Strong opening despite uncertainty in the worldPublished 27 Apr 2020
Despite increased uncertainty in the world, Knowit has increased net sales during the first quarter and has a good financial position. For the entire Group, net sales have increased by 7.2% to SEK 936.3 (873.7) million, but with a slightly lower profit, SEK 95.5 (100.4) million, and margin, 10.2% (11.5), as compared with the corresponding period last year. The largest business areas, Solutions and Experience, have improved their profits, net sales, and margins. However, Insight continues to encounter challenges, further reinforced by covid-19.
“I am pleased with the outcome for the first quarter of the year. Covid-19 has had a limited impact on the profit for the quarter, but we see increasing uncertainty going forward. However, the demand for digitalization services remains strong in the long term, and our distribution of clients, with many in the public sector, is a strength as demand is more stable there than in other sectors,” says Per Wallentin
Knowit’s largest business area, Solutions, sees continued high demand, resulting in high capacity utilization. Within the business area Experience, investments into data-driven customer experiences have resulted in both increased net sales and a strong improvement in the margin. Knowit’s smallest business area Insight has continued to be affected by larger projects having been stopped during the last six months of 2019. Insight is also the business area most impacted by the current uncertainty in society.
“The developments with covid-19 have meant that we have changed our work methods. During the second half of March, we applied the recommendations of the Public Health Agency of Sweden, with teleworking, travel restrictions, digital meetings, and cancelled client events. The business model of our largest business area, Solutions, has proved to work well under these circumstances,” says Per Wallentin.
Knowit has chosen to put a brake on recruitment and during the month of March has made use of the governmental support measures that were launched. Temporary layoffs were performed primarily toward the end of the quarter and in April.
For more detailed information about the results for the first quarter, please see the interim report on the website.