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Proffice the Swedish recruiter Strong results

Proffice the Swedish recruiter has issued its interim report for January - June 2009, showing continuing strong results.

Net turnover was MSEK 2,053 - 173M and operating profit before tax MSEK 88 - 7.4M

Lars Kry, CEO, comments: This report is a message of strength. A strong result on a tough market. The operating profit increases by 10% to MSEK 88, an operating margin of 4.3 % compared to 3.8 % for the same period previous year. The high lights are Sweden with an increased turnover and improved result, the specialist strategy which has resulted in increased margins, and an early implementation of our restructuring program which have had a quick impact. Proffice continues to step on the gas and break at the same time.

Increased turnover in Sweden
Proffice turnover in Sweden increased by 6 % in a market with an estimated decrease of 25 % or more. We are able to increase turnover and to make money in down turns as well as up turns due to Proffices complete offering with recruitment, temporary staffing and outplacement. Turnover for our outplacement services increased by 276 %. The staffing industry presents market figures for the period on August 26.

Specialist strategy increased margins
The specialist companies now stand for 34.9 % of the total turnover (24,1 % during the same period 2008) with a strong contribution to an improved result. A better product mix and pro activity make us less vulnerable to economic cycles..

Restructuring programme has further impact
The restructuring programme initiated in September 2008 continues. The operations has been consolidated in fewer offices, a reduced number of office employees in order to meet the economic downturn and other costs have been reviewed. After the second quarter the cost reductions amount to MSEK 155 on a 12 month basis.

Measures have been taken according to plan in Norway, which has resulted in a decreased result compared to the same period previous year. The restructuring costs in Norway amounted to MSEK 7 during the second quarter. Implemented measures are expected to contribute to a strong improvement of the result during the third quarter. All in all, the Proffice management will have a continued focus on improved margins for the whole Group and to act early irrespective of changes due to a upturn or a downturn.

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 flexibility in staffing and we believe that long term this will be an advantage for the staffing industry.

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