The year is off to a great start. Growth was over 25 percent, largely due to continued growth in recurring revenues. Profit further increased, somewhat faster, and underlying cash flow generating profit increased the most.
We made one acquisition during the first quarter, Avoine Oy, whose product is aimed at sports clubs and labor unions in Finland. Avoine adds 21 new employees to the Group, with offices in Helsinki and Tampere.
Vitec currently has 19 business units, each with its own management and responsibility for profit. Each unit has a working chairman of the board from the Group who works closely with the Business Unit President. The working chairman of the board, who has the title of Vice President Operations (VPO), provides support, sets requirements and is responsible for ensuring benefit to the Group in our otherwise vertical organization. All units have identical questions to address and with the participation of the VPO, previous experience can rapidly be communicated and leveraged. The operation is thereby governed in a decentralized model (19 business units), where the operational power is always close to the customer, while retaining our common culture, business model and view of leadership to create a Vitec that endures over time.
Our presence in 19 different customer markets also means that we achieve considerable risk diversification.
Our financial position is solid and we are well prepared for future acquisitions and for continued acquisition-based growth. Supported by our acquisition of well-established companies and a high and increasing percentage of recurring revenues, Vitec will stay its course - to be a vertical software company with excellent risk diversification, as well as sustainable and profitable growth.
Lars Stenlund, CEO
For more information, please contact
Patrik Fransson, Investor Relations
This information is information that Vitec Software Group AB (publ) is obligated to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, at 13:00 CET April 10, 2019.
Vitec is market leader for Vertical Market Software in the Nordic region. We develop and deliver standard niche software. Vitec grows through acquisitions of well-managed and well-established software companies. The Group's overall processes together with the employees' in-depth knowledge of the customer's local market enables continuous improvement and innovation. Our 650 employees are based in Denmark, Finland, Norway and Sweden. Vitec is listed on Nasdaq Stockholm and had net sales of SEK 1,017 million in 2018. Find more at www.vitecsoftware.com.
This information was distributed by Cision http://www.cisionwire.se/