Results of the financial year 2016

Results of the financial year 2016

2016, a record breaking-year

IST has been on a positive financial trend for several years. It was until 2016, the year IST recorded the best financial year in its history. The 2016 revenue and profit exceeded the management’s expectations. The reasons behind it is greater efficiency and improved way of working. Also, thanks to IST’s modern solutions and role in pushing the digitalization agenda in schools and the society.

Despite demanding reorganisations, IST Group recorded a profit of about SEK 50 million in EBITDA. It represents an increase of 148 percent from the previous year. The Group revenue recorded an organic growth of 7,4 percent compared to the previous year, and the EBITDA margin had an increase from 6,1 to 14,1 percent. The increase in equity and liquidity ratio from previous years are positive indications on IST having a cash position that remains strong.

Read more in ISTs Annual report 2016.

Revenue (MSEK)

Continuous investment in development

IST have for more than 10 years invested more than 15 percent of the total revenue in the development of new products and solutions. In 2016, IST invested approximately 19 percent. The CEO, Tommy Eklund, stated that IST will continue to invest heavily in product development in order to maintain IST’s leading position and to meet the expectations of the market.

IST’s accounting policy is not to capitalize development costs; hence such cost will be accounted for in the profit and loss statement.

Profit, EBITDA (MSEK)

IST’s average EBITDA over the past ten years has been 5 per cent. During the current business plan period, the Board Directive is to double EBITDA to 10 per cent, with the ambition being to achieve an EBITDA of 20 per cent during the next business plan period.

R & D

In order to maintain our leading position, and to meet the expectations of the market, we will continue to invest heavily in product development. Our target is to invest 20 per cent in new product development, R&D, annually. IST’s accounting policy is not to capitalize development cost, hence such cost will be accounted for in the profit and loss statement.

Highlights from our financial year 2016

 

Tommy Eklund

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