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Proffice year end report January - December 2009

October December 2009
Net turnover was MSEK 963 (1,115)
Operating profit before tax MSEK 30 (-13)
Operating margin 3,1 % (-1,2 %)
Improved cash flow from current operations MSEK 95 (99)

January December 2009
Net turnover was MSEK 3,908 (4,266)
Operating profit before tax MSEK 160 (115)
Operating margin 4,1 % (2,7 %)
Operating profit after tax MSEK 111 (71)
Earnings per share SEK 1.45 (0.86)
Cash flow from current operations MSEK 201 (128)
The Board of Directors proposes a dividend of SEK 0,50 per share, giving a total distribution of MSEK 34
During the year, the company has repurchased 1,100,000 shares at a total cost of MSEK 26

Lars Kry, CEO, comments:

2009 was a very good year at Proffice. We successfully handled the toughest recession in living memory. Today, Proffice is stronger than ever. Larger market shares combined with improved margins are evidence of our strength. The operating margin was 4.1 percent for the full year 2009, compared with 2.7 percent the previous year.

Financially, we are stronger with a cash base of MSEK 267, equity of MSEK 620 and interest-bearing liabilities of MSEK 24. Our balance sheet gives us financial muscle for independent action and the opportunity to invest in future growth and profitability.

Improved earnings in the fourth quarter
The fourth quarters operating result, MSEK 30, was a strong end to the year, with greatly improved profitability. The recipe was growth in interesting segments combined with our daring to choose profit before volume, and that we turned our Norwegian business around. One should also note that during the quarter we achieved cost reductions of MSEK 18 in adjusting our outplacement operations among other things.

Developments in our national companies were gratifying, operating margin improved to 5.4 percent.
Cash flow from current operations during the fourth quarter amounted to MSEK 95.

The cost culture and efficient platforms
During the year, we focused strongly on our restructuring programme. In total, we reduced costs by almost MSEK 200. Today, we consider the programme complete, but questioning all costs will continue to be part of our company culture.

Work in creating efficient platforms is intensifying, including the introduction of a business system for the entire Group. The aim is to be able to grow without costs increasing at the same pace.

The right business gives profitability
Intensive sales work and attractive products enabled Proffice to take market shares during the year. What we call our specialist strategy is the basis of this. We understand the customer and his/her challenges better than do our sector colleagues.

This provides us with partners who are of greater value as regards staffing solutions. The arrangement with TeliaSonera is an example of such innovative partner solutions.

Prioritisations in the future
The market is gradually improving. Presumably the worst is behind us, but it is too soon to declare the recession over. Proffice has eased the brakes, but we remain watchful, just in case.

Within recruitment, IT and industry and logistics, we are already seeing good growth. Proffice expects the markets for staffing and recruitment to improve during 2010, while the outplacement market will continue to decline. However, this business will level out at a higher plateau than before the crisis.

Proffice prioritise profitability before growth. This means that we look for future growth in selected specialist areas and geographic markets, where potential is greatest. We prefer to grow organically, but with our strong balance sheet and cash, we are open for selective acquisitions to further strengthen our specialist strategy.
Profitability in Denmark and Finland improved strongly during the year, although not satisfactorily. In Norway, the negative trend was turned during the third and fourth quarters. We will continue our efforts in these three markets during the year with the aim of achieving sustainable profitability.


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