Pion Group (POOL-B: STO), previously known as Poolia, reported revenue today for the third quarter ending 30 September 2024 of SEK 384.2 million (€40.8 million), a decline of 19.4%.

The company said it is in the ‘middle of a comprehensive restructuring in a very challenging market’. It added that the weak result can be attributed to both external market factors and internal structural factors.

“Our reduced turnover reflects a broad market downturn that has affected the entire consulting and staffing industry, a sector that is sensitive to economic cycles,” the company said in a press release. “A particular challenge for the industry right now is the 24-month rule, which we estimate accounts for a considerable part of the turnover loss. Despite the fact that regulations of this kind are recurring, we assess that their effect in the future will not be as significant as during the current period.”

The 24-month rule in Sweden is part of the Swedish Employment Protection Act and applies to temporary agency workers. If a worker has been continuously employed by the same client company for a total of 24 months within a 36-month period, the client company is required to offer them a permanent position.

Pion Group’ consists of three segments: Uniflex, Poolia and Qrios.

Revenue by segment

In the Poolia segment, the group said the 24-month rule has contributed to part of the turnover loss. During the latter part of the year, the rule affected consulting operations in the form of more consultants being taken over and some assignments being completed prematurely, despite both consultants and clients wishing to continue the collaboration.

Qrios said the decrease in turnover can be attributed to a decline in demand within its consulting business for IT and recruitment.

Revenue for the nine months amounted to SEK 1.23 billion (€105.5 million), corresponding to a decrease of 19.4%.

President and CEO Martin Hansson said in a press release, “Despite the current market challenges, we look ahead with confidence. Cash flow has improved both during the quarter, and the group’s organisational structure has been streamlined, and several leading functions have been consolidated to reduce.”

Pion Group shares last traded at SEK 6.08 (€0.52), up 1.62% on the day and 4.47% above its 52-week low of SEK 5.82 (€0.50), set on 13 November 2023. The company has a market cap of SEK 230.58 million (€19.78 million).