SQS gains new orders as it focuses on higher margin clients

(ShareCast News) - SQS Software Quality Systems's annual profits were in line with expectations as the software firm focused on higher margin client engagements, while it gained new orders.In a trading update for the year ended 31 December 2016, the company said fixated on higher margin client engagements, particularly in the managed services and management consulting divisions, which, together with the affect of a weaker sterling, had some impact on revenue.The AIM-listed company said that digital economy continues to open up new opportunities as it positions itself as the end-to-end quality solutions partner of choice across markets.Recently the company secured orders on digital transformation programmes to be delivered over the next three years, including a €30m deal with a car manufacturer.It also agreed to new orders and extensions from public institutions in Europe worth €20m, a managed service contract with an insurance business worth €10m, and various multi-million dollar orders from US companies across major industries.The company ended the period with a net debt position of about €12m, in line with expectations.Chief executive Diederik Vos, said: "2016 has been a year of further progress for SQS as our consulting-led sales approach and focus on higher margin business have enabled us to improve the performance of our business."The US continues to open up some visible opportunities for the business and the digital economy is hugely exciting. As digital transformation plays an integral role in every business, SQS' intellectual property and technology-based solutions can be applicable to any company's strategy."He added that the company entered 2017 with confidence buoyed by recent sales wins while focused on making inroads in strategically important markets.Shares in SQS Software Quality Systems were down 1.2% to 615p at 0812 GMT.