Storage integrator Proact claims market conditions remain positive despite posting steep declines in revenues and profits in Q2.
For the three months until 30 June, revenues fell by seven per cent to SEK 806m (€76.31m), while profits before tax suffered an even steeper decline, falling by more than 50 per cent year on year to SEK 22.3m.
Proact said it spent SEK 9.1m on the sale of its Spanish subsidiary in June. But even factoring in one-off costs, the firm's profits were still 33 per cent lower than Q2 last year at SEK 31.4m.
The Stockholm-based firm's revenue decline was driven by a nine per cent decrease in system sales and a three per cent decrease in services sales in Q2.
Proact pointed to a challenging market in its West business unit which comprises Germany, the Netherlands and Belgium. System and services revenues declined in its West business unit, but cloud revenues grew by 20 per cent, Proact claims.
Revenues were flat in the Nordics, with a lower EBITA than the previous year. UK revenues declined, with both system and service sales falling but cloud revenues climbing by 15 per cent.
Its East business unit meanwhile saw "strong growth" in both its system and service revenues, Proact claims.
Its director of the West business unit, Sander Dekker, recently told CPI that Proact intends to invest heavily in the German market through building up its managed services capabilities.
CEO Jonas Hasselberg revealed earlier this year that he is eyeing up an M&A move in the UK as the firm aims to hit 10 per cent revenue growth for its next three consecutive financial years.
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