INTERIM REPORT JANUARY – SEPTEMBER 2010
Success in Intoi’s two largest holdings boosted the Group’s operating profit by 42% to SEK 9.2m.
Operating profit in IAR Systems rose to SEK 6.8m, which is the second highest ever for a single quarter. This success is due to the combined effects of the new sales strategy and the scalability of the business model. Net sales increased by 7% to SEK 44.2m. In local currency, net sales were up by 22% in the USA, 15% in Europe and 43% in Japan. The company is continuing to fine-tune its offering and the new technology for energy-efficient programming was well received by the market during the quarter.
Deltaco reported its highest operating profit of all time for a single quarter at SEK 8.7m. The company maintained its stable growth and increased its net sales by 5% to SEK 87.9m. At the same time, operating profit improved by 19% and operating margin rose to 10% (9). As part of an effort to take its offering to a new level, the management has been reinforced and the product range widened, the latter of which has led to higher inventories. In addition, the wholly owned logistics facility is being enlarged in order to expand delivery capacity.
Northern reported an operating profit that remains unsatisfactory. In September the software’s technical edge was confirmed when Gartner named Northern one of four Industry Challengers alongside HP, Symantec and SolarWinds. After the integration with Nocom Software, the company has extended its sales reach and is working to fully leverage its technology.
Activities in Deltaco and IAR Systems affected the Group’s cash flow for the quarter. The Group has a strong financial position, with equity per share of SEK 54.58 (equity per share excluding intangible assets is SEK 25.18), an equity/assets ratio of 82% (80), cash and cash equivalents of SEK 44.5m and an unutilized bank overdraft facility of SEK 43.5m.
We have previously communicated our goal for the Group to post an operating profit for 2010 that exceeds the level in 2008 (SEK 32.3m). Given the positive development and strong market positions of our holdings, we are confident that this target will be met.