Poolia: Interim Report for January 1- March 31 2005

Poolia reported a profit for the fifth consecutive quarter. Operating profit during the first quarter of 2005 improved by SEK 2.6 M, compared with the corresponding period in 2004. It should be noted in comparisons with 2005 that the former subsidiary Uniflex was still included in the Group during 2004. Poolia’s principal markets, Sweden and the UK, continued to show a favourable trend. Sales and earnings in other Nordic countries and Germany, however, are lower than Poolia’s target levels. The observance of Easter during the first quarter had negative effects on sales and earnings in all countries. The strongest calendar effect was noted in Sweden and the UK.

Market and trends Demand in Poolia’s main markets, Sweden and the UK, remained favourable during the first quarter. In Germany, labour market actions intended to support employment of recent college and university graduates have a negative effect on the staffing market. In other Nordic countries, a marginally favourable trend was noted in all markets. Poolia Sweden With a growth rate of 14% during the first quarter of 2005, compared with the year-earlier period, Poolia sustained the favourable volume trend that started in at mid-year 2004. Growth was noted in all occupational segments. The percentage of sales attributable to permanent placement increased by 10% during the first quarter. A profit was reported for the third consecutive quarter, but further improvement is possible and the focus will therefore remain on both profitability and growth. Poolia’s international operations Operations in the UK continued to show a favourable trend. Revenues were lower than the preceding year, but excluding exchange-rate effects and the calendar effect mentioned above, sales grew by about 5%. The margin was slightly lower than in the year-earlier period, due to extra costs incurred in conjunction with the phasing-out according to plan of former management personnel. First-quarter results in Germany were disappointing. The main reason is that several consultants involved in a major assignment completed for a customer in Hamburg have not been able to be transferred to new assignments. Measures to correct profitability problems will be implemented during the second quarter. Other cities in Germany showed a positive trend in terms of both sales and earnings. In the Nordic countries, operations in Norway and Denmark continued to generate extremely small volumes. Finland showed a weak quarter after noting a full-year profit in 2004 for the first time in the company’s history. Poolia Health The operations of Poolia Health differ from the other Group operations in terms of customer and candidate structure. Accordingly, as of the first quarter of 2005, Health is reported as a separate segment. The operations comprise the temporary staffing of doctor and nurse positions in Sweden and Norway. Business trends have been favourable since mid-2004. Revenues in the first quarter of 2005 increased by 40%, compared with the first quarter of 2004, and the margin improved.