2007 – the best year in IBX history

So far, 2007 has been a great year for IBX. All signals indicate a strong annual result and most likely 2007 will be the best year in IBX history. During the first six months revenues increased by 28 percent compared to the corresponding period last year. The future for purchasing has never looked better.

Our prognosis, based on the outcome of the first six months of the year, indicates that our revenues for the full year will end up at approximately SEK 315 million (EUR 34 million). The same prognosis indicates a significant increase in profitability with an EBITDA of SEK 41 million (EUR 4.4 million), owing to a strong incease in profitability during the second half of the year.

Revenues per year 2003-2007

EBITDA per year 2003-2007

EUR 1,00 = SEK 9,20
Blue = Prognosis

In 2007, new contracts where signed with a number of important customers; SAS, GEA, Frische Paradise Edelfisch and PricewaterhouseCoopers. During the same period, Hilti and Dräger Medical renewed their contracts. In the fall of 2006, IBX acquired the German e-sourcing solution provider Portum, and the integration has been quicker and less expensive than expected. IBX has had some one time costs for the integration during 2007, affecting our profitability on a negative basis.

The company’s personnel have grown with 30 people during 2007, and we now have 80 purchasing consultants. With the o pening of our UK-office, IBX have seven offices throughout Europe, and we processes purchasing transactions in more than 81 countries worldwide.

Bright future for the supply chain management market

Hans Ahlinder, CEO, IBX Group AB

The market development of supply chain management, including procurement and sourcing, looks promising. The latest mar ket report from AMR Research, a Boston based research group, reports continued growth for the industry. For procurement and sourcing the prediction is that the market will grow with 8 percent per year through 2011. Our track record is far and above that market median, we’ve grown organically by nearly 30 percent annually since our inception.

The report confirms our strong belief that IBX will continue to grow with increased profitability, mainly due to our strong business model, and a growing demand among existing and potential customers. Sourcing and procurement are still unexploited processes to many customers and parts of the market are still unexplored.

With our efficient purchasing credo, IBX has led the way for the past seven years and we aim to continue do ing so in the future.

Hans Ahlinder, CEO IBX Group AB