4th Mar 2015 10:00
LONDON (Alliance News) - SQS Software Quality Systems AG Wednesday expressed "cautious optimism" for the year ahead as it posted a rise in pretax profit for 2014, and announced the departure of Chief Operating Officer Riccardo Brizzi.
Brizzi is leaving to pursue "new business challenges in the industry", the company said.
SQS proposed a full-year dividend of EUR0.13 per share, up from EUR0.09 for 2013.
SQS posted a profit before tax and finance costs of EUR11.6 million, up from EUR9.7 million a year before, on revenue or EUR268.5 million, compared to EUR225.8 million. Revenue growth was boosted by a first full-year contribution from its acquisition Thinksoft Global Services Ltd, which has now been fully integrated and renamed to SQS India BFSI.
Revenue in the company's Speciality Consultancy Services business fell 44% to EUR20.7 million from EUR36.7 million, primarily as a result of a banking client being reclassified to its Managed Services business.
Managed Services revenues rose 32% to EUR120.5 million from EUR91.1 million, bolstered by this reclassification, the consolidation of Thinksoft, and the extension of long-term managed services contracts.
Regular Testing Services revenue was up 33% to EUR102.1 million from EUR77 million, also boosted by the consolidation of Thinksoft. The company is working to reduce the share of this segment in its total revenue to below 30%. It currently makes up 38% of the company's revenue.
The company said its average revenue per client rose 34% as it continued to focus on larger client engagements.
"We foresee a number of exciting growth opportunities, particularly in the US, and plan to further diversify our geographic revenue split. The board looks forward to the current year with cautious optimism," said Chief Executive Officer Diederik Vos in a statement.
SQS shares were off 2.2% at 568.17 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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