Dedicare (DEDI: SS), the largest healthcare and social work staffing firm in the Nordic region, reported revenue for the third quarter ending 30 September 2020 of SEK 250.9 million (€24.2 million), an increase of 18.8% compared with the same period last year.

The increase in revenue during the third quarter is mainly attributable to the acquisition of Danish medical staffing firm KonZenta Aps and growth in the Norwegian business. 

Dedicare added that the Covid-19 crisis has continued to have both positive and negative effects on the operations during the third quarter.

The improved operating margin was attributed to the Norwegian and Danish business.

The group reported a decrease in revenue for its Swedish operations but an increase in its Norwegian and Danish operations.

Dedicare reports in three segments: Sweden (which now includes Finland operations), Norway and Denmark. Revenue was broken down as follows:

During the third quarter, revenue decreased in the Sweden business, with activity mainly declining in sociology and medical staff. Planned care has been postponed as an effect of Covid-19, which led to cancellations within medical staff. Conversely, demand for nursing staff increased, especially in intensive care, related to Covid-19.

Revenue in Norway increased in all areas, where medical staff continued to account for the strongest growth. However, Dedicare added that its Norwegian operations have been affected negatively by travel restrictions and quarantine rules during the third quarter.

In Denmark, the revenue increase was entirely attributable to the acquisition of KonZenta Aps. Danish operations have also been affected by travel restrictions in the same way as the Norwegian operations, which created challenges during the third quarter. In Denmark, planned care was postponed to the future, which has had a negative impact on the demand for doctors. 

“Restrictions related to Covid-19 in the Nordic countries have been lifted as the situation has improved,” Krister Widström, President and CEO of Dedicare said. “During the latter part of the third quarter, we have been able to see an increased spread of Covid-19 in Europe, and in the event of a second wave of the pandemic, lifting restrictions may be reintroduced.”

Shares in Dedicare last traded at SEK 39.90 (€3.85), up 7.84% on the day and 24.49% above the 52 week low of SEK 32.05 (€3.09) set on 16 March 2020. The company has a market cap of SEK 260.61 million (€25.1 million).