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Sweden – Poolia reports further losses

24 October 2013

Swedish staffing firm Poolia (POOLB: STO) reported revenue of SEK 178.2 million (€20.3 million) for the three months ending 30 September 2013, a fall of -18.2% compared with SEK 217.8 million (€24.8 million) for the same period last year.

The company reported an operating loss of SEK -14.1 million (-€1.6 million), a substantial drop from an operating loss of SEK -0.7 million (-€79,705) last year. Poolia’s loss after tax for the period was SEK -14.3 million (-€1.6 million), a sharp decline from a loss after tax last year of SEK -0.8 million (-€91,090).

For the nine-month period to the end of September 2013, Poolia reported revenue of SEK 596.8 million (€68 million), a -20.7% drop from revenue of SEK 752.6 million (€85.7 million) a year ago. For the year to date, the company has reported an operating loss of SEK -16.2 million (-€1.8 million), compared with an operating profit of SEK 2.4 million (-€273,280) for the nine-month period last year.

Poolia reported a loss after tax of SEK -16.6 million (-€1.9 million) for the year to date, a substantial drop from a profit after tax of SEK 0.7 million (€79,705) in 2012.

During 2013, Poolia’s subsidiary Utvecklingshuset (Development House) has been restructured. In November 2013, an extraordinary general meeting (EGM) will be held to decide whether or not to sell Development House to Uniflex, announced the company.

Another Poolia subsidiary, Talent Eye, was sold to the company’s former CEO Monika Elling in July 2013, following her resignation from the company.

Dag Sundstrӧm, Poolia CEO and Acting President, has advised that the company will: “focus on the core business and intensive improvement. The third quarter has traditionally been weak in terms of earnings. Operating profit for the business that belongs to our core activities amounted to SEK 1.1 million (€125,250) for the third quarter. Switching operations conducted by [Development House] pulled down earnings by SEK 2.4 million (€273,280).”

“Market demand continues to be weak with recruitment revenues low, except in Germany. The price structure remains stable. The signs of a stronger market that we saw over the summer has not materialised yet,” he concluded.

Poolia Sweden reported an operating loss of SEK -15.8 million (-€1.8 million), compared with an operating loss of SEK -3.6 million (-€409,910) last year. This figure included a goodwill impairment of SEK 12.8 million (€1.5 million) for the third quarter of 2013. Revenue for the region amounted to SEK 127.9 million (€14.6 million), a decrease of -23% compared with SEK 165.1 million (€18.8 million) during Q3 2012.

Revenues from Poolia Germany grew by +19% in local currency during the quarter, meaning that Poolia has continued to grow its market share. Operating income developed positively during the quarter.

In the UK, Poolia is continuing to focus predominately on Finance & Accounting. The development of the core business reported requires additional time before it will show positive results. In Finland, activity remains stable but profitability is squeezed by the weak recruitment market. Revenues are in-line with last year, but the company’s operating profit was slightly lower.

Mr Sundstrӧm added: “Now that Poolia is clearly focused on developing the recruitment and staffing business in Sweden, management has intensified efforts to create a growing and profitable core business.”

In trading today, the company’s share price remained unchanged at SEK 12.00 (€1.37), a fall of -11.1% compared with a year ago. Based on its share price, the company has a current market value of SEK 205.5 million (€23.4 million). 

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