Financial report 2018 and Annual General Meeting 2019
Full year revenue growth of 5.5% and an operating profit margin of 10.2%
Performance highlights for full year 2018:
- Revenue from clients outside the Novo Nordisk Group increased by 13% driven by the international life sciences, public and enterprise customer groups all increasing double-digit
- Due to a decline in revenue from the Novo Nordisk Group of 5.2% total revenue increased by 5.5% in reported currencies
- The share of revenue clients outside the Novo Nordisk Group increased from 58% in 2017 to 63% in 2018
- Operating profit increased by 17% leading to an operating profit margin of 10.2% in reported currencies compared to 9.2% in 2017
- Net profit of DKK 236m in 2018 compared to DKK 199m in 2017
- Free cash flow after acquisitions in 2018 was DKK 116m compared to negative DKK 13m in 2017
- Order backlog for 2019 at the beginning of Q1 2019 was DKK 2,171m, a decrease of 1.9% compared to the same time last year. The backlog for 2020-2021 increased by 3.5%
- Outlook for 2019:
- Revenue growth of 3-6% in constant currencies
- Operating profit margin of 10-10.5% in constant currencies
- Level of investments is 5-7% of total revenue
- New strategy and long-term targets
- Organic revenue growth of 6-8% excluding revenue from the Novo Nordisk Group
- Operating profit margin of at least 10% is maintained
- The Board of Directors proposes to increase the dividend payments to DKK 4.60 per share corresponding to DKK 113.0m which includes the interim dividend for 2018 (DKK 49.1m) paid in August 2018. This corresponds to a pay-out ratio of net profit of 48%
Per Kogut, CEO at NNIT comments: “I am pleased that the strong growth continued in Q4 securing full year revenue growth of 5.5% and an operating profit margin of 10.2% in line with our guidance. This strong performance was driven by double-digit growth from international life sciences, enterprise and public customer groups offsetting lower sales to the Novo Nordisk Group. We are launching a new strategy and a more customer focused organization to enable further innovation and digital transformation for our clients while accelerating our growth within international life sciences and Danish clients.”
Conference call details
NNIT will host a teleconference January 30, 2019 at 10:30 CET about the financial report for 2018. Please visit the NNIT webpage at www.nnit.com to access the teleconference, which can be found under ‘Investors – Events & presentations’. Presentation material will be available on the website approximately one hour prior to the start of the presentation.
Conference call details
https://nnit.eventcdn.net/20190130
Participant telephone numbers:
Denmark: +45 3544 5583
United Kingdom: +44 20 3194 0544
Sweden: +46 8 5664 2661
United States: +1 855 269 2604
Financial Calendar 2019
March 7, 2019 Annual General Meeting
March 8, 2019 Dividend ex dividend date
March 11, 2019 Dividend record date
March 12, 2019 Dividend payment date
May 14, 2019 Interim report for the first three months of 2019
August 14, 2019 Interim report for the first six months of 2019
October 24, 2019 Interim report for the first nine months of 2019
Annual General Meeting
The Annual General Meeting of NNIT A/S will be held on Thursday March 7, 2019 at 2 pm at the NNIT head office, Oestmarken 3A, 2860 Soeborg, Denmark.
The Board of Directors intends to propose re-election of Anne Broeng, Carsten Dilling, Eivind Kolding, Peter Haahr, Caroline Serfass and Christian Kanstrup. The Board of Directors also intends to propose re-election of Carsten Dilling as Chairman and re-election of Peter Haahr as Deputy Chairman.
The Board of Directors intends to propose re-election of PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab as the Company’s auditor.
Proposed dividend
Due to the strong underlying cash flow generation, the Board of Directors intends to propose to the shareholders at the annual general meeting that dividends of DKK 2.60 per share be distributed for the financial year 2018. Including the interim dividend of DKK 2.00 per share in August 2018 this brings the total dividend for the financial year 2018 to DKK 4.60 per share (2017: DKK 4.30 per share), equal to a dividend pay-out ratio of 48% of the 2018 net results.
Contacts for further information
Investor relations:
Klaus Hosbond Skovrup
Head of Investor Relations
Tel: +45 3079 5355
Media relations:
Helga Heyn
NNIT Communications
Tel: +45 3077 8141
About NNIT
NNIT A/S is one of Denmark’s leading IT service providers and consultancies. NNIT A/S offers a wide range of IT services and solutions to its customers, primarily in the life sciences sector in Denmark and internationally and to customers in the public, enterprise and finance sectors in Denmark. As of December 31, 2018 NNIT A/S had 3,214 employees. NNIT has approximately 400 clients of which around 150 are located outside Denmark. Some 20% are international life sciences clients (December, 2018). For more information please visit www.nnit.com .
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