Itera's strategy is about developing large, long-term
customer relationships, increased ratio of project
deliveries based on the width of the group's service
spectrum, utilization of nearshore resources and focus on
efficiency in the organization. The Group develops its range
of services in line with customer needs, based on the
combination of communication and technology.
Itera had a positive revenue growth for its consultants in
the fourth quarter. However, the Group experienced lower
volumes in the operations activities as well as high
restructuring costs in the same period, especially in
Sweden. As previously communicated, there has also been an
income reduction from the nearshoring activities throughout
the year, due to the situation in Ukraine.
Accrued restructuring costs and provisions including rent
obligations makes Itera report an operating profit (EBIT) of
about -5 million in the fourth quarter of 2014. Cash flow
from operations in the fourth quarter 2014 is good with a
bank balance of approximately MNOK 67 31.12.2014, unchanged
from the same time in 2013.
Itera has decided to carry out the necessary adjustments to
counteract the situation. The Group no longer considers the
Swedish operations business essential for implementing the
strategy, and has therefore started a process to sell this
part of the business. Itera is going to focus its activities
in Sweden in consulting with emphasis on digitization,
business intelligence / big data and nearshoring services.
In addition to refocusing in Sweden, the company will
liquidate an unprofitable division in the Norwegian
operation business in the first quarter of 2015.
The planned actions will position Itera for profitable
growth and a strong cash flow in 2015. Further information
will be given on the fourth quarter presentation on February
For more information:
Arne Mjøs, CEO
+47 905 23 172