ADDNODE GROUP
Interview with the CFO
FOCUS ON THE BUSINESS AND FINANCIAL CONTROL
In 2015 we exceeded our growth target and established operations in Germany . The Group has a stable financial position , with strong cash flow , and during the year we signed a SEK 200 m revolving credit facility for acquisitions .
HOW WOULD YOU SUMMARISE 2015 ?
Addnode Group has grown from being a Nordic operation to a European operation , and during the year Germany became our second-largest geographical market after Sweden . We increased net sales by 19 per cent compared with a year ago and thereby exceeded our 10 per cent growth target . However , we did not quite reach our profitability target of a 10 per cent EBITA margin . This is mainly attributable to our acquisition in July 2015 of Transcat PLM , which has a product mix with lower margins than for the Group . The acquisition has gone well , and we have identified synergies between Transcat PLM and its sister company Technia , which over time will lead to improved margins for the PLM business area . In January 2015 we signed a SEK 200 m revolving credit facility , which will enable us to continue growing with full force and improve our profitability through acquisitions .
HOW HAVE ADDNODE GROUP ’ S REVENUES CHANGED ?
Over several years ’ time , both through our own product development and through acquisitions , we have built up a competitive product portfolio in niche areas . At the same time , we have gradually built up our recurring revenue from support and maintenance contracts and SaaS solutions , to where these now account for a full 49 per cent of net sales . Since our customers pay in advance , this recurring revenue creates predictability in our earnings and has a positive impact on our cash flow .
“ We believe in decentralised decision-making that is close to the customers , and it is my responsibility to ensure that we have an organisation and control environment in which this is combined with the requirements for good financial control and governance .”
JOHAN ANDERSSON , CFO , ADDNODE GROUP
WHAT ARE YOUR PRIORITIES AS CFO ?
We believe in decentralised decision-making that is close to the customers , and it is my responsibility to ensure that we have an organisation and control environment in which this is combined with the requirements for good financial control and governance . I monitor developments in the market and maintain constant contact with our business area presidents . This gives me an instinctive feeling that is important in efforts to support operations and contribute to the Group ’ s development . I keep a strong focus on continuously ensuring that we have effective acquisition processes and that we have the funding needed to be able to expand the business in accordance with our strategy and our financial targets .
Johan Andersson CFO
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