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Restructuring processes at Swedish staffing firm Poolia (POOLB:STO) have started to show some results as profits rose in the first quarter of 2013 despite falling revenues. In the three months to March, revenue dropped by nearly -23% to €24.87 million (SEK 214.0 million) due to slowing demand.
The firm warned of uncertain market conditions, although it remained confident that companies will hire more temporary staff in the future.
In the quarter, operating profit rose to €0.38 million (SEK 3.3 million) from €0.32 million (SEK 2.8 million) a year ago, an increase of +18%. Profit after tax rose a sharp +64% to €0.27 million (SEK 2.3 million).
Poolia CEO Monika Elling said “restructuring begins to take the desired effect.” But she added the company needed to increase efficiency and profitability. She also revealed that, after Sweden, Germany has now become the firm’s second-largest staffing market.
First-quarter revenue in Sweden, where the firm is undergoing reorganisation, dropped -24% to €19.5 million (SEK 167.8 million), but the firm said that the number of temporary staffing assignments was stable. In Germany, revenue jumped +23% to €3.11 million (SEK 26.8 million). In the UK, revenue was down -55% to €1.24 million (SEK 10.7 million) with the firm now sifting its attention to finance and accounting sectors. Revenue in Finland remained flat at €0.99 million (SEK 8.6 million).
In early trading, the company’s share price dropped -1.1% to SEK 13.50, a decline of nearly -7% from a year ago. Based on this stock price, the firm has a market value of €20.78 million (SEK 178.79 million).
Poolia supplies permanent and temporary staffing services to finance, administration, IT and engineering sectors. The firm is ranked among the 10-largest staffing firms in both Sweden and Scandinavia.