POOLIA INTERIM REPORT 1 JANUARY – 30 JUNE 2018

Quarterly period April-June 

Reported revenue, earnings, cash flow and key ratios relate to continuing operations, i.e. excluding Poolia UK. 

•  Poolia’s revenue amounted to SEK 199.7 (194.5) million. 

•  Operating profit/loss amounted to SEK -9.0 (6.4) million, with an operating margin of -4.5% (3.3%). 

•  The profit is charged with expenses of a one-off nature of SEK 9.3 million, of which SEK 7.7 million in connection with the merger and SEK 1.6 million for the office move in Stockholm. 

•  Profit/loss before tax was SEK -9.2 (6.0) million. 

•  Profit/loss after tax was SEK -8.1 (4.5) million. 

•  Earnings per share amounted to SEK -0.47 (0.23). 

•  Cash flow from operating activities during the quarter was SEK 3.4 (-1.3) million. 

From the CEO 

The market situation is largely the same as in recent quarters. This means that we have good demand for both permanent placement and temporary staffing services in the three countries in which Poolia operates. Unfortunately there is still a serious shortage of candidates and this, combined with the fact that a number of our temps are moving into employment with clients, means that we are unable to fully meet market demand in temporary staffing operations. This trend has been evident in both Germany and Sweden over the last two years, but we are now seeing the same situation in Finland. We see no signs that this situation will be changing, as long as the economy remains healthy in Europe. 

Poolia’s total revenue increased slightly during the quarter to SEK 199.7 million, compared with SEK 194.5 million in the same period in 2017, an increase of 2.7%.Poolia Sweden increased its revenue during the second quarter by SEK 1.8 million to SEK 137.3 (135.5) million, an increase of 1.3% compared with the same quarter in the previous year. Poolia Sweden won a number of tenders, including Jönköping Municipality, the Swedish Defence Research Agency and the Swedish Arts Council. We are also seeing strong demand from a number of the large Swedish clients with whom we signed contracts in 2017.Poolia Germany’s revenue for the quarter amounted to SEK 50.8 (49.2) million. Revenue for the Finnish operations increased during the quarter by SEK 1.8 million to SEK 11.6 (9.8) million, an increase of 18.3%. The Finnish economy is now one of the fastest-growing in Europe (3%), and this is having a positive impact in Poolia with increased demand for our services, especially in permanent placement. 

The Swedish operations’ share of the Group’s revenue fell slightly and amounted to SEK 68.7% (69.7%) in the second quarter, while the German operations accounted for 25.5% (25.2%) and the Finnish operations for 5.8% (5.1%). 

Poolia’s operating profit/loss for the quarter amounted to SEK -9.0 (6.4) million. The operating profit was charged during the period with major expenses of a one-off nature: SEK 7.7 million originating from the planned merger with Uniflex and SEK 1.6 million for moving the Stockholm office. The operating margin was -4.5% (3.3%). 

In Sweden, the operating profit/loss for the quarter amounted to SEK -9.1 (4.2) million, including merger expenses of SEK 7.2 million and removal costs of SEK 1.6 million. The operating margin in Sweden was -6.6% (2.8%). Excluding one-off expenses, there was an operating loss for the second quarter of SEK -0.3 million, with an operating margin of -0.2%. The German operations’ operating profit/loss amounted to SEK -0.2 (1.9) million, with an operating margin of -0.4% (3.9%). In Poolia’s Finnish operations, which were charged with merger expenses of SEK 0.5 million, the operating profit amounted to SEK 0.3 (0.3) million and the operating margin was 2.6% (3.1%). 

Cash flow from operating activities during the period was SEK 3.4 (1.3) million, largely due to a fall in current receivables. The Group’s liquidity and financial position are good.

The major event during the quarter was that the Board of Directors recommended that Poolia acquire Uniflex AB by means of a merger in accordance with the Swedish Companies Act. The merged Company will offer a significantly broader range of services, which will give us major benefits in the market, especially among major purchasers of consultancy services. The increase in revenue is expected to have an impact on earnings of approximately SEK 10 million in the medium term. The cost savings are estimated at approximately SEK 20 million on an annual basis, with full effect as of the fourth quarter of 2019.The merger will take place in the form of the pooling method, which means that no goodwill will be added to Poolia’s balance sheet in connection with the merger. 

Morten Werner 

Managing Director and CEO

This is information that Poolia AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication through the contact person above at 15.00 CET on 11 September 2018. The Swedish version was published 27 July 2018 at 07.00.

Poolia’s business concept is to provide companies and organisations with the skills that, either temporarily or permanently, meet their needs for qualified professionals. Poolia specialise in temporary staffing and permanent placement of professional staff in our focus areas of Finance & Accounting, Financial Services, Office Support, IT, Life Science & Engineering, Sales and Marketing, Human Resources, Legal, and Executive Search. Poolia has business in Sweden, Finland and Germany. Poolia is listed on the NASDAQ OMX Stockholm AB since 1999.