Combitech’s half-year report for January-June 2017
The technical consultancy company Combitech, an independent subsidiary of the defence and security company Saab AB, is releasing its interim report today for January-June 2017. The report shows continued increases both in sales and earnings.
Summary of highlights during the second quarter of 2017:
- The annual digitalisation event Techxperience Day was held on 2 May, and attracted a large number of decision-makers in the industry. This year’s theme was innovation, security and autonomy, and the participants also emphasised the importance of collaboration between different industries.
- One aspect of strengthening Combitech’s position as a digitalisation partner for Swedish industry was the recruitment of Lars Ydreskog. On 1 April he was appointed Deputy CEO at Combitech, in charge of digitalisation and Industry 4.0. Lars previously worked at Saab’s Aeronautics business area, where he was head of Operations for Gripen and was the driving force behind Saab’s model-based methodology and digitalisation.
- On 9–10 May, Norway’s largest security event Paranoia was held for the tenth time, with world-leading security experts and more than 600 participants. Paranoia is arranged by Watchcom, of which Combitech has been a majority owner since the end of 2016.
- The number of employees now amounts to 1,853 and has increased by 93 persons since the beginning of the year.
“We see continued positive development for Combitech, with high demand for our services and increased interest in complete assignments,” says Combitech CEO Hans Torin. “Most recently, we have taken several steps forward as a digitalisation partner for the industry, where as a part of Saab, we have unique experience that is attractive to our customers. Cyber security is still high on companies’ agendas in the wake of several attacks. New legislation, such as the European personal data act, GDPR, is also driving demand for in cyber security. I’m therefore looking forward to the autumn with optimism.”
KEY FIGURES, JANUARY-JUNE 2017:
Order intake for the first six months was SEK 1.145 billion, similar to the same period in 2016 (SEK 1.156 billion). Order intake remains stable.
Sales revenue was SEK 1.208 billion, an increase of 35 percent compared with the same period in 2016 (SEK 893 million). Besides organic growth and higher utilisation rate, the strong growth can be attributed to the strategic arrangement with Ericsson, which entailed the transfer of 300 engineers in October of 2016, and the acquisitions of Watchcom and Tikab.
Earnings and margin
Operating profit (EBIT) was SEK 113 million, an increase of 47 percent compared to the same period in 2016 (SEK 77 million). The operating margin was 9.4 percent compared to 8.6 percent in 2016. The substantial improvement in earnings is due to strong demand in combination with improved utilisation, as well as an increased portion of complete assignment business.
Operating cash flow
The operating cash flow was SEK 147 million, which is an improvement compared to the first half of 2016 (SEK 92 million).
Combitech is a Nordic technology consulting firm with nearly 1,900 employees in Sweden, Norway and Finland, with special focus on digitalisation and cyber security. The company is an independent subsidiary in the defence and security group Saab AB.