Nýherji hf. is a service company in information technology as well as the parent company of the group. The goal of the Nýherji team is to provide outstanding service and expertise for its clients.
The revenue of the company amounted to ISK 10,200 million, an increase of more than 9% between years, and profits were in line with projections.
The range of solutions provided by Nýherji is wide and covers most areas of information technology that aim at satisfying the needs of its clients. The solutions consist of those developed by the company itself as well as the adjustment of solutions from strong collaborating companies. Demand was good for the entire range of solutions offered by Nýherji throughout the year.
Nýherji has increasingly offered advice on software licences and software solutions for managers of marketing, safety and quality control. Demand for such solutions is brisk, including for Tealeaf and QRadar from IBM and Focal Quality Control. Sales of software, equipment and service contracts for ATMs were also strong. The increased emphasis on software solutions led to Nýherji being selected as the partner of the year by Microsoft for the first time.
In recent years, great emphasis has been placed upon further strengthening the service structure of Nýherji, with substantial investments in work processes, quality control and the service culture. In addition, investments have been made in new centralised operating infrastructure that is housed in the Verne Global data centre at Reykjanes. A large number of Nýherji’s clients now enjoy operational security and efficiency previously unknown in the Icelandic information technology environment.
Nýherji took over the operation of the information technology systems of Arion banki at the end of the fourth quarter, consisting of all the centralised infrastructure and systems, the core technology as well as the general technical on-site support services for the bank. As a result, more than twenty experts were transferred from Arion banki to Nýherji. Financial firms are currently looking for ways to streamline their operations, partly through outsourcing. Nýherji is in a good position to provide such services in an efficient and secure manner.
Sales of Lenovo PCs were brisk, as were sound and visual solutions for business and personal use during the year. Sales of Bose sound solutions also increased considerably.
The operations of Nýherji have been stable for the past three years, as the firm’s equity position has significantly strengthened. Despite a challenging operating environment ahead, in part because of contractual pay increases, we expect that the basic operation of the consolidated group will continue to be stable.
The operating prospects of the parent company of Nýherji are good.
Applicon is a Nordic consulting and service company with emphasis on software business solutions. Applicon places emphasis on sectors that use solutions from SAP, Calypso and Advent, along with our own software.
There are two Applicon companies, Applicon ehf. of Iceland and Applicon AB of Sweden. Great emphasis is being placed on co-operation between the companies in the development, sales and services of solutions for the Nordic market, in addition to co-operating closely with other companies within the group.
Applicon of Iceland specialises in consulting, services and development of business software. Revenue amounted to ISK 1,119 million, a similar result as in the previous year. Profits were well below expectations, primarily because of considerable investments in the development of human resource and pay software. At the same time, substantial launches of projects for new clients turned out to be costlier than anticipated, and the resulting revenue was delayed.
The projects and launchings of SAP HANA were successful, especially for the bank systems of Landshypotek and SBAB. Applicon is currently a leader in the Nordic countries in expertise of SAP HANA.
Applicon ehf. participated in several extensive sales projects both in Iceland and Sweden, and revenue from sales and consulting resulting therefrom will begin to come in in the early months of 2017.
Revenue is projected to increase moderately over the next several years, with profits improving markedly compared to last year.
The operations of Applicon AB í Sweden did well, and revenue as well as profits were on schedule. Revenue amounted to SEK 91 million, an increase of almost a quarter between years.
The core banking solutions from SAP and associated solutions from Applicon ehf. have been well received by Swedish financial firms. In addition to extensive services and projects for Landshypotek bank, a milestone agreement was reached last September on the sale and installation of a core bank system for SBAB Bank AB. Applicon will oversee the installation of the systems for the bank and link them to other systems as well as to the Swedish interbank payment system. This is a three-year project and will further buttress the operations built by Applicon in recent years as a leader in the installation, consulting and operation of international core banking solutions.
Following installation, Applicon AB will operate the software of the systems for SBAB and oversee the operation of the core banking system for two of the ten largest banks of Sweden, SBAB Bank and Landshypotek Bank. In addition, Applicon will provide clients with consulting and services in two other areas, i.e. Capital Markets and Leasing & Finance.
Prospects in all areas are good.
TM Software specialises in the production of its own software products and tailor-made solutions along with providing associated services and consulting.
Last year, thirty years have passed since the founding of Tölvumyndir, the forerunner of today’s TM Software. The company has grown and changed over these thirty years, and throughout, it has been a leader in software development in its area. Today, the company is working on the development of solutions for many of the largest businesses and institutions in the country. Amongst these are solutions for aviation and travel services, service websites for businesses and institutions, sales websites, charity websites as well as healthcare solutions in use by nearly all healthcare workers in the country.
The operations of the company did well, with revenue amounting to ISK 1,163 million, a 20% increase over the previous year. Profits for the year were good and exceeded projections.
TM Software introduced a new organisational chart at the beginning of the year that led to improved synergy between divisions and increased support for product development and innovation in the company’s main areas, such as healthcare, travel services and service websites.
One of the goals of increasing emphasis on innovation and product development is to increase the weight of product sales in the revenue of the company. For this purpose, it held a software design competition for the travel industry under the name of Travel Hackathon and regularly holds innovation days amongst the staff.
Prospects for TM Software are good.
The Tempo Software Company is developing time registration and project management systems for the JIRA System of Atlassian.
Tempo is developing solutions for time registration, project planning and project management sold on a subscription basis (SaaS) to nearly 10,000 clients in more than 100 countries. Revenue was close to USD 13 million and increased by 40% between years.
In spite of good profits, the strengthening of the ISK exchange rate had an adverse impact on operations. All revenue is in US dollars, whereas costs are in Icelandic krónur. The emphasis was therefore upon strengthening operations of Tempo abroad with the opening of an office in San Francisco and increasing the staff in Montreal. The company now has 95 employees, of which 20 are in Montreal and San Francisco.
In 2016, investments were made in the development of cloud computing infrastructure, which over the long term, will enable Tempo to offer solutions in new market areas and new sales platforms.
Last year, Nýherji hf. hired AGC Partners LLC as consultant in the preparation and possible sale of Tempo ehf. Further decisions on whether a sale takes place, when or how have not been taken at this time.
Strong growth of Tempo revenue is expected to continue.