TIDMSQS
RNS Number : 1908Z
SQS Software Quality Systems AG
25 May 2016
25 May 2016
SQS Software Quality Systems AG
("SQS" or "the Company")
AGM Statement and Trading Update
SQS Software Quality Systems AG (AIM:SQS.L), the world's largest
specialist supplier of software quality services, is pleased to
provide an update on trading ahead of its annual general meeting
("AGM") to be held at the Company's headquarters, Stollwerckstraße
11, 51149 Cologne, Germany at 10 a.m. (CET) / 9 a.m. (BST)
today.
Current Trading
The Company is trading in line with its expectations,
anticipating another year of consistent progress through the
continued execution of its strategy to diversify its global
footprint, broaden its specialist services portfolio, industrialise
quality assurance services and successfully integrate its recent
acquisitions.
New Business
As more enterprises address the need for digitisation and agile
approaches like DevOps for business models, a key trend in IT now
and for the future, the need for SQS' services as a trusted
facilitator in this key area is expected to keep growing. This is
reflected in stronger client spend and recent client wins, with
corporate reputations more dependent than ever on effective and
reliable end-to-end processes, rather than software applications in
isolation.
Much of the new business growth continues to be driven from our
core Managed Services ("MS") and Specialist Consultancy Services
("SCS") lines of business, with notable wins in the automotive
sector during the period. In this area, the Company has recently
secured a EUR9m MS contract extension from a leading automotive
producer supporting its connected car solutions. SQS also won a
significant specialist consulting contract for end-to-end quality
assurance on electric and autonomous drive software from another
blue-chip car producer.
Global Expansion
We maintain our strong position in Europe, whilst gaining
momentum in territories with the highest growth potential. The huge
addressable market in North America has made this a major focus for
SQS and the two US acquisitions completed during 2015 marked a
significant step forward for its expansion into the US market. The
US business now contributes about one fifth of our global revenues
and opens up further growth and cross-selling opportunities. Our
regions in which we made acquisitions last year, Italy and the US,
are performing as expected.
Services Portfolio
We are successfully building out our position as the leading
end-to-end quality assurance services provider for software based
business processes. As a consequence we are continuing to invest in
our business analyst and IT programme management services and
capabilities, both in the US and Europe.
Market Outlook
According to recently published data by market research firm
Nelson Hall, the global quality assurance market grows at a healthy
rate of 8% p.a. SQS expects to keep benefitting from its excellent
positioning as a leading specialist provider to clients increasing
their investment in digital transformation and DevOps. Demand for
Managed Services and Specialist Consultancy Services in particular
is expected to remain high, as enterprises become ever more
dependent on the integrity of their IT infrastructure, irrespective
of industry or geography, to protect their financial and
reputational standing.
Investor/analyst event
SQS will hold a teach-in for investors and analysts in London on
Thursday 30 June 2016, with a guest presentation from a client, to
explore in more detail some of the drivers of the Company's
strategy and markets.
Diederik Vos, Chief Executive Officer of SQS, commented: "On the
back of investment in our industry practices, as well as recent
acquisitions, we are further capitalising on the increased demand
for our business critical solutions across all our markets. This
year has started well and we are pleased to have made good progress
in expanding our international footprint, particularly in the
strategically important US market."
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
services. 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 2015, SQS has generated revenues of EUR320.7
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.
For more information, see www.sqs.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCAKQDKOBKDQPB
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