My Transcom Experience

Author: Johan Eriksson

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Highlights from Transcom’s year-end report 2015

Transcom’s 2015 year-end report was released this morning.

We are making progress towards our financial targets. The closure of our loss-making site in Colombia and the simplification of our regional and management structure will support margin improvements going forward.

These are the highlights for Q4 2015:

  • Organic growth was negative 4.1%. Transcom’s previously disclosed decision not to renew an agreement with an Italian public sector client had a negative 3.5% impact on growth in the quarter.
  • EBIT margin in Q4 2015 was 2.6% (5.8% in Q4 2014). EBIT margin excluding non-recurring items was 4.1% (5.8% in Q4 2014).
  • Profitability improved in the North America & Asia Pacific region, while we saw a negative development in the Iberia & Latam region.
  • As announced on January 18, 2016, we are closing our loss-making site in Colombia. A restructuring cost of €2.3 million has been recognized in the Q4 2015. Also, Transcom’s management structure will be simplified in order to improve efficiency. These actions will benefit margins in the years ahead.
  • Net debt/EBITDA 0.6, compared to 0.9 in Q4 2014.
  • The Board of Directors recommends a dividend for 2015 amounting to SEK 1.75 per share.

Important focus areas for Transcom in the coming years are to ensure that we have efficient and effective regional and corporate functions, that our sites deliver superior performance through operational excellence, that we excel in contract and account management, and that we win long-term profitable business in line with Transcom’s commercial and operational set-up.

Feel free to have a look at the presentation below or contact me with any questions.

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