Profit Software's Growth substantial in 2006

Profit Software's growth and market success continued through the financial year 2006. Turnover grew by 45 percent while profitability was maintained at a very good level. The numbers of personnel and subcontractors increased considerably.

 Profit Software Group is a leading provider of software solutions for the financial and insurance industry, operating in eight Northern European countries. During 2006 this industry continued to make large investments in IT solutions.

Profit Software performed extremely well in the 2006 accounting period. Growth was strong as forecasted and was underpinned by prior investments in product development. The consolidated turnover of Profit Software Group totaled EUR 8.4 million, for a 45.4% annual rate of organic growth.

Although growth in turnover was considerable, Profit maintained profitability at a level of 10.4% of turnover. Return on equity for the Group reached 27.9% and the equity ratio was 53%.

During the financial year the Group broadened its ownership base via a shares offer to employees. Personnel were given an opportunity to subscribe to the company's shares and nearly all did so.

The number of personnel increased by 13%, reaching 96 permanent employees at the end of 2006. The subcontractor network was further expanded with emphases on improvements in production and in agility of delivery processes, especially in larger customer projects.

Growth in the Finnish market trended strongly upward and operations in Poland saw large new projects get underway. Profit's local presences in Poland, Sweden and Norway were strengthened with new partner agreements.

Outlook for 2007

Profit's strategy of strong but prudent growth will continue in 2007. The business outlook is promising and points towards expanding revenue streams. This current growth rate is being secured by meticulous attention to quality assurance in delivery processes. The focus of investment will remain on product development and internationalization. Winning new contracts will require stronger partner  commitment and a more dynamic corporate presence in European markets.

For further information: Harry Nyroos, President and CEO, tel. +358 9 6817 31

 
Profit Software Ltd is a leading software company in the financial sector, and manufactures software products for life insurance and other insurance companies. Profit Software provides a full range of core systems for the insurance sector, using a product-based model. The company's customer base comprises life insurance and general insurance companies in Finland and eight other Baltic Rim countries. Currently more than 100 experts are supported by a wide network of partners and subcontractors, providing unmatched flexibility and enabling the implementation of even the largest system projects. www.profitsoftware.com