Every year, the Center for Strategic and International Studies (CSIS) together with the American computer security company McAfee publishes a report on the estimated costs of cybercrime. The report ”Economic Impact of Cybercrime – No Slowing Down” published in February of this year shows that the total cost, or economic damage, of cybercrime is estimated to be 600 B USD per year.

The rapidly accelerating digitalization and globalization of corporate business processes are presenting companies, their management and ultimately their owners with completely new and significantly more complex requirements for protecting digital and physical assets. What we have previously talked about in terms of IT security needs to evolve into full-scale protection of all assets of a company or organization.

Proper application security and system quality are not only mission-critical for our customers today, but have developed into a public interest in society. Our democracy is at risk of being disrupted, as are our payment systems and critical infrastructure in society. In order to share our deep knowledge in the field and learn new things, we participate in a number of research projects, carry out thesis projects and participate in Vinnova projects.

Omegapoint is the Nordic region's leading company in advanced systems development and we ensure that our clients successfully prevent, and minimize damage resulting from, cybercrime. Our assignments and customers are among Sweden's largest and leading companies in, among other things, the automotive industry, the banking and finance sector, the pharmaceutical industry, the media and also in strategic assignments within Swedish infrastructure.

The ability to manage the challenges of cyber and digital security will be a prerequisite for successfully transforming businesses into future, digital business models, and we create the most value where technology develops business operations and where system development and security meet.

2017 was a very good year for Omegapoint with revenues of SEK 351 million, corresponding to growth of 12.8 percent.

• Operating profit before goodwill amortization amounts to SEK 31.9 million (SEK 34.2 million).
• Profit after tax amounts to SEK 23.6 million (SEK 26.1 million) and earnings per share are SEK 57.18 (SEK 63.75).
• The company's cash flow from core operations is -8.1 MSEK (27.9 MSEK) and the total cash flow amounts to -21.0 MSEK (4.1 MSEK).
• The company is growing and hiring new employees during the year. The company has just under 230 employees in Sweden on the balance sheet date.

During the year, the company had items affecting comparability for the company's anniversary conference and costs for changes in the company structure. These costs amount to SEK 4.1 million. Operating profit before goodwill amortization, taking these costs into account, amounts to SEK 36.0 million with a margin of 10.3 percent.

During the year, share dividends and new share issues have affected cash flow by SEK -23.0 million.
(-25.6 MSEK). Furthermore, the cash flow is affected by a loan to the parent company of -6.4 MSEK. Despite the negative cash flow, the board of directors proposes to the annual general meeting to distribute 9.6 MSEK (23.30 SEK per share), of which 6.4 MSEK will be used to amortize the loan from the Company to the parent company.

It is pleasing that the positive trend from 2017 continues in the first quarter of 2018 with a continued strong occupancy rate and a high level of activity among our customers, which, combined with a strong order situation, means that we are positive about the development in the coming quarters. 

Stockholm in May 2018

Johan Malmliden
President and CEO Omegapoint Group AB