Interim Report January-March 2014Published 29 Apr 2014
Knowit kicks off 2014 with increased sales, results and margin as compared with the corresponding quarter 2013. Earnings per share also rose during the quarter. This is thanks to hard work in increasing company profitability. It is gratifying that operations in Göteborg and Malmö, where we have taken action in 2013, are showing the greatest improvements.
Our method of quickly implementing changes where the operations show weak development, combined with investing where we see a positive trend, is an efficient way of developing Knowit. Our structure, with specialized companies in local markets, means that we can both seize demand when it appears and quickly adapt to changes.
A varying market
Demand remains on par with earlier quarters, but is highly varied in different areas and for different offerings. The Norwegian market is still strong. In Finland, the market has weakened further due to price pressures and tough competition. In Sweden the market remains relatively stable. There are some signs of increased demand, but it has not become apparent yet.
In Finland, we continue to adapt the organization to the decreasing demand. This means that we have further downsized the number of employees, we are carrying out an aggressive sales campaign and are developing our competence in some fields to better suit demand. We don’t wait for the market to improve, we constantly strive to be better than the market.
A popular place to work
Knowit has, during the past few years, been one of the most popular consultancy firms among IT students. In Universum’s survey, where Swedish IT students are asked to rank their favorite employers in the consultancy sector, we are only beaten by a few international consultancy firms. In Norway, we are a newcomer on the list of most popular employers. Knowit is known as a good workplace, giving each employee good developmental possibilities, in an environment characterized by high competence and stimulating assignments.
New purchasing behaviors
We have 1,800 specialists, of which 1,200 are in IT, 400 are in Design & digital (offering services in digital marketing and web solutions) and 200 are management consultants. Their ability to understand client operations and our offerings of innovative solutions in the interface between technology, design and corporate governance, gives us good opportunities to get new deals in the part of the market growing most rapidly.
Technology development, in combination with changed client behaviors, creates new purchasing patterns. More and more often, we see operative units within client companies purchasing our services, rather than IT departments . This also helps move the focus from technology to function. We continue to expand our operations within more qualified service fields. Our geographic dispersion, combined with deep understanding of client businesses, makes for a promising future for Knowit.
Per Wallentin, CEO and President