15th Jan 2015 09:39
LONDON (Alliance News) - SQS Software Quality Systems AG said it expects its results for the full year to be in line with its expectations, with earnings per share to come in ahead of its forecasts owing to a lower tax rate.
SQS said it expects revenue for the year to December 31 to be around EUR268 million, but said it expects its earnings per share to be boosted by a lower-than-expected tax rate of 22.5%. The lower rate is down to a geographically more favourable spread of profits, it said.
The company's Managed Services arm has continued to grow in line with expectations and has increased its contribution to group revenue to 45% for the full year, up from 41% in 2013.
The US remains its fastest growth area, with revenue more than doubling in 2014 on the back of a slew of recent contract wins.
"We are pleased to report that we have continued to experience solid growth across the company as a whole, and our greatly improved net cash position at year end demonstrates strong cash conversion," said SQS Chief Executive Officer Diederik Vos.
"We enter 2015 in an ever stronger position within the markets in which we operate and, while we remain aware of the unpredictable nature of macroeconomic conditions, we are confident of further progress in the year ahead," Vos added.
SQS shares were down 1.0% to 567.00 pence on Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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