Year End Report 2013Published 07 Feb 2014
2013 was a year that began weakly, but in which Knowit gradually improved profit, margin and cash flow. We have focused on adapting operations by downsizing in areas with weak development and developing operations where we have growth and momentum.
MARKET Demand has remained on par with earlier quarters, but shows large differences between different geographic regions and offerings. Our strategy is to develop and expand in areas that show high demand and to quickly adapt our operations depending on market needs. Knowit’s structure, wit specialized offerings on different local markets, means that we can quickly adapt to change.
The Norwegian market remains strong and we have increased both profit and sales. The Finnish market remains weak. In Sweden, it is unchanged. We have gradually improved our profit during the year. The actions we have taken to adapt our organizations in Göteborg and Malmö have had results.
At Knowit, we don’t wait for the market to improve – we strive continually to be better than the market.
A STRONGER POSITION During the year, we have increased by a net of almost 100 new employees, of wich half from acquisitions.
This is primarily through recruitment, but supplemented by strategic acquisitions, and layoffs where the market is weak. In Malmö and Stockholm we have, during the fourth quarter, acquired the system development company Bisnode Applicate. The company reinforces our existing deal, with both competence and new clients.
We see that technology development in combination with changed client behavior creates new opportunities.
During the year, we have continued to expand our offerings within more specialized service areas. It is part of our strategy to create growth in more qualified services areas. Through our ability to constantly follow development and adapt operations to fit demand, we have continued to gain market shares.
FINANCIAL TARGETS The Board has clarified Knowit’s financial targets. The primary target is for earnings per share to be higher than organic growth. Which in turn should be higher than growth on the market where Knowit operates. The target for our margin remains unchanged. We should have an EBITA margin of ten percent as an avarage over a five-year period.
During this year, we have increased sales and continued to gain market shares. It is our responsibility to identify and make use of the opportunities on the market. Our geographic presence on many local markets and in many different client fields, combined with our adaptability, gives us a strong position. This, in combination with the streamlining done in 2013, provides good conditions for a continued profitable development for Knowit.
Per Wallentin CEO and President