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Sweden – Weak domestic market impairs Poolia’s Q3 results

24 October 2014

Swedish staffing company Poolia (POOLB: SS) reported revenue of SEK 163 million (€17.7 million) for the third quarter ending 30 September 2014, a decrease of -0.9% compared with SEK 164.5 million (€17.9 million) a year ago.

Operating profit for the period doubled to SEK 3.6 million (€391,567), up from SEK 1.8 million (€195,783). Net income rose by +11.8% to SEK 1.9 million (€206,660), compared with SEK 1.7 million (€184,906) in Q3 2013.

Morten Werner, CEO of Poolia, commented: “The third quarter is the years’ worst in terms of revenue from our Swedish operations. This is because temporary agency workers were on holiday and fewer were placed on contracts. [However] the cost of unplaced temporary agency workers is now down to an acceptable level.”

“Poolia’s German business continues to perform well… Even our Finnish operations performed well in the third quarter with growth of +50%, compared with the third quarter last year.”

“We are continuing to work to improve and streamline Poolia’s activities in Sweden. The savings programme, with the goal of reducing costs by SEK 15 million (€1.6 million) annually, is progressing according to plan. The final payment for the sale of Poolia UK was received in October 2014. Poolia’s goal of returning to a company of good profitability continues with high intensity,” Mr Werner concluded.

In February 2014, Poolia announced that it had sold its UK business to US-based recruitment firm Staffing 360 Solutions. The purchase price for the business was £500,000, plus an amount equal to the net asset value of the business at the date of completion.

Broken down geographically, revenue from the company’s Swedish operations fell by -15% to SEK 105.7 million (€11.5 million), down from SEK 123.9 million (€13.5 million) last year. The region reported an operating loss of SEK 2.2 million (€239,291), against an operating loss of SEK 600,000 (€65,261) in Q3 2013.

Poolia Germany achieved revenue during the third quarter of SEK 44.3 million (€4.8 million), an increase of +39% compared with SEK 31.9 million (€3.5 million) a year ago. Operating profit for the region more than doubled (+143.5%) to SEK 5.6 million (€609,103), up from SEK 2.3 million (€250,168) last year.       

Poolia Finland achieved revenue growth of +50%; rising from SEK 8.7 million (€946,286) in Q3 2013 to SEK 13 million (€1.4 million) in Q3 2014. Operating profit increased by +50% to SEK 300,000 (€32,630), against operating profit of SEK 200,000 (€21,754) last year.

In trading today, the company’s share price remained unchanged at SEK 9.30 (€1.01), a decrease of -22.5% compared with a year ago. Based on its current share price, the company has a market value of SEK 159.2 million (€17.3 million).