Proact has identified a niche in the field of IT infrastructure, storage and archiving. Focusing on this niche, the company's ambition is to create a company operating on the most important markets in Europe. According to analysis company Gartner, the amount of information stored is expected to increase by more than 40 % in 2012, which means that the underlying market growth will be around 5 %.
During the first and second quarters of 2011, Proact acquired three companies. This led to establishment of the company on a further five markets, along with a stronger range of cloud services to offer. This means that Proact is now the biggest specialist in its niche in Europe. The acquisitions made in 2011 have, on average, lower profitability than Proact in general but have the same focus and position as Proact on their respective markets. Since these acquisitions took place, there has been emphasis on integrating these companies so as to bring them up as quickly as possible to the same level of efficiency as seen within Proact in general. Work on integrating the Netherlands, Belgium and Spain has gone more quickly than expected. Opinion states that more time is needed to integrate the acquired businesses in the Czech Republic and the United Kingdom and develop our range of cloud services. Integration means creating synergies by utilising resources and offerings to clients as effectively as possible.
In the near future, the emphasis is on enhancing efficiency within the acquired businesses so that they are at the same level as the rest of Proact, and then Proact will be establishing its business on additional markets in Europe. The short-term target is to achieve a margin of 5 %, the level historically reported by Proact. In the long term, the target is to achieve a 7 % margin.
Given the foundation Proact now has, we have the opportunity to achieve a turnover rate of around SEK 3 billion within a year through organic growth, and also achieve the same level of efficiency that we had prior to the acquisitions.
The contracted income is an important element in Proact's stability and accounts for around one-third of total income. This includes financing, support and cloud services, most of them with an agreed maturity of three years. One important element of efforts to improve profitability is to increase the amount of contracted income within the units acquired and throughout the Group as a whole.
Olof Sand
CEO and President
Articles of Association
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Corporate Governace report
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