Interim report January - September 2014Published 22 Oct 2014
We have improved our profit and net sales as compared with the corresponding quarter in 2013. In Sweden the improvement has been marked, on an unchanged market. All operations in Sweden have showed positive development. The greatest improvement is found in our Management companies, regional companies in Malmö and Design & Digital in Stockholm. In Norway, demand remains stable. There, we are reinforcing our positions mainly in Oslo and Stavanger.
In Finland, the market remains weak, with price pressures and tough competition. The Finnish operations continue to show losses during this quarter. This is mainly due to weak demand, but also our carrying out an action program to adapt operations to the diminishing market. Our operations in the area Design & Digital are struggling most. Here, we are both working to increase sales and to review the organization. In our testing offer, the actions we have taken are showing effects, with many new clients and improved results.
I am pleased with the positive development in Sweden, the stability in Norway and that we have succeeded, despite the weak market and its challenges in Finland, in showing improved results as compared with the third quarter 2013. But we are not satisfied. We are taking actions to improve our cash flow. We are continuing to focus on streamlining sales, deliveries and our support functions, to meet existing and future client demands in the best possible way.
Shifting positions The trend among our clients is clear. Purchasing of services is more often done by the clients’ line operations, e.g. market departments or business offices and management groups. This trend, is most apparent in our fields Management and Design & Digital. Our management companies have in the past offered services in the interface between technology and business development, but are quickly moving toward a position aimed at business and operational development. Knowit is moving away from being a pure IT consultant, toward becoming a business driven consultancy firm – where IT is often part of the solution, but not the dominating part.
New business opportunities Knowit’s philosophy of quickly identifying and acting on changes on the market is very important for creating value for clients and shareholders. The newly established Knowit Neolab in Bergen is a good example of this. Knowit Neolab operates in the crossroads between design, marketing, PR, web development and IT, a field where we see great opportunities going forward. The company targets marketing and communication development and offers creative services in design, advertising and media, aside from IT competence. Our other companies in Design & Digital are to a greater extent offering similar services.
I am confident in our ability to, through collaborating specialist units, both operate businesses and adapt to our clients’ needs and market demands. Knowit is a company that develops client operations in a new way. And creates new business opportunities in an agile, complex environment.
Per Wallentin CEO and President
Read the report.