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Sweden – Proffice revenue edges up but profit hits three year low

02 April 2013

Proffice (PROEB:STO), one of Scandinavia’s largest staffing firms, announced today that full-year revenue for 2012 rose by 2% to a record high of SEK 4,876 million (approximately €560 million), compared with SEK 4,770 million for the previous year (approximately €528 million).

According to Proffice CEO Lars Kry, “Proffice continued to grow and gain market share, and revenue for the full year 2012 is Proffice’s highest ever. After starting with strong growth in the first two quarters, we faced a much more uncertain economic climate by September. The shift to lower demand in the second half of the year reduced full-year earnings, primarily in Sweden and Finland.”

As a result, the group’s operating profit reduced by -49% to SEK 124 million (approximately €14.2 million), compared with SEK 244 million in 2011 (approximately €27 million). Overall, the Swedish group saw its profit after tax shrink to a three year low: SEK 78 million (approximately €9 million), compared with SEK 154 million in 2011 (approximately €17 million).

However, the group’s CEO, Lars Kry, also identifies positives in these results: “Our Norwegian operation accounted for the most growth in the Group, and Denmark improved its profitability during the year by breaking even. Revenue data from Swedish Staffing Agencies’ member firms show negative growth in the industry for the year. In that context, it is gratifying that our Swedish operation grew over the same period. Despite the weaker economy, we have managed to win our customers’ trust and gain market share in a highly competitive market through increasingly specialised products and services.”

The news hit the stock market this morning and shares fell -1.21% to SEK 24.50, a -4.3% decline from a year ago. Based on its share price, the firm has a market value of SEK 1.6 billion (approximately €186 million).

According to Staffing Industry Analysts’ research, Proffice is among the three largest recruiters in Scandinavia.

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