Work Service (WSE:WSE) the Polish staffing, RPO, and outsourcing company reported revenue of PLN 616 million (€139.3 million) for the third quarter of 2016 ending 30 September 2016. This was an increase of 12.2% compared with PLN 548.7 million (€129.8 million) during the same period last year.

Gross profit grew less strongly at just over 1% and net profit was 22% lower than the prior year which the company attributed to consolidating their business structures and executing operational restructuring plans in order to support growth markets.

Work Service also provided revenue for the nine months ended 30 September of PLN 1, 819 million (€411.3 million), which represents an increase of 19.22% in comparison with the corresponding period in 2015.

“Solid business foundation and good economic conditions on the labour market allowed us to achieve solid financial results and maintain developmental dynamics,” Maciej Witucki, President of the Management Board of Work Service S.A., said. “The group’s 9-month revenues increase by nearly 20%, while the sales profit by over 23% year by year. This is reflected in the strengthening of our position in the entire CEE region as well as in particular countries.”

“Currently we are number one not only in the region but also in Poland and in Hungary, where we have 25.8% and 21.7% market share in the personnel services market respectively,” said Maciej Witucki. “We operate in a very dynamic and prospective market. The forecasts show that by 2019 the value of the personnel services sector in Poland, Czech Republic, Slovakia and in Hungary will have increased by more than half, reaching the level of €4 billion. These are the countries that we currently operate in and would like to further develop. For that purpose for many months we have been undertaking restructuring activities within the group in order to better prepare ourselves for the upcoming challenges. We are consolidating our business structures and executing operational restructuring plans, which has an impact on generating additional costs that burden the operational results. The cumulated effects of the aforesaid undertakings will be seen already in 2017.”

In trading today, Work Service SA traded at PLN 10.40 (€2.35), down 0.29% on the day and 20.51% above the 52-week low of PLN 8.63 (€1.95) set on 20 May 2016. Based on its current share price the company has a market value of PLN 678.94 million (€153.5 million).