Work Service Capital Group (WSE:WSE) the Polish staffing, RPO, and outsourcing company reported revenue of PLN 1.57 billion (€365.5 million) for the first nine months of 2018, an increase of 0.6% compared with the same period last year.

The slight revenue growth during the first nine months was driven mainly on the back of growth in the group’s Polish and Hungarian businesses. Revenue during the period was negatively impacted by the group’s restructuring process as well as performance in its German market by contracts carried out by the Work Express Group (cross-border exchange of employees). Both business units underwent business restructuring during the period which impacted its results. Non-cash write-offs and restructuring costs during the period also had an impact on profits for the group.

Earlier this month, the group completed the sale of Exact Systems, which was sold to its founders and managers Paweł Gos and Lesław Walaszczyk. Both were previously minority shareholders of Exact Systems. As part of the transaction, Work Service also sold Exact Systems’ German business (Exact Systems GmbH). Work Service said it would allocate part of the proceeds from the transaction, PLN 104 million (€24.2 million), for the repayment of part of the debt towards the consortium of banks financing Work Service.

During the period, Work Service also announced that it would sell its subsidiary Hungary-based Prohuman Group. The group acquired Prohuman in 2013. Prohuman, founded in 2004, provides comprehensive HR services in the areas of temporary and permanent placement, consulting and outsourcing. The sale would help in overcoming the group’s indebtedness.

On 16 October 2018 Piotr Ambrozowicz resigned from his role as Vice President, Management Board of Work Service S.A.

Looking ahead, the company said it is in the process of implementing the group's development strategy, which aims to increase profitability and further significant debt reduction.

“Successively implementing the announced development strategy, we strive for a new business model that will be based mainly on low-cost and sustainable operations in Poland,” CEO of Work Service, Maciej Witucki, said. “Last year, we successfully sold IT Kontrakt, and at the turn of 2017/2018 we disinvested the Russian assets of ProService. At the beginning of November we completed the sale process of Exact Systems. We intend to finalise the planned sale of shares in the Hungarian Prohuman Group in the next 18 months. The funds obtained from this transaction will be earmarked for minimizing indebtedness and liabilities to shareholders of minority subsidiaries.”

As of last trade, Work Service traded at PLN 1.20 (€0.28), up 2.56% on the day and 87.50% above the 52 week low of PLN 0.64 (€0.15) set on 2 October 2018. Based on its current share price the company has a market value of PLN 78.11 million (€18.2 million).