Recruitment firm Job Solution Sweden reported revenue last week of SEK 19.2 million (€1.6 million), an increase of 22.5% over the same period a year ago.

For the full year period, the group reported revenue of SEK 73.7 million (€6.5 million), up 74.6% over the prior year.

Viktor Rönn, managing director at Job Solution, said, "We are now putting an end to a very eventful 2023. It has been challenging in many ways and a year in which we have put a lot of focus on the group's growth. During the year, we went from being six companies in the group, to ending the year with the acquisition of A-staffing Group Sweden AB and A-Talent Group Sweden AB, thus ending up with a total of 15 companies in the group including all subsidiaries.”

Rönn said the quarter was characterised by several investments, both in internal staff and legal costs in connection with the acquisition of A-staffing Group Sweden AB and A-Talent Group Sweden AB, but also by write-downs attributable to 2022 for less successful projects. The write-down is of a one-off nature, which does not affect operations going forward, he added.

“During the past year, we have acquired companies for just over SEK 80 million (€7.1 million),” Rönn added. “After a year that has been challenging for the industry, I still think that we have performed well based on the conditions that have existed. We end the year with a quarter we are absolutely not happy with. A quarter where we also have a lot of one-off costs and write-downs that reduce the result. Now that these costs have been taken, we look forward to a 2024 that will look completely different compared to 2023. We are already seeing how the market is starting to turn, and it will be super fun to be able to present our Q1 report in mid-May.”

In 2023, the group also acquired recruitment firm Oplana AB in May, also based in Sweden and in June the company announced that it had entered into an agreement with the owners of Avastar AB concerning the acquisition of 100% of the company’s shares. Avastar is a Swedish company that offers accounting services.

In October 2023, Loui Svan Steensen took over as new CEO of Job Solution Denmark ApS after Josef Nielsen departed the company. Meanwhile, Pontus Lindekrantz took office on 1 October as CEO of Job Solution Sweden Consulting AB.

Job Solution Sweden also separately announced that it entered into a non-binding letter of intent with the owner of ‘Serveoffice AB and Executive Partners Scandinavia AB’ regarding an acquisition of 100% of the shares in the companies. The companies are recruitment and consulting companies with a strong emphasis on the consulting business. The companies have a clear focus on economics and finance. 

Serveoffice has operated for over 30 years and has a strong market position in Stockholm. The companies have an estimated turnover for 2024 of approximately SEK 30 million (€2.6 million) and a margin of 10%.

The preliminary agreed purchase price on a cash and debt-free basis is estimated to amount to SEK 6 million (€535,738) and is intended to be paid through a combination of cash, reverses and shares in Job Solution. In addition, the parties have tentatively agreed that performance-based additional purchase prices will be paid out over a three-year period.

Rönn commented, “For about three quarters, we have had a very good dialogue with the owner of Serveoffice and Executive Partners and since the turn of the year we have had a very good negotiation. We have a consensus on what the transaction and the future should look like. With this declaration of intent, we begin a customary due diligence review. We have had a very transparent dialogue and have been open with each other from day one.”

“We start the due diligence process immediately and the parties will negotiate the terms of the share transfer agreement in parallel with the review. The ambition is to complete the deal in the next month so that we can take over the company on 1 April 2024."

Job Solution Sweden shares closed on Friday at SEK 25.60 (€2.28), down 2.29% on the day. The company has a market cap of SEK 124.02 million (€11.05 million).