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Proffice Interim Report January

Proffice Interim Report January - March 2010 Lat mig beretta om Sverige!

Ready for the next step

? Net turnover was MSEK 907 (1049) 79.3m
? Operating profit after tax, MSEK 21 (34) 1.8m

Lars Kry, CEO, comments: Proffice has begun to detect signs of spring and the benefits of the improved business climate. However, as in the garden spring doesnt arrive at the same time everywhere. A stable market is still some way off.

The Proffice Group as an entity has shrunk, and turnover was MSEK 907. The decline is to a great extent due to a new market situation in outplacement, and Norway lagging behind. Thanks to quick implementation of decisions to reduce costs we have succeeded in minimising the effects of this on earnings.

In total, Proffice has delivered strong earnings of MSEK 28 and healthy margins. Also, we give profitability preference over volumes if we are forced to choose.

Sweden, which has been the motive power throughout the business cycle, during both the downturn and the upturn, has been strengthened with more assignments and an increase in orders in temporary staffing segments, which have been affected fastest in the improving business situation. Temporary staffing has increased by 2 %, and e.g. Industry and Logistics increased by 25 %. Extra positive is the considerable strengthening within recruitment, a growth by 44 % and our customers see considerable requirements ahead.

However, turnover in Sweden is affected negatively by a strong downturn in outplacement services. We were expecting a downturn, and we tried to act early. Proffices subsidiary, Antenn, has a market-leading position, and now the business is increasingly focusing on new clients, including company-financed outplacement assignments.

Norway where the downturn occurred later than in Sweden continues to be a tough market. However, Proffice is strengthening its market shares in Norway and continues to win the most interesting contracts, for example, Statoil, quite recently. Net turnover declined by MSEK 53. Happily, operating result was 0, thanks to our strong economy measures having produced results.

The outlook for the year is good. Demand in Sweden is much stronger than it was. 168 000 vacant positions will be announced during the second quarter of the year, according to forecasts in Proffices Labour Market Barometer compiled by TNS SIFO. The downturn in outplacement will be compensated by an increase in recruitment and temporary staffing. Our expectation is that the Norwegian market will only improve after the summer.

Cash flow continues to be strong. However, payment of company tax reduced the cash flow from current operations. Proffice has a strong balance sheet which gives us financial muscle to acquire businesses which strengthen our specialising strategy.

All this provides the basis for an exciting future.


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