Second-quarter results: Growth continues – Vogon show positive results

- Acquiring Vogon is important for achieving a position as a leader in the data care market, observes Bjørn Arne Skogstad, president and CEO of Ibas Holding ASA. - It’s gratifying to see that Vogon’s 2004 loss has already been reversed to an operational break even result during the first half of this year.

- The figures provide a confirmation of our increased focus on central Europe, and including Vogon 87 per cent of the revenue comes from outside Norway in first half of 2005, says Bjørn Arne Skogstad, president and CEO of Ibas Holding ASA.

Results

• Ibas achieved operating revenues of NOK 30 million in the second quarter (2004: NOK 19.3 million), including Vogon’s contribution in June. This corresponds to a growth of 55.7 per cent from 2004. Sales for the first half came to NOK 53.1 million (2004: NOK 40.1 million), an increase of 32.3 per cent.
• EBITDA (earnings before interest, taxes, depreciation and amortisation) came to NOK 3.6 million in the second quarter compared with a negative figure of NOK 0.6 million for the same period of 2004. The corresponding first-half figures were NOK 5.2 million and NOK 1.7 million.
• The EBITDA margin was 12 per cent for the second quarter as against a negative 3.1 per cent in the same period of 2004, and 9.7 per cent for the first half (2004: 4.3 per cent).
• Pre-tax profit amounted to NOK 1.4 million for the second quarter compared with a 2004 loss of NOK 2.1 million, and NOK 2.3 million for the first half as against a loss of NOK 0.5 million.

NOK 3 million in costs relating to the demerger from Norman ASA and the Oslo Stock Exchange listing were charged against the 2004 results.

Vogon
Thanks to contributions from large assignments, Vogon achieved good top and bottom lines in June.

Vogon reported a growth of 18 per cent in the second quarter and 14 per cent for the first half, and broke even operationally for the first six months of 2005.

Ibas

• The Ibas business achieved a growth in operating revenues of 14.8 per cent for the second quarter to NOK 22.1 million (2004: NOK 19.3 million). Corresponding figures for the first half are 12.7 per cent growth to NOK 45.2 million (2004: 40.1 million).
• EBITDA came to NOK 2.3 million for the second quarter as against a negative figure of NOK 0.6 million in 2004, and NOK 3.8 million for the first half (2004: NOK 1.7 million).
• The EBITDA margin was 10.2 per cent for the second quarter, compared with a negative 3.1 per cent in 2004, and 8.5 per cent for the first half (2004: 4.3 per cent).

Operating costs in the second quarter were on the same level as the same period of last year. Corrected for expenses relating to the demerger from Norman in 2004, the underlying growth was about NOK 3 million. This increase reflects higher activity as well as new appointments in sales management, computer forensics and administration required to handle the company’s growth. Adjusted for holiday pay in June, operating costs for the second quarter were on a par with the previous three-month period.

Ibas achieved growth in all its business areas and in each geographical region. The growth was strongest in the data recovery and computer forensics areas, and in important markets such as Germany, France and the UK.

Pro forma figures for Ibas and Vogon
Pro forma figures for the total business, including Vogon, have been prepared for 2004 and 2005. These show a growth in operating revenues of 16.1 per cent in the second quarter and 13.3 per cent for the first half. The EBITDA margin was 8.4 per cent in the second quarter compared with a negative 9.0 per cent for 2004, and 4.5 per cent for the first half as against a negative 3.8 per cent last year.

Acquisition of Vogon International Limited
The Vogon acquisition was implemented on 31 May, and the company has been consolidated in the Ibas accounts with effect from 1 June.

Capital and prospects
Cash in hand at 30 June totalled NOK 17 million. The Vogon acquisition was financed by a bridge loan which runs until the fully-subscribed share issue has been completed, by a overdraft facility with limit of NOK 12 million, as well as own funds. The company’s book equity ratio at 30 June was 21.4 per cent as against 44.6 per cent at 1 January. This will rise to about 44 per cent after the share issue.

With the integration of Vogon, Ibas will continue to focus on profitable growth.

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Further information from:
Svein Ramsay Goli, chairman, Ibas Holding ASA, mobile: +47 90 75 67 57
Bjørn Arne Skogstad, president and CEO, Ibas Holding ASA, tel: +47 62 81 01 00, mobile: +47 48 14 90 70 www.ibas.com