Street Calls of the Week
Proact IT Group AB reported a 4.3% year-over-year decline in revenue for Q3 2025, with total revenue amounting to SEK 1.08 billion. Despite this, the company’s stock surged 9.93% pre-market after the earnings call, indicating positive investor sentiment. According to InvestingPro data, the company maintains strong fundamentals with a healthy Financial Health Score of 2.8, rated as "GOOD." The company’s diluted EPS stands at $0.68 for the last twelve months, with analysts forecasting $0.96 for fiscal year 2025.
Key Takeaways
- Revenue decreased by 4.3% year-over-year to SEK 1.08 billion.
- Stock price increased by 9.93% pre-market, reflecting positive investor sentiment.
- New cloud contracts worth SEK 248 million were signed, showing growth in service offerings.
- The company acquired Consular, a Danish data infrastructure firm, to bolster its portfolio.
- Proact IT Group received the NetApp Global Partner Innovation Award.
Company Performance
Proact IT Group’s overall performance in Q3 2025 showed a decline in revenue, largely due to a 9.8% decrease in system sales. However, service revenue saw a 2.6% increase, and annualized recurring revenue rose by 1.1% to SEK 1.72 billion. The company’s focus on cloud services, cybersecurity, and AI infrastructure is seen as a strategic move to counteract market challenges.
Financial Highlights
- Total Revenue: SEK 1.08 billion (4.3% decrease year-over-year)
- Adjusted EBITDA: SEK 76 million (7% margin)
- System Sales: SEK 555 million (9.8% decrease)
- Service Revenue: SEK 528 million (2.6% increase)
- Recurring Revenue: SEK 431 million
Market Reaction
Proact IT Group’s stock price rose by 9.93% in pre-market trading following the earnings announcement. This increase positions the stock closer to its 52-week high of SEK 144.8, up from a previous close of SEK 93.7. According to InvestingPro Fair Value analysis, the stock appears undervalued at current levels. The stock’s upward movement contrasts with the broader market trend, indicating investor confidence in the company’s strategic direction and growth potential in cloud services and cybersecurity. For investors interested in identifying similar opportunities, check out the Most Undervalued Stocks list.
Outlook & Guidance
Looking forward, Proact IT Group is targeting a 5% organic growth rate and aims for a long-term EBITDA margin of 8%. The company plans to continue investing in cloud and managed services while being cautious about immediate investments in AI infrastructure. The focus remains on improving performance in the Central and West regions and adapting the cost base to challenging markets. Notably, the company has maintained dividend payments for 19 consecutive years and has raised its dividend for 3 consecutive years, demonstrating strong commitment to shareholder returns despite market challenges.
Executive Commentary
CEO Magnus Lönn emphasized the value of data, stating, "Data has become the most precious thing that companies possess." He also highlighted the company’s expertise, saying, "We are super skilled in helping customers get value out of their data." Lönn acknowledged ongoing efforts, noting, "The work that we initiated will take some additional time to get it."
Risks and Challenges
- Market competition, particularly in the Nordic region, could impact growth.
- Economic challenges in Germany and the Netherlands present hurdles.
- The need to adapt the cost base in response to market conditions.
- Potential delays in realizing benefits from recent acquisitions and initiatives.
- Cautious approach to AI infrastructure investments may affect future growth.
Q&A
During the earnings call, analysts inquired about the significant increase in cloud order intake, which more than doubled year-over-year. Questions also focused on the UK market’s performance, driven by the BlakYaks acquisition and improved sales. Challenges in the German and Netherlands markets were discussed, with executives emphasizing a careful approach to mergers and acquisitions, prioritizing strategic fit.
Full transcript - Proact IT Group AB (PACT) Q3 2025:
Magnus Lönn, CEO, Proact IT Group AB: Good morning, everyone, and welcome. I’m Magnus Lönn, CEO of Proact IT Group AB, and I’m here to guide you through our Q3 report that we released early this morning. Together, I have Noora Jayasekara, our CFO, that will guide us through the financial details. I think we will do like this: I will start with a short introduction on Proact IT Group AB, which we are as a company, for you that might not have followed us earlier. We have a slight overview of the market that we are operating in. Then we dig into the quarterly highlights and what we have done since we had last conversations. Noora will guide us through our financial details, and then we’ll wrap up with a summary and questions for those to conclude the meeting today.
Moving over to Proact IT Group AB, we are a tech company founded in Sweden 30 years ago, and we are very super focused on helping our customers to secure their critical data and help them with their infrastructure when it comes to their IT environment. This is a very sort of specialized area, and we are very proud that we have been working with this for over 30 years and become the experts that we are today. If you think about this, there is not a single company that is operating today that doesn’t have a need of a solid foundation when it comes to critical infrastructure and tech IT infrastructure. This is exactly what we are working with.
As you can see on the picture here, we are located in 12 different countries, mainly in Northern Europe, and we are having around 4,000 customers that we are sort of helping on a daily basis with the competence and skill that we have. We have a turnover of around SEK 5 billion, and we have been stocklisted since 1999. I’m very glad to be leading around 1,200 employees and experts that are really passionate about the things that we are really good at. As I said in the beginning here, our specialty is data, and we are helping our customers protect the data, give advice around the data, and also how customers can sort of get value out of the data. It doesn’t really matter where the data is located; our expertise is to sort of guide them and see how we can help them.
As you can see on the graph here to the right, we are on a fantastic growth journey as a company. Over the last years, we have grown with almost 30%, and also our EBITDA is increasing. Roughly half of what we’re doing comes from recurring revenue, and this is an area that we focus more and more upon. From an operational standpoint, we are divided into four different business units, and these are also the ones that we are displaying and showing in our reports. You can see the performance. The red one here is Nordic and Baltics that consist of roughly half of the company’s revenue, and it’s by far our biggest business unit. Then we have Central, which consists of Germany and Czech, and then we have West, which is Netherlands and Belgium, and then we have UK as a standalone business unit.
This is also where we have located our four different service hubs. Everything we do, our customer can also buy that as a service from us, and this service is generated and constructed in our four different hubs that are located, one in each business unit. We have also worked a lot last year to sort of standardize our offerings. That means that we can deliver services across Europe, and that is one of our strengths to also create efficiency. This is sort of how we are sort of built and how we operate on a daily basis. We have four clear revenue streams that make up the result that we are doing, and they are all sort of interlinked and connect, and I will walk you through from left to right here. First of all, systems.
This is where we clearly help our customers giving advice and also helping them with how to design their data solutions. That means that we are taking responsibility, and we’re also delivering hardware and software to our customers to enable them to create a modern infrastructure. We are working with large and enterprise customers in this segment, and we’re working also with sort of the top leading vendors when it comes here. We are working with NetApp, Dell, Nvidia, and Commvault, among other partners here. This system business, and I want to highlight that because this is super important for you that follow Proact, is that we are doing quite large business around this, and the system business can be sort of quite volatile depending on which side of the quarter it comes.
That means when you compare Proact quarter to quarter, it can vary a lot when it comes to both revenue depending on when the system deal has been done. On every sort of system, we also provide and offer our customers our own support because we are really the experts in this, meaning that if a customer has bought something for us, then we are there to help them and provide them with guidance if they need any assistance. There is a very stickiness in our business. The support contracts are long. They are often three to five years. It’s recurring revenue. We get paid upfront, and then we sort of spread out the revenue over the years. This is a very good way for us to build a long-term relationship and connect our business with our own expertise and competence.
Many of the customers that we have have been with us for a very long time, almost like 30 years since we founded some of them. This is also a testament to our knowledge and that we are really working closely with our customers. Everything that we sell, we also can provide as a service, meaning that our customers don’t need to have the competence on their own. They don’t need to have the staff. Instead, we are taking care of that. This is what we call our managed cloud services. An example for that is that we can help our customers with the storage, the compute, network, disaster recovery, backup. Everything that aligns and consists of a modern infrastructure, we can help our customer on that. Of course, nothing of this could have been possible if we don’t have super skilled consultants that can help and advise our customers.
All these four business revenue streams really tie together in our business. There are some clear trends. Cybersecurity solutions, I think in my dialogues with customers, there is not a single customer that has this on their mind. Cloud, if you go back some years, cloud was the sort of the AI as of today, and nowadays this has been more and more commoditized. We at Proact are really good at this, and we can advise the customer where to put their data. We have also AI infrastructure. AI is now on top of everyone’s mind, and at the end of the day, it all starts with the data. This is where Proact is super skilled in. We are seeing more and more demand and also requests from our customers. Microsoft is also one of the biggest vendors that we are working with.
We have a lot of skilled people that are knowing Microsoft and how to help our customers to get value out of Microsoft’s products. This is the core foundation and drivers for us. Moving over, if I talk a little bit on the market and where we at Proact are operating. As you all know, in the digitalization that has happened over the last year, data amount and the amount of data that we as individuals and companies are generating is increasing basically exponentially. If you see it on the graph there, that’s sort of an estimate of the data amount generated. With the introduction now of AI, that data amount will continue to increase even further because AI needs a lot of data in order to do smart things, and you need to have a large amount of data amounts if you want to train an AI model.
The data that we as individuals and companies are generating will continue to grow. That, of course, also increases the demand of storage. You need to store the data somewhere, and you need to foremost also protect the data because in the digitalization of what is happening now, data has also become the most valuable, precious thing that companies possess. Hence, the cybersecurity issue has also caused a lot of worries. As you can see here, the growth in the cybersecurity market is very strongly connected with the amount of data that is generated. Data has become the most precious thing. If you think about this, Proact has been working with this for 30 years, and the best protection that you can have as a customer is to take a backup of your data because then if something happened, you can always restore your data.
That is what we are really good at in advising our customers to build a solid and robust and resilient environment so that if something happens, or I would rather say when something happens, because this is a very challenging situation for all of our customers, you can recover and do that in a good way. This is the environment that we in Proact are working with and that we are helping our customers. I would say that the growth of the data, cybersecurity, and AI is the continued lead indication, and Proact is in the middle. I feel very confident and very proud that the market and what we are working with makes Proact in a very good position.
I just want to highlight this because, I mean, sometimes it could be a little bit abstract what we’re doing, but basically, this picture can resonate into every company that is available today. Every company needs some sort of data storage, and that is the blue part here. Proact, our experts in this, we can help our customer even if it’s on-prem or if the customer has a private cloud or a public cloud. It doesn’t really matter. We can be there to help them. As you see in the yellow part here, as it is right now, AI is something that every company would like to try and experiment. In order to do that, you need to have the blue part here in place because otherwise, you can’t make any sense of it.
If you are into development, you need to work in a modern way, and cloud technology and containers is a very efficient way to develop software. This is what Proact has been working with for a long time. We have dedicated people like the company BlakYaks Ltd and Consular, that’s part of the Proact family, that are experts in this. At the end of the day, as I said in the beginning, cybersecurity, data protection, and backup & recovery, that is the key thing that every company and every board member has on top of their agenda. As you see to the right here, this is to illustrate that we can deliver this as a service, we can deliver this as a technology only, and we can provide our support. This sort of business model that our customers have, we are very flexible, and we can adapt to that.
I think that is also a strength of Proact when we looked into it. This connects to our four different revenue streams I showed earlier. Now, moving into the quarterly highlights. This morning, we released our Q3 report, and we ended up in revenue with almost SEK 1.1 billion. It’s almost in line with the year before, slightly below. If you recall the first quarter we had, I think Q3 for us made a really good execution. We had a performance issue in Central and West foremost, but although that, we were able to sort of land on this revenue. When it comes to the result, we landed on SEK 76 million, and that resulted in an EBITDA margin of around 7%. This is also in line with last year. I’m also very glad to announce that we are slightly increasing our recurring revenue.
That is an important measure for us because that’s sort of a focus area that we’re working with a lot. Another key highlight for us during the quarter is that we sold our managed cloud services, and we measure that in the sort of the total contract value, which was one of the highest that we have had. We ended up with a TCV of almost SEK 250 million. If we compare that to last year, we were around SEK 100 million. I think that was a very good execution of our sales team and the focus that we have put into this. Another really proud thing is that we, as a company, were rewarded a Global Partner Innovation Award by NetApp, which is a global company.
We were selected as the partner of the year when it comes to the work we have done on innovation around how to improve cybersecurity and resilience with the help of NetApp’s technology. As I said in the beginning, that is a key thing that every customer is working and thinking about. I would say that being world-class in this is truly a testament to the sort of competence that we possess and that we have in the position that we in Proact have. That’s very proud of, and I’m glad to share that with every member of the Proact family. Even more happy is that we announced that we are extending the Proact family. We signed an agreement to acquire Consular, which is a Danish company that is super strong when it comes to data infrastructure and cloud solutions in the Nordic market.
This is a really good addition to our Nordic business units. I’m really glad that we were able to get to this position. To conclude here, and that’s also in the report, you see that a lot of focus during the quarter has also been to execute the sort of cost efficiency that we talked about in the previous quarter. We have come far, and we are not at all satisfied with the sort of performance in some of our business units, mainly Central and West, but we are onto it. As I said earlier, it will take an additional quarter until we see the sort of impact, but one step at a time, and I think we are sort of slowly in the right direction. With that, I think we summarized the Q3 highlights. Noora, could you sort of over to you and guide us through the financial details?
Noora Jayasekara, CFO, Proact IT Group AB: Thank you, Magnus, and hi, everyone. Turning to this slide nine, as mentioned, total revenue amounted to SEK 1.08 billion, a decrease of 4.3% compared to the same quarter last year. The decline reflects weaker system sales, albeit strong comparatives in Nordic and Baltics last year, and challenging market conditions in West and Central, partly offset by higher revenue in the UK. Organically, total revenue declined by 4.5%. System sales amounted to SEK 555 million, corresponding to a decrease of 9.8%, with lower volumes across all regions. Organically, system sales declined by 7.9%. Nordic and Baltics were affected by large prior-year deals, while softer markets impacted West and Central. Service revenue increased by 2.6% to SEK 528 million, supported by strong consulting and cloud services in Nordic and Baltics, and higher revenue in the UK, partly offset by the weaker sales in West and Central.
Organically, service revenue declined marginally by 0.1%. On the next slide, as Magnus mentioned, new cloud contracts were signed at a total value of SEK 248 million, with an average contract length of three to five years. As mentioned before, we will start delivering these. It normally takes somewhere between three and six months to onboard a customer. These contracts will start generating revenue quite soon. Revenue from cloud services decreased by 1% to SEK 269 million, mainly explained by higher customer turnover in West and Central. Nordic and Baltics and the UK showed positive development but were unable to fully compensate for the decline. Recurring revenue, defined as revenue from cloud and support services, amounted to SEK 431 million, mainly driven by an increase in support services. Annualized recurring revenue amounted to SEK 1.72 billion.
This corresponds to an increase of 1.1% compared with the previous year, also driven by strong growth in support services. Adjusted EBITDA amounted to SEK 76 million, a decrease of 3.9%, mainly explained by lower revenues. The adjusted EBITDA margin remained flat at 7%. Earnings were negatively affected by lower sales volumes in Nordic and Baltics and continued market challenges in West and Central. As Magnus also mentioned, we’ve taken strong measures to reverse the negative trend, both through initiatives to increase revenue and through the group-wide cost efficiency initiatives to strengthen profitability, as earlier mentioned. Particular focus on West and Central, where the challenges are the greatest. These measures will keep effect over time. Further to cash flow and net cash position on this slide. During the third quarter, cash flow amounted to -SEK 122 million, of which -SEK 28 million was from operating activities.
Cash flow from investing activities amounted to SEK 0 million as a result of a positive effect from adjustments to acquisitions and naturally negative from investments in tangible and intangible assets. Cash flow from financing activities totaled -SEK 93 million, mainly related to amortization of lease liabilities of -SEK 29 million and repurchase of owned shares of -SEK 52 million. The net cash reduction for the first nine months of the year was mainly driven by M&A, share repurchases, and lease amortization. Operating cash flow was negatively impacted by working capital movements related to timing effects in this quarter and tougher payment terms. Now some details from our business units, starting with Nordic and Baltics on this slide. Revenue in Nordic and Baltics decreased by 4.4% to SEK 541 million, mainly driven by lower system sales compared to a strong quarter last year. Organically, revenue decreased by 3.2%.
This was partially compensated by solid growth in the services business, both support and cloud services. Adjusted EBITDA decreased by 13% to SEK 56 million as a result of the decline in system sales. The adjusted EBITDA margin decreased to 10.3%, still being well above the group target of 8%. Further to business unit UK on this slide. Revenue in the UK increased by 19% to SEK 203 million, driven by strong performance in both systems and services. Organic revenue growth was 8.4%. BlakYaks Ltd contributed positively to revenue with SEK 28 million. Adjusted EBITDA increased to SEK 15.9 million, corresponding to a margin of 7.8%. BlakYaks Ltd contributed SEK 12 million to adjusted EBITDA with an exceptionally strong margin of 43%. On the next slide, business unit West. Revenue in West decreased by 18.6% to SEK 176 million, reflecting lower activity in the system sales.
Also, the earlier churn in service businesses, as well as resource challenges within consulting services, affect revenue negatively. Adjusted EBITDA amounted to SEK 0.6 million, corresponding to a margin of 0.3%. As mentioned, targeted measures are underway to reverse the trend, and we are seeing early signs of gradual recovery. Lastly, business unit Central on this slide. Revenue in Central decreased by 9.5% to SEK 190 million due to a decline in both the system and services business, where new contracts did not fully offset previous customer churn in cloud services. On the positive side, support revenue increased by 2%. Adjusted EBITDA amounted to negative SEK 2.4 million, corresponding to a margin of negative 1.2%. The decline is linked to lower sales and a cost base not yet fully adapted to the current business climate. Also here, targeted measures are underway, and we are seeing early indications of improvement.
On the next slide, our financial targets. As mentioned, we had an organic decline this quarter, albeit compared to a strong quarter last year. Measured as last 12 months, sales growth is now at -2.6%. Hence, we still have a way to go to reaching our target of 5% organic growth and an additional 5% growth through acquisitions. Adjusted EBITDA margin last 12 months was 6.6%. As already mentioned, we have taken action to move back towards the long-term target of 8%. We are in a net debt position at the end of this quarter, being still well below the set leverage level of two times EBITDA. ROCE is at 14.1% for the last 12 months, where the decline is mainly attributed to the lower results. This concludes the financial overview of the third quarter, and back to you, Magnus, for some final comments.
Magnus Lönn, CEO, Proact IT Group AB: Thank you, Noora. To conclude here and do the summary, during the quarter, we have been focusing on the cost efficiency program. We are now also taking the next step because, as you see here, we still are not at all satisfied when it comes to the performance in some of our business units. That will be a key focus area for us ongoing. We are strengthening our profitability in some of the areas. I’m also glad to see that the UK are going in the right step. You all know that it’s a little bit uncertain when it comes to sort of geopolitics and things like that.
That can change, but I would say that, in short, my gut feeling is that when it comes to Europe, we have a good position since a lot of our customers are really looking into how and what they will do in the future and making sure that they connect the data. It’s also good to see that we are continuing doing well in the Nordic and Baltics, and that I’m also, once again, really glad to sort of welcome Consular into the Proact family. I just want to highlight that the work that we initiated, it will take some additional time to get it. I would say that, to summarize the quarter, is that we have done what we said earlier and executed upon that, and that is what we will continue to focus upon in the coming quarter. I’m really looking forward to giving you more updates.
I think it’s time to open up for some questions. Daniel, please.
Yes, there we go. Thank you very much, Magnus and Noora. A couple of questions. You highlighted the cloud order intake here, SEK 248 million, more than doubling year over year. Any larger deals standing out there, or is it only a better broad market picture and demand for cloud services? Also, geographically, what was driving that?
Yeah, I mean, we had, as I said, a really good quarter when it comes to our managed cloud services sales. We had some larger deals, actually, and that is also really glad in both Germany and Netherlands. That is, of course, a good strong because, as you have heard me talk about earlier, focus on sales is key. That is what has happened during the quarter here.
Were there any deals that you would consider to be of kind of one-off character, so that we shouldn’t extrapolate this level into the coming quarters, or do you see an underlying better demand situation for these services?
I think the market challenges when it comes to financial in both Germany and the Netherlands remain a little bit challenging. I would expect to be a little bit more careful around that. The key focus for us now is to continue the work and also maybe narrow down our services and also get another grip on the cost situation. That is what you should expect going forward.
Yeah, that’s clear. When we look at cloud revenues, they were down some 1-2% here organically in Q3 due to the recent quarter’s cloud order intake. With this quarter’s good order intake, I guess that the outlook for 2026 looks quite good for cloud revenue growth to turn positive. Is that a fair assumption?
It is, but you should also take into consideration that onboarding some of our larger customers may take a while. You should also expect that it will take some time to translate into the annual recurring revenue.
Okay, that’s clear. That’s fair. A question on the Nordics: how do you see that market as a whole developing in terms of demand and growth ahead? Is it a competitive market? Is it getting slightly better or slightly weaker?
I mean, I think the market is really competitive. I think in the Nordic market, we have a really good position, but we are also quite narrow in what we are doing. I’m really glad that we, during the quarter here, signed an agreement with Consular because that will give us a much better position in Denmark. We will also sort of continue and expand. We are for sure seeing the underlying market need is for sure there. You read in the newspapers, so there is also a lot of cost focus, especially in Sweden and in some of the other Nordic countries. That, of course, is a sort of a blocker from investments at some of our customers.
I understand. In the UK here, it looks like BlakYaks is growing nicely in 2025, contributing with more revenues than when you announced the acquisition earlier this year. Is that the main driver in the UK division, or do you see a broad-based solid UK market as well?
I mean, that’s a super good question, Daniel. BlakYaks Ltd, as you’ve seen, I’m really impressed about their performance. Also, as I said earlier, they are really experts in their specific need. That also clearly demonstrates that our customer is really looking for the help, and they also appreciate the value that they get out of BlakYaks Ltd. That is the position that we should be in. This quarter, we have seen the underlying business in the UK. We have seen performance improvements, and that is related to the better sales and cost control. In combination with BlakYaks Ltd and the underlying business, that is a really positive sign. Now we just need to repeat that quarter after quarter, and then I will be happy.
Wonderful. The final question here on M&A opportunities. You mentioned Consular, that’s a NetApp partner in the Nordics. Are there lots of more M&A opportunities within the NetApp partner landscape in the Nordics or UK in particular? How fragmented is this space really?
I would say it varies a lot when it comes to the geographical market. UK, as an example, is a really competitive market. There are some large players there that are quite dominant. When it comes to M&A, we are extremely picky. For us, it’s super important that our M&A fits into our portfolio and so forth. As you know, we have a clear M&A agenda as well, and we want to grow as part of our strategy. I have been very clear that we should grow in the business units where we have a good home, meaning good performance, because then it’s much easier to handle and take care of an M&A. For now, that means UK and the Nordics. I’m also glad that we’re doing this quarter executed on the Consular.
Yeah, no, that’s clear. That’s all for me. Thank you very much.
I see we got some questions maybe in the chat here. What is the cause of the decline in Central and in West, new competitors? That’s a good question, Lena. I’ll take Central as a start. Germany, as you all know, is struggling when it comes to finance. That creates a really tough business climate to operate in. Often, when there is a tough climate, there is a race to zero when it comes to margin. Proact is not a sort of low-margin company, meaning that we highly pressure the value that we provide our customers. In Germany, we have had a lot of customer churn, and that explains the sort of revenue drop. Also, historically, we have maybe had too much focus internally on our integration issues when we come to our acquisitions.
This we have sorted out, and we also changed the way of how we’re dealing with acquisitions, that we are now instead creating a better sales focus. In Germany, we have not been good enough to adapt our cost structure compared to the churn and things like that. That is something that we have been working with during the quarter, and as we said, now we are looking into it even further. In the Netherlands, it is a little bit more consultative, and when it comes to challenging markets, often the consultancy business is the one that hits the most. Once again, we have not really been good and fast enough to compensate our cost structure. That is the reason why we are not in the performance as we should be in both Central and West.
I and the full management are fully aware of it, and I am also very proud of the members in our staff that are really committed in working on resolving this. I also got the question around the AI boom. Why aren’t you growing? That is also a very good question. I think there is a lot of talk around AI, and there is very much boom around it. If you really scratch the surface and dig into the numbers, a lot of the investment is made by Microsoft, Amazon, and Google themselves. They are building up enormous infrastructure when it comes to AI and things like that. When it comes and translates to private customers and public customers, they are in the growth journey.
I would say that investment will come over time, but I do not expect that we as a company will see the same growth impact that you can see on some of the reports. You really need to sort of scratch the surface a little bit to be a little bit more nuanced when it comes to the growth here. The only thing I can say around the AI boom is that all the customers, they are seeing an increased need of data storage, and that is by far our core business. I got the question here, how do you foresee any positive increase in business in relation to coming these two regulations? That is a super good question. We are working on a daily basis with a lot of customers because many of them are related and working a lot around this.
We can help customers when it comes to services, and we can also help them build a resilient infrastructure. That is what we will see. I got the question from Ole Bragborn here. Net finance items amounted to -90 million SEK compared to 3.3 million SEK last year. What is the reason for that? Maybe Noora, that’s a question for you. You want to highlight?
Noora Jayasekara, CFO, Proact IT Group AB: Yes, that is mainly driven by FX effects in the quarter, unfortunately. Swedish krona is not working to our advance.
Magnus Lönn, CEO, Proact IT Group AB: Yeah.
Noora Jayasekara, CFO, Proact IT Group AB: There is also one hand raised, Magnus.
Magnus Lönn, CEO, Proact IT Group AB: Sorry, please. Paul.
Hi, good morning.
Hi, good morning.
Yes, I was wondering, in the UK, besides the BlakYaks Ltd acquisition that has been impacting revenue positively, what is driving such a good demand for systems and services in the country compared to other markets?
We have been in place in the UK for a very long time. We are sort of well recognized for the competence that we possess. We have long-term customer relationships, and we have, during the quarter here, or sorry, the quarter, the last year, we have had a lot of focus on our sales capability and be even better in telling our story here. I would say that is the sort of main drivers here.
Thank you.
I would like to thank you all for attending this morning meeting here. As I said, we are continuing on our journey, and I’m really looking forward to talking to you more in the coming quarters. All the best. Have a great continued Friday, and talk to you soon.
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