Combitech's interim report for January-June 2016

Increased sales, increased earnings and an increased margin. These are some of the key developments being presented by technical consultancy company Combitech, a part of the defence and security group Saab AB, in its report for the first half of 2016.

Highlights of the second quarter of 2016:

  • Combitech is collaborating with Volvo on a research and development project on autonomous transport systems. In May a self-driving truck was demonstrated for the first time for a broader audience. The special truck that has now been developed is one of several research projects taking place that aim to develop and test various aspects of autonomous solutions.
  • On 27 April Combitech held its first Techxperience Day, which attracted a large number of decision-makers from Swedish industry. The theme was the digital industrial company, and Combitech offered inspiration and practical examples that companies can utilise during their own digital transformation.
  • Combitech has received an order from The Swedish Defence Materiel Administration(FMV) concerning the Swedish Armed Forces’ telecommunications network. This framework order runs for three years, with a two + two-year extension option. The order involves assignments within the sub-areas of systems work, network planning, telephony, data communications, naval integration, network monitoring and transmission.
  • Sales in the first half of 2016 were SEK 893 million, which is an increase compared with the same period in 2015. The number of employees totalled 1,394.
  • “We are seeing very positive development on the market right now, with high demand, particularly in Sweden. Our capacity utilisation is high and there is a great need to recruit new employees,” says Hans Torin, CEO of Combitech.

KEY FIGURES, JANUARY-JUNE 2016:

Order situation

The order intake in the first six months was SEK 1,156 million, an increase of 35 per cent compared with the same period last year. The order intake has been influenced predominantly by multi-year orders from FMV.

Sales revenues

Sales revenues were SEK 893 million (SEK 862 million), an increase of 3.6 per cent compared with the same period in 2015. The increase in sales is organic.

Earnings and margin

Operating profit (EBIT) was SEK 77 million, a significant increase compared with the same period last year (SEK 54 million). The operating margin was 8.6 (6.3) per cent. The increased operating margin is due to increased demand and an increased utilisation rate, primarily in Sweden, but also to an improved result in Norway.

Operating cash flow

Operating cash flow was SEK 92 million, which is significantly higher than in the year-before period (SEK 66 million). The differences between the years are due to improved profitability as well as reduced capital tied up in trade receivables.