Continued positive development of revenues and profits
We finish the year with another strong quarter and I am happy to report that for the full year 2018 the company generated the highest revenues and best profits ever in the company's history. The good development was driven by stable organic growth in the system business and improved gross margin. Revenues for the full year increased by 2% to SEK 3,318 million and profit before tax increased by 11% to SEK 167.8 million, which means a net margin of 5.1%. Adjusted for currency effects and changed accounting principles, organic growth was close to 4%.
For the fourth quarter, revenues amounted to SEK 967 million, which was an increase of 8%. Profit before tax increased by 7% to SEK 50.3 million, which means a net margin of 5.2%. System revenues have developed positively and increased by 12% to SEK 671 million. Total service revenues have also continued to develop positively, amounting to SEK 205 million, which is an increase of 3%. After a positive third quarter, the development of signed cloud service contracts has remained strong. During the period, a total order value of SEK 176 million was achieved, which is the highest ever.
Business Unit Nordics showed a recovery in the quarter after a weak third quarter. Revenues increased by 11% while profit before tax was SEK 7.9 million lower than the corresponding period last year. The negative profit trend is mainly attributable to the renegotiated and ended service agreements that were reported in the previous quarterly report. Business Unit UK showed a somewhat weaker quarter due to the absence of major system deals. Business Units East and West delivered a strong quarter both in terms of revenues and profits, growth was 57% and 15% respectively. For the full year, all Business Units, except from the Nordics, showed good organic growth and significantly better profits compared with the previous year.
Our customers are in the midst of a digital transformation with demands for modern IT infrastructure and secure management of business-critical information. To remain at the forefront, our focus is on further developing the Group's services so that they span private, public and hybrid cloud solutions. During the quarter, a number of transactions were carried out where both the size of the contracts and the strategic value for our customers showed that our position in the market remains strong.
In connection with the achievement of the previous financial targets and the fact that the company has updated its long-term focus, new financial targets have been established, which was communicated in December 2018. In addition to organic growth, the company will actively seek acquisition opportunities in existing and new markets.
When I sum up my first five months as CEO, I want to highlight the company's ability to deliver a strong result in times of rapid change. I would like to thank all the employees who made this possible as well as our customers who have given us their trust.
Kista, 6 February 2019