Poolia Interim Report 1 January – 31 March 2017

Quarterly period January-March

Reported revenue, earnings, cash flow and financial ratios relate to continuing operations, and do not include Poolia UK.

• Poolia’s revenue amounted to SEK 199.6 (200.3) million.
• Operating profit amounted to SEK 7.4 (0.4) million, with an operating margin of 3.7% (0.2%). 
• Profit before tax was SEK 7.4 (0.4) million.
• Profit after tax was SEK 5.1 (0.0) million.
• Earnings per share amounted to SEK 0.30 (0.00).
• Cash flow from operations for the quarter was SEK 8.6 (-11.4) million.

Discontinued operations

Poolia’s UK operations were divested on 28 February 2014. The only costs remaining in the companies are administrative expenses and a tax provision for the gain on the sale of the operations.

• Profit/loss from discontinued operations for the first quarter was SEK 0.0 (-1.4) million.
• Cash flow from discontinued operations for the quarter was SEK 0.0 (-0.0) million.

From the CEO – Better profitability but growth is taking its time

Poolia’s total revenue of approx. SEK 200 million for the first quarter was largely unchanged from the level for the same period in 2016. We are still experiencing strong demand for both temporary staffing and permanent placement services in Sweden and Germany, where Poolia continues to win contracts. We do not participate in quotation situations where we consider the prices too low to achieve good profitability. Our new public sector clients include Karolinska Institutet, Mälarenergi and Lidingö Municipality. Examples of private sector clients are Tuifly Nordic, Danone, Skruf Snus and Com Hem. 

However, the lack of candidates, particularly in staffing, affects our ability to grow. In the current economic situation, highly-qualified young graduates tend to choose a permanent contract with a traditional employer rather than a career as a temp. As a consequence, Poolia Sweden’s revenue fell by SEK 7.8 million to SEK 137.3 million in the first quarter, corresponding to a decline of 5.4% compared with the same quarter the previous year. It is pleasing to note the strong performance in our German operations, with revenue increasing by 18.3% to SEK 52.0 (44.0) million during the quarter. Revenue for the Finnish operations amounted to SEK 10.3 million during the quarter, a decline of SEK 1.0 million or 8.7%. Despite the decline, it is clear that Finland’s economy is now emerging from its long recession, and we are seeing increased demand for our services.

The Swedish business was responsible for 68.8% (72.4%) of the Group’s revenue in the first quarter, while the German business increased to 26.1% (22.0%) and the Finnish business accounted for 5.2% (5.6%). 

Poolia delivered an operating profit of SEK 7.4 million, which is an increase of SEK 7.0 million from the same quarter in 2016 and the highest first quarter operating profit since 2011. The operating margin of 3.7% is Poolia’s highest first quarter operating margin since 2009. In Sweden, operating profit for the quarter amounted to SEK 1.6 (-2.9) million, with an operating margin of 1.2% (-2.0%). The operating margin for the German business increased strongly to 10.6% (7.6%) during the period. In Finland too, the operating margin improved significantly to 2.9% (0.0%).

Cash flow from operations for the period was SEK 8.6 (-11.4) million and was primarily attributable to a decline in current receivables. The Group’s liquidity and financial position are good. 

I continue to have a very positive view of Poolia’s future. We are continuing to develop our marketing and sales tools to grow and become more efficient. We are working with focus and purpose to become an even more attractive employer for temps.  

Poolia is well equipped to continue its journey towards growth with increasing profitability. Poolia’s long-term goals and strategies stand firm.  

Morten Werner
Managing Director and CEO

Contact person:
Morten Werner, MD and CEO, tel: 46 70 636 25 25, 46 8 555 650 60

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 07.00 CET on 5 May 2017. The Swedish version was published 3 May 2017 at 14.00.

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.

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