Record-strong pipeline, offshoring on track
Zalaris' Q2/16 revenues were up 3.1% to NOK 95
million, with EBIT margin at 7.5%. The company served
more than 200,000 client employees at the end of June
- a key milestone. Stronger pipeline of new
opportunities.
Zalaris, a leading provider of payroll and HR
services, delivered solid results in Q2/16 with
continued growth and stable margins. Sales increased
3.1% to NOK 95.3 million in Q2/16 from Q2/15, with a
corresponding EBIT of NOK 7.1 million (7.5%) for the
period.
"We continued to strengthen our leading position in
the market throughout the first half of 2016. Our
results prove our ability to deliver continued growth
despite a somewhat slower market", says Hans-Petter
Mellerud, Zalaris' CEO and founder.
In Q2, Zalaris finalized agreements for the provision
of payroll cloud services with Scandinavian Airlines
in Sweden and a Leading Electronics Utility Company,
with service deliveries scheduled to start in Q1/17.
In total, this will bring approximately 6,000 new
employees onto our platform already utilized by some
of the largest companies in the Nordic region, Baltics
and Poland. The total number of employees covered by
Zalaris solutions was 5.6% higher in Q2/16 vs
Q2/15.
"Zalaris' operations now serve more than 200,000
employees today, a key milestone for the company.
Interest remains high in Zalaris services,
contributing to an increased pipeline in terms of both
the number of potential deals and annual contract
value", says Hans-Petter Mellerud.
Revenues are shifting towards cloud services in the
quarter, which now represent 6.3% of group revenues
(0.8%). The trend is continuing. While its relative
share is decreasing, HR Outsourcing remains the
largest business segment, accounting for 91% of group
revenues.
"Clients that opt for cloud services solutions for
their HR and payroll needs, are boosting income to
Zalaris' Cloud services segment. This is supporting
our further growth", says Mellerud.
Zalaris' Chennai-based service center provides many
advantages and represented in Q2/16 almost 17% of the
company's total service and support hours. The strong
efforts on the Chennai office support increasing
margins.
"The shift towards increased production in Chennai
continues with full force, and full margin effect is
expected in Q2/17. The realized savings will be
reinvested into improved services and growth-related
activities", Mellerud comments.
Contact
Hans-Petter Mellerud, CEO and founder
Mobile: +47 928 97 276
E-mail: hans-petter.mellerud@zalaris.com
Nina Stemshaug, CFO
Mobile: +47 982 60 394
E-mail: nina.stemshaug@zalaris.com
About Zalaris
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 and Sweden, including local-language
service centers with extensive expertise in HR-
related laws and regulations. Learn more about
Zalaris at www.zalaris.com