Turnover up 53pc at SQS

7 Mar 2008

SQS Software Quality Systems has recorded an increase in turnover for 2007 of 53pc to €121.1m, up from €78.9m in 2006.

SQS Software Quality Systems has been operating in Ireland for just under a decade and employs close to 100 consultants in offices in Dublin and Belfast. The company is part of the SQS Group, Europe’s largest provider of software testing and software quality management services.

SQS recorded pre-tax profit of €10.5m in 2007, up 96pc from €5.3m in 2006. The company generated €11.4m from operations last year, significantly higher than the 2006 figure of €1.6m. Adjusted earnings per share are up 46pc to €0.41 (2006: €0.28), resulting in a double two-year dividend of €0.20 per share.

“SQS had an excellent year strengthening its position as the global leader in independent software testing and quality management services. Higher pricing, excellent utilisation rates and tight cost control enabled us to further increase gross margins. We are delighted to pay a double two-year dividend of €0.20 per share,” said Rudolf van Megen, CEO, SQS Software Quality Systems.

“In 2008, our focus will continue to be on both organic and acquisitive growth, further strengthening our foothold in Europe and exploring opportunities to expand our geographic footprint into the Asia/Oceanic region.

“Trading has been very good in the year to date, and we are seeing significant customer interest for our software testing services, well ahead of the comparable period last year. More than 51pc of the revenue expected for 2008 has either already been booked or contracted, a record for SQS, and the pipeline is strong. We look to the future with confidence.”

During 2007, the company secured new client wins extending across 11 different industry verticals and increased its number of long-term contracts and offshore projects with an offshore facility in South Africa and a newly established German-speaking offshore centre in Egypt.

2007 was also a record-breaking year for SQS (Ireland), winning major onshore and offshore outsourcing deals and introducing new services, including Vista migration testing, requirements validation and SAP testing.

Clients in Ireland include Allied Irish Bank, Hibernian Insurance, Liberty IT (Belfast) and Meteor.

By Niall Byrne