3 Step IT Annual Report 2018 - Page 26



REPORT OF THE
BOARD OF DIRECTORS
OPERATING ENVIRONMENT
The business environment expanded gently in
2018, and the forecast is that GDP growth will
generally be at similar or slightly reduced levels
in 2019.
From a technology perspective, the IT device
market overall was flat, with smaller mobile
devices taking a larger proportion of the
total devices shipped. Business spending on
technology, in a mature market, was flat overall,
with some variation between countries.
In the Baltic States, the constraint on our
business is the limited appetite for lending for
technology investments. We believe this will
continue to constrain business in 2019.
In this environment, we continued to focus
on our core IT-related portfolio, especially IT
devices. We acquired 642 new customers and
Group revenue for the year increased by 11.0%.
GDP forecasts and changes in the size of the IT device market by country
Denmark**
Finland
Norway
Sweden
Estonia
Latvia
Lithuania
UK
Malaysia
Singapore
2018
2019
2020
0.8
2.5
2.3
2.2
3.5
4.7
3.6
1.46
4.9
3.5
1.6
1.9
2.2
1.3
2.7
3.1
2.7
1.3
4.8
2.9
1.3
1.7
2.0
1.7
2.4
2.6
2.4
1.3
4.6
2.7
GROUP FINANCIAL OVERVIEW
The Group’s revenue grew from 608.6 million
euros in 2017 to 675.8 million euros in 2018.
Business in Finland grew 16.5 per cent to 337.8
million euros, while revenue from international
operations grew 6.1 per cent to 338.0 million
euros. Group EBITDA increased 14.5 per cent.
Development focused on a refresh of our asset
tool, with a new version due for release in 2019.
2018 R&D investments came to 1.7 million euros
(up from 0.75 million euros in 2017 and 0.37
million euros in 2016), equivalent to 3.7 per cent
of operational costs (1.5 per cent in 2017 and 0.9
per cent in 2016).
2018 vs 2017
size of the market*
107%
105%
100%
102%
106%
95%
99%
* Source is Gartner: Change in value of PC & laptop device shipments to business purchasers.
It does not produce a forecast for Baltic States.
** EU country forecasts from the European Commission, other country forecasts from the OECD
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