and sales compared to 2016. The business area have undergone major changes in recent years. In Sweden and Norway, the business area has lost major customers while at the same time made major investments in our next-generation software for the real estate market. The transition has taken time, but we feel comfortable in our ability to restore profitability to normal. Recurring revenues decreased by 9 % compared to 2016.
Financial information
Sales and results
October-December 2017
Revenues
Net sales for the period amounted to SEK 246,7 million (192,6), which represents an increase of 28 %. The increase in net sales is primarily attributable to acquisitions. Organic growth for the period is 1,2 %. The acquired company MV-Nordic A/S, which was consolidated from 6 July contributed with net sales of SEK 47,2 million during the period. Recurring revenues for the period increased by 17 % compared to previous year and amounted to SEK 164,0 million (140,3), corresponding to 66,5 % (72,9) of net sales. MV-Nordic A/S has a lower share of recurring revenues than the Group as a whole, which is the main reason for the decrease in the percentage of recurring revenues. License revenues increased by 24 % compared to previous year and amounted to SEK 11,3 million (9,1). Service revenues increased by 10 % compared to previous year and amounted to SEK 40,8 million (37,3). Other revenues increased by 417 % compared to previous year and amounted to SEK 30,6 million (5,9).
Profit
Operating profit amounted to SEK 31,1 million (25,6) with an operating margin of 12,6 % (13,3). Profit after tax was SEK 25,5 million (21,0). Earnings per share before dilution were SEK 0,86 (0,71).
January-December 2017
Revenues
Net sales for the period amounted to SEK 855,0 million (675,4), which represents an increase of 27 %. The increase in net sales is primarily attributable to acquisitions. Organic growth for the period is 1,3 %. The acquired company MV-Nordic A/S, which was consolidated from 6 July contributed with net sales of SEK 89,0 million during the period. Recurring revenues increased by 18 % compared to previous year and amounted to SEK 610,0 million (518,5), corresponding to 71,3 % (76,8) of net sales. MV-Nordic A/S has a lower share of recurring revenues than the Group as a whole, which is the main reason for the decrease in the percentage of recurring revenues. License revenues increased by 60 % compared to previous year and amounted to SEK 39,6 million (24,8). Service revenues increased by 20 % compared to previous year and amounted to SEK 145,7 million (121,1). Other revenues increased by 444 % compared to the previous year and amounted to SEK 59,8 million (11,0).
Profit
Operating profit amounted to SEK 106,7 million (88,3) with an operating margin of 12,5 % (13,1). Profit after tax amounted to SEK 79,4 million (66,8). Earnings per share before dilution were SEK 2,70 (2,27).
Liquidity and financial status
The Group's cash and cash equivalents, including short-term investments, at end of period amounted to SEK 57,9 million (80,9). In addition to these cash and cash equivalents, was a bank overdraft facility of SEK 20 million, and SEK 178,6 million in unused credit facilities of SEK 450 million. During the year, the credit facility was expanded by SEK 200 million. During the year, SEK 87,7 million from the facility was used to finance acquisitions and SEK 65,1 million was repaid to the facility. Cash flow from operating activities was SEK 187,6 million (158,5). Investments totaled SEK 97,2, million in capitalized work, SEK 4,3 million in other intangible assets and SEK 7,8 million in tangible assets. Through the acquisition of MV-Nordic A/S, SEK 142,8 million was invested in product rights, brands, customer contracts and goodwill.
Total interest-bearing liabilities amounted on December 31 2017 to SEK 406,1 million (383,5) distributed on long term debt SEK 374,9 million (339,4) and short-term interest-bearing liabilities SEK 31,2 million (44,1). In conjunction with the acquisition of MV-Nordic A/S, a convertible debenture loan was issued at SEK 20,0 million. After calculating option elements and interest, the convertible loan is valued at SEK 19,1 million. A convertible loan addressed to employees worth SEK 14,0 million has been converted into Class B Shares. A new convertible program for employees has been issued of SEK 20,8 million. After calculating option elements, the convertible loan is valued at SEK 19,7 million. During the period, the additional purchase price for Futursoft and the additional purchase price for Fox Publish were reclassified from long to short-term debt when the due date is within 12 months. The additional purchase price for Fox Publish has been adjusted down by SEK 1,3 million after agreement on final settlement has been signed.
Equity attributable to Vitec's shareholders amounted to SEK 398,2 million (334,2). The equity ratio was 32 % (30). Paid dividend amounts to SEK 1,00 per share, totaling SEK 29,4 million.
Operations
Vitec Group operations are controlled and organized in seven segments (business areas). The business areas are; Auto, Energy, Real Estate, Finance & Insurance, Education &Health, Environment and Estate Agent.
| Finance & | Education & | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Auto | Energy | Real Estate | Insurance | Health | Environment | Estate Agent | ||||||||
| Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec | ||||||||
| 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |
| Recurring revenues | 128,6 | 96,8 | 19,1 | 18,4 | 108,8 | 89,2 | 104,4 | 99,7 | 83,7 | 54,6 | 32,6 | 14,3 | 132,5 | 145,1 |
| License revenue | 6,1 | 3,0 | 0,0 | 0,0 | 8,6 | 11,5 | 7,5 | 6,1 | 13,8 | 0,0 | 3,5 | 2,4 | 0,0 | 1,8 |
| Services revenue | 16,3 | 14,1 | 6,5 | 7,4 | 69,8 | 55,2 | 29,9 | 20,3 | 12,2 | 11,2 | 5,7 | 4,9 | 5,1 | 7,8 |
| Other income | 5,0 | 5,2 | 0,1 | 0,1 | 2,9 | 2,5 | 0,5 | 0,6 | 48,2 | 0,3 | 2,2 | 1,4 | 0,4 | 0,5 |
| Net sales | 155,9 | 119,2 | 25,7 | 25,9 | 190,1 | 158,4 | 142,3 | 126,6 | 157,9 | 66,2 | 44,1 | 23,0 | 138,0 | 155,3 |
| Recurring revenue as a | ||||||||||||||
| percentage of net sales | 82% | 81% | 74% | 71% | 57% | 56% | 73% | 79% | 53% | 83% | 74% | 62% | 96% | 93% |
| Operating profit* | 19,5 | 19,2 | 8,0 | 7,3 | 32,2 | 29,8 | 29,0 | 20,3 | 11,2 | 1,9 | 5,5 | 3,4 | 5,5 | 11,1 |
| Operating margin | 12% | 16% | 31% | 28% | 17% | 19% | 20% | 16% | 7% | 3% | 12% | 15% | 4% | 7% |
*Operating profit for segments are presented before acquisition-related costs
Business Area Auto
In Business Area Auto, Vitec offers software for the automotive and machinery sector in Denmark, Estonia, Finland, Norway and Sweden. The products support work processes, including vehicle sales, workshops, tire storage and distribution of spare parts. The segment consists of Vitec AutoData AS, Vitec Datamann A/S, Vitec Infoeasy AS and Futursoft OY. Operations in Futursoft was consolidated as of September 7 2016.
Business Area Energy
Vitec develops advanced forecasting systems for electricity traders, as well as calculation and map systems for owners of electricity and district heating networks. The geographic market for the business area comprises the Nordic countries, the Baltic states, the rest of Europe and the Middle East. The segment consists of Vitec Energy AB.
Business Area Real Estate
Vitec offers software for the construction and real estate sector in Sweden and Norway. This includes comprehensive business systems for our customers´ main processes, such as leasing, sales, customer service, finance, technical management and energy monitoring. The segment consists of Vitec Förvaltningssystem AB, Vitec Fastighetssystem AB, Vitec Capifast AB, Vitec Software AB and Vitec Plania AS. Operations in Plania was consolidated as of December 5, 2016.
Business Area Finance & Insurance
In Business Area Finance & Insurance, Vitec delivers software to banks and insurance companies in Denmark, Norway and Sweden. The segment consists of Vitec Capitex AB, the Group Aloc A/S and Vitec Nice AS.
Business Area Education & Health
Our software in Business Area Education & Health are developed for health care companies in Finland and the education sector in Denmark, Norway and Sweden. In Finland, our offer is completely web based and used by medical centers, occupational health, hospitals, physiotherapy and rehabilitation centers. Both in private and public organizations. For the education sector, we develop and distribute reading and writing tools for people with read/write disorders. Several elementary schools and other companies within the education sector use our products in their education and communication. The segment consists of the Group Acuvitec Oy and the Group Vitec MV A/S. Vitec MV was consolidated as of 6 July 2017.
Business Area Environment
In 2016, Vitec acquired the Finnish company Tietomitta Oy whose products are proprietary software for waste management in Finland. The acquisition meant a new vertical market for Vitec and the business expanded with Business Area Environment. The product is a market leader in Finland and manages the entire chain within waste management, from pick-up to billing, accounting and reporting. The segment also includes the operations that previously formed the segment Media. Recurring revenue and operating profit for Media during the period amounted to SEK 0,5 million. Comparative figures for the full year 2016 include SEK 4,6 million in sales and SEK 1,0 million in operating income relating to Media. The segment consists of Tietomitta Oy, which was consolidated as of July 5, 2016 and 3L Media.
Business Area Estate Agents
Business Area Estate Agents offers software for real estate agents in Norway and Sweden. Our product supports estate agents in all stages throughout the entire business process. The segment consists of Vitec Mäklarsystem AB, Capitex AB, Vitec IT-Makeriet AS, Vitec Megler AS, Vitec Megler AB, Vitec Fox AS and ADservice Scandinavia AB.
Net sales January-December 2017 (MSEK) Operating profit January-December 2017
(MSEK)
Result overview for segments
| Profit before acqusition related costs | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| BUSINESS AREA | Net sales (MSEK) | (MSEK) | |||||||
| 2017 Oct-Dec |
2016 Oct-Dec |
2017 Jan-Dec |
2016 Jan-Dec |
2017 Oct-Dec |
2016 Oct-Dec |
2017 Jan-Dec |
2016 Jan-Dec |
||
| Auto | 39,7 | 40,1 | 155,9 | 119,2 | 3,6 | 6,6 | 19,5 | 19,2 | |
| Energy | 7,0 | 6,7 | 25,7 | 25,9 | 2,6 | 1,3 | 8,0 | 7,3 | |
| Real Estate | 51,3 | 47,3 | 190,1 | 158,4 | 7,2 | 9,6 | 32,2 | 29,8 | |
| Finance & Insurance | 40,1 | 34,6 | 142,3 | 126,6 | 9,2 | 6,6 | 29,0 | 20,3 | |
| Education & Health | 65,9 | 19,5 | 157,9 | 66,2 | 7,8 | 1,2 | 11,2 | 1,9 | |
| Environment | 11,1 | 9,9 | 44,1 | 23,0 | 0,6 | 1,5 | 5,5 | 3,4 | |
| Estate Agent | 31,3 | 34,3 | 138,0 | 155,3 | 0,1 | -0,1 | 5,5 | 11,1 | |
| Shared | 0,2 | 0,3 | 1,0 | 1,0 | - | - | - | - | |
| Vitec Group | 246,7 | 192,6 | 855,0 | 675,4 | 31,1 | 26,6 | 110,9 | 93,1 | |
| Acquisition-related costs | 0,0 | -1,0 | -4,2 | -4,8 | |||||
| Operating profit after acquisition-related costs | 31,1 | 25,6 | 106,7 | 88,3 | |||||
| Net financial income/expence | -2,5 | -1,2 | -8,6 | -6,4 | |||||
| Profit before tax | 28,6 | 24,3 | 98,1 | 81,9 |
Sales per geography
Vitec is a Nordic software company and our customers are mainly in Sweden, Denmark, Finland and Norway, we also have a number of customers in other parts of the world. The following table and pie chart shows the Group's revenue based on where the customer is established.
| MARKET | Net sales (MSEK) | |||
|---|---|---|---|---|
| 2017 Jan-Dec |
% | 2016 Jan-Dec |
% | |
| Sweden | 285,8 | 33,4% | 284,7 | 42,2% |
| Denmark | 218,9 | 25,6% | 154,6 | 22,9% |
| Finland | 169,6 | 19,8% | 106,0 | 15,7% |
| Norway | 175,2 | 20,5% | 119,5 | 17,7% |
| Rest of Europe | 4,9 | 0,6% | 10,4 | 1,5% |
| Rest of world | 0,7 | 0,1% | 0,2 | 0,0% |
| SUM | 855,0 | 100,0% | 675,4 | 100,0% |
Sweden 33%
- Denmark 26%
- Finland 20%
- Norway 21%
- Rest of Europe 1%
Significant events during the fourth quarter
November 1: Extraordinary general meeting decided to issue a convertible bond for employees
Extraordinary general meeting of Vitec Software Group AB (publ) decided November 1, 2017 to issue a convertible bond for employees in Vitec.
Summary of decision;
- The convertible bond is maximized to 2,500 debentures each at SEK 10,000.
- The conversion rate is set at 120 % of the average market price of Vitec's share (B share) during the period 2-17 November 2017.
- At full conversion, the number of shares is expected to increase by approximately 260,000. This corresponds to an increase in the share capital by SEK 26,000 and a dilution of approximately 0.9% of the share capital and about 0.4% of the votes.
November 30: Personnel convertible 2018 - 2020 subscribed to SEK MSEK 20.8
At the extraordinary general meeting of Vitec Software Group AB (publ) held on November 1, 2017, the board decided on a convertible bond program for employees with a maximum of 25,000,000 SEK. We have now completed subscription and assignment of personnel convertibles. The subscription amount is SEK 20,830,000 with a conversion rate of SEK 104. At full conversion, it corresponds to a dilution of the share capital of 0,68 % and 0,34 % of the votes.
December 8: Convertible bond fully converted
The convertible bond for Vitec employees with start January 2015 is fully converted. The number of B shares has increased by 442,210, and the share capital increased by SEK 44,221. Total equity has increased by 13,985,736SEK. The total number of shares after conversion amounts to 29,838,900of which 3,350,000are Class A-shares.
December 29: Increased number of shares and votes
As previously announced on December 8, 2017 have the convertible bond program for Vitec employees with duration January 2015 - December 2017 been fully converted. With the conversion has the number of B-shares increased by 442 210 and the share capital increased by SEK 44,221. Total equity has increased by SEK 13,985,736. The total number of shares after conversion amounts to 29,838,900 of which 3,350,000 are A-shares. A-shares have 10 votes and B shares one vote.
Significant events after the end of the period
January 4: CFO utilizes options and buys 50 000 shares
Maria Kröger has January 4 2018, increased her number of shares with 50 000. The acquisition took place through redemption of personal stock options issued by Lars Stenlund and Olov Sandberg in January 2015.
Risks and uncertainties
Vitec's significant risks and uncertainties are described in the Administration Report in the Annual Report for 2016 under the heading "Risks and uncertainties" on pages 28-29, in note 1 under "Assessments and estimates" on page 53 and in note 20, "Financial risks and the handling of such risks "on pages 76-79. No significant changes have occurred since then.
The Parent Company
Net sales amounted to SEK 111,1 million (98,3) and consisted primarily of sales to subsidiaries for services rendered. Profit after tax amounted to SEK 64,9 million (56,9). The value of shares in subsidiaries was during the period adjusted down by SEK 1,3 million relating to a downward adjustment of contingent consideration for Fox Publish AS. Short-term non-interest-bearing liabilities decreased correspondingly. The Parent Company is exposed to the same risks and uncertainties as the group in general, see above under section Risks and uncertainties.
Transactions with related parties
No significant related party transactions have occurred in the Group and Parent Company during the period.
Consolidated statement of comprehensive income
| TSEK | ||||
|---|---|---|---|---|
| 2017 | 2016 | 2017 | 2016 | |
| Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec | |
| OPERATING REVENUE | ||||
| Recurring revenues | 163 956 | 140 319 | 609 970 | 518 512 |
| License revenues | 11 290 | 9 079 | 39 563 | 24 789 |
| Service revenues | 40 845 | 37 260 | 145 672 | 121 116 |
| Other revenues | 30 621 | 5 926 | 59 824 | 10 997 |
| NET SALES | 246 712 | 192 584 | 855 029 | 675 414 |
| Capitalized development costs | 29 317 | 25 935 | 97 213 | 82 262 |
| Reversal of aditional purchase price | 1 343 | - | 1 343 | 22 695 |
| SUM | 277 372 | 218 519 | 953 585 | 780 371 |
| OPERATING EXPENSES | ||||
| Goods for resale | -20 610 | -3 729 | -48 394 | -12 284 |
| Subcontractors and subscriptions | -26 843 | -26 593 | -100 791 | -82 024 |
| Other external expenses | -36 737 | -31 354 | -120 597 | -92 927 |
| Staff costs | -126 799 | -105 573 | -446 917 | -380 023 |
| Depreciation of tangible assets | -3 514 | -2 474 | -13 514 | -10 195 |
| Amortization of intangible assets | -30 889 | -22 282 | -112 025 | -81 366 |
| Impairment | -1 343 | - | -1 343 | -22 695 |
| Unrealized exchange gains and losses | 479 | 40 | 862 | -5 798 |
| TOTAL COSTS | -246 256 | -191 965 | -842 719 | -687 312 |
| OPERATING PROFIT BEFORE ACQUSITION-RELATED COSTS | 31 116 | 26 554 | 110 866 | 93 059 |
| Acquisition-related costs | -6 | -995 | -4 164 | -4 754 |
| OPERATING PROFIT AFTER ACQUISITION-RELATED COSTS | 31 110 | 25 559 | 106 702 | 88 305 |
| Financial income | 180 | 449 | 328 | 773 |
| Financial expense | -2 643 | -1 690 | -8 903 | -7 136 |
| TOTAL FINANCIAL ITEMS | -2 463 | -1 241 | -8 575 | -6 363 |
| PROFIT BEFORE TAX | 28 647 | 24 318 | 98 127 | 81 942 |
| Tax | -3 139 | -3 302 | -18 701 | -15 128 |
| NET PROFIT | 25 508 | 21 016 | 79 426 | 66 814 |
| OTHER COMPREHENSIVE INCOME, ITEMS THAT MAY BE RECLASSIFIED TO PROFIT | ||||
| OR LOSS | ||||
| Currency translation differences | 2 970 | -3 548 | -2 285 | 22 318 |
| TOTAL OTHER COMPREHENSIVE INCOME FOR THE PERIOD | 2 970 | -3 548 | -2 285 | 22 318 |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 28 478 | 17 468 | 77 141 | 89 132 |
| PROFIT FOR THE PERIOD ATTRIBUTABLE TO | ||||
| -Shareholders of the Parent Company | 25 508 | 21 016 | 79 426 | 66 814 |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO | ||||
| -Shareholders of the Parent Company | 28 478 | 17 468 | 77 141 | 89 132 |
| EARNINGS PER SHARE | ||||
| -Before dilution (SEK) | 0,86 | 0,71 | 2,70 | 2,27 |
| -After dilution (SEK) | 0,86 | 0,70 | 2,70 | 2,25 |
| Average number of shares | 29 507 243 | 29 396 690 | 29 424 555 | 29 396 690 |
| Number of shares after dilution | 29 741 560 | 29 838 900 | 29 538 825 | 29 838 900 |
Consolidated statement of financial position
| TSEK | ||
|---|---|---|
| 2017-12-31 | 2016-12-31 | |
| ASSETS | ||
| FIXED ASSETS | ||
| Intangibles assets | 944 327 | 809 612 |
| Tangible fixed assets | 37 956 | 34 267 |
| Financial assets | 1 791 | 950 |
| Deferred tax | 6 714 | 4 185 |
| TOTAL FIXED ASSETS | 990 788 | 849 014 |
| CURRENT ASSETS | ||
| Inventories | 3 619 | 1 031 |
| Receivables | 209 595 | 165 726 |
| Short-term investments | 44 | 43 |
| Cash and equivalents | 57 924 | 80 877 |
| TOTAL CURRENT ASSETS | 271 182 | 247 677 |
| TOTAL ASSETS | 1 261 970 | 1 096 691 |
| EQUITY AND LIABILITIES | ||
| Equity | 398 164 | 334 213 |
| Long-term liabilities, interest bearing | 374 918 | 339 395 |
| Long-term liabilities, non-interest bearing | 147 339 | 157 129 |
| Short-term liabilities, interest bearing | 31 180 | 44 126 |
| Short-term liabilities, non-interest bearing | 310 369 | 221 828 |
| TOTAL EQUITY AND LIABILITIES | 1 261 970 | 1 096 691 |
Consolidated statement of changes in equity
| TSEK | 2017 | 2016 | 2017 | 2016 |
|---|---|---|---|---|
| Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec | |
| EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT COMPANY | ||||
| At beginning of period | 354 633 | 316 745 | 334 213 | 271 538 |
| Option element convertible bond | 1 067 | - | 2 221 | - |
| Conversion bonds | 13 986 | - | 13 986 | - |
| Dividend | - | - | -29 397 | -26 457 |
| Total comprehensive income for the period | 28 478 | 17 468 | 77 141 | 89 132 |
| AT END OF PERIOD | 398 164 | 334 213 | 398 164 | 334 213 |
Consolidated statement of cash flows
| TSEK | 2017 | 2016 | 2017 | 2016 |
|---|---|---|---|---|
| Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec | |
| OPERATING ACTIVITIES | ||||
| Operating profit | 31 110 | 25 559 | 106 702 | 88 305 |
| Adjustments for items not included in cash flow | ||||
| Other operating income | -1 343 | - | -1 343 | -22 695 |
| Depreciation/amortisation and impairment | 35 746 | 24 756 | 126 882 | 114 256 |
| Unrealized exchange gains/losses | 479 | -40 | 862 | 5 798 |
| 65 992 | 50 275 | 233 103 | 185 664 | |
| Interest received | 180 | 448 | 328 | 117 |
| Interest paid | -2 480 | -966 | -8 438 | -5 553 |
| Tax paid | -4 388 | -12 750 | -25 381 | -27 471 |
| CASH FLOW FROM OPERATING ACTIVITIES BEFORE | ||||
| CHANGES IN WORKING CAPITAL | 59 304 | 37 007 | 199 612 | 152 757 |
| Changes in working capital | ||||
| Change in inventories | -124 | 47 | 8 836 | 95 |
| Change in accounts receivables | -73 632 | -56 744 | -20 754 | 2 659 |
| Change in operating receivables | 6 792 | 11 836 | 2 233 | 1 265 |
| Change in accounts payable | -5 120 | 1 727 | 6 839 | 3 534 |
| Change in operating liabilities** | 42 226 | 40 845 | -9 136 | -1 860 |
| CASH FLOW FROM CURRENT OPERATIONS | 29 446 | 34 718 | 187 630 | 158 450 |
| INVESTMENT ACTIVITIES | ||||
| Acquisition of subsidiaries, net* | - | -53 759 | -88 826 | -156 112 |
| Sale of subsidiaries | - | - | - | 4 217 |
| Acquisition of intangible assets and capitalized development costs | -31 217 | -22 677 | -101 500 | -83 763 |
| Acquisition of tangible assets** | -951 | -6 280 | -7 750 | -9 046 |
| CASH FLOW FROM INVESTMENT ACTIVITIES | -32 168 | -82 716 | -198 076 | -244 704 |
| FINANCING ACTIVITIES | ||||
| Dividend | - | - | -29 397 | -26 457 |
| New loans | 20 830 | 52 889 | 109 129 | 185 466 |
| Amortisation of loans | -7 160 | -10 407 | -95 275 | -49 865 |
| CASH FLOW FROM FINANCIAL ACTIVITIES | 13 670 | 42 482 | -15 543 | 109 144 |
| CASH FLOW FOR THE PERIOD | 10 948 | -5 516 | -25 989 | 22 890 |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD | 40 510 | 86 467 | 80 920 | 60 268 |
| Exchange-rate differences in cash and cash equivalents | 6 510 | -31 | 3 037 | -2 238 |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD** | 57 968 | 80 920 | 57 968 | 80 920 |
* Payment for acquisition of subsidiaries consisted during the period of proceeds for MV-Nordic A/S. Net cash outflow amounted to SEK 86,7 million. The acquisition related to the entire outstanding share capital and meant that control was obtained in the company. A residual payment for Nice AS was also made, SEK 2,1 million. The payment did not result in any changes in share capital or control.
Payment for acquisition of subsidiaries 2016 consisted of proceeds for Tietomitta OY, Futursoft OY and Plania AS. Net cash outflow amounted to SEK 141,2 million. All acquisitions related to the entire outstanding share capital and meant that control was obtained in all companies. Additional payments for the acquisition of Fox Publish AS SEK 2,9 million and Acuvitec OY SEK 11,9 million were also made. The payments did not result in any changes in share capital or control.
**Acquisition of tangible assets and change in operating liabilities for the period October-December 2017 includes a correction of SEK 4,8 million. The adjustment relates to to financial leasing which is presented as change in operating liabilities as from this report.
***Cash and cash equivalents are defined as funds for which there is an insignificant risk of value fluctuations and that can easily be converted to cash at a known amount. Short-term investments comprises funds that can be converted to cash at a known amount within one banking day.
Income statement, Parent Company
| TSEK | 2017 | 2016 | 2017 | 2016 |
|---|---|---|---|---|
| Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec | |
| Operating income | 26 725 | 34 887 | 111 076 | 98 337 |
| Operating costs | -34 269 | -30 104 | -107 940 | -101 864 |
| OPERATING RESULT | -7 544 | 4 783 | 3 136 | -3 527 |
| RESULT FROM FINANCIAL INVESTMENTS | ||||
| Income from shares in group companies | 64 898 | 56 811 | 64 898 | 58 335 |
| Financial income | 131 | 615 | 231 | 738 |
| Financial expense | -2 465 | -1 757 | -8 289 | -6 382 |
| PROFIT AFTER FINANCIAL NET | 55 020 | 60 452 | 59 976 | 49 164 |
| Appropriations | 4 912 | 7 781 | 4 912 | 7 781 |
| PROFIT BEFORE TAX | 59 932 | 68 233 | 64 888 | 56 945 |
| Tax | 1 147 | -9 | 57 | -9 |
| NET PROFIT | 61 079 | 68 224 | 64 945 | 56 936 |
The results of the period are consistent with the total comprehensive income.
Balance sheet, Parent Company
| TSEK | 2017-12-31 | 2016-12-31 |
|---|---|---|
| ASSETS | ||
| FIXED ASSETS | ||
| Intangible assets | 3 301 | 3 942 |
| Tangible assets | 11 432 | 12 015 |
| Financial assets | 980 278 | 873 801 |
| TOTAL FIXED ASSETS | 995 011 | 889 758 |
| CURRENT ASSETS | ||
| Receivables | 90 596 | 82 710 |
| Cash and equivalents | 51 616 | 60 557 |
| TOTAL CURRENT ASSETS | 142 212 | 143 267 |
| TOTAL ASSETS | 1 137 223 | 1 033 025 |
| EQUITY AND LIABILITIES | ||
| Equity | 353 473 | 301 718 |
| Untaxed reserves | 2 429 | 2 341 |
| Long-term liabilities | 374 611 | 367 706 |
| Short-term liabilities | 406 710 | 361 260 |
| TOTAL EQUITY AND LIABILITIES | 1 137 223 | 1 033 025 |
Annotations
Accounting and valuation principles and other comments
This report has been prepared in accordance with IAS 34 Interim Financial Reporting. The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards, IFRS, as adopted by the EU and the Swedish Annual Accounts Act. The parent company's financial statements have been prepared in accordance with the Annual Accounts Act and recommendation RFR 2 Accounting for Legal Entities. The new standards, amendments and interpretations of existing standards, which entered into effect in 2017, have not had any impact on the Group's financial position or financial statements. The accounting principles and calculation methods remain unchanged compared with the description in the 2016 annual report.
IFRS 15 Revenue from Contracts with Customers enters into effect in 2018 and affects when and how a company recognizes revenue. Vitec will apply the new standard as of January 1, 2018. A project for IFRS 15 began in 2016 and is described in the 2016 annual report. The project was concluded in 2017. We have done a review of our customer contracts and their revenue recognition. Based on the contracts, we have defined a number of performance obligations, and have also made adjustments in our financial system to enable follow-up by performance obligation. In 2018, revenue recognition will take place by performance obligation.
According to IFRS 15, the revenue is recognized when the customer obtains control over the service and when the performance obligation is fulfilled. Our analysis of our contracts has not arrived at any significant differences based on how we recognize the revenue today. We deem that our current revenue recognition is in line with IFRS 15. Our recurring revenues are recognized evenly distributed over the term of the contracts as the customer receives control over the service and the performance obligation is fulfilled. Our license revenues are recognized at a given point in time, our service revenues are recognized continuously as the services are rendered and the customer receives control and benefit of them. The transition will therefore not have any effect reported sales and profit. A company may choose between applying the new standard with full retroactivity or with prospective application with further disclosures. We will choose retroactive application.
The additional purchase price for Fox Publish AS has been adjusted downwards by SEK 1.3 million. This correction was recognized as other operating income in accordance with IFRS 3:58. At the same time, impairment of intangible assets have taken place. The adjustment has no effect on recognized profit.
Tax
Current tax for the year amounted to SEK 21,5 million (14,6). Deferred tax amounted to SEK -2,8 million (0,6).
Investments
Investments amounted to SEK 97,2 million in capitalized work, SEK 4,3 million in other intangible assets and SEK 7,8 million in tangible assets. Through the acquisition of MV-Nordic A/S, SEK 142,8 million was invested in product rights, brands, customer contracts and goodwill.
Interest bearing liabilities
Long-term interest-bearing liabilities consist of bank loans of SEK 335,8 million and convertible debentures of SEK 38,8 million. Short-term interest-bearing liabilities consist of bank loans SEK 31,2 million. The company´s credit agreement with the bank include terms with restrictions, so-called covenants. The Group met these terms in their entirety for the period.
Convertible debenture
Convertible debentures are included in long-term interest bearing liabilities:
- Loan 1707 (long-term debt interest bearing liabilities, acquisition MV-Nordic A/S). SEK 19,1 million. Duration of the loan is July 6, 2017 - June 30, 2020. The interest rate is Stibor 180. The conversion price is SEK 85,00. Conversion may be requested 1 January 2019 to 30 June 2020. The share capital may upon conversion increase by a maximum of SEK 23 432. At full conversion the dilution of about 0,8 % of the share capital and 0,4 % of the votes
- Loan 1801 (long-term debt interest bearing liabilities, staff). SEK 19,7 million. Duration of the loan is January 1, 2018 December 31, 2020. The interest rate is Stibor 180. The conversion price is SEK 104,00. Conversion may be requested 1 November to 30 November 2020. The share capital may upon conversion increase by a maximum of SEK 20 029. At full conversion the dilution of about 0,7 % of the share capital and 0,3% of the votes. The convertible program was registered by the Swedish Companies Registration Office January 27, 2018.
Equity
Consolidated shareholders' equity as of December 31, 2017 was SEK 398,2 million.
Financial instruments
Classification and valuation
Financial instruments are initially recognized at their acquisition value corresponding to the instrument´s fair value plus transaction costs. A financial instrument is classified when recognized for the first time, including on the basis of the purpose for which the instrument was acquired. Vitec has financial instrument in the categories loans receivable and accounts receivable, financial liabilities valued at fair value, and financial liabilities valued at their accrued acquisition value.
Financial liabilities valued at fair value
According to IFRS 7, information must be provided about the fair value of each financial asset and financial liability, irrespective of whether they are reported in the balance sheet or not. Vitec judges that the fair value of the financial assets/liabilities is close to the reported book value.
All of the company´s financial instruments that are subject to valuation at fair value are classified at level 3. The change for the period in respect of financial instruments at level 3 refers primarily to additional purchase prices for acquisitions. Conditional purchase prices are valued at fair value based on available data, such as contractual terms, as well as relevant assessments in respect of anticipated fulfillment of conditions. When calculating fair value, an assumed interest rate of 0,9% has been used. As the difference between fair value and book value is marginal, no correction has taken place.
The conditional additional purchase price for Fox Publish AS is subject to separate events within a maximum period of 42 months after the acquisition date as of March 2, 2015. The conditional additional purchase price for Futursoft OY is dependent on EBITDA 201610-201709.
The following table shows the difference between fair value and booked value.
| Recurring valuations at fair value, as at 31 December 2017 | |||||||
|---|---|---|---|---|---|---|---|
| Level 1 | level 2 | Level 3 | Book value | ||||
| Additional purchase price Fox Publish AS | 1 301 | 1 301 | |||||
| Additional purchase price Futursoft OY | 24 624 | 24 624 | |||||
| Total | 25 925 | 25 925 |
For all other financial assets and liabilities, booked value is consistent with fair value.
IFRS 9 Financial Instruments enters into effect in 2018 and addresses the recognition of financial assets and liabilities. Vitec will apply the new standard as of January 1, 2018. The standard has different measurement categories for financial assets and a new model for impairment testing. The main impact of the standard refers to a partially new process for credit losses. Vitec will apply the transition forward and have taken into account historical customer losses over a business cycle and subsequently finds that the new standard has no material effect on the consolidated accounts.
Acquisitions
Acquisition of MV-Nordic A/S
On July 6, all shares and votes were acquired in the Danish software Group MV-Nordic A/S. The Group offers software for the education sector in Denmark, Norway and Sweden. The main product is a cloud-based service for people with read/write disorders.
The Group is consolidated as from the acquisition date. The goodwill is not tax-deductible and is deemed to be attributable to the expected profitability, complementary expertise as well as anticipated synergies in the form of the joint development of our products. The acquisition-related costs amounted on December 31 to SEK 3,9 million, and are recognized as other external cost in the consolidated statement of comprehensive income. From the acquisition date up to and including the 31 December, the revenues of the acquired Group amount to SEK 89,0 Million and income before tax to SEK 8,1 million. Due to other accounting principles and the split fiscal year, information regarding income and earnings from the beginning of the year are not accurate.
There are items in the purchase price allocation that may be revalued since the MV-Group has been in our possession for a short period of time. These items are brands, product rights, customer agreements and goodwill. For that reason the purchase price allocation in preliminary until twelve months have passed since the acquisition date.
Since the previous report, we have made a fair value adjustment of SEK 11,4 million of the acquired groups´ current liabilities. The adjustment relates to deferred income, and has been made to comply with the Group´s accounting principles. Goodwill have increased with the same amount. The corrected acquisition analysis presents a more accurate picture of the acquired company's assets.
| Fair value | Fair value recognized | ||
|---|---|---|---|
| Preliminary purchase price allocation (SEK thousands) |
MV Nordic A/S | adjustment | in the Group |
| Brands | - | 3 374 | 3 374 |
| Product Rights | - | 67 510 | 67 510 |
| Customer Agreement | - | 29 676 | 29 676 |
| Intangible fixed assets | 5 345 | - | 5 345 |
| Tangible fixed assets | 3 679 | - | 3 679 |
| Deposition | 1 261 | - | 1 261 |
| Inventories | 11 424 | - | 11 424 |
| Current receivables | 24 471 | - | 24 471 |
| Cash and cash equivalents | 1 678 | - | 1 678 |
| Deferred tax liabilities | 3 212 | -22 123 | -18 911 |
| Current liabilities | -50 392 | -11 395 | -61 787 |
| Long-term liabilities | -1 522 | - | -1 522 |
| Net identifiable assets and liabilities | -845 | 67 041 | 66 196 |
| Goodwill on consolidation | 42 235 | ||
| Total | 108 431 | ||
| The Group´s acquisition value | 108 431 | ||
| Calculation of net cash outflow | Fair value | ||
| Group´s acqcuisition value | -10843113% | ||
| Convertible bond | 2000800% | ||
| Cash acquired | 1 678 | ||
| Net cash outflow | -86 745 |
Signatures
Assurance of the board
The Board of Directors and President hereby assure that the year-end report provides a fair and true view of the company´s and the Group's operation, financial position and earnings, and describes the significant risks and uncertainties facing the company and the companies included in the Group.
Umeå, February 14 2018,
Crister Stjernfelt (Chairman) Kaj Sandart
_____________________________ _____________________________
_____________________________ _____________________________
_____________________________ _____________________________
Birgitta Johansson-Hedberg Jan Friedman
Anna Valtonen Lars Stenlund (CEO)
The board: Kaj Sandart, Anna Valtonen, Crister Stjernfelt, Birgitta Johansson-Hedberg and Jan Friedman.
Information
Publication
The information in this report is such a kind that Vitec Software Group AB (publ.) is legally required to disclose pursuant to the EU´s Market Abuse Regulation and the Swedish Securities Market Act. The information was released for publication on Wednesday February 14, 2018 at 08:30 CET.
Contact
CEO Lars Stenlund +46 70-659 49 39, [email protected]
Financial information
CFO Maria Kröger +46 70-324 66 58, [email protected]
Our website vitecsoftware.com is the premier IR information channel. There we publish financial information immediately after publication.
You can also order information and reports trough:
E-mail: [email protected] Mail: Vitec Software Group AB (publ), Investor Relations, Tvistevägen 47 A, S-907 29 Umeå, Sweden Phone: +46 90-15 49 00
The annual report is available on vitecsoftware.com latest March 29 2018.
Financial calendar
| 2018-04-23 | Interim report January-March 2018 (≈13:00)) |
|---|---|
| 2018-04-23 | Annual general meeting 2017 (≈17:30) |
| 2018-07-12 | Interim report January-June 2018 (≈08:30)) |
| 2018-10-18 | Interim report January-September 2018 (≈08:30)) |
This English version of the report is a translation of the original Swedish version; in the event of variances, the Swedish version shall take precedence over the English translation.
The auditors have not audited this report.
Corporate registration
Vitec Software Group AB (publ), Org.no. 556258-4804
Key figure definitions
This interim report refers to a number of financial measures that are not defined in accordance with IFRS, so-called alternative key figures according to ESMA guidelines. These measures provide management and investors with significant information for analyzing trends in the company´s business operations. The alternative key figures are not always comparable to those used by other companies. They are intended to supplement, not replace, financial measures presented in accordance with IFRS. Key figures presented on the last page of this report are defined as follows:
| Non-IFRS key figures | Definition | Description of use |
|---|---|---|
| Recurring revenue | Recurring, contractual income where there is no direct link between our work effort and the agreed price. The agreed amount is usually billed in advance and the income is recognized during the contract period. |
Key ratio for operating operations. |
| Recurring revenue portion of sales |
Recurring revenue through net sales. | Key ratio for operating operations. |
| Growth | Development of the company´s net sales in relation to the same period last year. |
Used to follow the company´s sales development |
| Profit growth to Parent Company shareholders |
Development of the company´s profit after tax in relation to the same period last year. |
Used to follow the company´s earnings development |
| Profit margin | Profit after tax in relation to net sales. | Used to follow the company´s earnings development |
| Operating margin | Operating profit in relation to net sales. | Used to follow the company´s earnings development |
| EBITDA | Earnings before interest, taxes, depreciation and amortization. | Shows the company´s operating profit before depreciation and amortization. |
| Equity/assets ratio | Shareholders 'equity, including equity attributable to non-controlling interests, in relation to total assets. |
The measure shows the company´s financial stability. |
| Equity/assets ratio after full conversion |
Shareholders 'equity, including convertible loans, in relation to total assets. |
The measure shows the company´s financial stability. |
| Debt/equity ratio | Average liabilities in relation to average shareholders 'equity and non-controlling interests. |
The measure shows the company´s financial stability. |
| Average shareholders equity | Average of the periods shareholders´ equity and the previous periods shareholders´ equity. |
Underlying measure used to calculate other key ratios. |
| Return on capital employed | Profit before tax plus interest expenses in relation to average capital employed. Capital employed is defined as total assets less non interest-bearing liabilities and deferred tax. |
The measure shows the company´s profitability. Indicates the company´s profitability in relation to externally financed capital and equity. |
| Return on equity | Reported profit after tax in relation to average shareholders 'equity attributable to Parent Company shareholders. |
The measure shows the company´s profitability and is a measure of the return on equity. |
| Sales per employee | Net sales in relation to average number of employees. | Used to assess the company´s efficiency |
| Value added per employee | Operation profit, plus depreciation, amortization and personnel costs in relation to the average number of employees. |
Used to assess the company´s efficiency |
| Personnel cost per employee Personnel cost in relation to the average number of employees. | Key figure for measuring efficiency in operations. | |
| Average number of employees |
Average number of employees for the year. | Underlying measure used to calculate other key ratios. |
| Adjusted equity per share | Equity attributable to Parent Company shareholders in relation to the number of shares issued at the closing date. |
The measure shows equity per share on the balance sheet date. |
| Cash flow per share | Cash flow from operating activities before the change in operating capital in relation to the average number of shares. |
Used to follow the company´s development of cash flow measured per share |
| P/E ratio | Share price on the closing date in relation to earnings per share. | Consistent measure to measure the share price in relation to profit after tax. |
| P/Adjusted equity per share | The share price on the closing date multiplied by the number of shares issued on the closing date in relation to the equity. |
Consistent measure to measure the share price in relation to adjusted equity. |
| P/S | The share price on the closing date multiplied by the average number of shares in relation to net sales. |
Consistent measure to measure the share price in relation to net sales |
| IFRS key figures | Definition | Description of use |
|---|---|---|
| Earnings per share | Profit for the period attributable to the Parent Company´s shareholders in relation to the average number of shares for the period. |
IFRS-key figure |
| Earnings per share after dilution |
Profit for the period attributable to the Parent Company´s shareholders with addition for interest expenses regarding convertible loans, in relation to the average number of shares. |
IFRS-key figure |
Graphs
Adjusted equity per share (SEK) Cashflow per share (SEK)
Net sales and recurring part Net sales and operating margin
Net sales January-December 2017 Operating profit January-December 2017
Vitec at a glance
Industry-specific business systems
Vitec develops and supplies business-critical standardized software to satisfy industry-specific needs. We grow through acquisitions of well-managed software companies in the Nordic region.
Long-term customer relations
We adopt a long-term approach, focusing on our customers' security. We create value through our supportive product offering, which facilitates development and increased profitability for our customers.
Business model with recurring revenue
Our business model is based on a high proportion of recurring revenue. This creates the conditions to act in the long-term, as we are less sensitive to temporary downturns within individual companies.
Growth through acquisitions
Vitec has a pronounced acquisition-based growth strategy,
with considerable focus on profitability and stable cash flows. By focusing on strong cash flows, we are creating the financial conditions for continued acquisition-driven growth.
History
Vitec was established in 1985 as a spin-off company from the University of Umeå, and since 1998 it has been a public company based on software. During our 30-year history, we have experienced continuous growth and have recorded a profit every year. Vitec is now a Nordic software Group with approx. 600 employees.
Key figures
| Net sales (TSEK) 855 029 675 414 618 385 491 956 371 631 389 200 Business Area Auto (TSEK) 155 920 119 171 71 082 28 302 - - Business Area Energy (TSEK) 25 721 25 872 24 114 22 672 19 849 21 327 Business Area Real Estate (TSEK) 190 111 158 357 142 557 134 315 130 718 120 086 Business Area Finance & Insurance (TSEK) 142 293 126 567 101 219 55 004 13 704 12 950 Business Area Eduation & Health (TSEK) 157 944 66 203 61 492 43 627 - - Business Area Environment (TSEK) 44 051 22 990 10 547 21 759 26 128 65 233 Business Area Estate Agent (TSEK) 138 019 155 285 207 011 185 750 181 152 168 785 Shared (TSEK) 969 969 363 527 80 819 Growth (%) 27% 9% 26% 32% -5% 8% Profit after financial items (TSEK) 98 127 81 942 94 686 64 545 38 069 40 130 Profit for the year (TSEK) 79 426 66 814 78 191 49 065 30 229 31 984 Profit attributable to Parent Company shareholders (TSEK) 79 426 66 814 78 191 49 065 30 229 31 183 Profit growth to Parent Company shareholders (%) 19% -15% 59% 62% -3% 26% Profit margin (%) 9% 10% 13% 10% 8% 8% Operating margin (%) 12% 13% 16% 14% 11% 11% Total assets (tkr) 1 261 970 1 096 691 872 019 772 901 387 981 429 133 Equity/assets ratio (%) 32% 30% 31% 34% 44% 36% Equity/assets ratio after full conversion (%) 35% 32% 33% 37% 48% 41% Debt/equity ratio (times) 2,22 2,25 2,09 1,70 1,53 1,66 Return on capital employed (%) 14% 14% 21% 18% 16% 20% Return on equity (%) 22% 22% 29% 23% 19% 24% Sales per employee (TSEK) 1 584 1 445 1 465 1 430 1 332 1 297 Value added per employee (TSEK) 1 258 1 198 1 212 1 164 1 052 985 Personnel cost per employee (TSEK) 828 813 797 801 793 732 Average number of employees (number) 540 467 422 344 279 300 Adjusted equity per share (SEK) 13,34 11,37 9,24 8,85 6,39 5,92 Earnings per share (SEK) 2,70 2,27 2,66 1,75 1,16 1,30 Earnings per share after dilution (SEK) 2,70 2,25 2,64 1,68 1,09 1,16 Dividend paid per share (SEK) 1,00 0,90 0,67 0,55 0,50 0,40 Cash flow per share (SEK) 6,78 5,20 5,09 4,40 1,97 2,25 P/E ratio 32,23 33,22 28,20 15,12 15,31 10,89 P/Adjusted equity per share 6,52 6,64 8,12 2,99 2,77 2,33 P/S 3,04 3,29 3,57 1,58 1,26 0,91 0 0 Calculation bases: Profit when calculating earnings per share (TSEK) 79 426 66 814 78 191 49 065 30 229 31 183 Cash flow when calculating of cash flow per share (TSEK) 199 612 152 757 149 751 123 220 51 505 55 243 Average number of shares (weighted average) (psc) 29 424 555 29 396 690 29 396 690 28 003 405 26 141 635 24 604 375 Number of shares after dilution (psc) 29 538 825 29 838 900 29 788 016 29 431 975 28 175 425 27 338 170 Number of shares issued as of closing date Number of shares after full conversion (psc) (st) 29 838 9000 29 396 6900 29 396 6900 29 396 6900 26 541 6350 25 741 6350 |
||||||||
|---|---|---|---|---|---|---|---|---|
| 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |||
| Share price at respective year-end | (SEK) | 87,00 | 75,50 | 75,00 | 26,50 | 17,70 | 13,80 |
Vitec is market leader for Vertical Market Software in the Nordic region. We develop and deliver standard niche software. Vitec grows through acquisitions of well-managed and well-established software companies. The Group's overall processes together with the employees' in-depth knowledge of the customer's local market enables continuous improvement and innovation. Our 600 employees are based in Denmark, Finland, Norway and Sweden. Vitec is listed on Nasdaq Stockholm and had net sales of SEK 855 million in 2017. Find more at www.vitecsoftware.com.