Attendo first quarter report 2016:  Demand for own operations and high quality gave stable growth and margins

Attendo is showing stable growth and profits for the first quarter 2016, driven primarily by strong demand for own operations. The margin was in line with last year, despite unfavourable seasonal effect. Progress in Attendo’s quality work contributed to important contract wins during the quarter.

Comments by Henrik Borelius, CEO:
“The quarter shows stable growth and profits due to continued strong development in own operations. The margin was in line with the same quarter last year, despite the negative seasonal effect and the start-up of several new units. During the quarter Attendo won two major outsourcing contracts based on high quality. Reporting on the shortage of nursing homes for older people continues and the interest from local authorities to expand the capacity is high. To meet this interest Attendo continues to invest in new own operations.

Own operations show strong organic growth, particularly in care for older people. The increase is mainly attributable to new own homes and improved occupancy in units that were under start-up during the corresponding quarter last year. Our structured work with improved processes and planning is reflected in the results also for this quarter. We have a strong offering in home care and as an example we were entrusted with the responsibility to take over the client base in parts of the Stockholm area from another private provider. In line with our strategy, we continue to invest to address the shortage of capacity, particularly within care for older people. We opened four own homes in the quarter, one in Sweden and three in Finland. In addition, we started construction of four new units in Finland and at the end of the quarter we had 737 beds under construction.

In Outsourcing operations net sales declined compared to the first quarter 2015 due to ended contracts that were lost during last year. There were relatively few new contracts on the market during the first quarter of this year. There were a handful of quality tenders of which two were larger contracts. Attendo won both, which was very positive; one nursing home as well as an extension of an existing operation for care for people with disabilities.

Net sales in Staffing operations increased during the quarter compared to the same quarter last year. However, our earlier assessment that both outsourcing and staffing will continue to be challenging markets remains.

As presented in the company's Quality report for 2015 all Attendo service offerings show good progress and the highest results ever in our internal quality thermometer were noted. As a pioneer in quality work, Attendo published our first Quality report in 2011. A lot has happened in the industry since then and it is satisfying to see that quality today is an important factor in public procurements.

The demand for our own operations offering has been strong in both Sweden and Finland during the quarter. In Finland, the work with the SOTE reform continues. In February the Finnish Government announced its intention to present a proposal to temporarily restrict the local authorities' opportunities to enter into so-called combination contracts, where the contracts are assumed to interfere with the implementation of the reform. Subsequently, the reform proposals have had a clear focus on supporting an increased element of private providers.

Attendo has a positive view on the SOTE reform, especially from the perspective that public and private providers will have more equal terms and that it contributes to greater freedom of choice for more people.

The first quarter is characterized by strong development in own operations. Our market position is strong and we believe that the prospects are good for continued positive development.”


Summary of the first quarter 2016

  • Net sales increased by 3 percent to SEK 2,472m (2,391). Adjusted for currency effects net sales increased by 4 percent. Adjusted for currency effects and deconsolidation of subsidiaryTerveyden Tuottajat Oy (TT) net sales increased by 7 percent.

  • Operating profit (EBITA) increased by 5 percent to SEK 197m (187), representing an operating margin of 8.0 percent (7.8).
  • Profit for the period amounted to SEK 128m (57), which represents a profit margin of 5 percent (2) and earnings per share after dilution of SEK 0.80 (0.36).

  • Operating cash flow amounted to SEK 143m (57).

Invitation to teleconference
The report will be presented at a teleconference call on 12 May 2016 at 10.00am CET. The conference is hosted by Attendo CEO Henrik Borelius and CFO Tomas Björksiöö. The presentation will be held in English.

To participate, please call in on one of the following numbers at least 10 minutes before the conference is scheduled to start:

SE:                +46 8 566 426 62

FI:                  +358 9 817 104 91

UK:                +44 203 008 98 19

You can follow the presentation and the conference on the following page:

http://cloud.magneetto.com/wonderland/2016_0512_Attendo_Rapport_Q1/view

The quarterly report and other information material will be made public on:

www.attendo.com/investor-relations

Attendo AB 
(publ)

För mer information, vänligen kontakta:
Ingalill Östman, IR-chef Attendo
Telefon: +46 708 67 42 12
E-post: ingalill.ostman@attendo.com

Stefan Svanström, Kommunikationschef Attendo
Telefon: +46 708 67 38 07
E-post: stefan.svanstrom@attendo.com

Informationen ovan är sådan som Attendo ska offentliggöra enligt lagen om värdepappersmarknaden och/eller lagen om handel med finansiella instrument.
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Attendo – Nordens ledande omsorgs- och vårdföretag

Attendo är den ledande privata leverantören av offentligt finansierade omsorgs- och vårdtjänster i Norden. Företaget grundades 1985 och var först i Sverige med att driva äldreomsorg på entreprenad. Utöver äldreomsorg erbjuder Attendo omsorg för personer med funktionsnedsättning, individ- och familjeomsorg samt i Finland hälso-, sjuk- och tandvård. Attendo har 19 000 medarbetare och är lokalt förankrat med 510 verksamheter i mer än 200 kommuner i Sverige, Finland, Norge och Danmark. www.attendo.com

About Us

Attendo – the leading care and healthcare company in the Nordics Attendo is the leading private provider of publicly financed care and healthcare services in the Nordic region. The company was founded in 1985 and was the first provider in Sweden in outsourced care for older people. In addition to care for older people, Attendo provides care for people with disabilities, individuals and families, and, in Finland, healthcare and dental care. Attendo has more than 20 000 employees and is locally established with over 500 operations in more than 200 municipalities in Sweden, Finland, Norway and Denmark.

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