Combitech continues to grow, recruiting 220 new employees during the quarter
The complex security policy environment continue to dominate the second quarter of 2023. This is reflected in growing demands, from several sectors, and further high needs for services within total defence. Combitech reported an order intake increasing by 54 percent, while recruiting over 220 new employees.
During the quarter, Combitech signed a ten-year frame agreement with the Swedish Defence Materiel Administration regarding LSS Mark. The agreement, amounting to a total value of approximately SEK 1.2 billion over the ten-year period, includes services and technical support for the Swedish Army’s digital infrastructure for command support.
"Being part of the Swedish Army's digital transformation journey is a great privilege and responsibility. At Combitech, it means that we are involved in developing Sweden's resilience – and this agreement is a good example of that. I am proud to see the difference we are making by contributing to a smarter and more resilient society, and I am keen to involve even more employees in this work," says Jessica Öberg, CEO of Combitech.
During the period, Combitech, together with Demoskop, also released a report regarding how companies within the private sector view their role in Sweden’s total defence. Over 500 decision-makers in the private sector were asked about their work with preparedness. The result showed that only ten percent of Sweden's companies are prepared to manage a major strain in society, and 77 percent experience lack of information from government and authorities regarding distribution of responsibility.
"The private sector is crucial for our total defence capability. To be able to build strong preparedness, we must increase collaboration between authorities and the various companies in the private sector. At Combitech, we continue to make a strong contribution by combining expertise, technology and experience between different businesses and industries, always with people at the center" says Jessica Öberg, CEO of Combitech.
During the quarter, a significant continued increase in assignments, primarily in military and civil defence, was noticeable:
- LSS Mark, a ten-year frame agreement with the Swedish Defence Materiel Administration amounting to a total value of approximately SEK 1.2 billion, including services and technical assistance for the Swedish Army's digital infrastructure for command support.
- City of Stockholm - consulting services within digitalization, IT, and information security.
- Region Västra Götaland procures framework agreements of consultancy services including risk analysis, continuity planning, crisis management and total defence capabilities.
- Further development of ongoing strategic partnership with BAE Systems Hägglunds through three major commitments, including collaboration within CV90 and tracked vehicle for the European market, which will continue during the next three years.
- Combitechs cyber operations are gaining increased trust in the defense domain. Combitech has signed a long-term agreement regarding secure development environments.
- Combitech has joined Ericsson's Enterprise Partner Program to supply and deliver Ericsson's new Private 5G products and solutions, also known as EP5G.
- Assignment from SCA to lead the their digital transformation journey towards a digitalized and streamlined business, to continue being a leading player in the market.
Key figures for January-March 2023 (compared to Q2 2022)
Sales revenue: 1.023 MSEK (866 MSEK)
Profit and margin: EBIT 75 MSEK (55 MSEK)
Operating margin: 7.3% (6.4%)
Operating cash flow: -47 MSEK (18 MSEK)
The number of employees at the end of the first quarter was 2 217.
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Ulrica Matsers, Head of Communications and Marketing, Combitech
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