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View All NewsSweden – Poolia profits hit by Uniflex merger costs
Second-quarter revenue at Swedish staffing firm Poolia (POOLB: SS) increased by 2.7%, year-on-year, during the second quarter ending 30 June 2018 to SEK 199.7 million (€19.4 million). However, operating profit was impacted by higher non-recurring costs which was due partly to the planned merger with Uniflex.
During the second quarter, Poolia announced that it would merge with Uniflex, thereby creating a Nordic staffing powerhouse. The merger was approved by the Financial Supervisory Authority and the respective boards from the two companies.
“The merged company will offer a significantly wider range of services, which gives us significant benefits in the market,” Morten Werner, President and CEO, said. “Revenue increases are expected to produce a profit effect of approximately SEK 10 million (€0.9 million) in the medium term. Cost savings are estimated to be approximately SEK 20 million (€1.9 million) annually, with full effect from the fourth quarter of 2019.”
| (SEK millions) | Q2 2018 | Q2 2017 | Change | Q2 2018 (USD millions) |
| Revenue | 199.7 | 194.5 | 2.7% | 19.4 |
| Operating Profit | -9.0 | 6.4 | N/A | -0.8 |
| Profit After Tax | -8.1 | 4.5 | N/A | -0.7 |
Poolia reported that currency effects had positively affected revenue by SEK 6.0 million (€0.5 million). Without the currency effect, revenue would have declined marginally.
| (SEK millions) | Q2 2018 | Q2 2017 | Change | Q2 2018 (USD millions) |
| Sweden | 137.3 | 135.5 | 1.3% | 13.3 |
| Germany | 50.8 | 49.2 | 3.3% | 4.9 |
| Finland | 11.6 | 9.8 | 18.4% | 1.1 |
In Sweden the company reported that operating profit was impacted by the Uniflex merger as well as costs relating to the relocation of the Stockholm office. Operating margin was -6.6% compared to 3.1% last year.
In Germany, currency effects positively affected revenue by SEK 4.9 million (€0.4 million) during the quarter. The operating margin was -0.4% compared to 3.9% last year. The group said that the German market continues to be challenging.
In Finland, currency effects positively affected revenue by SEK 1.1 million (€0.1 million) during the quarter. The operating margin was 2.6% compared to 3.1% last year. Results had been affected by costs associated with the merger.
“Finland is today one of Europe's fastest growing economies, which also affects Poolia positively with increased demand for our services, especially in recruitment,” Poolia said.
As of last trade, Poolia traded at SEK 13.30 (€1.29), down 1.48% on the day and 15.65% above the 52 week low of SEK 11.50 (€1.12) set on 7 May 2018. Based on its current share price the company has a market value of SEK 172.24 million (€16.7 million).