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Swedish staffing firm Wise Group (WISE:STO) reported a +19% jump in first-quarter net sales which totalled €2.3 million (SEK 114.8 million). But operating profit in the period dropped to €23k (SEK 0.2 million) from €0.6 million (SEK 5.2 million) a year ago.
The recruiter posted lower profit before tax which dropped to €35k (SEK 0.3 million) compared to €0.59 million (SEK 5.1 million) the prior year.
CEO Roland Gustavsson spoke of a strong first quarter, but said growth slowed in the period. He said the decline in profitability was due to an increase in headcount, office openings and weaker demand for some staffing services. Looking ahead, the company aims for continued organic growth in 2013, but expects lower profits.
During the quarter, Wise Group AB also merged two of its brands, Wise Online and Talentum HR to form a new joint venture known as Edge HR.
Wise Group AB is the parent company of a number of brands providing specialist recruitment and HR services. Wise has offices in Stockholm, Gothenburg, Malmö, Linköping and Boras. The company’s shares are traded on NASDAQ OMX First North.