Page 29 - Bouvet årsrapport ENG 2010 ePub

Bouvet annual report 2010 29

worked actively to retain and strengthen a good social environment at a time when it has been expanding strongly.

Bouvet works closely with its clients. Tat equips it to provide support through advice on as well as development and management of business-critical solutions. Te Group received extremely positive feedback during 2010 for its technical and social expertise, proposals for solutions, business compre-hension and ability to deliver.

Key features of the market

Te Scandinavian market for IT services developed positively in 2010, with the reap-pearance of a growing willingness to invest in IT. Many large projects were put out to tender during the year. A number of major contracts are expected to be ofered in both public and private sectors, which is positive for 2011.

A particular increase is seen in demand for certain types of services. Tese include ap-plication management, security and mobile solutions.

Accounts and financial position

Operating revenues

Bouvet had operating revenues of NOK 710.6 million in 2010, an increase of 20.6 per cent from NOK 589.1 million the year before. A 17.6 per cent increase in the aver-age number of employees compared with 2009 was the most important reason for the rise in operating revenues. Te invoicing ratio for the Group’s consultants also rose

by 1.2 percentage points from the year before to reach 75.4 per cent. Prices for the Group’s hourly-based services declined by 3.8 per cent, but hourly rates made better progress in the second half compared with the frst six months because of a positive de-velopment in demand for Bouvet’s services.

Bouvet uses the services of external consult-ants in those cases where it lacks the capac-ity to meet demand with its own personnel. Sub-consultants also function as a bufer against market volatility. In line with in-creasing activity, the use of sub-consultants rose in 2010 to 15.8 per cent, compared with 13 per cent in 2009.

Operating expenses

Overall expenses in Bouvet grew by 21.4 per cent in 2010 to reach NOK 645.9 mil-lion. Te Group’s costs accordingly grew by more than its revenues. However, margins

improved during the year and were 11.2 per cent in the fourth quarter. Tat is above the Group’s long-term target, demonstrating that the aggressive commitment made in a weaker market during 2009 was the right approach. Bouvet is now well positioned to exploit the market opportunities which emerge in 2011.

Te growth in operating expenses con-tinued to relate primarily to the rise in payroll and other operating costs because the average number of employees increased during the period. Bouvet also experienced a general rise of three per cent in employee pay during 2010, compared with 1.5 per cent the year before.

Profit

Operating proft (EBIT) came to NOK 64.7 million in 2010, compared with NOK 57.1 million the year before. Tat represents a rise of 13.4 per cent. Te EBIT margin was 9.1 per cent, compared with 9.7 per cent in 2009. Bouvet’s long-term goal is an EBIT margin of 10 per cent.

Te average number of employees increased by 96 people to 642 in 2010. Tat had a short-term efect on margin development. Te Group will continue to devote great attention to improving the efciency of its organisation even further, while also work-ing actively to raise hourly rates.

Net proft was NOK 49 million, up from NOK 42.5 million in 2009. Earnings per share came to NOK 4.74, compared with NOK 4.18 in 2009.

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3

6

9

12

15

2010 2009 2008 2007 2006

EBIT-MARGIN

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1,0

1,5

2,0

2010 2009 2008 2007 2006

LIQUIDITY RATIO

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10

20

30

40

50

60

2010 2009 2008 2007 2006

EQUITY RATIO

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Te positive development continued in 2010, demonstrating that the company has an appropriate business model and a range of services well adapted to client requirements.