Reasonable results in a year of major efforts
Systematic experienced yet another year with a high level of activity while investing significant resources in sales, marketing and product development activities. However, in terms of results, not all of its activities were met with immediate success.
Press release22 January 2014
Today, Systematic announces its annual report for the financial year 2012/13. Systematic experienced yet another year with a high level of activity.
For the 2012/13 financial year, Systematic generated revenue of EUR 52.7m and profit before tax of EUR 2.7m, which is a reasonable result despite a fall in revenue of 5% and almost a halving of profit before tax compared to the previous year. Systematic has equity of EUR 16.1m, good liquidity, with almost EUR 10m in deposits and securities and no bank debt.
We lost a round and we have learned by it and now we are ready for the next round
In a hectic and hard year, all of our efforts did not unfortunately deliver the desired results.
"When we take on a task we give it 100% and we don't leave anything to chance. The same is true when we make a bid on a tender. In 2013, we put in bids on two major and important projects, the eHealth platform for Copenhagen and Zealand and an update of the Danish health insurance system," explains President and CEO of Systematic, Michael Holm. He continues:
"The tasks would have employed 100 people and created 70 new jobs at Systematic, but the projects didn't come our way. Unfortunately, this meant we had to reduce our staff numbers, so we had to let 27 employees go on 21 January 2014. It is sad having to say goodbye to talented employees. But we had to do this because we have to keep our wage costs under control and maintain our competitiveness."
Included in the Danish export canon
"Despite our loss of the eHealth platform for Copenhagen and Zealand, our growth ambitions in the healthcare sector remain intact. If we can't win Copenhagen and then the rest of the world, then we'll just have to do it the other way around. And we're actually already out there, because in 2013 we won a contract to deliver clinical logistics to the Vaasa Central Hospital in Finland," says Michael Holm.
In 2013 we won a contract to deliver clinical logistics to the Vaasa Central Hospital in Finland
Systematic was included in the Danish export canon in 2013. The company uses recognition like this in its efforts to continue to invest strongly in exporting and internationalising its products and services. During the year, Systematic has established sales companies in Cologne, Singapore and Paris, and an office in Abu Dhabi is currently being established. The company's network of sales partners has also been strengthened significantly with major international players as dealers of Systematic's products.
In the financial year, significant amounts have been invested in completing the SitaWare software suite for command and control, so that solutions now provide support to the individual soldiers in the operational theatre, all the way up the highest level of decision making at the strategic headquarters. Denmark is the first customer to use this complete suite of products, which is already being used in 15 countries around the world as part of their national defences.
DNU, the new university hospital in Aarhus has become the first customer to use Systematic's latest addition to healthcare IT, Columna Service Logistics. The hospital uses this IT platform to track and identify people, beds, trolleys, instruments and various equipment and material. The solution is helping to optimise the huge logistical challenges that hospitals face and in doing so is reducing the associated costs, all with the aim of improving patient safety and satisfaction, and improving efficiency and exploiting resources better. The project is a brilliant example of Systematic's ability to develop creative and innovative solutions in the healthcare sector based on a combination of new technology and proven solutions from other sectors. Other countries are already interested in the product.
Constant focus on competitiveness
Good liquidity ensures continued options for allocating significant resources in sales, marketing, competence development and product development. "Our goal is to simplify critical decision making, to continue to increase the commercial value of the solutions, which our clients already know and trust, and make our services even better and more effective. Our constant goal is to challenge the existing work processes and technologies, to go from 'best practice' to the 'next practice'," says Michael Holm. There is also constant focus on improving the efficiency of the company's development and delivery processes, which are important for competitiveness. This is why in 2013, Systematic acquired 25% of shares in the outsourcing company Conscensia, based in L’viv in Ukraine. Systematic has used Conscensia as an outsourcing partner for a number of years.
Strong belief in growth and internationalisation in the future
Systematic is pursuing a deliberate and long-term strategy that is gradually developing the group's potential. Therefore in the coming years the company will continue to develop the business through investing in products and associated services and in doing so strengthen the company's position in the export markets using its core technologies and win market share in the public sector in Denmark.
Systematic expects revenue growth and increased profit for the financial year 2013/14.
IN 2013
Systematic facts – Annual Report 2012/13
- Turnover: EUR 52.7 million
- Profit before tax: EUR 2.7 million
- Cash holdings of EUR 9.6 million and no bank debt
- Solvency of 49% and an AAA credit rating
- Certified to CMMI Level 5
- More than 98% of all milestones approved and delivered on time
- Headquartered in Aarhus, Denmark with an office in Copenhagen and with international subsidiaries and offices in Australia, Finland, France, Germany, Singapore, Sweden, UAE, the United Kingdom and the USA.
