Regulatory Announcement
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RNS Number:
1749W
SQS Software Quality Systems AG
8 May 2007
SQS Software Quality Systems AG
Trading update
SQS Software Quality Systems AG (AIM: SQS), the AIM-listed supplier of independent software management systems, is pleased to announce strong trading so far in the year to 31 December 2007.
For the year to date, both revenues and profits are in line with management expectations for the full year. In the first quarter alone, the company won 55 new clients, compared with around 25 wins in the first quarter of 2006 and 100 new client wins for the full year. New clients have been won in all key markets and territories, with notable gains in the financial services and automotive sectors.
This success has helped to drive first-quarter organic revenues more than 20% higher than last year, improving on the strong 18% organic growth rate achieved in 2006. By comparison, the European Information Technology Observatory expects the European IT services market to grow by less than 6% this year. Furthermore, the first-time impact of the integration of Cresta will generate significant additional growth in the first half, compared with 2006.
SQS has strengthened relationships with existing clients and has secured contract extensions with most of its customers. The company continues to be successful in selling additional services to its existing customer base and new services – such as Licence Compliancy Management and Application Intelligence for Security – are already proving popular.
Including recent contract wins, the company now serves 36 of the FTSE 100 companies.
Rudolf van Megen, Chief Executive commented:
"The year has begun strongly and I am pleased to report that as expected, our investment in new consultants has had a positive impact on our performance. The increasing acceptance of software testing and quality management that is independent of software development will continue to drive accelerating growth for SQS.
Last week, SQS celebrated its 25th anniversary. I would like to take this opportunity to thank all the customers and employees who have helped to build SQS into Europe’s leading independent provider of software quality management and testing services.”
Notes to editors
SQS is the largest independent European provider of software testing and quality
management services. SQS consultants design and oversee quality management
processes during software and IT systems development, and test the resulting
products for errors and omissions.
Headquartered in Cologne, Germany, SQS now has operations across Europe and in South Africa with more than 800 employees. SQS has a strong presence in Germany (Cologne, Munich, Frankfurt, Stuttgart and Hamburg) and in the UK (London, Woking, Birmingham, Manchester), Ireland, Netherlands, Switzerland, Austria and SouthAfrica. SQS also has a minor stake in an operation in Portugal and a partnership operation in Spain.
With more than 4,000 completed projects under its belt, SQS has a strong customer base including 36 FTSE-100 companies, half of the DAX 30 and nearly a third of the STOXX-50. It supports clients in a wide range of industries, including major corporations such as Lloyds TSB, Deutsche Telekom, Barclays, BP, Credit Suisse, Daimler Chrysler, and Airbus.
| For further information please contact | ||
| SQS Software Quality Systems AG | +49 22 03 91 54 0 | |
| Rudolf van Megen, CEO | ||
| Rene Gawron, CFO | ||
| College Hill Associates Ltd | +44 (0) 20 7457 2020 | |
| Sara Musgrave | ||
| Carl Franklin | ||
END