Strong result development and improved cash flowPublished 18 Jul 2016
Net sales increased by 10.7 percent to SEK 632.7 million in the second quarter. The EBITA profit rosed to SEK 52.6 million and the EBITA margin increased to 8.3 (4.9) percent.
Knowit has 25 years’ experience of innovation, creative thinking and entrepreneurism. The company’s development mirrors both constant curiosity and a strong drive for action in each major technology shift – from EDP and www to the current widespread digitalization trend and IoT.
We continue to develop our clients’ operations and ourselves through three strong business fields with experienced communication experts, management consultants and IT/technology specialists. Together, we offer services at the interface between design, management and technology.
The strategy matches the purchasing patterns of clients, with many deals initiated by functions close to the market, aside from those initiated by the IT department.
STRONG DEVELOPMENT AND STREAMLINING
It is gratifying that we, during the second quarter, have greatly improved both profit and margin, while having a strong sales growth giving us improved cash flow.
Within the business field for management consulting, Knowit Insight with operations primarily in Sweden, we have seen very strong results, with a high margin and increased sales. I interpret this to mean that our investment into the new kind of management consultants, with strong competence in both operational development and technology, is a good one.
Our operations in IT consulting, gathered in the business field Knowit Solutions, are also doing very well, with improved profit, margin and sales. The positive result is largely due to our continuous efforts to improve efficiency.
In the business field for digital communication, Knowit Experience, profit and sales have not developed as we would have wanted. During the period, we have closed down a company in Stavanger, struggling with profitability issues. In the company in Jönköping, which has showed negative results this spring, we have decreased the overhead costs and increased collaborations with the Experience company in Linköping. We have also fused seven Norwegian companies into two. In this way, we improve our joint delivery capacity, while also getting lower costs and creating efficient and clearly client-oriented operations.
TOP MARKS FROM THE TALENT When Nordic students select the company they would most like to work for, Knowit is at the top among Nordic companies. It is Universum that yet again has performed a survey among IT students in Denmark, Finland, Norway and Sweden. The result shows that we have a strong position throughout the Nordic region, not just in Sweden.
Finding and retaining the right talent for our interesting assignments is crucial to our success. Therefore, we work hard to find people with the right competence and attitude. Employer Branding is now an explicit focus area for Knowit. This makes it particularly gratifying to see that we – year by year – are rated at the top for employer brand attractiveness.
DIGITALIZATION IS OUR STRENGTH
Digitalization contributes to increasing accessibility and efficiency, both among companies and within public administration, while also contributing to a simpler life for us humans. The new technology is now integrated into the core operations of our clients. The pressure for change is tangible, as old business models lose power and new digital business concepts challenge companies.
At Knowit, we understand digitalization and have the capacity to develop our clients’ deals by combining competence from our three business fields: Experience, Insight and Solutions. We have 500 communication experts within Experience, 200 management consultants within Insight and 1,100 IT specialists within Solutions.
UNDERSTANDING AND PROMOTING THE CLIENT
Our work also leads to positive attention for our clients. Our solution for TV2 Livesenter, in Norway, has received a Nordic award for excellent design. Here, we have developed concept, design and user experience.
When Norwegians list the apps they cannot do without, the travel app Ruter, developed by us, makes the top ten list. With our ability to learn about and understand our clients’ operations combined with our services at the interface between design, management and technology, we get deals on the fastest growing part of the market.
Together, we develop our clients, our company and shareholder value in Knowit.
Per Wallentin, CEO and President
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