Poolia continues to grow profitably
During the third quarter, the Poolia Group reported revenues of SEK 328.6 M, an increase of 9% compared with the year-earlier period. For the nine month period, total revenues increased by 12% to SEK 988.7 M. As in the preceding quarter, the largest relative growth occurred within Poolia Germany and the health company Dedicare.
The operating margin for the quarter was 5.9%, which is slightly lower than in the year-earlier period. However, this quarter too was affected by the reversal of reserves from the discontinuation within the German operations in 2006. For the nine month period, the total operating margin was 5.8% and the highest margins were again reported by Poolia Sweden, Poolia Germany and Dedicare. Group-wide expenses increased compared with the year-earlier period, as a result of the increase in central expenses required to support the operations outside Sweden and the recent change of CEO. Johan Eriksson took office as Poolia’s Managing Director and CEO on October 1.
During the quarter, Poolia Sweden grew 7% to SEK 173.5 M. This decrease in the growth rate in comparison with the first half of the year was primarily due to lower revenues from the operations in Stockholm and the Eastern Region. We are now taking measures to increase sales power throughout the Swedish organization and to stabilize personnel turnover within the IT operations in Stockholm. Profitability remained favourable during the quarter and the operating margin was 9.2%.
In the Other Nordic countries (Finland and Denmark), sales during the quarter amounted to SEK 8.4 M, which is lower than in the year-earlier period. However, this was partly due to the fact that Poolia’s operations in Norway at the time, which were discontinued later in 2006, were included in the figures for the third quarter. The candidate situation remained difficult in Denmark, which had a negative effect on the temporary staffing operations, while permanent recruitment reported growth. The operating margin for the other Nordic countries during the period was negative.
Poolia Germany continued its positive trend and grew 113% during the period to SEK 19.8 M. Comparable units grew 118% and all districts, including newly established and mature operations, reported increased revenues during the quarter. The positive trend also continued for profitability and the operating margin for the quarter was 10.6%.
In the UK, revenues amounted to SEK 73.7 M for the quarter, which is lower than in the corresponding period in the preceding year. The operating margin for the quarter was 0.0%. Within the banking sector, the process aimed at reducing the proportion of subcontractor contracts that are subject to price pressure also continued this quarter. The previously advertised savings programme, comprising SEK 5 M on a yearly basis, was implemented and all related expenses were reported during the third quarter.
Dedicare (formerly Poolia Healthcare) continued to perform favourably within the Doctor and Nurse operations and increased revenues by 74% during the quarter to SEK 53.2 M. The operating margin was 9.6%, which is the highest quarterly figure ever reported by the healthcare operation.