IFS confirms outlook and details cost and expected savings for previously announced efficiency improvements
At today’s annual meeting, Alastair Sorbie, Chief Executive Officer will inform shareholders of the following: in the full year report for 2012, released on February 5, 2013, IFS stated that it was planning efficiency improvements to align resources with the evolving direction of its business. At the time, IFS stated that the cost for achieving this would affect EBIT in the first half of the year, and that the overall cost would be matched by savings realized in the full year, and significantly contribute to improved earnings thereafter.
The cost of the ongoing efficiency improvements is expected to amount to SKr 95 million and will, depending on timing issues, be fully or largely charged in the results for the first quarter. Savings, relative to the current cost base, are expected to be SKr 120 million on a full-year basis. Savings of SKr 95 million are expected for 2013.
The outlook for 2013 includes the cost arising from and the savings realized through the ongoing efficiency improvements and remains as previously communicated; for 2013, IFS expects strong license revenue growth and an improvement in EBIT.
IFS is a public company (XSTO: IFS) founded in 1983 that develops, supplies, and implements IFS Applications™, a component-based extended ERP suite. IFS focuses on industries where management of any of the following four core processes is strategic: service & asset, manufacturing, supply chain, and projects. The company has 2,100 customers and is present in approximately 60 countries with 2,800 employees in total. Net revenue in 2012 was SKr 2.7 billion.
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IFS discloses the information provided herein pursuant to the Financial Instruments Trading Act (1991:980) and/or the Securities Markets Act (2007:528). The information was submitted for publication on March 26, 2013 at 8:30 a.m. (CET).