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A record strong result for Proffice

Proffice Interim Report JANUARYMARCH 2009

A record strong result for Proffice

Net turnover increased by 4 % to MSEK 1,049 (1,007) - 88.0M Operating profit before tax MSEK 48 (20) - 4.0M

Lars Kry, CEO, comments:

Proffice produces the strongest first quarter ever on a very tough market. Both turnover and operating profit increased to record levels.

Specialist strategy pays off
When we formed a new specialist strategy, three years ago, we knew it would mean better earnings. The first quarter 2009 is yet another proof our momentum continues. Today, a larger share of turnover comes from the specialist companies with higher margins. A better service mix and pro-activity make us less vulnerable to economic cycles than previously.

Offering in up and down turns
The staffing industry is often regarded as the same as temporary staffing. And that is a big portion of our business, but not all of it. Proffice has a broader offering with recruitment, temporary staffing and outplacement. This makes us a valuable partner to our customers and it means that we make money in up and down turns. In current economic down turn there is a decreased demand for recruitment services. At the same time the turnover for outplacement has increased by 313 per cent, which gives us a leading position on the Swedish market. And the business continues to develop strongly with a good profitability.

Restructuring gives effect
The restructuring programme initiated in September 2008 has lead to significant cost reductions during the first quarter. Up till now, the economy measures are worth MSEK 120 on an annual basis. Denmark and Finland deliver a better result than during the same period 2008, and business is more stable in both countries. The development in Norway has not met with our expectations, and a number of measures have been taken. All in all, the Proffice management will continue to focus on improving margins for the whole Group and to act early.

Proffice takes market shares
The Nordic staffing market continues to decrease. Compared to the same quarter 2008, the Swedish market decreased by 20 per cent at the same time as Proffice in Sweden increased by 14 per cent. More customer visits are made with fewer staff, and we continue to win our customers confidence. New agreements are signed by e.g. AstraZeneca, SVT, COOP in Norway and Vattenfall in Finland.

The current economic cycle requires increased flexibility
We expect a continued weak demand for recruitment services, a more stable demand for temporary staffing and a continued growth for outplacement. In the current economic cycle, there is an increased need for more flexible staffing and we believe that long term this will be an advantage for the staffing industry.

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