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2014-04-29

EVRY: Good organic growth in the first quarter

(Oslo, 29 April 2014) EVRY reports organic growth in revenue of 3% to NOK
3,292 million for the first quarter of 2014. EBITA for the first quarter of
2014 was NOK 144 million as compared to NOK 141 million in the fourth quarter
of 2013.

EVRY reports positive organic growth for all its segments in the first quarter
of 2014. EBITA for the quarter was affected by the costs of building up the
new operating services organisation (Future Proof), costs in connection with
the new headquarters premises and project costs in EVRY Financial Services.

Cash flow from operations before non-recurring items in the first quarter of
2014 was NOK 47 million. In comparison, EVRY reported cash flow from
operations before non-recurring items in the first quarter of 2013 of NOK 81
million, which also included a non-recurring positive effect of NOK 150
million.

"EVRY reports good organic growth of 3% in the first quarter, and the EVRY
Financial Services segment grew by 6%, which is well above the general rate
of growth in the market. It is also pleasing to see stronger growth in the
EVRY Norway segment. The move into our new headquarters at the start of the
first quarter, combined with the introduction of new and more digital ways of
working, with particular emphasis on greater collaboration, has been
well-received. This provides the foundation for greater efficiency and a more
proactive organisation", comments Terje Mjøs, CEO of EVRY.

"Thanks to good control of costs we have been able to maintain EBITA at last
year's level. We continue to work on measures to make our organisation more
efficient, in part by implementing new industry-standard solutions with
greater use of automation, self-service and offshoring in our operating
services organisation. In parallel with this, we need to adapt our
organisation to market conditions in areas where growth is still slow and in
response to changes in our contracts portfolio", explains Terje Mjøs.

Key figures and main features of the first quarter of 2014

* Operating revenue of NOK 3,292 million, representing organic growth of 3%
from the first quarter of 2013
* All segments reported organic growth
* EBITA of NOK 144 million (NOK 141 million in the first quarter of 2013)
* Cash flow from operations of NOK 47 million (NOK 81 million in the first
quarter of 2013)
* The group's order backlog amounted to NOK 16.5 billion at 31 March 2014, a
decrease of NOK 100 million from the close of the fourth quarter of 2013.

First quarter 2014 figures for EVRY's business areas

The EVRY Financial Services segment reports operating revenue of NOK 885
million for the first quarter of 2014 as compared to NOK 831 million in the
first quarter of 2013, representing organic growth of 6%. EVRY Financial
Services produced EBITA of NOK 51 million in the first quarter of 2014
compared to NOK 56 million in the first quarter of 2013.

The EVRY Sweden segment reports operating revenue of NOK 903 million for the
first quarter of 2014 as compared to NOK 810 million in the first quarter of
2013, representing organic growth of 3%. EVRY Sweden produced EBITA of NOK 54
million in the first quarter of 2014 compared to NOK 46 million in the first
quarter of 2013.

The EVRY Norway segment reports operating revenue of NOK 1,651 million for the
first quarter of 2014 as compared to NOK 1,588 million in the first quarter
of 2013, representing organic growth of 4%. EVRY Norway produced EBITA of NOK
84 million in the first quarter of 2014 compared to NOK 73 million in the
first quarter of 2013.

Company outlook

EVRY's market situation has not changed significantly from the more positive
trend seen at the end of 2013. For most business areas, quarter-on-quarter
growth is in line with the outcome seen in the fourth quarter of 2013. Demand
for consulting and advisory services is stable, and hourly charge out rates
are, on the whole, tracking the general price trend. However, there are some
variations in both demand and hourly rates, principally determined by the
degree of specialisation involved and the value of the services to customers.
The market for operating services and outsourcing continues to grow in the
SMB segment, but the situation is more challenging for the enterprise market.
A continuing high level of activity in the bank and finance market is driving
good demand for the entire range of EVRY's services, and the financial
services segment has achieved growth comfortably in excess of overall market
growth for the last three quarters.

There is a clear trend in the Nordic market for an increasing proportion of
businesses' IT costs to be financed other than through IT budgets. As
companies increase their focus on achieving growth in their own markets, they
demand innovation and IT solutions that strengthen their competitiveness and
their own specialists are playing a bigger role in encouraging innovation.
Megatrends in IT, principally cloud computing and mobility, are now beginning
to have an increasing effect on demand for IT services, and there is a clear
trend for line management to look to new technology and business models to
meet their requirements. This is supported by a number of surveys carried out
by market analysis companies in the Nordic market (Gartner, Radar and IDC),
and the priorities they identify provide the basis for the analysts to
forecast double-digit percentage growth for the next generation of IT
services. Growth for the IT services market as a whole is expected to be in
the order of 2-3%.

EVRY continues to focus on, and invest in, new services in order to share in
the growth driven by these megatrends. In parallel with this, the company's
customer base offers good opportunities for growth as existing customers
start to use new technology. EVRY is well equipped with valuable business and
technology insight to support its customers in this process of change.

The company has previously reported that it has measures planned to adjust the
cost base of its operating services organisation in Norway as a result of the
reduction of revenue from DNB. In addition to initiating this task, EVRY
announced on 4 April 2014 that the company also intends to make some
adjustments to its other Norwegian and Swedish activities, resulting in an
increase in the scale of the cost-reduction program of 100 full-time
equivalent positions relative to the previous announcement. This will be
achieved by accelerating work on the introduction of new industrialised
delivery models that make greater use of automation. In parallel with this,
customers are making greater use of self-service solutions. These
developments pave the way to simplifying the company's organisation and
reducing its overhead costs. In addition to the program of work to improve
efficiency, EVRY will make some reductions to capacity in units in both
Norway and Sweden that are experiencing weak demand. The company will also
take steps to strengthen its focus on selected industries and the SMB market.
The first phase of the program will be carried out in the second quarter of
2014, and will affect 160 full-time equivalent positions, of which up to 30
are in Sweden. EVRY will recognise a provision of NOK 40 million in its
accounts for the second quarter of 2014 in relation to the first phase. It is
expected that the full effect on earnings of this phase of the cost-reduction
measures will first be seen in the third quarter of 2014.

The company's focus on selected industries played an important role in the
growth in revenue reported in the first quarter, and there are good prospects
for continuing growth. EVRY is seeing a high level of activity by customers
in the public sector, and particularly in the healthcare market where the
company anticipates major opportunities in current and subsequent years. In
the private sector, the insurance and banking industries stand out as growth
segments.

In relation to general IT services, EVRY anticipates moderate growth in the
consulting area, with hourly charge out rates increasing in line with the
general price level. Operating services/outsourcing business for enterprise
customers are expected to benefit from an increasing volume of assignments
for transformation to new operating platforms. The good inflow of orders from
the SMB segment towards the end of 2013 has continued in the first quarter of
2014, and this segment is expected to continue to show growth over the course
of 2014.

This information is subject to disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.

Contact persons:

Terje Mjøs, CEO EVRY, Tel: +47 06500

Morten Frogner, Acting CFO EVRY, Tel: +47 95724959

Geir Remman, VP Corporate Communications, EVRY, Tel: + 47 970 55 017

About EVRY

EVRY is one of the leading IT companies in the Nordic countries, with a strong
local and regional presence in 50 Nordic towns and cities. Through its
knowledge, solutions and technology, EVRY contributes to the development of
the information society of the future, and so creates value for the benefit
of its customers and for society as a whole. EVRY combines in-depth industry
knowledge and technological expertise with a local delivery model and
international strength.

EVRY has some 10,000 employees, and the company is committed to demonstrating
that Nordic customers are best served by a supplier that understands Nordic
business from the inside. EVRY reports annual turnover approaching NOK 13
billion. The company is listed on the Oslo Stock Exchange and operates from
headquarters at Fornebu in Bærum, with major activities in both the Norwegian
and Swedish markets.

This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.

1st quarter 2014
http://hugin.info/194/R/1780763/608962.pdf
Presentation of 1st quarter 2014
http://hugin.info/194/R/1780763/608963.pdf

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: EVRY via Globenewswire

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