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Results below target but strengthened foundation for continued long-term growth and increased profitability

Press Release   •   Oct 25, 2018 07:00 BST

“We have delivered 18 years of uninterrupted growth and growth has been particularly strong during the past 12-18 months.This growth has come with a cost," says Hans-Petter Mellerud, Zalaris’ CEO and founder.

Zalaris’ Q3/18 revenues reached NOK 176 million, an increase of 17.1 per cent compared to Q3/17. Operating profit marked by timing of cloud revenues, costs of contract renewals and increased amortization.

Revenues last nine months amounted to NOK 551.3 million, 43.6 cent higher than the previous 9-month period, due to the two strategic acquisitions in Europe. Operating profit in Q3/18 was marked by extensive resources utilized for structuring an efficient organization and capable sales force.

“We have delivered 18 years of uninterrupted growth and growth has been particularly strong during the past 12-18 months.This growth has come with a cost, and all our efforts are now concentrated on delivering value to our customers and to our shareholders,” says Hans-Petter Mellerud, Zalaris’ CEO and founder.

Gaining speed
The operating loss for the period of NOK 5.5 million was marked by several factors, including revenue timing effects, higher amortization costs, severance costs and the impact of contract renewals. Underlying performance also reflects scale up of organizational capacity to support further growth.

“Being known for our endurance and long-term focus, we are determined to demonstrate that the financial results in the third quarter represents a temporary low. We are encouraged by the response from our customers. And we are enthusiastic to see that the enlarged Zalaris is gaining speed,” Mellerud says.

The company has received commitments from three of the largest HRO customers to extend service delivery agreements, representing a significant part of group revenues. Strong pipeline also firming up in the UK and Poland, expected to materialize in new contracts and revenue growth in the fourth quarter.

“These are long-term contracts that we have managed to secure through negotiation, which we think is a clear sign that our customers acknowledge and appreciate our ability to deliver quality according to expectations. We are honoured and grateful and inspired to continue to improve,” Mellerud says.

A successful bond placement was concluded in September at favourable terms securing flexibility for further growth. Zalaris raised EUR 35 million in a senior secured bond, with a borrowing limit of EUR 70 million.

Hans-Petter Mellerud, CEO and founder
Mobile: +47 928 97 276

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, Germany, Spain, the UK and Ireland including local-language service centers with extensive expertise in HR- related laws and regulations. Learn more about Zalaris at

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