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Sweden – Wise Group underperforms in Q2

30 August 2013

Swedish staffing firm Wise Group AB (WISE: STO) reported revenue of SEK 121.2 million (€13.9 million) for the second quarter of 2013, a drop of -3% compared with revenue of SEK 125.5 million (€14.4 million) for the same period last year.

Reported operating profit for the period was SEK 3.3 million (€380,000) down -67% from SEK 10.1 million (€1.2 million) a year ago.

Roland Gustavsson, CEO of Wise Group, commented: “The second quarter performed slightly worse than expected. The market remained weak and the trend reported in the first quarter, when demand for staffing services and recruitment decreased, by -12% and –9% year-on-year, respectively, continued into the middle of the year.”

“Against this backdrop our revenue decline of -3% is acceptable. Much of the group’s weakened profitability compared with the same period in 2012 is attributable to the challenges in the recruitment segment, where we have not reached the growth or profitability we sought,” he added. 

Looking forward, Mr Gustavsson admits: “The latter part of the year is likely to remain challenging. However, I remain confident that moving forward, Wise Group has the potential to deliver both profitability and growth.”

In trading today, the company’s share price fell -11.89% to SEK 1.26 (€0.14), a fall of -9.31% compared with a year ago. Based on its share price, the company has a current market value of SEK 191.8 million (€21.9 million).  

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