19th Dec 2006 07:01
SQS Software Quality Systems AG19 December 2006 Immediate Release 19 December 2006 SQS Software Quality Systems AG Trading update SQS Software Quality Systems AG (AIM:SQS.L) ("SQS" or the "Company"), the AIMlisted supplier of independent software testing and quality management services,today issues a trading update for the year ending 31 December 2006. It has been a successful year for the Company, with turnover expected to be upby more than one third on 2005. Approximately half of this increase in turnoverhas been generated organically. During the year, the Company has won more than100 new clients, taking its total client base to over 300. In the first half of the year, as highlighted in the interim results, there wassignificant investment in headcount to prepare for the organic growthopportunities in the second half. Whilst gross margins have improved in thefinal six months of the year and are now in line with expectations, the increasefrom the first half was not as fast as originally planned in all regionalmarkets, and therefore PBT is expected to be towards the lower end of consensusmarket expectations. The Company has commenced a number of new projects in the fourth quarter of 2006and the directors are therefore confident that these will drive further strongorganic growth in 2007. Margins are expected to be maintained now that theinvestment in consultants is producing returns. The Company's ability tocontinue to win new business from in-house teams will be a strong feature ofthis growth and the Company is confident that it is well positioned to meetconsensus market expectations for 2007. The acquisition of Cresta (now renamed SQS UK) in May 2006 has been verysuccessful. The integration with the former SQS UK organisation and the rest ofthe SQS group has been well received by clients and is proceeding in accordancewith the directors' expectations. The Company's UK, Irish and South Africanbusiness now accounts for approximately 40 per cent. of total turnover.SQS continues to see considerable opportunities in its markets and believes thatthere is further scope for consolidation. The Company will look at potentialacquisitions on a selective basis and will pursue opportunities that areearnings enhancing and provide further benefits to the Company's marketposition. SQS will announce its preliminary results for the year ended 31 December 2006 on8 March 2007. For further information please contact: SQS Software Quality Systems AG www.sqs.de or www.sqs-uk.comRudolf van Megen (CEO) / Rene Gawron (CFO) +49 (2203) 91 54 50 Altium 020 7484 4040Nick Tulloch Smithfield 020 7360 4900Sara Musgrave / Tania Wild Print resolution images are available for the media to view and download from www.vismedia.co.uk Notes to Editors:SQS is the largest independent European provider of software testing and qualitymanagement services. SQS consultants design and oversee quality managementprocesses during software and IT systems development, and test the resultingproducts for errors and omissions. Headquartered in Cologne, Germany, SQS now has operations across Europe and inSouth Africa with over 700 employees. SQS has a strong presence in Germany (Cologne, Munich, Frankfurt, Stuttgart and Hamburg) and in the UK (London, Woking, Birmingham, Manchester), Ireland, Netherlands, Switzerland, Austria and SouthAfrica. SQS also has a minor stake in an operation in Portugal and a partnershipoperation in Spain. In May 2006, SQS made its first acquisition after its AIM flotation, buyingCresta Group Ltd in the UK for a consideration of up to £18m. The acquisitionincreased SQS' UK revenue threefold and secured its position as the largestindependent software testing and quality management company in the UK. With over 3,000 completed projects under its belt, SQS has a strong customerbase including half of the DAX 30 companies and 30% of the STOXX-50. Theyinclude names like Dresdner Bank, Lloyds TSB, Deutsche Telekom, Vodafone,Daimler Chrysler, and Airbus spread across the full range of industries. SQS is the first German company with a primary listing on AIM and completed itsIPO in September 2005, having raised £10.8m before expenses at an issue price of190p. SQS is included in the Software and Computer Services sector (9530) withinthe Computer Services subsector (9533) and has a RIC code of SQS.L. SQScompleted a secondary listing on the Deutsche Boerse in Frankfurt on 2ndDecember 2005. For further information, please visit www.sqs-uk.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
SQS Software Quality Systems AG