DUBLIN, June 12 /CNW/ - Norkom has announced a 38% increase in revenues
and a 40% improvement in EBITDA for the year ending 31st March 2007 (2007). In
reporting its first full year results since its successful IPO in June 2006
the company has credited its strong financial results to good sales
performance and growing market recognition for its leadership and innovation.
Norkom has added 17 new clients during the year and secured continued
incremental business from its existing client base.
The company reports the following key financials:
- Revenue up 38% to EUR25.0 million (2006: EUR18.1 million)
- Gross profit margin increased to 65%; (2006: 60%)
- EBITDA (earnings before interest, tax, depreciation and amortisation)
up 40% to EUR4.5 million (2006: EUR3.2 million). EBITDA margin
remained strong at 18% in 2007 (2006: 18%)
- Diluted EPS up 43% to 4.08 cents (2006: 2.86 cents)
- Net assets of EUR31.9 million (2006: EUR10.0 million)
- Net cash inflow from operating activities increased to EUR4 million
(2006: EUR3.2 million)
Key business highlights for the year included the following:
- Revenue grew year on year by 38% and market penetration increased
globally with 17 new named clients.
- North America revenue increased by 35% year on year, with a number of
significant Tier 1 client wins including: Experian, Western Union and
the Depository Trust Clearing & Corporation (DTCC).
- Continental Europe revenue increased by 40% during the year with new
clients wins including Raiffeisen Zentralbank Osterreich and Credit
- Ireland, UK and ROW increased revenue by 39% primarily through
significant follow on business with existing clients, early
penetration of new market sectors and expansion into Asia Pacific.
- Investment in research and development delivered improvements in core
technology along with the release of two innovative market led
solutions, Customer Due Diligence (CDD) and Enterprise Investigation
Management (EIM). Early market demand for both solutions is strong
with the 3rd EU Money Laundering Directive and risk based regulations
driving demand for CDD, while escalating costs and operational losses
are bringing clients to market for our EIM solution.
- The employee base grew by 54% to 210 as the company invested in
additional key resources across all regions in support of ongoing
international expansion and the development of robust regional teams
to replicate success.
- Norkom's market recognition increased with the company winning a
series of prestigious awards and being recognised as "outclassing its
competitors" by internationally respected research firm Celent.
Commenting on the full year results Norkom's Chief Executive Officer Paul
"In the year in which we successfully listed on the AIM and the IEX
markets we have continued to deliver strong growth throughout our business;
clear evidence of our ability to manage fundamental change while delivering
excellent organic business growth. Our excellent gross margin enhancement
provided the platform to make significant investments in both our regional
development and in our end to end software development capabilities, while
maintaining consistent EBITDA margins. Being able to make these investments in
2007 positions us well to take advantage of the numerous opportunities our
market presents. Our market sector continues to grow, driven by both business
and regulatory issues, increasing the demand for our solutions and expertise
around the globe. We will remain focused on meeting the evolving demands of
our client base, while innovating ahead of the curve to deliver solutions that
provide measurable results and tangible improvements to clients' business
The global market for financial crime and compliance solutions continues
to grow, fuelled by increasing regulatory demands, escalating costs and the
increased incidences of organised crime. Norkom's strategy focuses on
providing clients with an end to end financial crime and compliance solution
which is underpinned by a common technology infrastructure enabling them to
evolve their use of the solution in line with both market and business needs.
Our approach safeguards client's technology investments, increases the
effectiveness of their operations and protects them from escalating losses to
fraud. The ability of Norkom's solutions to impact financial losses while
decreasing operational costs is proving attractive to a market where an
estimated 84% of total spend is attributable to administration and personnel
costs. Industry analysts forecast that technologies, such as Norkom's, can
address this issue reducing operational costs by 15% annually.
For further information:
For further information: Norkom Group plc, Rosemary Turley, Director of
Marketing, Email: firstname.lastname@example.org; Hilary Duffy, Marketing Manager,
Email: email@example.com, Telephone: +353-1-873-9600