Record year for Data Respons
- We have put another record year behind us with 1.5 billion in revenues and a considerable improvement in profitability. We are experiencing growth in all geographical markets driven by trends such as internet of things (IoT), industrial digitalisation (Industry 4.0) and automation influencing all industries, says Kenneth Ragnvaldsen, CEO of Data Respons ASA.
Operating revenue for the fourth quarter was NOK 436.7 million (353.5), a growth of 24%. EBITDA amounted to NOK 49.3 million (31.1). EBIT was NOK 42.3 (27.7). Profit for the period was NOK 0.4 million (-6.7) and EPS of NOK -0.03 (-0.17). Data Respons had a cash flow from operating activities of NOK 54.1 million (35.7) in the quarter.
Operating revenue for 2018 was NOK 1 488.0 million (1 241.8), a growth of 20%. EBITDA was NOK 147.5 million (102.5). EBIT was NOK 124.2 (90.1). Operating cash flow was NOK 63.4 million (78.3).
Technology trends offering significant opportunities
– The R&D Services segment continues the solid development with a growth of 40% in the fourth quarter and 39% for the year. Companies across all industries are developing smarter, connected and digital solutions to improve their products. This result in high utilisation, access to new and interesting technology projects, and several large R&D projects. In addition, we see that hourly rates are increasing due to strong demand for our specialist engineering competence.
Through the year, we welcomed more than 270 new engineers; young and experienced, men and women with diversified background and nationalities. The common denominator is their enthusiasm for new technology and the exciting opportunities it offers. The key to our success is the niche specialist focus in combination with in-depth domain knowledge. At Data Respons, being a nerd is a designation of honour. The trust and confidence shown by our customers rely on us having an excellent specialist environment, says Kenneth Ragnvaldsen, CEO of Data Respons ASA.
– Profitability in the Solutions segment continues to improve, reaching an EBITDA margin of 12.6% in the fourth quarter. The positive development is in line with our long-term strategy to leverage the company’s specialist competence. This means increased focus on software content and value-adding services, in addition to a gradual shift in the portfolio towards more complex and high-end solutions. Together, this has provided a more favourable revenue mix with a higher average margin and EBITDA growth at the expense of revenue growth in the Solutions segment during the transition period, Ragnvaldsen continues.
Expect good development ahead
– 2018 yielded record high revenues and profitability. The market outlook remains positive. We experience an increase in development budgets and that our customers are investing in modern, future-oriented technology. Data Respons is determined to continue the growth through a combination of organic development and selective bolt-on acquisitions in the Nordics and Germany to strengthen our position as a complete technology partner for innovative industry- and technology companies, Ragnvaldsen concludes.
For further information:
Kenneth Ragnvaldsen, CEO, Data Respons ASA, tel. +47 913 90 918.
Rune Wahl, CFO, Data Respons ASA, tel. + 47 950 36 046
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading