Proact: Fiscal 2011 Financial Results

Turnover increased 61%

This is a Press Release edited by on 2012.02.06
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(in SEK millions) FY10   FY11
 Revenues 1,387  2,230
 Growth     61%
 Profit before tax 70 42

The Proact IT Group reports the following preliminary results for year 2011:

  • Net turnover increased by 61% to SEK 2,230 (1,387) million.
  • EBITDA increased by 28% to SEK 122 (95) million.
  • Profit before tax fell by 39% to SEK 42 (70) million.
  • One year ago the company made three acquisitions (Storyflex, Databasement and B2net) which for e.g. resulted in expansion in to five countries in Europe.

The net turnover is more than 60 % bigger than the same period last year.

Before the acquisitions, Proact had a pretax profit margin of five percent but the acquired companies had a lower profit margin. Since the acquisitions, the focus of the integration work has been to create synergies in the acquired companies in order to achieve at least the same profitability as before the acquisitions were made. Parts of the integration work have taken longer time than expected, which means that profits before tax and pretax profit margin for the full year 2011 will be lower than 2010.

Net turnover 2011 was SEK 2 230 million which is an increase of 61 percent compared to the same period the preceding year. Profit before tax was SEK 41.9 million which is equal to a profit margin of 1.9 percent. Profit was affected by acquisition expenses of SEK 12.7 million, write offs according to plan of SEK 18.9 million and interest rate costs attributable to the acquired companies of SEK 12.0 million. During the period EBITDA was SEK 121.6 million compared to SEK 94.9 million in 2010.

Proact makes the forecast that it will take more time to realize the synergies and thereby, during the last half of 2012, achieve the same efficiency level and profit margin as before the acquisitions were made.

The figures are preliminary.

The Proact Group has 625 employees and conducts business in Belgium, Czech Republic, Denmark, Estonia, Finland, Great Britain, Latvia, Lithuania, The Netherlands, Norway, Slovakia, Spain and Sweden. Proact was founded in 1994 and its parent company, Proact IT Group AB, has been listed on Nasdaq OMX Stockholm since 1999 under the symbol PACT.

                        Proact's Acquisitions

Year Acquired company Price*  Comments
 2010  Storyflex  NA  Czech company
 2010  Riori  NA  Storage and server system
 integrator in Sweden
 2011  Databasement  19  Distributor in The Netherlands,
 Belgium and Spain
 2011  B2net  20  British integrator
 2011  TNC Storage
 NA  Swedish company
 acquires Swiss one

* in US $ million