Growth for the future through internationalisation
During the past year, we have grown to become a Nordic industry-independent IT provider and software house that specialises in digital business solutions. Our mission is to simplify the digital world to make a better tomorrow.
The review period was challenging. We balanced our business operations by reorganising and cost reduction. These actions will have a positive impact for the outcome of the upcoming financial years. The outcomes of the previous quarters were burdened by the maintenance of the certain large scale projects, investing in our business operations in Sweden as well as increased subcontracting. Despite the challenging year, we succeeded in expanding our operations by acquisitions. We estimate that one fifth of our revenue will come from outside Finland in 2018.
In addition to organic growth, acquisitions have played a significant role in our internationalisation. We completed the integration of our Swedish subsidiary, Aponsa AB, in an operative sense by combining our previous Swedish operations to create a single entity.
We took a significant step on our path of Nordic growth in the final quarter of 2017 by agreeing to acquire the entire share capital of TM United A/S. The acquisition saw us expand our operations into the Danish and Norwegian markets. TM’s solutions are focused on digital transactions and the optimisation of the online customer experience. In addition to supporting our international growth, the acquisition complements our product offering with a new component that is an excellent fit with our strategy: the Deep Vision cloud service, which facilitates the development of online services driven by the customer experience.
We have stated trying to increase the share of revenue generated by cloud services and other continuity services in our solution offering. Revenue from cloud services is expected to see significant growth in the coming years. We are also focusing on the development of our own software products and services. The share of revenue represented by continuous services will be reported separately starting from the beginning of the year. We estimate that this will account over one fourth of our revenue this year. We are especially active in areas that enable us to incorporate artificial intelligence and robotics into our products and services. In 2017, our product development investments amounted to 333 thousand euros, centering around the last half of the year.
Our operations are based on the expertise and competencies of Solteqians. Early in the year, we announced our aim of recruiting 100 new professionals during 2017. We achieved this target.
I am confident that we will improve our profitability significantly in 2018. Our business outlook for the early part of the year is strong and the full effect of the cost reduction measures we implemented in 2017 will be seen this year.
CEO, Solteq Plc
+358 50 5578 111