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Nyherji Announces EBITDA of ISK 1 Billion for 2015Nyherji Group (NYHR.IC), Iceland's leading IT services provider, today announced its fourth quarter and full year 2016 results. Financial Highlights
"The previous financial year was one of the best in Nyherji's history. We saw revenue increase of 15% from year-to-year and robust performance, at a group, business unit and subsidiary level, all of which were positive for the year," commented Finnur Oddsson, Group Chief Executive of Nyherji, "The new parent company layout which we established last year has worked well, contributing both to greater income and enhanced service levels. TEMPO has demonstrated strong, steady revenue growth and continues to show great promise, while we also saw improved sales from TM Software, which has out-performed our expectations. Our Applicon subsidiaries in Iceland and Sweden have also delivered good financial results, attractive projects and new sales opportunities for banking solutions. We are pleased that Nyherji's operation has now achieved stability, with results that have been positive in eight quarters in a row, while simultaneously enhancing customer service, which is always our first priority. The strength of the company has enabled us to invest in the development of new expertise, capabilities, staff facilities, as well as new solutions and software that will generate service revenue in the future. The company is also better equipped to respond to changing customer needs, in particular the evolution of cloud computing and the use of software and platforms as a service. In the past year there has been noticeably greater interest in Nyherji, which is reflected not only in a significant increase in our stock price but also in the overhang of demand for shares in the private placement that we conducted in December. We view these elevated levels of investor confidence as a sign that Nyherji and its subsidiaries are seen to be on the right track, and treading a path that we will aim to pursue for the future. Our goal remains as before, to serve our customers with the best and most intelligent information technology solutions in a cost effective and secure manner." Income Statement, 2015
Balance Sheet
Cash Flow
Operating Results, Q4 2015
One of the best years in the history of Nyherji The year 2015 saw strong performance for Nyherji Group. Revenues totalled ISK 9.332 billion, an increase of 12% from the previous year. Increased demand for Nyherji's consulting and professional services was reflected in increased sales contracts for outsourcing and software solutions. At the same time the company has also been successful in maintaining high levels of service, which as measured, have never been higher. Sales of audio-visual equipment soared and computer equipment from Lenovo (News - Alert) sold very well this year. In addition, there was significant growth in sales of hardware and software solutions for both businesses and individuals. Internal cooperation in solution development within the Group has been highly productive, resulting in the development and sale of ATM solutions. Nyherji's hosting activities will be transferred to Verne Global's data centre in the first half of 2016, a collaboration that offers to further improve customer service levels as well as systems security and resilience. There was considerable demand for stock offered in Nyherji's private placement, which was completed in December at an offering price of ISK 16.0 per share. The total size of the offering was 9.76% of the issued share capital of the company, or 40 million shares with total proceeds of ISK 640 million. Total bids of 118.9 million shares were received, at prices ranging from ISK 14.5 to ISK 18.0 per share. Tempo shows continued revenue growth Income from TEMPO project management and time recording solutions continue to increase substantially, both over the quarter and the year. Revenues totalled ISK 1.218 billion in 2015, a 65% increase compared with the previous year. December was the highest grossing month in the history of the company, with record sales to new customers during the year and resellers becoming increasingly important to sales activities. In Q4 TEMPO had three products among the 15 most popular in the Atlassian marketplace for JIRA, as well as two of the five most popular cloud solutions. Work is on going to strengthen the development of Tempo's business in Montreal, which has favourable conditions for business innovation and technology companies. Continued revenue and headcount growth is anticipated. TM Software exceeds expectations TM Software specializes in the production of its own software products and provides services and consulting, as well as specialised software solutions, particularly in relation to tourism and health care. Revenue in 2015 was ISK 973 million, an increase of 5% from 2014. Earnings for the year 2015 were good and exceeded management's expectations. The operating outlook of TM Software is positive, contributed to by the continued expansion of the industry segments that the company specialises in serving. Applicon focuses on the development of proprietary solutions Applicon in Iceland specialises in consultancy services and business software. Income for Applicon over the year 2015 was ISK 1.084 billion, a 9% increase from the previous year. Excellent results were achieved in the promotion and sales of revolutionary database technology, SAP (News - Alert) HANA, which both accelerates and simplifies processing systems for customers. Good progress was made in the development of proprietary solutions, in particular Kjarni, a new human resources and payroll system which has been very well received by local customers. The outlook of its operations is good, boosted by domestic sales of Kjarni and on going expert consultancy for existing customers, and abroad, in collaboration with Applicon Sweden. Applicon Sweden shows strong income growth Income for Applicon Sweden, which specialises in consulting and services to financial institutions, was ISK 1.124 billion, with year on year growth of 17%. The year saw increased demand for Applicon's specialist consultancy services with the company taking on new hires to meet the growth. Considerable interest has developed in Applicon's proprietary solutions that are built around the implementation of SAP core banking, SAP HANA, and there is growing demand for Applicon's expertise in implementing such systems. Utilisation rate of consultants was high and these prospects are likely to continue, with a strong pipeline of projects related to existing and new customers, in particular for banking solutions. Group Prospects Prospects for Nýherji Group are good, and the company anticipates continued moderate growth of revenues across Nyherji and its subsidiaries. Shareholders The market value of the company at the end of 2015 was ISK 8.325 billion. The closing price for the quarter was ISK 18.5 per share, with total outstanding shares issued on Dec 31, 2015 standing at 450 million, with 383 employees as shareholders. Analyst and Investor Presentation on January 29, 2016 A presentation for investors and analysts will be held on Friday, January 29, 2016 at the company's headquarters in Reykjavik at Borgartun 37 at 9:00am. Finnur Oddsson, Group CEO will present the results. A broadcast of the meeting will be accessible on the company's website and the accompanying presentation of the meeting will be available on the company's website, www.nyherji.is, after the meeting. Financial Calendar 2016 Scheduled events and publication dates for the financial year 2016/2017:
Approval of Financial Results Statements were approved at a meeting of the Board of Nyherji hf on 28 January 2016 in accordance with International Financial Reporting Standards (IFRS International Financial Reporting Standards) and audited by KPMG, the auditors of the company. The Annual General Meeting of Nyherji will be held on Friday 4 March at 16:00 at Borgartun 37, Reykjavik. ### ABOUT NYHERJI HF Nyherji hf. (NASDAQ OMX: NYHR.IC) is an established listed Nordic IT services provider with offices in Iceland and Sweden. For over two decades the company has been a world-class technology supplier, application developer, systems integrator, facilities manager and expert business process consultancy, with corporate roots that can be traced back to 1899 and the inception of "office machines". Nyherji aims to be the technology partner of choice for businesses, from the smallest to the largest enterprises. With expertise in understanding and linking the needs of enterprise customers to competitive technology solutions, Nyherji uses its deep knowledge of mission-critical processes, hardware and application requirements, to focus on government and industries sectors with high support needs such as healthcare, ?nancial services, logistics and aviation. The board comprises Benedikt Johannesson, Chairman, Hildur Dungal, Marta Lárusdóttir, August Karlsson and Loftur Gislason, with Gudmundur Jonsson is an alternate member; Finnur Oddsson is the Group CEO of Nyherji. For more information, please visit www.nyherji.is/english/investor-relations/ FORWARD LOOKING STATEMENTS Statements in this press release that are not based on historical facts are forward-looking statements. Although such statements are based on management's current estimates and expectations, forward-looking statements are inherently uncertain. We therefore caution the reader that there are a variety of factors that could cause business conditions and results to differ materially from what is contained in our forward-looking statements, and that we do not undertake to update any forward-looking statements. All forward-looking statements are qualified in their entirety by this cautionary statement. View source version on businesswire.com: http://www.businesswire.com/news/home/20160204005578/en/ |