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View All NewsSweden – NGS Group Q2 revenue and profits fall
Second-quarter revenue at Sweden-based healthcare and education staffing firm NGS Group AB (NGS: SS) declined by 9.3% from the year-ago quarter. Operating profit also fell sharply by 65.4%.
| (SEK millions) | Q2 2019 | Q2 2018 | Change | Q2 2019 (€ millions) |
| Revenue | 143.7 | 158.5 | -9.3% | 13.3 |
| Operating Profit | 4.5 | 13.0 | -65.4% | 0.4 |
| Operating Margin | 3.1% | 8.2% | - | - |
| Profit for the period | 2.4 | 10.1 | -76.2% | 0.2 |
NGS Group said that operating profit for the second quarter of 2018 was positively affected by SEK 4.0 million (€0.3 million) when a provision for additional purchase price had been dissolved. Adjusted for this one-off item, operating profit for the second quarter of 2018 amounted to SEK 9.0 million (€0.8 million), with an operating margin of 5.7%. When comparing Q2 2019 with Q2 2018 the adjusted operating profit decline would be 50.0%.
The group said its loss stems from the company’s recruitment operations.
By geography, the company reported declines in Sweden and Norway while revenue in Finland showed improvement.
Revenue by Geography
| (SEK millions) | Q2 2019 | Q2 2018 | Change | Q2 2019 (€ millions) |
| Sweden | 138.7 | 153.9 | -9.8% | 12.9 |
| Norway | 3.9 | 4.2 | -7.0% | 0.3 |
| Finland | 0.9 | 0.3 | 210.6% | 0.1 |
| Total | 143.7 | 158.5 | -9.3% | 13.3 |
NGS Group also reported net sales for the period January-June, amounting to SEK 291.2 million (€27.1 million), a decrease of 9.9% from last year.
In trading last week, NGS Group shares closed at SEK 2,200 (€204.74), down 3.9% on the day. Based on its current share price the company has a market value of SEK 201.21 million (€18.7 million).