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Sweden – Proffice Q2 sales up

23 August 2012

Proffice (PROEB:STO), one of Scandinavia’s largest staffing firms, reported today that sales for the second quarter of 2012 increased 10% to 143 million Euro (SEK 1,295 million), compared to 124 million Euro (SEK 1,182 million) for the same period last year; the group believes this is the highest quarterly sales figure ever for Proffice. Proffice CEO Lars Kry adds: “Despite a period with fewer working days than the same period last year, which is hard on sales and operating profit in the industry, we managed to grow in both Sweden and Norway”.

Sales increased significantly in the Industry/Logistics, Finance, and IT business areas in all markets. Sales in the Industry/Logistics grew as much as +38% compared with the same period in 2011.

Consolidated operating profit increased to 6 million Euro (SEK 54 million), from 5 million Euro (SEK 50 million) in Q2 2011; representing an operating margin of 4.2%, stable from 2011.

Despite a stagnant market, Proffice Sweden saw its revenue grow by +9% in the second quarter compared with the same period last year. During the period, the Swedish business recorded an operating margin of 6.8%, down from 7.8% over the same period last year. The uncertain economic situation is demonstrated by the fact that our Outplacement operating area increased by +31% during the quarter, while Recruitment decreased by -4%.

“We signed several important agreements during the second quarter, including a nationwide master agreement with Posten Logistik, under which we are one of five suppliers, and an expanded partnership with Logica. After the period, the Swedish Public Employment Service entrusted Proffice as its leading recruitment provider for two years.”

Norway’s labour market continues to be improve  with operating profits up by +67% to 1 million Eur (SEK 10 million), compared to 629,000 Euro last year (SEK 6 million); and sales up by +18% compared to the same period last year. Last year’s reorganisation to the same specialisation organisation as in Sweden continues to reap success. The Industry/Logistics business area shows the most growth: +46% compared with the same period last year. Several existing accounts performed well during the quarter, including Tine, Nortura, and AGA. Proffice is planning to strengthen its offering in Norway in the third quarter of 2012 establishing Dfind Engineering. The company aims to meet the high demand for engineers, who are  high demand in the Nordic market.

“We are affected by a general cautiousness in a market where many are holding their breath, waiting to see what will happen in certain euro zone countries. Challenges within the business sector give rise to an even greater need to find the right talent. At the same time, the labour market is marked by high youth unemployment and growing alienation, but also a shortage of competence in certain industries. Here is where Proffice will play an increasingly bigger role in the future. By actively focusing on competency, and thus creating a more inclusive labour market, we can make a difference and generate further growth.”

According to Staffing Industry Analysts’ research, Proffice is the second largest staffing firm in Sweden and the third largest staffing firm in Scandinavia.

Proffice traded at SEK 22.80 this morning up 0.44%, 23.91% above the 52 week low of SEK 18.40 set on Sep 26, 2011 and 4.11% above a year ago.  This means the company is valued at SEK 1.47 billion (176 million Euro).

To read the full interim report, click here

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