Swedish healthcare and education staffing firm NGS Group (NGS: SS) reported revenue of SEK 122.4 million (€13.3million) for the third quarter ending 30 September 2014, an increase of +5.3% from SEK 116.2 million (€12.6 million) a year ago.

The company achieved operating profit growth of +12.8%, rising from SEK 9.6 million (€1 million) last year to SEK 10.9 million (€1.2 million) this year. Net income for the year rose by +17.7% to SEK 8.7 million (€944,987), up from SEK 7.4 million (€803,782) last year.

Operating margin for the third quarter was 8.9%, up from 8.3% in Q3 2014 and a marked improvement against an operating margin of 7.1% during the first six months of the year. In the company’s Q2 financial statement, it advised that the decline in operating margin was a result of lower demand in the education sector, coupled with increased costs in Norway. NGS Group also advised that it had incurred greater costs compared with last year, primarily as a result of increased use of subcontractors and an increase in staff costs.

Ingrid Nordlund, Managing Director of NGS Group, commented: “During the third quarter our solid performance continued with organic growth of more than +5% compared with Q3 2013 and growth of +11% for the period January to September [year-on-year].”

“Our nurse staffing business grew strongly in Sweden, where Nurse Partner (acquired in May 2013) has grown by +38% compared with Q3 2013. There was also a positive development in our healthcare staffing division with growth of between +6% and +11%, depending on the business segment. We are also pleased with the activity in our education division, which reported negative growth during the first six months of the year, but is now on par with the volumes reported in Q3 2013.”

“The Norwegian business continued to decline compared with last year. Despite good volumes during the summer months we did not reach the high levels we had in Norway during Q3 2013. Revenue from Norway accounted for 7% of NGS’ total revenue in Q3 2014. We see some bright spots in the Norwegian market, but… we have our focus on Sweden; and, at the time of writing this report, there is stronger demand in the Swedish healthcare sector than ever before in the history of NGS,” Ms Nordlund concluded.

In trading today, the company’s share price rose by +3.7% to SEK 113 (€12.27), a decrease of -4.3% compared with a year ago. Based on its current share price, the company has a market value of SEK 240.3 million (€26.1 million).