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Record year for Proffice

Record year for Proffice

Year-on-year 2011 comparison

 •Proffice’s net sales increased 16 per cent to SEK 4,770 million

 •EBITA increased 62 per cent to SEK 227 million (140)

•Operating profit rose 56 per cent to SEK 218 million (140)

•Goodwill related to Proffice Care Denmark was written down by SEK 9 million

 •Basic earnings per share increased to SEK 2.02 (1.20)

 •In Sweden, which accounts for more than three-quarters of consolidated sales, Proffice's net sales increased 23 per cent to SEK 3,667 million and operating profit increased 47 per cent to SEK 262 million

 •The board proposes a dividend of SEK 1.10 per share, totalling SEK 76 million

 •The board proposes that the AGM continues to authorise the board to buy back shares

 •The board proposes that the AGM authorises the board to make decisions on new share issues

Q4 2011 year-on-year comparison

 •Proffice's net sales continued upward during the fourth quarter, increasing by 13 per cent

 •Proffice's operating profit rose 22 per cent to SEK 55 million (45), which corresponds to operating margin of 4.3 per cent (4.0)

 •Proffice’s EBITA increased 42 per cent to SEK 64 million (45), representing an EBITA margin of 5.0 per cent 4.0)

 •Goodwill related to Proffice Care Denmark was written down by SEK 9 million in Q4

 •Sales in the staffing industry in Sweden increased 9 per cent in Q4 compared year-on-year. Proffice increased its sales in Sweden by 17 per cent. In Sweden, Proffice's operating profit increased to SEK 72 million (50) and reached an operating margin of 7.2 per cent (5.9)

 •Basic earnings per share amounted to SEK 0.45 (0.45)

After year’s end

 •Proffice AB acquired the minority share in Dfind AB in advance

 

Financial overview

January – December 2011

Net sales amounted to SEK 4,770 million (4,095)

EBITA amounted to SEK 227 million (140)

EBITA margin in per cent 4.8 (3.4)

Operating profit amounted to SEK 218 million (140)

Operating margin in per cent 4.6 (3.4)

Profit after tax SEK 154 million (97)

Basic earnings per share SEK 2.02 (1.20)

Diluted earnings per share SEK 2.02 (1.19)

Cash flow from operating activities amounted to SEK 128 million (57)

Basic equity per share SEK 10.27 (8.99)

Return on equity in per cent 22.0 (15.8)

October – December 2011

Revenue amounted to SEK 1,284 million (1,136)

EBITA amounted to SEK 64 million (45)

EBITA margin in per cent 5.0 (4.0)

Operating profit amounted to SEK 55 million (45)

Operating margin in per cent 4.3 (4.0)

Profit after tax SEK 37 million (35)

Basic earnings per share SEK 0.45 (0.45)

Diluted earnings per share SEK 0.45 (0.45)

Cash flow from operating activities amounted to SEK 99 million (105)

Basic equity per share SEK 10.27 (8.99)

Return on equity in per cent 5.3 (5.7)

 

CEO comments

2011 – a record-breaking year

The year 2011 was the strongest year for Proffice to date. Group sales increased by a total of 16 per cent. EBITA rose 62 per cent in the same period to SEK 227 million (140), which correspond to an EBITA margin of 4.8 per cent (3.4).

The company’s profitability boost was particularly strong in light of the comprehensive long-term investments in structural capital made in 2011. These investments include a new business system and a common platform to unify processes and streamline our working methods. In addition, Proffice implemented a new value-based organisation across the Group that promotes our specialisation strategy, as well as a new brand platform that enables more clear communication with our target groups.

During the year, profitability in Norway increased and losses in Denmark diminished. Proffice in Finland also improved its profitability and returned an even result for 2011 (SEK -2 million in 2010). Our Swedish operation accounted for the largest growth in the Group, and continued to return good profitability. We continued to build on our successful specialisation strategy that included several new units, including the purchase of Komet, a well-established staffing company in the fast-growing student staffing segment.

Fourth quarter continued strong

Proffice closed 2011 strongly. Group EBITA rose in Q4 to SEK 64 million (45), which corresponds to an EBITA margin of 5.0 per cent (4.0). Sales increased 13 per cent compared year-on-year, mainly due to substantial growth in temporary staffing and recruitment.

In Sweden, our long-term efforts continue according to plan. Proffice grew 17 per cent in Sweden and continued to take market shares in an increasingly competitive market. In Q4, Proffice showed very strong profitability with an EBITA margin of 7.2 per cent (5.9). We continued to develop our specialisation strategy in several areas, including Aviation and Mining, and exceeded market growth in Q4 in our Finance and Industrial & Logistics units. Proffice also signed several key agreements with, among others ICA Sverige and Sandvik AB in Q4.

Norwaycontinues to perform according to plan. In Q4, its EBITA margin remained unchanged at 2.7 per cent, despite costs taken to implement changes designed to ensure stable progress on the Norwegian market. Work to improve the Norwegian operations continues. Our specialisation strategy continues to show good effects in Norway, and we launched another unit, Dfind Finance, in Q4.

We are building a stable, sustainable Group

In preparation for 2012, the Proffice Group stands well equipped for any market fluctuations. Global economic growth is more sedated, and we face a tougher economic climate in the Nordics as well. A solid balance sheet and strong corporate culture will ensure the best possible conditions to continue increasing profitability and growth. Proactive measures such as weekly meetings to quickly identify any change in market trends helps us maintain a relevant picture of market conditions. At the same time, we know that an uncertain market is often a positive climate for our business, as customers’ needs for flexible employee expertise increases.

As a result, the Proffice Group has greater opportunities to offer staffing solutions to new and existing customers, and meet its vision to be the most successful staffing company in the Nordics.

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