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Sweden — Proffice announces +2% increase in revenues and acquisition

19 August 2010

Total revenues were up by +2% from 106.4 million Euro in Q2 2009 to 108.6 million Euro in Q2 2010 at Proffice AB (PROEB:STO), the Scandinavian temporary and permanent staffing group.

Interim results for the second quarter of 2010 ended 30 June published today reveal that operating profit was down by -37% from 4.2 million Euro in Q2 2009 to 2.6 million Euro in Q2 2010.

In Sweden, revenues were up from 76.3 million Euro in Q2 2009 to 80 million Euro in Q2 2010. Operating profit was down from 7.2 million Euro in Q2 2009 to 4.7 million Euro in Q2 2010.

In Norway revenues were up from 24.5 million Euro in Q2 2009 to 25.3 million Euro in Q2 2010. Operating profit was up from a loss of -1.1 million Euro in Q2 2009 to a profit of 424,000 Q2 2010.

In Denmark revenues were down from 2.5 million Euro in Q2 2009 to 954,000 Euro in Q2 2010. Operating profit was down from a loss of -424,000 Euro in Q2 2009 to an increased loss of -530,000 Euro in Q2 2010.

In Finland revenues were down from 3 million Euro in Q2 2009 to 2.2 million Euro in Q2 2010. Operating profit was up from a loss of -106,000 Euro in Q2 2009 to nil in Q2 2010.

Lars Kry, CEO, comments "our Swedish temporary staffing and recruitment operations have grown strongly. During the second quarter of 2010, turnover was MSEK 716 (75.7 million Euro) compared with MSEK 602 (63.7 million Euro) for the same period of the previous year, an increase of +20%. Profitability has grown from MSEK 34 (3.6 Euro) to MSEK 57 (6 million Euro), an increase of +68%. While this part of Proffice is expanding, we are seeing how other parts are contracting on account of the improved business climate."

"Sales in outplacement declined by MSEK 78 (8.2 million Euro), or -67%, when Q2 2010 is compared with Q2 2009. Here, we made a loss of MSEK 12 (1.2 million Euro) during the quarter, compared with a profit of MSEK 32 (3.4 million Euro) one year ago. We have successfully reduced costs and repositioned ourselves quickly. However, some work remains to be done. Our specialist company, Antenn, has succeeded in taking market shares, despite the fact that the market has declined by -70% over the past year."

"Today, we have also an acquisition to present. Legevisitten Bemanning specialises in temporary staffing of doctors, with an annual turnover of about MSEK 200 (21.1 million Euro). The company is active in Sweden and Norway."

"Proffice is strengthening its position in a substantial market, which is also relatively stable as regards the business cycle. This acquisition will lead to Proffice being biggest within the temporary staffing of doctors in Sweden, and number two in Norway. The care market is undergoing a consolidation in which both customers and staffing companies are merging, and our ambition is to continue to strengthen our position."

"Our strong balance sheet gives us good prospects of continuing to make selective acquisitions, although the main part of Proffice's growth, as stated previously, will continue to be organic. We do not purchase turnover, we seek new or complementary positions in interesting specialist areas."

"The outlook continues to be good. In total, our assessment remains unchanged, that the downturn in outplacement will be compensated by the increase in temporary staffing and recruitment, primarily driven by developments in Sweden and Norway."

"The business climate is now improving with increased opportunities for growth. Our goal is clear and challenging. Proffice is to be the most successful staffing company in the Nordic Area. This means that we will maintain a high tempo and will react quickly in the market to meet customers’ requirements and offer the best solutions."

In early trading Proffice's shares were up by +0.87% to 23.20 Swedish Kronor.



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