Poolia Interim Report 1 January – 31 March 2013

Restructuring process starting to have the desired effect

Quarterly period January-March

• Poolia reported revenue of MSEK 214.0 (276.7), which is a 22.7% decline (-22.0% in local currency).
• Operating profit was MSEK 3.3 (2.8) and the operating margin was 1.6% (1.0%).
• Profit before tax was MSEK 3.3 (2.5).
• Profit after tax was MSEK 2.3 (1.4).
• Earnings per share stood at SEK 0.13 (0.08).
• Operating cash flow for the quarter was MSEK 5.6 (9.4).
• The equity/assets ratio at the end of the period was 31.4% (35.4%) and the Group's equity per share was SEK 4.69 (6.66).
• From 2013, all parent company expenses are allocated to the operating segments.

Other significant events

• We have been selected by the National Procurement Agency at Kammarkollegiet (the Swedish Legal, Financial and Administrative Services Agency) to provide temporary staffing services to government authorities and departments.  
• We have signed temporary staffing and permanent placement contracts with BMW.

From the CEO – "Restructuring process starting to have the desired effect"

The Poolia Group reported an operating profit of MSEK 3.3 for the first quarter of 2013, which indicates that the restructuring process of the fourth quarter in the previous year is starting to produce results. The quarter's MSEK 3.3 operating profit can be compared to the MSEK 12.5 loss in the fourth quarter of 2012, which did not include restructuring costs and amended lifetime assessments of assets. The first quarter's operating profit is also an improvement on the year-ago profit of MSEK 2.8. I am pleased about this, but not satisfied. It is essential that we continue to define our portfolio of services, move even closer to our clients and carry on improving our efficiency and profit level.

Poolia Sweden reported an operating profit of MSEK 4.1, compared to MSEK 1.8 in the previous year. The operating margin was 2.5% compared to 0.8% in the corresponding period last year. Revenue was down 24% compared to the corresponding quarter in 2012. From the start of 2013 and through the quarter, we have noted a stabilisation in temporary staffing assignments. The proportion of turnover represented by permanent placement/outplacement increased from 9% to 15%. Outplacement is stronger than last year and is the area in which we have gained market share.

Poolia Germany is now our second largest market. Growth has been strong for some considerable time and this trend continues with a 28% increase in revenue in the first quarter, in local currency. This growth is the result of investment in structure. The operating profit for the quarter is MSEK 0.0 (0.4). The weak performance is attributable to lower than expected revenues from permanent placement, poorer efficiency figures such as high sick leave, and the cost of building up the office structure. The proportion of business in permanent placement was 13% in the first quarter of 2013, compared to 21% last year. We believe there is good potential for improving the profit margin.

Poolia UK is currently undergoing a generation shift and is putting a sharper focus on Finance & Accounting. Our revenue has fallen by 52% in local currency, which reflects the level of staff cuts. The MSEK 1.1 loss compared to MSEK 0.1 last year is not satisfactory. Although we have a high level of activity, we are still not seeing the desired effects of our work. We are constantly looking for ways to make cost savings.

Poolia Finland continues to report a pleasing performance, considering the economic situation. Permanent placement represented 10% of turnover compared to 14% in the first quarter of 2012. This is the reason why the operating margin declined from 6.0% in the first quarter of 2012 to 4.1% in the first quarter of 2013. Revenue was up 4% in local currency over the previous year compared to a market downturn of about 10% in temporary staffing and about 35% in permanent placement during the period. We are continuing to gain market share in Finland.

In conclusion, we are delighted that our restructuring process is starting to produce results, but we still have a lot of hard work ahead in a weak economic climate which continues to pose challenges.

Monika Elling
Managing Director and CEO

For more information please contact:
Monika Elling, MD and CEO, tel.: 46 (0)70 512 02 01

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

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