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Sweden – NGS Group focuses on Sweden due to sluggish Norwegian market

24 April 2014

Health and education recruitment firm NGS Group AB (NGS: SS) reported revenue of SEK 117 million (€12.9 million) for the first quarter, a rise of +95% compared with SEK 59.9 million (€6.6 million) for the same period last year.

The company reported a net profit for the period of SEK 8.5 million (€934,824), a year-on-year increase of +37% compared with SEK 6.2 million (€681,872) a year ago.

The company’s substantial growth can be attributed to its May 2013 acquisition of Nurse Partner Scandinavia AB, which increased NGS Group’s healthcare market share in Sweden and Norway.

Ingrid Nordlund, Managing Director of NGS Group, commented: “During the first quarter of the year we achieved organic growth of +21% compared with the same quarter in 2013, which I am very satisfied with. With Nurse Partner included, which was acquired in May 2013, we grew by +95% compared with the same quarter last year.”

“The Swedish market continues to develop very positively in both medical and nurse staffing. Organically we grew by +27% [in the region] compared with the same quarter in 2013. We have had a good influx of new contracts and our biggest challenge is constantly trying to attract more people to work with us.”

“The Norwegian market is being impacted by sluggishness in the market with deteriorating margins and deals not progressing at the same pace as we expected. Given the good market and the large number of contracts we have to look after, we have deliberately chosen to focus primarily on the Swedish part of the business,” Ms Nordlund added.

In trading today, the company’s share price fell by -9% to SEK 116 (€12.76), a rise of +82.6% compared with a year ago. Based on its current share price, the company has a market value of SEK 269 million (€29.6 million).