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Continued growth in 2015

Press Release   •   Feb 25, 2016 07:00 GMT

Annual revenue up 14.6%, reaching NOK 374 million, with 9.1% EBIT. Earnings per share nearly tripled to NOK 1.11 compared to fiscal 2014.

Zalaris, a leading provider of payroll and HR services, generated solid results for its 2015 fiscal year, continuing to advance the financial performance. The company grew sales 14.6% to NOK 374 million and EBIT of NOK 33.8 million (9.1%) for the period, which ended 31, December 2015. Earnings per share nearly tripled to NOK 1.11 from 0.38 in 2014.

“The results for 2015 show continued strong growth for Zalaris. In addition, we experience a promising potential in the Nordic and European markets for outsourced HR services”, says Hans-Petter Mellerud, Zalaris CEO and founder.

Fourth-quarter revenues decreased 2.8% to NOK 94.6 million compared to fourth quarter 2014, with a corresponding EBIT of NOK 8.9 million (9.4%). 2015 EBIT came in at the lower end of Zalaris’ targeted range as the company focused on expanding its business pipeline.

“Although growth was somewhat below our expectations, we see ample opportunities ahead. We have intentions ultimately to establish a more pan-European presence. This includes further strengthening internal delivery capability as well as exploring partnership possibilities”, says Mr. Mellerud.

In addition to providing strategic HR guidance and comprehensive cloud-based human capital management innovations, Zalaris offers multi country mobile enabled payroll, time and travel expense solutions to companies in Northern Europe. The company’s new service center located in Chennai in India, provides many other advantages and already represents 13% of the company’s total service and support hours.

“This ramp-up parallels headcount reductions in Zalaris’ Nordic service centers, where corresponding cost savings are planned to take effect beginning in Q2 2016”, says Mellerud.

Zalaris’ operations serve more than 190,000 employees today, including some of the largest companies in the Nordic region. The total number of employees covered by Zalaris solutions was 10.5% higher at the end of the fourth quarter compared to the same period in 2014.

Generally tougher economic conditions work in Zalaris’ favor as companies look to reduce costs and increase efficiency. However, Zalaris also experiences that some potential new clients are postponing their decisions.

Among key Q4 wins, one of Zalaris’ largest customers expanded its existing agreement to include SAP’s SuccessFactors, a cloud based human capital management solution, for their 32,500 employees. SuccessFactors enables Zalaris to deliver an even broader range of strategic HR services.

Zalaris 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 and Sweden, including local-language service centers with extensive expertise in HR-related laws and regulations.

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