SQS Software Quality Systems AG Trading Update (8000L)
January 14 2016 - 2:00AM
UK Regulatory
TIDMSQS
RNS Number : 8000L
SQS Software Quality Systems AG
14 January 2016
SQS Software Quality Systems AG
("SQS" or "the Company")
Trading Update
14(th) January 2016
SQS Software Quality Systems AG (AIM: SQS), the world's largest
specialist supplier of software quality services, is pleased to
provide an update on trading for the year ended 31 December
2015.
SQS continued to experience solid top line growth of 18% in
2015, notably in North America where growth was driven by two
acquisitions during the period. Results for the year are expected
to be in line with the Board's expectations with revenues of circa
EUR317m.
The Company ended the period with a net debt position of circa
EUR(7m), a substantial improvement from the net debt position of
EUR(26.5m) at the end of the first half. This was despite an
additional investment of EUR5m during the second half for
completing the acquisition of Galmont Consulting LLC and doubling
the test-centre capacity in Pune, India.
SQS continued to execute successfully on the stated strategy of
increasing revenues from Managed Services and Specialist
Consulting, as well as on growing the contribution from the US, all
underpinned by recent business wins and extensions. During H2 2015
we have further reduced the proportion of our business arising from
lower margin Regular Testing Services engagements.
Following the year end, SQS has been awarded a major new
multi-million dollar contract with an existing industrial client in
the US.
We are pleased to report that all three acquisitions made during
2015 (Bitmedia in Italy, Trissential and Galmont in the US) have
been successfully integrated and delivered positive contributions
to the Group's profitability in the past year, as well as the
expected strategic benefits.
Diederik Vos, CEO of SQS, commented: "The Group has performed
well in 2015 and I am pleased to end the financial year in a
considerably stronger position than we started. The Company
continues to effectively manage the challenges evident in Regular
Testing Services, and we have shown that the stated strategy of
focussing on Managed Services, Specialist Consulting and increasing
our efforts in the US have delivered the expected outcome. Looking
ahead, we believe there are significant geographic and vertical
market opportunities to be captured across our divisions and we
remain confident of continued progress in 2016."
Ends
Enquiries:
SQS Software Quality Systems AG Tel. +49 (0) 2203
91 54 0
Diederik Vos, Chief Executive
Officer
Rene Gawron, Chief Financial Officer
Numis Securities - Nomad and Joint Tel +44 (0) 20
Broker 7260 1000
Simon Willis / Jamie Lillywhite
/ Mark Lander
Stockdale Securities - Joint Broker Tel. +44 (0) 20
7601 6100
Robert Finlay / Antonio Bossi
FTI Consulting - Financial Media Tel. +44 (0)20
and Investor Relations 3727 1000
Matt Dixon / Dwight Burden sqs@fticonsulting.com
About SQS
SQS is the world's leading specialist in software quality. This
position stems from over 30 years of successful consultancy
operations. SQS consultants provide solutions for all aspects of
quality throughout the whole software product lifecycle driven by a
standardised methodology, offshore automation processes and deep
domain knowledge in various industries. Headquartered in Cologne,
Germany, the company now employs approximately 4,600 staff. SQS has
offices in Germany, UK, US, Australia, Austria, Egypt, Finland,
France, India, Ireland, Italy, Malaysia, the Netherlands, Norway,
Singapore, South Africa, Sweden, Switzerland and UAE. In addition,
SQS maintains a minority stake in a company in Portugal. In 2014,
SQS has generated revenues of EUR268.5 million.
SQS is the first German company to have a primary listing on
AIM, a market operated by the London Stock Exchange. In addition,
SQS shares are also traded on the German Stock Exchange in
Frankfurt am Main.
With over 10,000 completed projects under its belt, SQS has a
strong client base, including half of the DAX 30, nearly a third of
the STOXX 50 and 20 per cent of the FTSE 100 companies. These
include, among others, Allianz, BP, Commerzbank, Daimler, Deutsche
Post, Generali, Meteor, UBS and Volkswagen as well as other
companies from the six key industries on which SQS is focused.
For more information, see www.sqs.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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