Wise Group (WISE:SS), the Swedish staffing firm, reported revenue today of SEK 195.9 million (€17.5 million) for the fourth quarter ended 31 December 2023, a fall of 20.9% over the previous year.

EBITDA amounted to a loss of SEK 5.7 million (€0.5 million) and the EBITDA margin amounted to -2.9%. During the period, the segment was burdened with personnel-related costs of a one-off nature of SEK 5.7 million (€0.5 million).

In November 2023, Wise Group appointed Tobias Berglund as acting CEO.

Berglund commented on today’s results, “The fourth quarter of the year was characterised by continued weak demand and widespread caution among Wise Group's customers. As a result of this, the board decided that further restructuring measures were necessary in order to create a clear plan for increased profitability through a greater focus on the business and improved coordination between the group's various units.”

“I took over as acting CEO on 21 November and have initiated a number of measures to reduce costs, streamline internal processes and drive the business forward,” Berglund said. “The measures have burdened the quarter's results with SEK 12.8 million and it is satisfactory to see that they have already generated results in the form of lower costs and laid the foundation for a good business starting point for 2024.”

During the period, the operating profit was charged with personnel-related costs of a one-off nature of SEK 10.8 million and investments in a new IT environment of SEK 1.9 million (€0.1 million).

The group's operations are divided into the two segments Recruitment & Consulting Rental and HR Consulting & Leadership Development.

Revenue in Recruitment and Consulting amounted to SEK 146.3 million (€13.1 million), which is 19.2% lower than the previous year. Revenue in the HR Consulting & Leadership Development segment stood at SEK 49.5 million (€4.4 million), down 23.5% over the prior year.

For the full year ended 31 December 2023, revenue amounted to SEK 803.1 million (€71.8 million), which is 11.8% lower than the previous year.

Berglund said, “The starting position for 2024 is good. The adjustment process we have carried out has been necessary and gives us the right conditions for the future.”

“The beginning of the new year signals a stabilisation of demand, albeit from a low level,” Berglund continued.

Wise Group shares last traded at SEK 25.10 (€2.25), down 15.20% on the day and 14.09% above the 52-week low of SEK 22.00 (€1.97) set on 11 October 2023. The company has a market cap of SEK 230.59 million (€20.6 million).