As the demand for PLM solutions increases, so do the varied requirements for technological consultancy. During 2017, this ongoing trend enabled Addnode Group to increase its annual revenues. The Addnode PLM division is one of the leading suppliers of PLM, with TECHNIA having established a strong, unified brand during a term of acquisitions.
The use of Product Lifecycle Management (PLM) is enjoying explosive growth, and with it there is an increased demand for PLM consulting. This has helped TECHNIA’s (formerly TechniaTranscat) parent group, Addnode, post record earnings in 2017. In line with the positive development, Jonas Gejer addressed in an interview with engineering.com, an American online magazine and repository of all things engineering, recent technology trends and what that means for technology consultancies and their customers.
“The need for qualified and experienced consultants has become more important than ever.” – Jonas Gejer, CEO TECHNIA
In total, Addnode’s annual revenues grew by 15 percent to 2.5 billion kronor during 2017, with EBITA at 212 million kronor. TECHNIA’s growing PLM services played a key part in delivering the strong result, partially as a consequence of TECHNIA’s acquisition in 2017 of UK-based PLM and engineering services specialist, Intrinsys. Addnode’s PLM division comprised of two brands TechniaTranscat and Intrinsys delivered revenue growth of 28% vs 2016 (both brand names are now merged to TECHNIA).
“The outcome of that purchase has been entirely positive and contributed to our overall performance, especially in the fourth quarter.” – Johan Andersson, CEO Addnode Group
In the fourth quarter, net revenues were up by 18 percent and EBITA was at a record 101 million. “That is the best result we’ve ever had for a single quarter, with profits per share increased by 46 percent compared to the same quarter in the previous year,” says Andersson.
TECHNIA is thriving in an era of increased reliance on the benefits PLM delivers to product developers. The industry as a whole, is going through big technological shifts and those radical changes have a big effect on the leading PLM and ERP consultancies. The technological developments are having a significant impact on the evolving product and service offerings related to PLM and Internet of Things (IoT).
To read the full article “Accenture, TechniaTranscat and the Changing Realities for PLM Service Providers“ on where the development is going and how big players like TECHNIA (formerly TechniaTranscat) and Accenture are affected, click here. To read Addnodes Year-End Report, click here.