Interim Report January-March 2013Published 25 Apr 2013
The overall demand during the first quarter is on par with demand in the fourth quarter of 2012. We see a continued quick technological development and strong pressure to change among our clients. But despite that, purchasing decision continue to take a long time, keeping demand down. However, the picture is not homogeneous.
Our operations are dispersed over many local markets, which is a strength for us and our clients. The local markets with strong demand compensate for those with weaker demand. For example, we have high demand in the Stockholm region, on local markets outside of Sweden’s largest cities and throughout Norway. The challenges are our markets in Finland, Göteborg and Malmö, where clients remain careful with placing new orders.
In order to seize the existing opportunities, we have intensified our client collaboration. Our strength of knowing our clients well gives us the chance of adding competence to assignments from several subsidiaries. Is this way, we increase our clients’ chances of making the best of every project, as well as optimizing our own profitability. This stance, of creating double profitability, so that the client’s increased efficiency gives Knowit the chance to develop its offering, is the core of our business model. One example is our operation in Göteborg which, together with Norwegian units, delivers services on the Norwegian market. One assignment includes Knowit in Göteborg and Knowit in Oslo developing and managing Statkraft’s new intranet and collaboration platform together.
Entrepreneurism effective Founding companies together with skilled entrepreneurs is an effective way for us to expand our operations into new areas, both geographically and as regards competence. Our infrastructure company in Malmö, founded in 2012, works with clients on the national energy market. A market faced with large changes, giving us new opportunities to contribute value to our clients. Our sales in the energy sector have also doubled during the quarter. This is mainly thanks to the start-ups of the infrastructure company and our company in »energy management«.
In January we founded Knowit Denmark together with two skilled entrepreneurs. They have extensive knowledge of Nordic corporate culture and documented abilities of delivering good results on the Danish market. We have already expanded to five employees, with several assignments.
Popular working place Growing organically is important and in line with our strategy. During the first quarter, we have grown by more than forty new employees in net, on markets where demand is high. Daring to invest where we have positive development is important.
It is satisfying that our work to strengthen our position as an attractive employer is successful. When young people active on the IT job market respond to where they would most like to send their résumé, Knowit is the top choice among all companies. This was seen in the annual survey Career Index, conducted by the communication and employer branding company Communication. When the corresponding survey was conducted among IT students, Knowit was ranked as the second most interesting company.
Stable operations Our results are on par with the last quarter of 2012. This shows that Knowit’s structure, with dispersion geographically, as well as in many industry fields, provides us with stable operations. Our most important target is earnings per share and thus the margin and results are our focus. Our corporate structure, with operative subsidiaries, allows us to see which units are not performing well and to act on this. In the same way we can see which are doing well and work to improve development even more, both for clients and for us as company.
It remains difficult to assess the economic development and its effect on demand in our field. But we aren’t waiting for the market to improve. We strive to always be better than the market. We seize the success opportunities available to our clients and thus to us. This provides Knowit with the right conditions for the profitability to increase and contribute to a positive development of results.
Per Wallentin CEO and President