Visma delivers strong growth resulting in the best quarter and full year ever 

Visma delivered a very solid financial performance last year.

Visma, the leading provider of business software and services within accounting, finance and administration in the Nordic region, delivered a very solid financial performance last year. Fourth quarter 2009 was Visma’s best ever with significant growth in both revenue and EBITDA compared to all previous quarters.
 
In fourth quarter 2009 Visma delivered EBITDA of NOK 196.3 million resulting in a profit improvement of 30 percent compared to the same period last year (NOK 151 million). The revenue came in at NOK 923.8 million in fourth quarter representing an increase of 11 percent compared to NOK 832.1 million in the same period 2008. The organic growth was 5.8 percent. Net cash flow from operations was NOK 644.8 million after tax by the end of the year, compared to NOK 568.3 million per 31 December 2008. For the full year, Visma achieved organic revenue growth of 4.7 percent.

Businesses are investing again

The group’s software division, Visma Software, delivered an organic growth of 5.3 percent in fourth quarter 2009. 
“We experience that many companies now are investing in software solutions again. At the same time, it is very positive that revenues from fixed licenses, support and maintenance contracts increased by 17.7 percent last quarter – for the first time since the financial turmoil started – clearly indicating that the willingness to invest in new and efficiency increasing solutions are on the rebound," says Øystein Moan, CEO of Visma.

Services to larger companies

At the same time, the group’s division for outsourcing services changes name from Visma Services to Visma BPO Accounting & Payroll. The name change is carried out in order to clarify the division’s offering of services within business process outsourcing (BPO) to larger companies and enterprises.

Visma BPO Accounting & Payroll came in with an organic growth of -0.6 percent in fourth quarter 2009. 
“The weak growth in fourth quarter is due to fewer transactions being carried out for many customers as a result of the financial crisis. Even if the performance in other divisions shows that investments are on its way back, there is still a somewhat hesitant attitude within BPO Accounting & Payroll in the wake of the financial crisis. Nevertheless, going into 2010 we experience an increasing demand for outsourcing services within accounting and payroll," says Øystein Moan.

As part of the group's growing portfolio of services and products, it is important to make sure each business division is intuitively perceived for its customer offering. Thus another division, Visma Financial & Productivity Services, also changes name. It is being renamed as Visma Procurement & Collecting. This division delivered an organic growth of 4 percent in fourth quarter 2009 with particularly solid growth within debt recovery and debt collection.

Broader retail offering following Swedish acquisition

The newest division within the group, Visma Retail, delivered an organic revenue growth of as much as 30.8 percent last quarter. The growth reflects deliveries to several large customers, while increasing R&D investments negatively affected EBITDA.

In fourth quarter Visma acquired the Swedish retail and service company Esscom Services AB for SEK 110 million. The company’s revenue for 2009 came in at SEK 87.5 million and the business was consolidated into Visma from December 2009.

“Following this acquisition Visma offers retail customers in Sweden both complete solutions consisting of software and hardware as well as nationwide access to technicians and service personnel on-site. The acquisition also marks an important milestone as it widens Visma’s value chain making it more efficient to carry out major implementations across the region going forward," says Moan.
 
“Overall the combined growth in sales and profit during fourth quarter shows that Visma has been able to navigate efficiently and positively through the financial crisis, and that Visma's products and services are needed, both in good and though times. We expect continued solid performance and financial development in 2010, both in terms of turnover and profit margin,” concludes Øystein Moan.

 

Last quarter

Q4 2009

Q4 2008

Growth

Revenue

923.8

832.1

 11 %

EBITDA

196.3

151.0

 30 %

EBIT

150.7

 

112.8

 

 34 %

 

Profit before tax

133.2

156.5

-15 %

Preliminary figures (in NOK million)

Full Year

    2009

    2008

Growth

Revenue

3 381.4

3 045.6

 11 %

EBITDA

   684.2

   555.4

 23 %

EBIT

   516.7

 

   421.0

 

 23 %

 

Profit before tax

   374.4

   416.2

-10 %

Preliminary figures (in NOK million)