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Sweden – Despite new contract wins, Proffice’s results remain subdued

21 August 2014

Swedish staffing firm Proffice AB (PROEB: SS) reported revenue of SEK 1.08 billion (€117.8 million) during the second quarter ending 30 June 2014, a decrease of -5% compared with SEK 1.1 billion (€120 million) during the same period last year.

The company reported a decline of -17% in operating profit to SEK 25 million (€2.7 million), down from SEK 30 million (€3.3 million) in 2013. Profit after tax also decreased, year-on-year, to SEK 17 million (€1.9 million), a fall of -23% from SEK 22 million (€2.4 million) a year ago.

Henrik Höjsgaard, President and CEO of Proffice, commented: “The second quarter of this year, in terms of the number of calendar days, was the weakest in two years with just 57.5 working days. Costs of SEK 10 million (€1.1 million) for the organisational change that took effect on 1 June were recognised during the quarter. These two factors affected our operating profit, which reached SEK 25 million.”

“We are continuing to see positive signs in the Swedish market. During Q2 of this year, revenue increased in comparison with Q1, from SEK 996 million (€108.7 million) to SEK 1,078 million (€117.8 million). This was achieved despite Easter falling in Q2, which particularly affected our Norwegian operations. The business climate remains subdued in Norway, so we were pleased that Proffice signed several new customer contracts in Norway during the quarter,” he added.

Revenue derived from the placement of agency workers fell by -4% during Q2 2014, from SEK 1.06 billion (€115.7 million) last year to SEK 1 billion (€109.1 million) this year. Recruitment revenue fell by -2% to SEK 47 million (€5.1 million), down from SEK 48 million (€5.2 million) a year ago. Outplacement revenue fell by a third (-32%) to SEK 17 million (€1.9 million), compared with SEK 25 million (€2.7 million) in Q2 2013.

Geographically, revenue declines were reported in Sweden and Norway, while growth was reported in Finland and Denmark. In Sweden, revenue fell by -7% to SEK 771 million (€84.1 million), down from SEK 828 million (€90.4 million) last year. In Norway, Proffice reported a decline of -3% to SEK 253 million (€27.6 million), compared with SEK 262 million (€28.6 million) a year ago.

In Finland, however, revenue growth of +39% was reported, rising to SEK 39 million (€4.3 million) against SEK 28 million (€3.1 million) last year. Revenue growth of +25% was reported in Denmark, which rose from SEK 12 million (€1.3 million) last year to SEK 15 million (€1.6 million) this year. 

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