Zalaris’ revenues reached NOK 206 million for Q4 (NOK 194 million), and NOK 777 million for FY19 (NOK 745 million), an increase of 6% and 4% respectively compared to the previous year.
Key financial figures for Q4 and FY2019:
- Revenue of NOK 206.2 million (NOK 194.2 million) for Q419 and NOK 776.8 million (NOK 745.4 million) for FY19, an increase of 6.2% and 4.2% respectively
- Adjusted EBIT of NOK 5.1 million (NOK 12.5 million) for Q419, and NOK 30.4 million (NOK 27.9 million) for FY19, an increase of 9.0%
- Result for the period of NOK -1.3 million (NOK -4.1 million) for Q419
Fortifying recurring revenue streams
During the fourth quarter Zalaris continued securing long term recurring revenue streams. Existing customers such as The State of North Rhine-Westphalia, Gassco,and Yara extended their long term agreements. New customers such as the PEKAO bank in Poland with 16’000 employees and Mahle in UK signed up for five year agreements. “These agreements reflect Zalaris’ successful long-term business model in securing recurring revenue streams and low historic churn” – says CEO and founder Hans-Petter Mellerud.
Vision 2020 – Completed initiatives delivering NOK 4.7 million monthly savings
The company continued to deliver on its cost reduction program targeting monthly cost reductions of NOK 4,7 million compared to Q1 2019. Communicated initiatives have been completed including consolidating delivery locations, improving operational efficiency, renegotiating supplier agreements and downsizing administrative non-market facing capacity resulting in a net reduction of 52 FTEs. “All in all, we see a corresponding positive effect on our personnel costs. However, as a result of our consolidation activities, especially in Germany, our resource costs in Q4 are temporarily higher due to lower utilization of new resources and a temporarily increase in the use of external consultants to deliver on our customer commitments.” – says Mellerud.
Growth 2020: Increase customer value
“Profitable growth is our resolute focus in 2020. Recurring revenue and agreements with existing customers already account for approximately 80% of our business. This combines with a historic low churn of 1.5-3% per annum. We want to build on this proven business model and acquire new customers with an emphasis on expanding platform-based payroll and HR services in Central Europe, UK and Ireland. Customer satisfaction is equally a focus area” - says Mellerud.
Zalaris will host a webcast for all shareholders and interested parties today at 08:30 CET. There will be a Q&A session following the management presentation.
Gunnar Manum, CFO
Mobile: +47 951 79 190
Hans-Petter Mellerud, CEO and founder
Mobile: +47 928 97 276
Zalaris (OSLO: ZAL) ranks among Europe’s top providers of payroll and human capital management (HCM) solutions – addressing the entire employee lifecycle, from recruiting and onboarding to payroll and benefits, time and attendance, travel expense, performance management and learning. Our proven local and multi-country delivery models include on-premise implementations, software as a service (SaaS), integrated cloud and business process outsourcing (BPO). Zalaris’ experienced consultants and advisors cover all industries and IT environments. For more information, go to www.zalaris.com.