Visma will re-locate all Oslo employees to Skøyen, Oslo. Construction work on the the building will commence shortly and will be finished 1 April 2009

For the financial year 2007, revenues amounted to NOK 2723 million, (GBP270m) an increase of 18 percent compared to 2006. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the same period reached NOK 490 million, compared to NOK 305 million in 2006. This is equivalent to an improvement in profits of nearly 60 percent. EBIT in 2007 amounted to NOK 364 million, (GBP 35m) up 68 percent from 2006.

“I assume people are anxiously awaiting the release of profit statements from large companies,” says Øystein Moan, CEO of Visma, “especially in light of the recent turbulence in the financial markets. Developments in growth and profit will be followed closely. On this basis, I am especially happy that Visma is one of the first companies to release results for Q4 and the financial year 2007. We are pleased to be able to report record results for the group.”

Moan adds that Visma’s performance in the fourth quarter 2007 is the best ever. “We are very pleased with this, especially since we delivered growth in both profits and earnings. The financial year 2007 is a record year for us in every way. Visma has never experienced such a strong growth in revenues and profit. The growth is due to a continued increase in demand for Visma’s products and services and a strong development in our markets. This proves that Visma’s business model – one which gives customers a wide choice of software and outsourcing opportunities within accounting services – is a success.  

RECORD PROFITABILITY
Visma reached an EBITDA of NOK 132 million in Q4 2007, compared to NOK 92 million in Q4 2006. This is equivalent to a rise of almost 43 percent. 

“This shows that Visma continues the strong growth from 2006,” says Øystein Moan. “Especially encouraging is that EBITDA improved 22 percent organically, and that the EBITDA margin rose from 15.5 percent to 17.7 percent. Compared to the fourth quarter last year, the EBITDA margin improved from 14.1 percent to 17.7 percent. In addition to the strong organic development, the improvement is explained by the acquisition of the high-margin companies Accountview and Retail Business Systems (RBS), both included in Visma’s software division. Overall we are very satisfied with the positive development.”

“At the same time,” continues Moan, “we note that profits are on the rise in all of Visma’s divisions. In the software division the EBITDA margin in Q4 rose to 21.7 percent, compared to 20.2 percent in the same period last year. The accounting and outsourcing division, Visma Services, increased its EBITDA margin from 8.5 percent to 11.5 percent in the fourth quarter 2007. Similarly, Visma Financial & Productivity Services achieved an increase in its EBITDA margin from 16.2 percent to 20.5 percent in the last quarter of 2007.

According to Øystein Moan the improvement in Visma Services’ margin was particularly welcome.
“With 20.1 percent organic growth in the fourth quarter of 2007, Visma Services has continued the strong development from the first half of 2007. The market to a large extent requests outsourcing services within accounting and payroll. There is a shortage of skilled accountants in the Nordic region and this forces more and more companies to outsource. Many companies will achieve better accounting and payroll services by choosing outsourcing,” says Moan, “and therefore we have great expectations for this business area looking forward.”

Moan also notes that the organic growth in Visma Software was 5.3 percent in fourth quarter 2007. “We think this is satisfying when taking into consideration that the revenue stream from the software division is less cyclical due to a large share of recurring revenues. Visma Financial & Productivity Services achieved an organic growth of 10.7 percent in the same period and an increase in EBITDA of not less than 38 percent. The improvement is due to a particularly strong performance in Visma Advantage and Visma Personnel.”

In late 2007 Visma acquired a software development company in Romania. Currently this company employs 62 people , primarily software developers. This acquisition will ensure access to expertise and resources enabling further development of Visma’s software solutions, especially on-demand and mobile solutions.

RECORD REVENUES
In fourth quarter 2007 revenues amounted to NOK 743.8 million compared to NOK 656.1 million during the same period in 2006. This is equivalent to a growth of 13.4 percent, of which organic growth in local currency constitutes 9.6 percent. At the end of fourth quarter 2007, net cash flow from operations after tax amounted to NOK 458 million versus NOK 297 million in Q4 in 2006. 

Øystein Moan, CEO of Visma, concludes, “Visma experienced a positive development in all markets last year, and we expect continued growth in 2008. The current crisis in the financial markets, however, could impact the situation in our markets too. As a result, we anticipate that the growth in revenues and margin improvements in 2008 will be somewhat lower than in 2007. The sharp fall in share prices at the beginning of the year will create interesting acquisition opportunities and Visma expects to be pursuing acquisitions more actively as prices become more attractive.”