4 |
3 |
Addnode Group addresses these risks by doing business with both the private and public sectors in several countries , and |
by actively working to adapt the offering and organisation to |
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prevailing demand . |
3 |
3 |
Addnode Group addresses this risk by working closely with customers in an effort to gain an understanding of their needs over time . We have well-established and strategic collaborations with market-leading and global suppliers of IT platforms and software , enabling us to rapidly respond to new conditions . |
3 |
3 |
Addnode Group addresses the risk of competition by focusing on selected market segments in which we can offer cuttingedge |
expertise and be a leader by offering distinct added value |
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to customers . |
2 |
3 |
Owing to its business model , Addnode Group ’ s sales are not dependent on individual customers or sectors . The Group has approximately 4,500 customers , and the 20 largest customers account for 17 per cent of net sales . While individual subsidiaries may be affected by the loss of a customer , by virtue of the Group ’ s size we have resources to drive the business further and find new customers – which provides security for our employees as well as our customers . |
2 |
2 |
The Group has a balanced portfolio of assignments that provides stable earnings over time . Addnode Group ’ s recurring revenue in the form of support and maintenance contracts accounts for 49 per cent of net sales , resulting in more stable earnings over time . |
2 |
3 |
Addnode Group addresses this risk by giving each company within the Group responsibility for its own competence |
succession . The individual companies have an advantage in |
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recruiting by belonging to a financially stable Group . |
1 |
4 |
Overall , Addnode Group ’ s credit risk is deemed to be low .
Accounts receivable are spread among a large number of counterparties in various industries , markets and types of customers . The Group has established guidelines to ensure that sales are made to customers with satisfactory credit records . Historically , bad debt losses have been very low , and 2015 earnings were positively affected by SEK 0.1 m (– 1.5 ) through the reversal of previous provisions for bad debts .
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2 |
2 |
The Group ’ s exchange rate risk is generally low , since the
Group companies operate primarily in their respective local
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markets and thereby have both revenues and expenses in the |
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same currency . |
2 |
2 |
Addnode Group ’ s interest rate risk is low on account of its low level of borrowing . The Group ’ s net debt , i . e ., the net sum |
of interest-bearing assets and liabilities , was SEK 23 m on |
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31 December 2015 (– 33 ). |
1 |
4 |
Addnode Group ’ s liquidity risk is deemed to be relatively limited .
As at 31 December 2015 the Group had SEK 103 m ( 72 ) in cash and cash equivalents , plus an unutilised bank overdraft facility of SEK 100 m and an acquisition credit facility of SEK 200 m , of which SEK 94 m ( 0 ) was utilised as at 31 December 2015 .
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