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The Swedish staffing company Uniflex (UFLXB: STO) was hit by a decline in economic activity in the third quarter of the year with revenue falling by -4% to €49.5 million (SEK 421.5 million), down from €51.1 million (SEK 439.4 million) a year ago.
The recruitment company has a 6% market share in Sweden and is ranked among the top staffing firms in Scandinavia, according to research by Staffing Industry Analysts.
Despite the decline in sales figures and additional expenses related to the firm’s exit of its UK business, the recruiter managed to stay profitable although profits were down considerably from a year ago.
Third-quarter operating profit slipped by -64% to €1.3 million (SEK 11.5 million) from €3.7 million (SEK 32.1 million). The operating margin was down to 2.7%, compared to 7.3% in Q3 2011. Profit after tax shrank by nearly -68% to €0.8 million (SEK 7.6 million) from €2.7 million (SEK 23.6 million).
The company generates most of its revenue from Sweden where third-quarter sales declined by -7% to €46.5 million (SEK 399.3 million) against €49.8 million (SEK 427.9 million) seen last year.
In Norway, the company gained momentum with sales growing by +110% to €2.4 million (SEK 20.7 million). The firm also increased its presence in the country by adding extra offices. CEO Jan Bengtsson said he was “hopeful” about the firm’s future in Norway.
In Finland, revenue grew to €0.2 million (SEK 1.5 million) from €0.02 million (SEK 0.2 million).
Uniflex provides recruitment services to a number of sectors including industry, warehousing, construction, electricity, customer services, sales, management, cleaning and retail.
The financial results this morning sent the company’s share price down to a new 52-week low. In early trading, shares dropped by -5.7% to SEK 28.00, a -25.9% decline from a year ago. Uniflex has a market value of €46.1 million (SEK 396.13 million).