increase by 37% and EBIDTA almost trebles
in 2006 were ISK 8,646 million, an increase of almost ISK 2,353 million from
the previous year
for the year were ISK 305.6 million, up from ISK 76.5 million a year earlier
was ISK 682.5 million compared with ISK 232.7 million the year before
opens new subsidiaries in Sweden and Great Britain
ehf. in East Iceland acquired
board recommends a 45% dividend
At a board meeting of Nıherji hf. today, 19 January,
the directors approved the companys audited annual accounts for the year 2006.
Nıherjis revenue in 2006 amounted to ISK 8,646
million compared with ISK 6,293 the previous year, an increase in income of
37.4% between years. Nıherjis profits after tax were ISK 305.6 million for the
year 2006, compared with ISK 76.5 the year before. EBITDA for Nıherji and its
subsidiaries was ISK 682.5 million, as opposed to ISK 232.7 a year earlier.
EBITDA was therefore 7.9% of total income for the year.
Salaries and wages for the year amounted to ISK
2,523.3, a rise of 54% for the group as a whole. The higher wage bill is mostly
due to growing workforce, particularly after the acquisition of AppliCon A/S in
Denmark. The average number of employees at Nıherji and its subsidiaries was
337 during 2006, an increase of 45 from the previous year. At the end of the
year, there was the equivalent of 351 full-time positions, with an actual staff
of 371 employees.
The companys revenue from the sale of goods and
related services was ISK 5,723 million, while consultancy and software sales
generated ISK 2,961 million in sales during the year. Operations abroad
generated an income of ISK 1,050 million, or around 12% of the total income.
Total revenues for Nıherji and its subsidiaries in
the fourth quarter of the year amounted to ISK 2,704.2 million, an increase of
27% compared with the same period a year earlier. Quarterly profits were ISK 68
million, compared with ISK 25.1 million a year before. EBIDTA was ISK 173
million, compared with ISK 102.6 million in the same quarter in 2005.
Nıherji is a market-driven knowledge company that
delivers quality solutions and services to its customers in the field of
information technology and business consulting. In recent years, the company
has invested heavily in training, acquisition of new knowledge, and in
developing new software solutions and services, mostly connected to SAP software.
As these investments have been expensed immediately, the profits in recent
years have been adversely affected, but the company has now started to reap the
benefits as profits have started to
Nıherjis position in the IT market strengthened in
2006, borne out by high revenue growth and good returns. Customer support and
sales operations are efficient, being built on close cooperation and
consultation with customers. The
companys emphasis on developing and marketing consulting and service solutions
to specific market segments has changed the revenue mix whereby 45% of
Nıherjis income comes from service sales.
In addition to improving its position in its core
markets, Nıherji strengthened its position outside the Reykjavík metropolitan
area by opening of an office in Akureyri in North Iceland and with the
acquisition of Tölvusmidjan ehf. in East Iceland.
Nıherji achieved especially good annual results in
sales of services for IBM servers, IP telephony solutions, IBM software and
business services. The company worked extensively on implementation of IP
telephone systems for several Icelandic companies with multiple located around
the world, and took the first steps in offering this sort of service in
Denmark. Nıherji was the first Nordic company to receive gold certification
from Avaya, one of the worlds leading communications solution providers. There
has been continuous growth in the field of hosting and outsourced services
along with hosted IP telephone services. Demand for Lotus Workplace software
has also been buoyant.
Growth in sales and
services for end-user solutions
There was good growth in sales of end-user equipment
such as laptop computers, photocopiers, printers and audio-visual equipment,
and there is now increasing emphasis on providing consultancy and services in
this field. Sales and installations of commercial printing equipment and related
solutions also strengthened. Nıherji became the sole business partner of Canon
in Iceland during the year, but before the sales and distribution of
professional video and photographic equipment had been in the hands of others.
Nıherji also began importing ATM banking equipment from the American company
AppliCon moves into
Britain and Sweden
Last year was the first whole operating year for
AppliCon Holdings ehf., which owns AppliCon ehf. in Iceland and AppliCon A/S in
Denmark. Increased Nıherji profits can be attributed in part to improvements in
AppliCons operations and substantial profit during the year. AppliCon
specialises in the sale and development of SAP and Microsoft solutions.
AppliCon established subsidiaries in Britain, Denmark and Sweden, and they will
specialise in providing SAP consulting services, especially for financial
institutions. AppliCon has become one of the leading companies in the field of SAP consultancy in
the Nordics. It has been singled out by several commercial and professional
magazines for its leading role in this field.
ParX ehf. demanding
ParX ehf., a Nıherji subsidiary, strengthened during
the year, and operations were in accordance with expectations. ParX has worked
systematically on developing quality services in the field of consultancy and
research, in line with new and demanding projects. During the year the company
appointed a number of new highly qualified consultants capable of meeting
increased service requirements of customers.
In October, Nıherji bought all the shares in
Tölvusmidjan ehf. in East Iceland. Tölvusmidjan sells computers and technical
equipment along with a wide range of software and operational services. Klak
ehf., a Nıherji subsidiary, had a good year, holding two investment conventions
as well as taking part in several innovative projects. SimDex ehf.s operations
were not in accordance with expectations in 2006 although operational stability
was achieved in the last part of the year.
An increased proportion of Nıherjis income is based
on services, consultancy and software implementation. Income in foreign
currencies has also increased, bringing improved stability that is reflected in
the companys operating profits. Nıherjis objective is to further expand its
business in the development and marketing of services and consultancy in the
fields of software, audio-visual solutions, communications solutions and system
integration. The companys foreign investments have proved satisfactory and
future attention in this regard will be directed towards Northern Europe.
Demand for information technology services has grown
continuously and prospects for the next year are good. The company believes it
can pursue a number of attractive opportunities abroad as well as in Iceland.
Nıherjis projections allow for similar results in 2007 as in the past year.
About Nıherji hf.
Nıherjis role is to create added value for its
customers through the expertise of its staff in IT and business operations and
their understanding of client requirements. The companys objective is to
provide its customers with quality solutions, first-class advice and
professional services in information technology and business consulting. Nıherji
offers quality software, computer and office equipment, and reliable technical
and business consultancy services. Shares in the company are listed on the
Iceland Stock Exchange.
Members of the Board of Directors are Benedict
Jóhannesson, Chairman, Árni Vilhjálmsson and Gudmundur Jóhann Jónsson. The
Managing Director of the company is Thórdur Sverrisson. Further information can
be obtained by telephone, +354 569 7711 / +354 893 3630. Nıherjis website is