Swedish staffing firm Dedicare (DEDI: SS) reported revenue from continuing operations of SEK 135.6 million (€14.6 million) an increase of 22.3% compared with SEK 110.9 million (€11.9 million) compared with the same period last year. 

Stig Engcrantz, CEO of Dedicare, commented: “The first quarter of 2015 was characterised by strong signals in the Swedish market, with increased requests for both doctors and nurses. According to our clients; our locum doctors and nurses do an outstanding job on behalf their behalf. In an independent survey published last year Dedicare came out on top when doctors and nurses were asked to choose which healthcare staffing firm they would want to work for.”

“The Norwegian healthcare staffing market is somewhat weaker than in previous year, which can be attributed to the changing economic situation in Norway. Public finances, however, are still strong; so we expect continued strong demand, albeit at a slightly lower level.”

“The Norwegian healthcare system’s purchasing service (Helseforetakenses Innkjöpsservice - HINA) is implementing a new procurement system for virtually the entire Norwegian healthcare system. Dedicare is one of the largest suppliers under the current agreement. The new agreement with HINA will start on 1 October 2015.”

“To the relief of Dedicare and the healthcare staffing industry, the Norwegian High Court on 24 March 2015 ruled in favour of subsidiary Dedicare Doctor regarding a claim made by the Norwegian tax authority that the company had to pay social security contributions for doctors working as subcontractors for the company.”

“During that time, the [legal] process distorted local competition to Dedicare’s disadvantage. We chose not to hire subcontractors for our Norwegian operations, which hampered growth opportunities. Following the verdict, we will be able to once again compete on equal terms and offer doctors a diverse variety of assignments”

“After the sale of our Norwegian care business, Dedicare Group is now focusing on our core business, healthcare staffing. We are continuing in our efforts to improve productivity, enhance our sales efforts, and increase our customer focus. Our liquidity is very good and there is a strong development in healthcare staffing. We now have the resources to seriously implement our vision; to become one of Europe’s leading healthcare staffing companies,” Mr Engcrantz concluded.

Dedicare’s healthcare staffing business, which following the divestment of the company’s Norwegian care business constitutes the company’s business, reported revenue during Q1 2015 as follows:

Dedicare’s Swedish care business was divested in July 2014 for SEK 16.6 million (€1.8 million), with the company’s Norwegian care business sold in April 2015 for an estimated SEK 24 million (€2.6 million). Revenue from the company’s discontinued care operations were as follows:

Investors failed to respond enthusiastically to Dedicare’s results, with the company’s share price decreasing by 5.1% to SEK 42.90 (€4.60), an increase of 114.7% compared with last year. Based on its current share price, the company has a market value of SEK 291.4 million (€31.3 million).