Combitech releases its financial statements for 2016
Technical consultancy company Combitech, an independent subsidiary of defence and security company Saab AB, presented its annual report for 2016 today. The report shows increased sales, a significant increase in profit and an improved operating margin.
Combitech's sales increased by 8 per cent and totalled SEK 1,825 million, the highest ever reported by the company. The Swedish and Finnish operations have experienced positive development during the year, with increased profits and improved margins. The Norwegian operations have also seen improvements. The number of employees increased by 362 during the year, amounting to 1,810 at year-end. The need for additional recruitment remains pressing in 2017.
Several important events took place during the year:
- On 1 October, Combitech took over Ericsson's development operations, with a focus on radio software development. Consequently, just over 300 Ericsson technicians transferred to Combitech from Ericsson. Combitech's ability to undertake comprehensive customer commitments will be further strengthened through this agreement, which will also serve to reinforce the company's solid engineering expertise, while making skills available to a wider clientèle.
- On 30 December 2016, Combitech became the majority owner of the Norwegian cyber security company, Watchcom, with 28 employees. The acquisition strengthens Combitech's position as a leading Cyber Security operator in the Nordic countries, with 220 consultants in the region. The acquisition also entails an expansion of Combitech's operations in Norway and access to new customers and markets.
- Combitech has played a leading role in several large autonomy projects within the automotive industry during the year. Among others, Combitech is collaborating with Volvo on a research and development project on autonomous transport systems. In May, a self-driving truck was demonstrated for the first time for a broader audience.
- Combitech has once again been named one of Sweden’s Best Employers by market research company Universum. The survey, in which companies' own employees rate their employer, showed Combitech climbing one rung on the ladder up to 14th place.
Key performance indicators
Following the end of the financial year, Combitech took over the operations in the technical information company Tikab, with around 70 employees. Tikab is currently a part of Saab's Support and Services business area. Combitech has thus broadened its service portfolio and strengthened its position as the largest in Sweden when it comes to technical product information. The change came into effect on 1 February 2017, at which time Tikab became a Combitech subsidiary.
"2016 has been a very good year for Combitech and we have improved all of our KPIs across the board. The Nordic consultancy market is a hive of activity at the moment. Above all, our customers are looking for support in meeting the digital transformation and the interest for cyber security is greater than ever. Through the acquisition of Watchcom, we regain a strong foothold in Norway, which is in line with our Nordic growth strategy. I am therefore cautiously optimistic for 2017,” says Combitech CEO, Hans Torin.
Orders received reached SEK 1,666 million, an increase of 30 per cent compared to the previous year. Orders received are a mixture of small and medium-sized assignments, often connected to framework agreements, and larger orders spanning several years. Orders received in 2016 were particularly strong in the defence and telecomms sectors.
Sales revenues were SEK 1,825 million, an increase of 8.3 per cent compared with the same period in 2015. The increase was achieved organically and is primarily the result of positive market development and increased utilisation of capacity. The addition of around 300 new employees from Ericsson also contributed to increased sales during the fourth quarter.
Earnings and margin
The operating profit (EBIT) increased by 40 per cent and amounted to SEK 144 million (SEK 103 million). The operating margin was 7.9 per cent, which is an increase compared to 2015 (6.1 per cent).
Operating cash flow
The operating cash flow increased to SEK 131 million (SEK 94 million), primarily due to higher earnings.
For more information
Charlotte Magnusson, Head of Communication, Combitech
Phone: +46 734 184 143, email: email@example.com
Ann-Sofi Jönsson, IR Manager, Saab AB
Phone: +46 8-463 02 14, email: firstname.lastname@example.org
Combitech is a Nordic technology consultancy firm with approximately 1,900 employees in Sweden, Norway and Finland. The company is an independent enterprise within the defence and security group Saab AB.