Swedish healthcare staffing company Dedicare AB (DEDI: SS) reported revenue for the fourth quarter SEK 146.1 million (€15.5 million), an increase of 22.3% from SEK 119.5 million (€12.7 million) in Q4 2013. 

On an annual basis, the company reported revenue of SEK 538.6 million (€57.1 million), an increase of 15% compared with SEK 468.5 million (€49.7 million) in 2013.  

Stig Engcrantz, CEO of Dedicare, commented: “In 2014 Dedicare focused its efforts on efficiency, work quality, and customer satisfaction, which have produced the desired results. The trend has been growth and increased profitability. Group revenue increased by 15% in 2014. Our operating margin was 6.5%, considerably higher than last year (3.7%). We end this year with our strongest quarter ever.”

Broken down by staffing segment:

Mr Engcrantz commented: “Growth in the Norwegian healthcare staffing market during the year was low. Dedicare, nevertheless, managed to grow through focused efforts to maintain the volume of contracts with Norwegian health authorities (HINA), while growing new customers. The agreement with HINA in 2014 had a negative impact on profitability. At the end of 2014 we announced that we will be renegotiating our agreement with HINA on the hiring of nurses. Our hope is that the renegotiation will have a positive effect on the Group’s profitability.”

“In Sweden, growth in the healthcare staffing market has been relatively good. There was a decrease in demand for medical staff at the beginning of the year but demand increased during the last quarter of 2014. Our assessment is that, at the end of the year, we are growing faster than the overall market, which gives us excellent prospects for 2015.”

Mr Engcrantz explained: “There was a sharp increase in demand for care staffing in Norway. The government in Norway has continued its competitive tendering process for public health services. Our assessment is that it gives us excellent prospects for continued growth and profitability. Following the divestment of our Swedish care business in July 2014 we have reduced our exposure to the political decision affecting care-based companies in Sweden.”

Dedicare sold its Swedish care business Dedicare Assistance to Swedish Personal Assistance for a total consideration of SEK 16.6 million (€1.8 million).

In trading today, the company’s share price rose by 12.3% to SEK 33.80 (€3.58), an increase of 81.4% compared with a year ago. Based on its current share price, the company has a market value of SEK 207.9 million (€22 million).