Zalaris' Q1/17 revenues were up 8.0% to NOK 106.4 million, with an EBIT margin of 10.1%. Multiple wins for international clients and an agreement announced yesterday to acquire the company sumarum AG in Germany kick off the company’s expansion plans.
Zalaris, a leading provider of payroll and HR services, delivered solid results in Q1/17 with continued strong growth and margins above target. Sales increased 8.0% to NOK 106.4 million in Q1/17 from Q1/16, with a corresponding EBIT of NOK 10.7 million (10.1%) for the period.
“2017 started well with an encouraging level of activity and numerous wins and developments that further strengthen Zalaris for the future. Our record-high 203 000 employees served each month also materialized in strong growth in Q1/17”, says Hans-Petter Mellerud, Zalaris’ CEO and founder.
Continued growth for cloud
The cloud services business maintains a trend of significant revenues growth with an increase of 171.3% up to NOK13.6 million (NOK 5.0 million). Cloud services now represent 14 per cent of total operating profit.
“Both new and exisiting customers require solutions in the cloud, which has boosted activity for our cloud division. This will increase in importance also in the period to come”, Mellerud says.
Zalaris delivered multiple wins with multinational clients in the quarter, such as Norsk Hydro ASA, a European energy champion and Siemens. An extension agreement with Norsk Hydro ASA to provide payroll and HR services to Hydro's 4 400 employees and 8 100 pensioners in Norway was signed.
One of Europe’s largest generator of renewable energy chose Zalaris to deliver solutions and services to more than 3 000 employees in four countries, further supporting Zalaris’ expansion into the UK and Germany. A five-year renewal with the industrial champion Siemens for its Swedish operations is also signed.
“These wins are evidence of our ability to deliver continued growth. We see substantial opportunities for further growth on our scalable platform”, says Mellerud.
On 26 April Zalaris announced that it has acquired the leading German HR Outsourcing company sumarum AG. Please see more information in yesterday’s release.
Hans-Petter Mellerud, CEO and founder
Mobile: +47 928 97 276
Nina Stemshaug, CFO
Mobile: +47 982 60 394
Zalaris excels in delivering comprehensive cloud- based HR and payroll services. The company is certified as a SAP Business Process Outsourcing (BPO) Partner and is a leading SAP Human Capital Management (HCM) and SuccessFactors consulting partner. Founded in 2000, Zalaris today operates in Denmark, Estonia, Finland, India, Latvia, Lithuania, Norway, Poland, Sweden and Germany, including local-language service centers with extensive expertise in HR- related laws and regulations.
Learn more about Zalaris at www.zalaris.com