Dedicare (DEDI: SS), a Swedish staffing firm, reported revenue for the fourth quarter ending 31 December 2017 of SEK 191.4 million (€19.4 million), an increase of 1.2% compared with the same period last year.

In Sweden, revenue stood at SEK 140.9 million (€14.3 million), steady compared to last year. During the quarter, the company stated that in Sweden there was an increase in the staffing of doctors but reduced staffing for nurses.

In Norway, revenues increased by 4.8% to SEK 50.5 million (€5.1 million), compared to last tear. This increase is attributable to an increase in nurse employment, according to Dedicare.

In November 2017, Stig Engcrantz resigned as CEO and Krister Widström was appointed as new CEO.

Meanwhile, the group saw its operating margin fall to 5.9% in Q4 2017 from 11.9% last year. The group stated that the worsening margin is partly due to the lack of staff for doctors, nurses and social workers “who forced wages and fees to our crew consultants, thus giving us lower margins but also increasing competition leading to increased price pressure on the market.”

Furthermore, during the fourth quarter, Dedicare has decided to discontinue operations in the subsidiaries Doctor24 in Skandinavien AB and Nurse24 AB. Both operations will be integrated into the group’s regular physician and nursing crew this year. Addtionally, Dedicare also decided to discontinue operations in its education recruitment subsidiary Acapedia AB because growth and profitability did not develop according to their expectations.

"In the fourth quarter, Dedicare showed declining growth and profitability deteriorated. The worsening operating margin is mainly due to the lack of doctors, nurses and social workers, as well as increased competition in the market that forced wages and fees to our crew consultants,” Widström said.

Widström optimistically added that “my assessment after the first months of the company is that we still have good opportunities to implement our overall vision of becoming one of Europe's leading staffing companies.”

The group also reported full year revenue of SEK 785.2 (€79.6 million), up 20.8% from SEK 650.1 million (€68.5 million), last year.

The stock market reacted badly to the news and Dedicare AB set a new 52-week low during today's trading session when it reached SEK 84.60 (€8.58). Over this period, the share price has declined by 25.30%. The company is currently trading at SEK 85.90 (€8.71), 15.78% down on the day. Based on its current share price the company has a market value of SEK 718.44 million (€72.8 million).