Corporate Governance

Presidents Statement

Continued positive development for profits

I would like to begin with describing the effects of the new accounting principles implemented by the company from January 1, 2018. The changed accounting principles imply that revenues and costs attributable to pro-fessional services delivered in conjunction with the implementation of the company's cloud services as well as the part of system sales, which are attributable to supplier guarantees and maintenance from January 1, 2018 will be recognized over the term of the agreement. Previously these revenues and costs have been recognised at the time of delivery. In total, these changes have affected the company's revenues negatively by SEK 95 million during the quarter, while the cost of goods sold has been affected positively. Related revenues and costs will be recognized over future periods, of one to three years. The changed accounting principles will affect the financial comparative figures, primarily regarding the company's system sales, for the remainder of the year 2018. The changed accounting principles have no impact on the company's business and cash flows.

With the above as background, I am proud to be able to show a positive development in terms of profit. This means that we are reporting the best profits, for a first quarter, in the history of the company. We have also continued to improve the company’s margin throughout the quarter, compared with the same period last year, which clearly is also pleasing to see.

For the first quarter profit before tax amounted to SEK 35.8 million, adjusted for items affecting comparability of SEK 2.6 million, representing an increase of 10% compared with the corresponding period last year. The company's gross margin has also increased by 2 percentage points, while sales and marketing expenses and administration expenses in total decreased by 5%. Service revenues continued to develop positively during the quarter and amounted to 276 MSEK, an increase of 1%. Service revenues relating to cloud services amounted to 110 MSEK, an increase of 9%. The financial development is in line with established strategy, which among other things involves ensuring good cost control, regular improvement and streamlining in re-spect of the services operation, ensuring that necessary measures are taken in countries failing to meet set financial targets and increasing the emphasis on sales and marketing within the company. Through this work, the company will achieve a cost-effective and consistent organisation, a market-leading offering independent of suppliers, as well as an increased proportion of contracted revenues. Overall, I see the efforts made within above mentioned focus areas are giving good results, which makes us even more competitive. During the quarter we have successfully completed a number of customer cases, examples of customer cases are men-tioned under the heading “Events during the quarter”.

Proact’s objective is to act as a partner to our customers and offer high-quality services and market-leading technologies. We supply flexible services and solutions which quickly add sustainable, long-term value. Over-all, it is clear to me that the initiatives implemented in various fields are continuing to pay off, making us even more competitive. Our ability to help our customers to minimise risks and reduce costs, and also to supply flexible IT services and products, places us in a strong position on the European market, giving us good opportunities for continued positive development in terms of both revenues and profits.

Kista, 8th April 2018 

Peter Javestad

Acting CEO

 

Articles of Association

 

 
Corporate Governace report
Article of Association   Corporate Governance Report

 

Continued positive development for profits

I would like to begin with describing the effects of the new accounting principles implemented by the company from January 1, 2018. The changed accounting principles imply that revenues and costs attributable to professional services delivered in conjunction with the implementation of the company's cloud services as well as the part of system sales, which are attributable to supplier guarantees and maintenance from January 1, 2018 will be recognized over the term of the agreement. Previously these revenues and costs have been recognised at the time of delivery. In total, these changes have affected the company's revenues negatively by SEK 95 million during the quarter, while the cost of goods sold has been affected positively. Related revenues and costs will be recognized over future periods, of one to three years. The changed accounting principles will affect the financial comparative figures, primarily regarding the company's system sales, for the remainder of the year 2018. The changed accounting principles have no impact on the company's business and cash flows.

With the above as background, I am proud to be able to show a positive development in terms of profit. This means that we are reporting the best profits, for a first quarter, in the history of the company. We have also continued to improve the company’s margin throughout the quarter, compared with the same period last year, which clearly is also pleasing to see.

For the first quarter profit before tax amounted to SEK 35.8 million, adjusted for items affecting comparability of SEK 2.6 million, representing an increase of 10% compared with the corresponding period last year. The company's gross margin has also increased by 2 percentage points, while sales and marketing expenses and administration expenses in total decreased by 5%. Service revenues continued to develop positively during the quarter and amounted to 276 MSEK, an increase of 1%. Service revenues relating to cloud services amounted to 110 MSEK, an increase of 9%. The financial development is in line with established strategy, which among other things involves ensuring good cost control, regular improvement and streamlining in respect of the services operation, ensuring that necessary measures are taken in countries failing to meet set financial targets and increasing the emphasis on sales and marketing within the company. Through this work, the company will achieve a cost-effective and consistent organisation, a market-leading offering independent of suppliers, as well as an increased proportion of contracted revenues. Overall, I see the efforts made within above mentioned focus areas are giving good results, which makes us even more competitive. During the quarter we have successfully completed a number of customer cases, examples of customer cases are mentioned under the heading “Events during the quarter”.

Proact’s objective is to act as a partner to our customers and offer high-quality services and market-leading technologies. We supply flexible services and solutions which quickly add sustainable, long-term value. Overall, it is clear to me that the initiatives implemented in various fields are continuing to pay off, making us even more competitive. Our ability to help our customers to minimise risks and reduce costs, and also to supply flexible IT services and products, places us in a strong position on the European market, giving us good opportunities for continued positive development in terms of both revenues and profits.

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