The management group is very pleased to present such strong numbers for 4Q 2006. In spite of a comprehensive restructuring process in connection with the Topnordic and Atea mergers, the 4th quarter saw an increase in revenue for the Ementor Group. A number of the cost reductions announced in Q3 have already taken effect, and the 4th quarter numbers are impressive with an actual profit after tax of MNOK 140.
“The Group has succeeded in maintaining focus on customers and the market, in spite of the internal restructuring processes, as demonstrated by the positive fourth quarter numbers. I am very pleased that the cost reductions announced in the previous quarter already have produced results and I am confident that we are entering 2007 at a healthy speed,” said Jo Lunder, CEO, Ementor ASA.
The Group has experienced a steady flow of customers and orders throughout the quarter. Integration of the merged operations and attention to cost have been key focus areas. Ementor Group’s recent announcement that it will establish its own financing company, designed to market financing and rental of IT equipment, will further increase the attractiveness of the Group’s offering.
”Due to our broad product- and services offering, competitive prices, local presence, in addition to close cooperation with the world’s leading technology suppliers, we are well equipped to further strengthen the company’s position in 2007 as the leading Nordic provider of IT infrastructure products and services in a growing Nordic IT market,” said Jo Lunder, CEO, Ementor ASA.
Compared to 4Q 2005, the Group revenue increased by 2% to MNOK 4 206 (figures are comparable, including Topnordic, Atea and Ementor in 2005). Fourth quarter EBITDA for 2006 was improved from MNOK 80 to MNOK 170, compared to corresponding quarter 2005. This represents an increase of approximately 90%. EBIT (Earnings Before Interest and Tax) nearly tripled with an increase of MNOK 94 to MNOK 148. Result before tax was improved by MNOK 150 to MNOK 135, compared to corresponding period 2005.
The markets
Denmark continues the strong performance from previous quarters in 2006, and fourth quarter EBITDA is MNOK 75.6 (EBITDA margin of 5.6%) compared to MNOK 3.5 (0.2%) in the corresponding quarter last year. The improvement in Denmark is related to margin improvements and cost reductions.
Norway continues to improve its performance and delivered a strong EBITDA result in the fourth quarter of MNOK 35.6 (4.6%), compared with MNOK 12.0 (1.7%) last year. The positive development in Norway is mainly related to cost reductions implemented in 2006.
Sweden reports a strong fourth quarter EBITDA of MNOK 60.3 (3.3%) compared to MNOK 64.0 (3.6%) in fourth quarter last year. The performance is satisfactory considering restructuring activities (cost reductions), as earlier reported, to be implemented with effect from second quarter 2007.
The fourth quarter EBITDA of MNOK 2.9 (0.6%) in Finland represents a positive development compared with the latest quarters in 2006. Fourth quarter EBITDA last year was MNOK 15.0 (3.0%). During the first part of 2006, the Finnish operation was influenced by product volume and margin reductions and increased costs. The business has been undergoing major restructuring activities, including a 19% staff reduction in the fourth quarter, in order to generate increased profitability going forward.
2006 – annual summary
In summary, the Group has experienced significant growth in 2006 through the Danish Topnordic and Swedish Atea mergers. The Group’s total results have improved significantly compared to 2005, in spite of a small 2% decrease in revenue.
Total revenue 2006 for the Group was MNOK 12 767, 2% behind the 2005 figures (figures are comparable, including Topnordic, Atea and Ementor 2005). 2006 EBITDA, before unusual items, is MNOK 302, a 63% improvement from 2005. Operating profit for 2006, before unusual items, is MNOK 191, a 252% improvement from 2005.
”The merger of Ementor, Topnordic and Atea created Europe’s third largest IT infrastructure company, enabling us to provide customers with a full-range IT infrastructure offering,” says Jo Lunder, CEO Ementor ASA. “Through our wide range of products and services the Group seeks to enable customers to reach their strategic business goals through quality focus and the efficient use of resources.”
The quarterly report and presentation is available at
www.ementor.com/reports The press conference is available through webcast at
www.ementor.com/webcast The Stock Exchange Announcement is available at
www.ementor.com/ose For further information, please contact:
Jo Lunder, CEO Ementor ASA, mob +47 900 80 842
Rune Falstad, CFO Ementor ASA, mob +47 906 14 482
Karine Mathiesen, Communication Director Ementor ASA, mob +47 916 26 166