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Sweden – Uniflex reports weak demand and decreased profit

17 July 2013

Sweden-based recruiter Uniflex (UFLXB: SS) reports that net sales fell -10.1% during the first half of 2013 to €80.5 million (SEK 701.1 million) from €89.7 million (SEK 780.9 million) during the same period in 2012. Net sales fell -11.1% during the second quarter to €42.3 million (SEK 369 million) from €47.7 million (SEK 415.3 million) in Q2 2012. Operating profit for H1 2013 dropped to €367,618 (SEK 3.2 million) from €1.2 million (SEK 10.6 million) in H1 2012.

“The generally weak demand has led to a reduction in work for our workers, which has resulted in a reduction of all outgoing payroll hours. To compensate for this in previous quarters we have reduced our internal costs. Despite the difficult economy, we managed to make a profit in this quarter,” said Jan Bengtsson, CEO Uniflex.

The loss of one of the largest customers in Sweden during Q2 reduced revenue in the Swedish market -14%, compared with Q2 2012. Operating profit in Sweden during Q2 2013 was less than half than from the same period last year; dropping from €413,571 (SEK 3.6 million) to €172,321 (SEK 1.5 million). 

In Norway, sales increased in the construction industry but suffered in other sectors. Operating loss for H1 2013 was -€275.714 (SEK -2.4 million). After also reporting a loss during H1 2012 of -€252,738 (SEK -2.2 million). Operating loss during Q2 2013 was markedly less than in previous quarters, reporting -€34,464 (SEK -300,000) compared with -€114,881 (SEK -1 million) in Q2 2012.

“We are pleased that our Norwegian operating income improved significantly compared to the previous quarter and the same period last year. The reason for the increased margins is primarily due to improved customer mix and better cost control,” said Jan Bengsston.

Finland reported an operating loss of -€91,904 (SEK -800,000) during H1 2013, compared with -€149,345 (SEK -1.3 million) during the same period last year. Q2 2013 also reported a profit loss of in Finland of -€34,464 (SEK -300,000); however a significant improvement on a profit loss of -€80,416 (SEK -700,000) in Q2 2012.

“In Finland, net sales and operating profit improved and things are moving in the right direction,” added Mr Bengsston.

Uniflex entered the German market on 1 March 2013 and Mr Bengsston reports that he expects the market to enter profitability by 2014. Operating loss in Germany during Q2 2013 equated to -€206,785 (SEK -1.8 million).    

In early trading,  the share price rose +0.36% to SEK 27.6; a decrease of -21.76% compared with a year ago. Based on its stock price, the company has a market value of €55 million (SEK 479.18 million).   

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