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Wise Group reveals 10% increase in sales in latest results

Wise Group Report 1 January - 30 June 2014
Financial Performance April - June 2014
 
&middot Sales for the quarter increased 10 percent to 133.7 million (121.2 million) compared to the corresponding period last year. In comparable units sales increased by 9 percent.
&middot Operating profit amounted to SEK 3.2 million compared to 3.3 million the same period last year. Operating income includes amortization of intangible assets of SEK 1.3 million (SEK 1.3 million) attributable to the acquisition.
&middot Last year's results included a reversal of 1.7 million existing contract dispute with the HR Manager AS. Excluding the reversal in 2013 became the operating profit for the corresponding period last year 1.6 million.
&middot Profit before tax amounted to SEK 3.4 million compared to 3.3 million the same period last year.
&middot Earnings per share amounted to SEK 0.02 (SEK 0.02).
&middot Cash flow from operating activities amounted to SEK 1.0 million (SEK 12.2 million).

Financials January - June 2014

&middot Sales for the period increased by 12 percent to SEK 264 million (236.0 million) compared to the corresponding period last year. In comparable units sales increased by 11 percent.
&middot Operating profit amounted to SEK 5.8 million compared to 3.5 million the same period last year. Operating income includes amortization of intangible assets of $ 2.7 million (2.7 million) attributable to the acquisition.
&middot Last year's results included a reversal of 1.7 million existing contract dispute with the HR Manager AS. Excluding the reversal in 2013 became the operating profit for the corresponding period last year 1.8 million.
&middot Profit before tax amounted to SEK 6.0 million compared with 3.0 million the same period last year.
&middot Earnings per share amounted to SEK 0.03 (SEK 0.02).
&middot Cash flow from operating activities amounted to SEK 7.3 million (SEK 11.2 million).

Highlights of the second quarter

&middot The AGM resolved to re-elect Erik Mitteregger, Peter Birath, Ewa Lagerqvist, Stefan Rossi and Torvald Thed&eacuteen as regular members and Cecilia Lundin was elected as a new Board member. The AGM was taken on the decision to award the owners to SEK 0.03 per share and to authorize the Board to decide on the issuance of a maximum of 14 million shares.
&middot Wise Group AB acquired Fabi Kompetanse Ltd who are specialists in qualifi ed consultant hiring and recruitment in accounting and fi nance.

Significant events after the end of the quarter

&middot Cecilia Lundin, director of Wise Group AB (publ) exits the Board on 28 August 2014. decision is a result of the directorship of the Wise is not consistent with the position of HR Director at TeliaSonera, Cecilia start work on 1 september in 2014.

Our positive trend continues and since the end of last year, we can conclude that the demand for our services increases. In the first half we exhibit a growth of 11 percent and an operating profit of SEK 5.8 million compared to 3.5 million for the same period in 2013 in comparison with the previous year's operating profit should be taken into account that the previous year included a reversal of 1.7 million in the second quarter in contract dispute with the HR Manager AS. Excluding the reversal in 2013 became the operating profit for the corresponding period last year 1.8 million.

All three segments Recruitment, hiring consultants and HR services, showing a revenue growth over the previous year. It is particularly pleasing to see that recruitment segment returned to growth with profitability. However, I am not entirely happy with the overall margin growth held back by the fact that sales growth has largely been generated in areas of activity with relatively lower margins. We have this under watch and my judgment is that we will end the year on a better level than the first half indicates.

In June, we acquired Fabi accompaniment Considered Swedish operations. The acquisition is fully in line with our strategy of specialist companies who understand their clients' aff's and through acquisition strengthens our position in the recruitment and hiring consultants in accounting and fi nance. The integration of the company has gone very smoothly and according to plan.

I am pleased that we continue to show a fi ne growth but, as I say, not satisfied with the operating profit and margin. We have a somewhat excessive cost base relative to our revenues and earnings continue to suffer from its establishment in Denmark and initiatives in new areas of activity. Through good revenue growth, however, the margin improvement to continue and lead to an improvement over the 2013 full year.

Roland Gustavsson
CEO

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