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Sweden – Dedicare reports record growth in Q1

23 April 2014

Sweden-based healthcare recruitment firm Dedicare AB (DEDI: SS) reported revenue of SEK 136 million (€14.9 million) for the three months ending 31 March 2014, a rise of +7% compared with SEK 126.9 million (€13.9 million) for the same period last year.

The company achieved an operating profit of SEK 4.8 million (€527,131), an increase of +66% from SEK 2.9 million (€318,475) in Q1 2013. Dedicare achieved a net profit of SEK 3.4 million (€373,384) for the quarter, up by +17% from SEK 2.9 million (€318,475) a year ago.

Stig Engcrantz, President and CEO of Dedicare, commented: “Group revenues are at their highest ever in a first quarter, amounting to SEK 136 million. New agreement and deals signed in the latter part of 2013 and during 2014 have resulted in better margins. Revenues are increasing and results improved during the first quarter.”

“According to our assessment, we grew in Sweden in line with the market during the first quarter of 2014. I believe that the debate in Sweden today is about private healthcare providers delivering effective care of high quality. Municipalities and counties have gradually learned to procure care of quality, not just the lowest price. We are now formulating our offering to our customers, based on the best price and not as we did before with the lowest price.”

“In both Norway and Sweden we are seeing increased demand for our services. In Norway we are continuing to grow and are increasing our market share. During the first quarter we signed two additional agreements with Bergen and Trondheim municipalities. These agreements allow us to operate in these markets but guarantee no volume of work. We are well positioned in Norway because we now have agreements with virtually all of the major municipalities,” Mr Engcrantz concluded.

Broken down by business segment and region, healthcare staffing in Sweden reported revenue of SEK 64.7 million (€7.1 million), a rise of +2% compared with SEK 63.4 million (€7 million) last year. Care staffing revenue in Sweden also grew by +7%, year-on-year, from SEK 14.4 million (€1.6 million) in Q1 2013 to SEK 15.4 million (€1.7 million) this year.

In Norway, healthcare staffing revenue rose by +10% to SEK 45.9 million (€5 million), up from SEK 41.9 million (€4.6 million) a year ago. Care staffing revenue rose to SEK 10 million (€1.1 million), an increase of +39% from SEK 7.2 million (€790,696) in Q1 2013.      

In trading today, despite the company’s positive performance, Dedicare’s share price fell by -6.6% to SEK 21.20 (€2.33), a drop of -2.1% compared with a year ago. Based on its current share price, the company has a market value of SEK 147.1 million (€16.2 million)