14th Jan 2016 08:51
LONDON (Alliance News) - SQS Software Quality Systems AG on Thursday said it expects results for 2015 to be in line with board expectations, with revenue of about EUR317.0 million.
SQS has since been awarded a "major new multi-million dollar contract" with an existing industrial client in the US.
The specialist supplier of software quality services said it experiences "solid" top line growth of 18% in 2015, notably in North America where growth was driven by the acquisitions of Trissential and Galmont in the US.
Together with the purchase of Bitmedia in Italy, the US acquisitions are bedding in nicely, according to SQS, which said the businesses have contributed to profitability in the wake of their integration as part of the wider group.
SQS said its net debt improved to about EUR7.0 million at the end of 2015, from EUR26.5 million at the end of the first half, despite an additional EUR5.0 million investment in the second half relating to completion of the acquisition of Galmont and doubling test-centre capacity in Pune, India.
"The company continues to effectively manage the challenges evident in regular testing services, and we have shown that the stated strategy of focussing on managed services, specialist consulting and increasing our efforts in the US have delivered the expected outcome. Looking ahead, we believe there are significant geographic and vertical market opportunities to be captured across our divisions and we remain confident of continued progress in 2016," Chief Executive Diederik Vos said in a statement.
Shares in SQS were up 0.7% at 556.25 pence on Thursday morning.
By Samuel Agini; [email protected]; @samuelagini
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