NGS Group AB (NGS:STO), a Stockholm, Sweden-based staffing firm operating in the education sector and healthcare sectors, reported revenue today of SEK 130.6 million (€11.3 million) for the second quarter ending 30 June 2023, down 9.8% when compared to the same period a year ago.

The group cited challenges in Sweden’s contracting landscape, particularly for nurses.

Revenue in staffing operations decreased during the second quarter compared to the previous year. Continued volume reduction in nursing staffing as a result of reduced demand mainly from Region Stockholm, a municipal body which is responsible for all publicly-financed healthcare and public transport in Stockholm County, is the main reason.

“We see that the regions' new restrictive purchasing strategy in combination with a poorer economy affects us negatively,” Erika Rönnquist Hoh, CEO, NGS Group, said. “The decrease in turnover is due to the fact that NGS's largest customer, the Region Stockholm, which accounts for over 30% of the group's revenue, introduced severe purchasing restrictions for the staffing of sick nurses in February 2023.”

“The new national staffing agreement for nurses is not yet ready,” Rönnquist said. “In its judgment, the Administrative Court has rejected the appeals. This judgment has in turn been reviewed by the Court of Appeal, which has sent the case back to the Administrative Court to investigate whether the judgment was correct in relation to formalities. We await final information.”

NGS Group also noted that its subsidiary Nurse Partner Norge AS has been awarded a new contract for the staffing of nurses for all public hospitals in Norway, which starts on 1 October.

The group also posted revenue during the H1 period January-June which amounted to SEK 271.9 million (€23.6 million), a decrease of 3.5%.

NGS Group shares last traded at SEK 8.88 (€0.77), down 10.48% on the day and 9.09% above its 52-week low of SEK 8.14 (€0.71), set on 29 June 2023. The company has a market cap of SEK 89.51 million (€7.79 million).