(Oslo, 2 may 2017) With total operating revenue of NOK 12.2 billion, EVRY generated adjusted EBITA(*) of NOK 1.3 billion, making 2016 the company’s best year for earnings in its more than 50-year history. A greater focus on the market and a range of improvement measures contributed to EVRY’s stronger earnings in 2016. Digital transformation is on the agenda in all industries and sectors, and this will be a key driver for further growth and profitability at EVRY in the future.
EVRY’s adjusted EBITA of NOK 1,322 million in 2016 marks a significant improvement and represents growth of 62% from 2015. It also demonstrates the impact of a range of successful structural and strategic changes made to EVRY’s operational activities.
EVRY’s cash flow was at a record high in 2016 and in cash conversion(**) terms reached 108%, up from 98% in 2015.
EVRY is now seeing the benefits of the improvement measures that were implemented in 2015. These include the company’s simplified organisational structure that has helped it to become more focused on customers and the market, its stronger delivery capabilities, and its greater efficiency. EVRY ended 2016 with an all-time high order backlog of NOK 20.8 billion. The improvement measures helped EVRY achieve an adjusted EBITA margin of 10.8% in 2016, up from 6.3% in 2015.
“In short, 2016 was a very good year for EVRY. We need, however, to recognise that we need to aim even higher if we are to maintain and strengthen our position in what is a demanding market. Both the market and our customers’ expectations change quickly. Customers used to come to us with clear requests, set needs and specific requirements. There is greater uncertainty today about where technology is heading, and customers are to a much greater extent seeking advice on how digital solutions can create better services and increase competitiveness. EVRY possesses extensive technical knowledge, which we need to combine to an even greater extent with strategic understanding and insight”, comments Björn Ivroth, CEO of EVRY.
“The challenge for EVRY in the years ahead will be to ensure we deliver profitable growth. Our ability to manage change and our performance in 2016 give us grounds to believe that this is a realistic ambition”, adds Björn Ivroth.
Customer-centric innovation and accelerated growth
EVRY’s operating revenue in 2016 was NOK 12.2 billion, representing a decrease in organic revenue for the year as a whole of 0.9% relative to 2015. There was, however, a clear positive trend through the year, with the company achieving organic revenue growth of 1.5% in the second half of 2016 and 2.2% in the final quarter. This is the result of EVRY having won more major and strategically important contracts with large private and public sector organisations in Norway and Sweden in 2016, and also of the company having maintained and further strengthened its position in the SMB market.
“Digital transformation is on the agenda in all industries and sectors. For EVRY, this means great opportunities for growth and development. Our challenge is to meet our customers’ and the market’s requirements in terms of knowledge, insight and vision. In future, growth will not come from within traditional IT, but from digital business development”, comments Björn Ivroth.
EVRY has built up a position as an advisor and independent provider of cloud services to its customers, and its cloud management platform enables it to move its customers’ solutions to the cloud efficiently. This means EVRY’s customers can use the broad range of cloud solutions available on the market.
EVRY is also investing in the rapidly growing market for cognitive technology in order to meet its customers’ needs for new innovative services that can help them achieve the full potential of digitalisation.
EVRY’s ambition is to work with its customers as their preferred independent partner for the application of cognitive solutions as an integral part of their strategy and technology platform. As part of EVRY’s acceleration of its strategy, the company has expanded its long-term collaboration with IBM to include cognitive technology through an agreement as a global systems integrator.
*) Adjusted EBITA: Operating profit before amortisation of customer contracts, write-downs of intangible assets, and other income and expenses.
**) Cash conversion: operating cashflow ex Financial items and before Capex)/ EBITA
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