Sweden-based healthcare and education staffing firm NGS Group AB (NGS: SS) reported revenue for the third quarter ended 30 September 2020. Revenue declined by 16.8% from the year-ago quarter.

Operating profit for the quarter was stable compared with last year's third quarter, even though the group said this quarter was characterised by continued weak development with a revenue decrease compared with the previous year.

Ingrid Nordlund, CEO of NGS Group, said, “In comparison with the second quarter, demand stabilised in parts of our operations and the effects of Covid-19 thus became more distinct than in the spring when the pandemic affected all service areas.”

Activities nurse staffing met a continued increase in demand in the parts affected by the pandemic, such as intensive care. Operations in nurse staffing saw a positive development during the quarter, even though demand slowed after the summer. The group’s Norwegian operations have been affected by extensive quarantine rules. As all staff are based in Sweden, this has meant a sharp reduction in the company’s nursing staff in Norway.

Medical staffing was hit by a significant drop in demand and saw reduced sales.

“The majority of our school staffing activities were affected by the spring closure of schools,” NGS Group stated. “Socionom staffing continues to be affected by customers' restrictive purchasing patterns in terms of external resources, taking into account the coronavirus, but nevertheless has an increase in the number of assignments.

In executive search, demand increased compared with the second quarter, when many assignments stopped. The business, including that in Finland, has developed ‘relatively well.’

“The pandemic continues to shape demand in both specialist recruitment and interim operations in the private sector, but we also see a gradually brightening market in these areas, even though the road back to previous levels is long,” the group stated.

Revenue by Geography

“In summary, we are still in a vulnerable situation, characterised by unpredictability,” the group stated.

NGS Group said the majority of the short-term layoffs introduced during the second quarter have now been completed, which means increased costs in the short term. 

“It is necessary for us to increase sales efforts, which is not possible with the scheme for support for short-term work for companies that the state offers,” the group stated. “In parallel with sales focus and cost savings, we work with the implementation of a new system support for a faster and more efficient way of working.”

NGS Group also reported revenue of SEK 326 million (€31.6 million) for the nine-months period, a decrease of 21.7% compared to the same period last year.

Shares in NGS Group traded yesterday at SEK 14.90 (€1.45), down 0.6% on the day. The company has a market cap of SEK 133.99 million (€13.0 million).