Wise Group (WISE:SS), the Swedish staffing firm published preliminary results today for the first quarter ending 31 March 2019 of SEK 244.0 million (€22.9 million), an increase of 7.2% compared with the same quarter last year. 

The first quarter results were hit with non-recurring costs of SEK 6.0 million (€0.5 million) relating to the restructuring of subsidiary Edge HR AB as well as expansion costs and the development of a technical platform in subsidiary Brilliant Future AB.

Wise Group added that its Digital HR services segment saw a decrease in EBITDA of SEK 11 million (€1.0 million) compared with the same period last year. The group added that its other segments progressed according to its plans.

Within Edge HR the group said that its new strategy and restructuring means that profitability will be prioritised ahead of growth. The group added that this restructuring may mean that services in Edge HR are affected. Wise Group said the restructuring would also create a clearer customer offering and a greater customer focus.

Edge HR CEO will also be stepping down on 1 May and the group will appoint a new CEO on 2 May but did not disclose who will be taking over. Smedberg was first appointed to the role in March 2018.

Within Brilliant Future, the group said it reported a negative earnings trend during the first quarter of 2019 as a result of continued intensive expansion and implementation of a new technical platform. This had hampered sales growth and increased expansion costs.

Lars Gundersen was appointed new acting CEO of Brilliant Future AB, taking office on 1 February 2019.

The Board of Wise Group added that it would undertake a strategic review of Brilliant Future to see how “the company’s growth opportunities can best be utilised.”

The group said the restructuring of Edge HR and review of Brilliant Future AB means that there will be a decline in profitability compared to the first quarter of 2018.

Wise Group will publish its first quarter results on 15 May 2019.

As of last trade, Wise Group traded at SEK 52.60 (€4.94), down 15.16% on the day and 16.37% above the 52 week low of SEK 45.20 (€4.24) set on 23 November 2018. Based on its current share price the company has a market value of SEK 458.23 million (€43.0 million).