SQS results for H1 hit by banking client loss

Listed quality testing service company said revenue decreased by 3.9% to €160.1m

SQS, the Cologne and London-listed software testing service provider, revealed on September 13 that the loss of a major banking client had contributed to the a decrease in revenues for the first half of 2017.

The lost contract was worth €7.0m, SQS said, leading to a like-for-like revenue decrease of 3.9% to €160.1m, compared to €166.6 in the first half of 2016 and €160.5m for the second half. At constant currencies, SQS revenue would have been €1.7m higher, at €161.8m. SQS did not disclose the name of the client it lost.

Diederik Vos, chief executive officer of SQS, remained upbeat, despite the setback. “Looking ahead, SQS expects H2 2017 revenues to be above H1, despite current currency headwinds,” he said. “With an exciting market, a good pipeline and an improving EBIT margin we have a great opportunity to continue growing the returns to shareholders.” The half term report stated that SQS has acquired new clients in H1 2017 with the expectation of further contracts in H2 2017.

Vos added: “As an increasing number of businesses seek to use smarter, more automated processes to boost operational efficiency, meet evolving regulatory standards and remain competitive, the company is well positioned to capitalise on favourable industry trends over the next few years.”

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