EDB Business Partner positive on year-end

Source: EDB Business Partner

EDB Business Partner delivered its best year ever in 2005.

EDB reported post-tax profit of NOK 217 million for full-year 2005, compared to NOK 8 million for 2004.

Fourth quarter operating profit (EBITA) was NOK 127 million as compared to NOK 124 million in the same quarter of 2004. The Board of Directors proposes that the annual dividend for 2005 should be increased from NOK 0.50 in 2004 to NOK 1.00 per share as a result of the strong performance.

EDB Business Partner produced a 21 percent increase in operating revenue to NOK 4.8 billion for 2005. Both the group's business areas, IT Operations and Solutions, reported good growth and profitability in 2005. EDB had an order backlog of NOK 12.5 billion at the close of 2005.

Positive EBITA for the ninth quarter in succession

"We are very pleased with EDB's performance, both in the fourth quarter and for 2005 as a whole. EDB produced positive quarterly results (EBITA) for the ninth time in succession. The businesses acquired from Telenor, IBM and CapGemini are now fully integrated. EDB's Swedish activities are making strong progress. We have acquired five new companies, and the whole EDB organisation is structured for continuing profitable growth in the future. EDB is now well positioned to achieve the company's Nordic objective to be the leading player in our areas of activity", comments Endre Rangnes, CEO of EDB Business Partner.

EDB purchased the companies BanqIT, Tag Systems, Datarutin, Avenir and Spring Consulting in 2005 and the beginning of 2006, representing in total over 700 employees in Norway and Sweden.

EDB is expanding its role in the market for applications services. The company already has sizeable activities in applications development and applications operations, and is now complementing this with a strong environment for applications services.

EDB has now established itself as one of the leading suppliers of applications services, including SAP, Microsoft, IBM and Oracle.

EDB has become a significant player in the Swedish market, and the Swedish activities are growing rapidly. Turnover in Sweden increased by 76 percent in 2005. Between 2003 and 2005, EDB increased its turnover in Sweden from SEK 315 million to SEK 739 million.

EDB has established its position as the leading IT supplier of operations services and applications to the public sector. A number of strategically important contracts were signed in 2005.

EDB signed contracts in 2005 for business volume totalling NOK 4.3 billion.

Fourth quarter

EDB Business Partner reported operating revenue for the fourth quarter of 2005 of NOK 1,258 million as compared to NOK 1,092 million in the same quarter of 2004, representing growth of 15 percent. The group's operating profit before amortisation of intangible assets (EBITA) was NOK 127 million for the quarter, as compared to NOK 124 million for the fourth quarter of 2004. The group's EBITA margin was 10.1 percent as compared to 11.4 percent in the same quarter last year. The year-on-year change is related entirely to unusually high net income recognition in accordance with IFRS in the figures for the fourth quarter of 2004 - figures that do not reflect the level of activity in the quarter. The Swedish activities reported profitable growth of 79 percent in the fourth quarter.

IT Operations: The IT Operations business area reported a 10 percent year-on-year increase in revenue for the fourth quarter as a result of the business activities acquired from IBM and Capgemini. IT Operations generated an EBITA margin of 9.4 percent in the fourth quarter.

Solutions: The Solutions business area delivered year-on-year revenue growth of 30 percent, largely the result of the activities acquired from IBM and the acquisition of BanqIT Business Applications together with organic growth of 13 percent. Solutions generated an EBITA margin of 17.1 percent in the fourth quarter

Growth set to continue in 2006

EDB expects continuing growth in the Nordic IT services market in 2006. Growth is expected in all the industries and sectors in which EDB operates: banking and finance, telecommunications, the public sector, distribution, and industry.

Outsourcing: is characterised by fewer large contracts, but despite this the market shows continuing growth. There is an increasing trend for outsourcing contracts to be separated into a number of smaller contracts, which continue to be very attractive for EDB. IT Operations shows steady growth in pace with the market, and generates good, stable profitability.

Solutions: has good momentum at the start of 2006, with strong growth in revenue and good profitability. EDB believes that the Solutions business area is well placed to share in the growth expected for both the public sector and the banking and finance industry and to continue to win market share in these areas.

IT advisory and applications services: Strong growth is expected in this area, particularly in the SAP area where market growth in 2006 is expected to be higher than the average for the IT services market.

Earnings per share amounted to NOK 0.86 for the quarter as compared to a loss of NOK 2.00 for the fourth quarter of 2004. For 2005 as a whole, earnings per share amounted to NOK 2.51 as compared to NOK 2.55 in 2004.Download the document now 1.4 mb (Adobe Acrobat Document)

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