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Sweden – Dedicare reports record Q3 growth

24 October 2014

Swedish healthcare staffing company Dedicare AB (DEDI: SS) reported revenue for the third quarter ending 30 September 2014 of SEK 144.8 million (€15.4 million), an increase of +19.9% compared with SEK 120.8 million (€13.1 million) during the same period last year.

In the company’s Q2 2014 financial statement, Mr Engcrantz commented that Q2 revenue growth of +11% to SEK 127.4 million (€13.9 million) was the highest revenue ever reported by Dedicare during a second quarter. Rival Swedish healthcare staffing firm NGS Group yesterday also reported strong growth in its Swedish healthcare staffing business, suggesting sustained improvement in that market.

Operating profit for the period rose by +88.1% from SEK 6.7 million (€728,749) last year to SEK 12.6 million (€1.4 million) this year. Net income in Q3 2014 was SEK 10.7 million (€1.2 million), nearly doubled (+98.1%) the net income of SEK 5.4 million (€587,350) a year ago.

Stig Engcrantz, CEO of Dedicare, commented: “This marks the highest sales in a single quarter in the history of the company. Operating margin was 8.7%, which is significantly better than in 2013 and in previous quarters this year. Operating profit amounted to €12.6 million, which was significantly better than the same period in 2013. Revenue increased and earnings improved in the third quarter, which was primarily due to new contracts signed in the latter part of 2013 and following better margins this year.”

Revenue from healthcare staffing rose by +19.4% to SEK 134.8 million (€14.7 million) between July and September 2014, up from SEK 112.9 million (€12.3 million) during the same period last year. The Swedish healthcare staffing market grew by +23.1% to SEK 71 million (€7.7 million), while revenue from Norway rose by +15.6% to SEK 63.8 million (€6.9 million).

Dedicare’s care staffing business, which only operates in Norway, reported revenue growth of +26.6% to SEK 10 million (€1.1 million), up from SEK 7.9 million (€859,271) a year ago. The company’s Swedish care business, Dedicare Assistance, was sold in July 2014 to Swedish Personal Assistance for a total consideration of SEK 16.6 million (€1.8 million).

Investors responded positively to the company’s financial update, with Dedicare’s share price rising by +13.5% to SEK 26.10 (€2.84), an increase of +22.1% compared with a year ago. Based on its current share price, the company has a market value of SEK 178.2 million (€19.4 million).