SEK 3,000,000 when fully implemented. We completed our first acquisition since 2017 with Base Service and Consulting GmbH, a leading provider of payroll and HR services within the German retail sector, providing a platform for further growth in Germany and Central Europe. New BPO contracts won as of 30th June 2021 and revenue from base represent an expected increase in total annual revenue for salaries of more than 10% over the next 12 months. During the quarter, we successfully completed the SEK 120,000,000 equity issue at SEK 60 per share with the purpose of financing further acquisitions. We paid a dividend of DKK 1 per share, altogether DKK 19,600,000 for 2020.
At the end of the quarter, cash and cash equivalents were SEK 212,000,000, up SEK 83,000,000 from last year. Taking a closer look at the figures quarter by quarter, consolidated revenue for Q2 amounted to 185 point €4,000,000 down from €198,400,000 in the same quarter last year. As already mentioned, the lower revenue compared to last year is mainly due to currency movements. COVID related temporary reductions within managed services in the Northern European region and significantly more revenue resulting from implementation projects than the same quarter last year. I will comment on this a couple of slides ahead when looking at managed services in more detail.
EBIT ended at SEK 11,400,000, slightly down from the same quarter last year. We continue optimizing our cost base as also exemplified through our FTE levels, decreasing 1.2% to 7 14 FT feet feet feet feet feet feet feet feet feet feet Feet Es. I will also cover the road map to our communicated 10% EBIT target later in the presentation. Our business model with long term agreements and recurring revenue is in these times one of the favorites among investors. We have offered software as a service, business process as a service and outsourcing delivery models since we were founded 21 years ago.
More than 90% of our revenue in managed services and around 55% of our revenue in professional services is referral. Delivering payroll and HR services based on one common IT platform, the Solaris People Hub, supported by local competent resources, has been key to our success and 20 years of uninterrupted growth. Our approximately 8 80 employees deliver services from 12 countries. In addition, we can deliver 250 plus countries through partners with our Peoplehub concept. Our short term aim is to deliver services with all solutions and people for all EU and European Economic Area Countries.
From the outset, our goal was to help customers reduce their direct process cost by 20% to 30% by outsourcing their payroll and HR processes to us, at the same time enabling them to operate seamlessly across borders. Triggered by COVID-nineteen. Large companies across the globe are reprioritizing their investments towards solutions that enable unified access to payroll and HR data for analytical purposes, digitization of workflows, reduction of cost and securing business continuity or business critical payroll. Working from anywhere has become the new normal, driving the need for fully digitized people processes. Even though we see many are delaying large investments needed projects to support working from anywhere and secure business continuity are being prioritized.
Team Solaris is extremely well positioned to support existing and new customers navigate and position themselves in this situation. Our innovative product and services portfolio, cover the whole payroll and HR value chain. Our customer base of medium and large sized customers is diverse in all our market facing countries. Our largest market unit is Germany, delivering 31% of our revenue. Germany and the U.
K. Are our markets with the largest potential. Poland and UK are our fastest growing market units. Poland has doubled revenue since our acquisition in 2017 and is now 100 people strong. However, we shall not forget that our potential in the Nordic is still launched.
If we were to achieve the same penetration in Sweden, Denmark and Finland as we have in Norway, we could double our total revenue. As we will discuss later, our recent signings showcase this potential. As communicated in May and closed now in the beginning August. We have acquired BASE Service and Consulting GmbH, a leading provider of payroll and related HR services to the retail industry in Germany. Base had revenue of €6,000,000 for the year ended 30 September 2020 and an EBITDA of around 18%.
We financed the transaction with cash. It is expected to be accretive already this year. The purchase price considered of an upfront payment and a performance based element. The deal joined 2 leading providers of payroll and HR services in Germany and significantly enhances Salari's presence and capability to serve the people intensive retail sector. BASE serves approximately 30,000 employees of numerous customers with footprint in Germany, Austria, Switzerland and France with a team of around 80 people located in Hagen near Dusseldorf, Germany.
The combination is a good match as we both have beat our delivery capability on SAP's leading payroll and HR solutions. This gives us critical mass and will over time allow us to utilize the scale of our platforms to offer new innovative solutions based on BASE is also delivering some accounting services that we will explore the potential of expanding to a new service line. The addition of the BASE team with their long experience in the demanding retail sector will increase our ability to serve this interesting customer segment. In addition to increasing our critical volume and presence in the retail industry, BASE will give us a new location close to many of our existing and potential new customers in the digital area. In total, this will make us more than 280 people strong in Germany and one of the leading players in payroll and HR outsourcing as well as related consulting services.
The BASE team has already displayed their competitiveness and ability to deliver organic growth by signing 2 new deals while we have been finalizing our agreements. Base will be fully consolidated from this August. So welcome to the Base team. Then let's look at our segments. As previously mentioned in managed services, we continue to see the impact of temporary lower volume of travel controls and other services resulting from COVID-nineteen related business activity, and volumes amounted to approximately 3,000,000 to 4,000,000 for the quarter.
Adjusted for the current movements, the revenue for the quarter of SEK 125,800,000 is similar compared to the same quarter last year. Keep in mind that most of the new signings from Q4 last year until today are still in the project phase and not recognize revenue before they are in production. In addition, Q2 in Q2, dollars 11,500,000 was deferred versus $3,100,000 in the same quarter last year, and Gunnar will come back to this in his part. Despite the low revenue, managed services continued improving their margins, delivering an EBIT of €16,100,000 for the quarter. Key drivers by implementing the Solaris 4.0 service delivery concept and various digitization initiatives.
As previously mentioned, we have signed a number of new outsourcing agreements for people who have BASE services that have an expected ARR of SEK 71,000,000 when fully implemented. We unfortunately have 2 customers leaving us such that adjusted for this churn, the net ARR effect is estimated to SEK 43,000,000. We hate losing good customers and we'll do what we can at the next turn to win back the with our new fully digitized solutions. In the previous quarters, we have continuously reported a strong pipeline. It was thus with great pleasure that we could continue our resigning streak from Q1 in Q2 for our Peoplehub platform based solutions.
In the quarter, we signed new long term customer agreements with, as previously mentioned, approximately €32,000,000 annual contract value and ARR when fully implemented. In addition to previously communicated groundbreaking agreement with German mobile phone operated Telefonica Deutschland O2 to provide fully outsourced payroll for the 8,200 German employees. We have won a number of significant deals during the quarter, including a 5 year agreement with existing customer, Felice Sherpa, that has increased the scope from single country payroll that we were providing in Norway to multi country payroll, including fully outsourced payroll services to their approximately 1,000 Grand Garden employees in Sweden. Add to this, we are implementing a comprehensive suite of SuccessFactors Base Services as their new global HR solution. Our new agreement with Nordic and Schoertrik to provide fully outsourced payroll to their Nordic operations is another demonstration of the value that we can deliver to companies in the financial services sector.
Delivering fully outsourced services based on our Peoplehub platform to KLAS, a producer of farm equipment in the UK is a good example on how we are able to gradually build presence in our new markets. A renewal and expansion of our agreement with industry Champion Siemens to provide outsourced payroll services to their approximately 8000 Nordic employees. This is another example of a long term relationship started in 2003 that is now expanded from covering Norway and Sweden to cover the whole Nordic with a multicountry solution fully integrated with the customer's global HR solution. As our pipeline is far from empty and continuously is being strengthened with new interesting opportunities, We expect the positive situation and new signing in all our markets to continue. As already mentioned, many new BPO contracts in the last three quarters have resulted in a significant amount of annual recurring revenue, which is still not reflected in our PIMM, but which will materialize in actual revenue going forward.
We understand that it is challenging to forecast the financials of these for many of you. And we now seek to better visualize our own estimate of this as seen on the following two graphs showing the bridging of ARR for managed services of SEK 439,000,000 in Q2 versus expected increase to SEK 550,000,000 when it will be implemented and how this will pan out over time. The annual value of contracts yet to go live for due June is about SEK 68,000,000 and net SEK 55,000,000 after churn of SEK 17,000,000. This additional revenue and base represent an increase in future revenue of estimated SEK 111,000,000. This additional recurring revenue will materialize during the next 12 to 18 months as shown in the above graph and will, when implemented, increase Solaris' total revenue to more than 10% over the next 12 months.
And let us take a closer look at professional services, our consulting practice. Adjusted for currency movements, professional services revenue very in line with the leverage last year with revenue of SEK 59,600,000. A positive development in Poland compensated for somewhat reduced revenues in Germany. EBIT levels were somewhat down to SEK 3,600,000 for the quarter. We made significant changes in our German professional services organization during the quarter, including introducing a flattened structure and a trainee program to build a new generation of resources.
This stabilized and improved the challenging resource situation with high turnover of consultants. We maintained our revenue levels and deliver on customer commitments through compensating with higher than normal user external consultants. In addition, we have implemented, as I previously mentioned, a trainee program to secure a constant inflow of resources. This is also temporary affecting the margins. In professional services, we see that application maintenance services or AMS helping customers maintain their payroll and HR systems, mostly on long term or subscription basis, continuing at more than 51% of the total revenue in Q2.
The AMS revenue stream proves particularly important in times as this when customers are looking to work with proven unknown suppliers for smaller projects with defined outcomes. Developing AMS services as a group while offering is a key focus area for our Professional Services Business Unit, and this is also a super farming ground for cloud and outsourcing projects, and we have seen that this works. So important to acknowledge when evaluating our professional services business is that contrary to many consulting businesses, around 51% to 60% of revenue is occurring. And as mentioned on the previous slide, this is a key contributor to that 82% of Q2 revenue in this segment came from customers that were also customers in Q2 last year. So with this, I hand over to our CFO, Gunnar Arnon, who will take you through the financial part of the presentation.
Thank you, Hans Petter. Revenue for the quarter was SEK 185,400,000 and the lower revenue compared to last year was mainly due to currency movements of approximately 11,000,000 and some volume reductions within managed services. Within professional services, a small reduction in revenue in Germany was offset by increased revenue in Royal Parliament. As mentioned by Hans Petter, There has been some temporary staffing issues in the consulting business in Germany that has had an impact on the revenue from professional services for the period. The EBIT of SEK 11,400,000 for the quarter was SEK 1,300,000 lower than last year, of which approximately 1,000,000 is currency related.
The EBIT and EBIT margin for the managed services in other Europe increased through improved margins and net utilization of resources, partly through the increased number of customer projects being implemented, which will result in revenue increase going forward. The improvements in other Europe was offset by lower EBIT in Germany, mainly due to the temporary use of consultants within professional services and the ramp up of new BPO contracts in managed services. We continue to target an EBIT margin of 10%, which will be achieved through scale, that is revenue growth and further efficiency improvements. As Peter will address this further in his outlook. As has been mentioned, a number of new BPO contracts has been, are being or will be implemented in the months ahead.
Hence, we have made significant investments in future revenue through these projects. In the Q2, 12,000,000 in project costs were capitalized versus 5,000,000 last year. And an SEK 11,400,000 in revenue was deferred in the same period versus SEK 3,100,000 last year. Total revenue deferred year to date was SEK 20,000,000 versus SEK 5,400,000 last year. This revenue will be recognized the contract period from the start of the regular service delivery.
Looking at some of the P and L items, lower total personnel costs compared to last year of SEK 14,400,000 is mainly due to additional personnel costs being capitalized on the customer contracts and currency changes. The increase in other operating expenses of SEK 8,700,000 is mainly due to M and A costs in the period of SEK 5,100,000 and the increased use of external consultants. Net financial income for the quarter was negative 12,100,000 compared to positive 19,800,000 last year. This includes an annualized currency loss of 7,300,000 on the Euro 35,000,000 bond loan and other currency denominated items. Last year, there was an unrealized gain on these items of 25,600,000.
This resulted in a net loss for the quarter of SEK 6,400,000 compared to a gain of SEK 22,400,000 last year. Onto the cash flow. During the quarter, the company paid a dividend of NOK1 per share and completed an equity issue at NOK 60 per share, which generated net proceeds of NOK 150,900,000. With a negative operating cash flow for the quarter of 3,400,000 contributed to by the cash settlement of expired restricted stock units for employees of approximately SEK 7,000,000. The cash balance at 30 June was SEK 212,000,000.
On the balance sheet, we see that the net interest bearing debt decreased from 242,400,000 at 31 March to 154,400,000 at 30 June, mainly due to the equity issue completed during the quarter. That concludes the financial section and I hand over to Ransper to present the outlook for Soliris.
Thank you, Gunnar. As previously mentioned, our ambition to deliver 10% EBIT has been communicated continuously since our acquisitions in 2017. When defining the new integrated organization in 2017, we established structure and staffing to handle the new combined entity and expected growth. Delivering on our 10% target was subject to growing our revenue past our of post acquisition. All our new geographies except Germany has delivered growth.
Poland, for example, has more than doubled in size and currently counts more than 100 employees. Germany, on the contrary, got an extra challenge when in addition to be integrated into the Solaris organization, helped to integrate the Sumarum organization and the German leg of the RUK organization, integrating 2 professional services organizations with different cultures and combining with a new Solaris culture was much more complex than anticipated. Looking at it in retrospect, I and we should have handled this differently and quicker. However, we have now all of this behind us. We are now fully integrated and working as one organization.
Coming from the Nordic, we were also naive about the time it would take to create excitement for our mobile first and digital solutions. If there is one aspect of COVID that has been positive for us and that now comes to show is that the whole world now aggressively pursue digitization of all their people processes. We see that our Peoplehub solutions, thus over the last 6 months, has gained significant traction in all our markets, also in Germany and our new geographies. Both our own employees and customers are excited. With our recent wins and secured ARR growth, we now have the road map and see the light in the tunnel to deliver the promised 10% on the basis our Q2 baseline and above subject to.
In our managed services business unit, adding the already contracted additional revenue of SEK111,000,000 coming from Base and the net ARR effect of contracts won without without recognized revenue in Q2, continue implementing Solaris 4.0 and finalize our IT key platform consolidation, resulting in an increased contribution from managed services of 2%, which is still short 2% of our target for this business unit. In our professional services business unit, grow revenues 5% and through additional capacity and price optimization, maintain existing utilization and improve the contribution from professional services with 2 0.4% from replacing external consultants with internal and reducing recruiting costs from a more stable workforce. At the same time, maintain the absolute level of our group and the regional overhead, which should be capable of running an organization when surpassing the SEK 1,000,000,000 in revenue mark. Thus, realizing additional growth within our outsourcing and people have based services, which is now well within reach, has the potential to improve this picture further. On organic growth has been an important element in developing Solaris into the company and capabilities that we currently represent.
As mentioned on my last slide, our acquisitions of Germany Sumarum and UK based rock in 2017 has transformed us from being a Nordic €100,000,000 per quarter company to a leading European player with approximately twice the revenue and a significant presence in the German and U. K. Markets. We are now operating under one common brand, common IT infrastructure and solutions. We have many of the leading global and regional organizations as customers.
We have a road map to reach our communicated 10% EBIT target that is well within reach as we continue scaling our solutions as reflected in our new signings and landmark deals. Integrating the acquisitions has taken time. With our recent improvements and wins, we have started harvesting the results of our hard work. As explained in our previous presentations, we have actively been pursuing non organic growth options for some time. Our prioritized focus is on companies that can either help us utilize our scale in existing markets or that can help us expand into the rest of the EU countries.
In terms of utilizing scale. This can either come from cost synergies or utilizing our platform infrastructure capacity to the fullest potential. As I had mentioned previously, the incremental cost of adding new customers on our platform is limited to additional license costs but less additional hardware and operational costs. As a second dimension, we are looking at additions to our portfolio HR technology, preferably solutions that are natural add ons to expand our leadership in the payroll and transactional HR space. In terms of size, we do prefer smaller, easier digestible deals.
Over the last two quarters, we have been involved in 4 structured processes and we have succeeded with BASE. With BASE, we were able to acquire a good company with excellent customers and an experienced team that delivered results. Pricing was acceptable. In all our other three cases, we were beaten on the finish line, outbitten by others with bigger appetite and deeper pockets. Unfortunately for us, we had invested time, energy and money, but at the end, we are satisfied that we maintain discipline and stay within our defined limits.
Continue our search for good candidates with the right characteristics and price that will support us in delivering on our growth ambitions and ability to serve customers. Succeeding with long term M and A based strategy required capital discipline and a clear path on value creation. With our recent infusion of capital, we should be able to acquire targets that will take us well past the NOK 1,000,000,000 and NOK 100,000,000 mark in revenue. Signals from the capital markets are very positive in terms of our ability to raise additional financing, including equity, bonds and debt if that becomes necessary for any potential larger transactions. Again, arriving at my last slide, let's sum up.
We continue our daily work on being a better version of ourselves compared to what we were yesterday, represented by our hashtag besting ourselves. We will continue our focus on creating satisfied customers at every customer touchpoint and journey. We also believe that happy employees is key to have happy customers. We will continue realizing our roadmap to 10% EBIT, adding more revenue with higher incremental margin, utilizing our fixed cost base and execute on further operative improvements. Our goal is to continue our growth streak and deliver our 21st year of continuous growth.
And as just mentioned on my previous slide, we continue looking for acquisition opportunities. This is key to meet our growth aspirations. We have 1 under our bed and are ready for more. With this, we open up for questions.
Yes. So we have an incoming question. Last quarter, you reported a coming churn of SEK 11,000,000. Now this figure has increased to SEK 28,000,000. Could you please comment on this high 3.5% churn level year to date?
Yes. It's we are using 2 customers. And it's, as I mentioned previously, unfortunate. And It's not really that much more that we can say about it other than we are compensating with adding on a lot of new customers so that our net growth will be maintained.
And if I could just add to that, I mean, There was one customer loss in the Q1 and then there was one customer lost in the second quarter, which was a fairly large customer, Which explains the increase in churn in the second quarter. Though this is still not reflected in the revenue figures. I mean, this will be reflected in Q4, which you also from the graph that Tal spent presented regarding the annual recurring revenue.
On that, we are not aware of any other customers leaving us in the near foreseeable future.
Next question. The expected revenue per employee served in the BPO signings year to date looks to be well below your current average. Is this correct?
No, not really. The pricing of the is signings that we have made recently should be in line with what we deliver otherwise.
Will Base be rebranded to Salaris?
For now, we will keep the brand and that's an evaluation that we will do together with the Base team as time moves. But we will integrate the BASE into our internal systems such that we can maintain the effective Finance Organization that we have in terms of consolidation and tracking financial results. And Base will also be integrated in our people systems that is both payroll and HR, both also from an effectiveness point of view, but it has also been key for us since inception to Also use all the solutions that we sell to customers ourselves. It's a great way for everyone to understand what we're selling to customers and experience that firsthand by using it themselves.
And a question relating to customer satisfaction. Now what is your customer Action Score and how has this score developed over the recent years?
I do not have that the latest results in front of me, but it has developed positively over time. But we still have ways to go there. And Delivering payroll services is not something that creates lots of excitement around. It's something where you normally only hear about when customers when there is an issue and little when everything works because it is expected to always work. But it's very key for us and it's also one of the key strategic initiatives that we have to measure customer satisfaction at every customer touch point and to work actively to improve it over time with with structured needs.
And I have a final question. Salaries did 2 acquisitions in 2017 that does not appear to have been very successful. What are your view on these acquisitions? How are they performing now? And how will the acquisition of BASE be different?
Yes. I mentioned that partially in the presentation. I think, yes, clearly, I think what has not turned out as we had hoped and expected with our 2017 acquisitions of Sumarum and Rock is that we had expected to generate more organic growth from acquisitions earlier. And as such, we have been in a more stable situation and in some places also contracting because We have consolidated, for example, in Germany to professional services organizations that has resulted in some consulting churn. However, we have learned from it.
And I think if Again, as I mentioned in my presentation, prior to the acquisition, Solaris was €100,000,000 NOK100 1,000,000 a quarter company or NOK400 1,000,000 a year company with the main access to the Nordic market. Now with acquisitions. We are 800 plus 1,000,000 company, double the size. And we are one of the leading European players. We have a solution that works well for much larger markets, 7 times the size of the market that we have.
So I think it's still We are very happy with what we have done. We wish that we could have come to where we are today quicker. But it's with many things. If you think it's too complicated, you end up not doing it. And we did it.
And now we're in an excellent position to harvest the results of the hard work that we have done over the last 3 years and utilize both the solutions and the very motivated organizations that we have in all our countries, the Nordics, Poland, Germany, UK, Ireland, India to then win new business for Salares and continue the growth Street that we have shown that we are able to generate in all our geographies over the last 6 months.
And that was the final question.
Okay. Thank you, Gunnar. Thank you for watching. And Contact us at irsalaris.com if you have any further questions or need support from us. Thanks a lot for your interest.