Dedicare (DEDI: SS), a Swedish staffing firm, reported revenue for the first quarter ending 31 March 2019 of SEK 184.2 million (€17.3 million), a decrease of 4.7% compared with the same period last year.

Dedicare attributed its lower revenue and profits in the first quarter to its operations in Sweden.

Krister Widström, CEO of Dedicare, said the company’s weakening results “is the same trend we have seen in recent quarters” which Dedicare says is due to increased competition and lack of staff consultants (nurses, doctors and social workers). This has led to lower margins due to higher wage costs and fees to the company’s staff consultants. The group also said it was partly because the market for social workers has decreased.

During the quarter, the company also established operations in Denmark. Dedicare reported increased costs for this expansion as well as its continuing expansion in Finland.

In Norway, the group saw improved results due to the company hiring more staff consultants as well as an increase in sales for both existing and new customers.

Dedicare now operates in three segments which are broken down below: Sweden, Norway and New Markets (Finland and Denmark).

Looking ahead the company said it is confident in the development of its New Markets in 2019. It added that it expects to grow in these markets mainly through acquisitions.

Earlier this month, Dedicare announced that CFO Eva Jonbacker stepped down from her role with Jenny Pizzignacco, a business development manager at Dedicare, taking over the role until a successor is found.

In trading yesterday, Dedicare shares closed at SEK 59.00 (€5.56), down 7.81% on the day but 25% above the 52 week low of SEK 47.20 (€4.44) set on 30 Nov 2018. Based on its current share price the company has a market value of SEK 450.78 million (€42.4 million).