Goods and services sold
Goods and services sold totalled ISK 14,845 million in 2019 versus ISK 13,809 million in 2018, rising 7.5% YoY excluding revenue from Tempo ehf. Tempo ehf. is no longer included in the Company's consolidated figures, but if Tempo's 2018 revenue is included, revenue was down 5.5%. Newly acquired units, Strikamerki, Tölvutek, Pax flow and Booking Factory, had a positive impact on revenue growth in the second half of 2019. There was growth in sales of end-user equipment and software, while revenue from managed services and infrastructure declined.
* The goods and services sold figure excludes Tempo ehf.
EBITDA was ISK 1,006 million (6.8%) for the full year 2019, versus ISK 633 million in 2018 if Tempo ehf. is excluded from the consolidated figures. If Tempo ehf. is included, EBITDA was ISK 1,128 million (7.2%) in 2018. In 2019, new IFRS standards entered into effect, positively impacting EBITDA by ISK 316 million for the year.
* 2019 EBITDA excludes Tempo ehf. and includes the impact from IFRS 16
Net profit was ISK 456 million in 2019, versus ISK 5,420 million in 2018. In 2018, the sum of ISK 5 billion was recorded under financial income due to the sale of a 55% stake in Tempo ehf.
The equity ratio stood at 57% at year-end 2019, versus 66% at year-end 2018. The equity ratio has been strong for the past two years and in line with the Company's target.
Working capital ratio
The working capital ratio stood at 1.34 at year-end 2019, down from 1.95 at year-end 2018. The working capital ratio is within the Company's targeted range.
Equity declined by ISK 1,378 million from year-end 2018. This is mainly due to a decrease in retained earnings stemming from a dividend payment of ISK 1 billion made in 2019.
Net debt/EBITDA is -0.3 for 2019 versus -2.0 in 2018. After the planned dividend payment of ISK 180 million following the AGM on 6 March 2020, the Company is expected to be closer to its target range of a net debt/EBITDA ratio between 0.5 and 2.
Investment in fixed assets totalled ISK 333 million in 2019, which is higher than in 2018, mainly due to the renewal of large equipment in the Company's hardware room. Investment in intangible assets declined significantly in 2019, due to Tempo's removal from the Company's consolidated 2019 figures. New operating units or businesses were acquired for ISK 338 million in 2019.
Cash from operations
Cash from operations stood at ISK 629 million at the end of 2019, as compared to ISK 1,217 million at year-end 2018. At year-end 2018, payables were unusually high and operating results in Q4 2018 were also exceptionally strong. Liabilities that had accumulated at year-end 2018 were repaid in 2019, with payables declining by ISK 533 million in 2019. Inventory also decreased by ISK 389 million during the year.