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Company

SQS Software Quality Systems AG

TIDM

SQS

Headline

Final Results

Released

07:00 06-Mar-08

Number

4731P

 

SQS Software Quality Systems AG (the 'Company')

Dividend Declaration

SQS Software Quality Systems AG (AIM: SQS.L), the global leader in independent software testing and quality management services, today announces its preliminary results for the year ended 31 December 2007.

Financial Highlights:

Turnover up 53% to €121.1m (2006: €78.9m)
27% organic turnover growth, significantly outpacing growth of IT services sector
Adj. Profit before tax* up 96% to €10.5m (2006: €5.3m)
Strong net cash position of €6.9m (2006: net debt of €3.2m) with excellent cash generation from operations of €11.4m (2006: €1.6m)
Adjusted** earnings per share up 46% to €0.41 (2006: €0.28)
Double two year dividend of €0.20 per share

*adjusted to add back pro forma interests to be shown under IFRS of €0.6m on future payment milestones for acquisitions and €0.2m for amortisation on Triton intangible assets required under IFRS
**based on net income increased by €0.4m on IFRS tax differences, by €0.6m of pro forma interests, by €0.2m for amortisation on intangible assets from an acquisition but including actual profit taxes of €2.6m payable under local GAAP

Corporate Highlights:

Further margin improvement due to higher pricing and excellent utilisation rates 
New client wins extending across 11 different industry verticals
Strengthened delivery capabilities, investment in more than 246 new fee earning consultants  
Increased number of long term contracts and offshore projects with offshore facility in South Africa and newly established German speaking offshore centre in Egypt
Successful placing in April 2007 raising £3,285,000 at 219 pence per share widening institutional investment base
Successful integration of Cresta Ltd and Triton GmbH – both immediately earnings enhancing
David Cotterell, previously MD of Cresta Ltd,  appointed to SQS Group Management Board

Commenting on the results, Rudolf van Megen, CEO, said:

"SQS had an excellent year strengthening its position as the global leader in independent software testing and quality management services. Higher pricing, excellent utilisation rates and tight cost control enabled us to further increase gross margins. We are delighted to pay a double two year dividend of €0.20 per share.

In 2008, our focus will continue to be on both organic and acquisitive growth, further strengthening our foothold in Europeand exploring opportunities to expand our geographic footprint into the Asia/Oceanic region.

Trading has been very good in the year to date, and we are seeing significant customer interest for our software testing services, well ahead of the comparable period last year. More than 51% of the revenue expected for 2008 has either already been booked or contracted, a record for SQS, and the pipeline is strong. We look to the future with confidence.”

 

06 March 2008

Enquiries

SQS Software Quality Systems AG
Rudolf van Megen, CEO
Rene Gawron, CFO

www.sqs.de or www.sqs-uk.com
+49 (22 03) 91 54 0

Altium Nick Tulloch
Penny Ladkin
+44 (0) 20 7484 4040

This information is provided by RNS
The company news service from the London Stock Exchange

END