Finnish HR services firm Eezy reported revenue on 5 November of €44.9 million in the third quarter ended 30 September 2024, a decline of 19.8% compared to the same period last year.

The main reason for the decline in revenue continued to be weak demand for Staffing.

Revenue in Staffing fell by 21% compared to the same period last year. The decline in demand was seen in every sector. Construction and industry continued to contract the most.

In Southern Finland, the decline in demand has been smaller.

Eezy noted that the total staffing market declined 8.7% in January-August (vs 2023. source: HELA, Employment Industry Finland).

“In the third quarter of the year, we have rapidly implemented measures in line with our strategy, which will permanently lower our cost level and enable scalable growth,” CEO Siina Saksi said in a press release. “Demand has continued to be subdued during the third quarter in our Staffing Services business area. Economic uncertainty has also delayed our customers’ purchasing decisions in our Professional Services business area.”

In the third quarter, the Professional Services business area generated revenues of €5.4 million (€6.0 the prior year), which the group said is reasonable in a difficult economic environment.

Furthermore, Saksi said the weak economy has reduced demand for headhunting and organisational development services, and decision-making has been delayed in its client organisations. There is a demand for personnel assessments and transition security services.

EBIT in the third quarter was €1.1 million (€2.3 last year), 1.1% of revenue. The decline in EBIT is due to the fall in revenue and one-time costs. Measures under our profitability programme have progressed and reduced our cost level compared to last year.

Saksi said it had made good progress in transforming its operating models in the third quarter. The impact of these measures will reduce its cost and debt levels.

The Staffing Services’ ERP (enterprise resource planning) system development project is progressing as planned.

“In the third quarter, we have taken major leaps forward in system development, which will allow us to roll out the system with a wide range of functionalities and high volumes,” Saksi added. “In Southern Finland, the roll-out will take place during November, and we aim to roll out the system on a large scale during the rest of the year.”

“In addition to the €3 million in annual savings from last year’s profitability programme, we estimate that the measures to modernise our operating models will bring us annualised cost savings of around  €2.8 million, of which around €0.8 million will be allocated to the rest of year 2024,” Saksi said. “One-time costs of approximately €0.8 million were recognised in 2024 for the implementation of the renewal.”

The company said its long-term objective is to increase its EBIT margin to 8%.

“We have taken decisive action in a difficult market environment to create a stable and healthy foundation for Eezy on which to build scalable growth,” Saksi said. “Trends in the operating environment, such as labour shortages and work-life transformation, will provide a tailwind for our growth in the years ahead.”

Eezy shares last traded at €1.25, down 3.86% on the day and 18.57% above the 52-week low of €1.05 set on 7 March 2024. The company has a market cap of €32.44 million.