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Poolia year-end report 1 January – 31 December 2013

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Focus on profitability improvement in a streamlined organisation

Quarterly period October-December

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

  • Poolia's revenue amounted to SEK 182.2 (207.7) million, a decline of 12.2%.
  • Operating profit/loss was SEK -0.8 (-30.5) million, with an operating margin of -0.4% (-14.7%).
  • Profit/loss before tax was SEK -0.8 (-30.3) million.
  • Profit/loss after tax was SEK -0.3 (-24.4) million.
  • Earnings per share amounted to SEK -0.02 (-1.42).
  • Cash flow from operations for the quarter was SEK -11.5 (-6.3) million.
  • The outplacement business of Utvecklingshuset was divested on 1 December 2013.
  • Profit/loss for the period from discontinued operations amounted to SEK -2.9 (-1.9) million.

Other significant events

  • Morten Werner has been appointed as the new Managing Director and CEO from 1 February 2014.
  • The UK business will be divested on 28 February 2014.

Period January-December

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

  • Poolia's revenue amounted to SEK 729.1 (888.5) million, a decline of 17.9%, (17.9% in local currency).
  • Operating profit/loss was SEK 2.4 (-23.2) million, with an operating margin of 0.3% (-2.6). The figure includes post-employment costs associated with the former CEO.
  • Profit/loss before tax was SEK 2.3 (-23.0) million.
  • Profit/loss after tax was SEK 2.5 (-18.8) million.
  • Earnings per share amounted to SEK 0.15 (-1.10).
  • Cash flow from operations for the period was SEK -2.4 (15.2) million.
  • The equity/assets ratio ended the period at 28.4% (29.7%), and the Group’s equity per share was SEK 3.52 (4.62).
  • Profit/loss for the period from discontinued operations amounted to SEK -22.3 (-6.7) million. The figure includes goodwill impairment of SEK 12.8 million attributable to outplacement operations.
  • The Board of Directors proposes that no dividend be paid to the shareholders.

From the CEO – "Focus on profitability improvement in a streamlined organisation"
 
Poolia reported earnings for continuing operations in the fourth quarter of SEK -0.8 (-30.5) million. Restructuring costs had an adverse effect of SEK 1.5 million on earnings for the quarter. Revenue for the quarter was SEK 182.2 (207.7) million, a decline of 12.2%.

Earnings for continuing operations for the full year were SEK 2.4 million. Excluding costs associated with the former CEO (SEK 3.7 million), Q4 restructuring­ costs (SEK 1.5 million) and losses from the previously discontinued operations Poolia Lead (SEK 0.8 million) and Poolia Talent Eye (SEK 1.0 million), earnings for continuing operations amounted to SEK 9.4 million for 2013.

A focused cost reduction programme has been implemented for the support functions and will reduce annual costs by approx. SEK 9 million. The programme has resulted in restructuring­ costs of SEK 1.5 million in the fourth quarter.

Market demand remains weak. However, there were signs of some positive market trends towards the end of the period. Prices continue to be unchanged.

Poolia Sweden reported earnings of SEK -3.0 (-29.5) million for the fourth quarter of 2013. Revenue was SEK 141.2 (173.2) million, a decline of 18%. Demand for temporary staffing services is stable but at a low level. Demand for permanent placement has been low compared with the previous year. However, we have seen an increase in permanent placement enquiries in Sweden at the end of the period. Large-scale initiatives to improve profitability have been conducted. Marketing and sales activity has increased significantly as a result of clearer requirements, a substantial increase in sales work and simplified internal processes. The number of employees in the support functions has been reduced in order to reduce costs and allow some increase in the number of sales staff.

Poolia Germany's revenue for the fourth quarter grew by 13%, which means that Poolia continues to gain market shares. Earnings continued to show positive growth. Development of the offices that are not yet showing satisfactory profitability is continuing as planned.

Poolia Finland reported a strong fourth quarter. Revenue grew by 23% in local currency, with a good operating margin of 8.7%.

After the end of the period, an agreement was signed with Staffing 360 Solutions Inc. for the acquisition of Poolia's UK business. Subject to the approval of an employee consultation process, which is required under UK law, the business will be transferred on 28 February 2014. Poolia has suffered losses in the UK market for several years and as profitability for the business is still some distance ahead, Poolia has made it a priority to develop its operations in the Swedish, Finnish and German markets.

The process of streamlining Poolia's organisation is now completed, and all energy can be channelled towards developing the profitable core business. I wish the incoming CEO every success in this work.

Dag Sundström
Acting Managing Director and CEO (to 31 January 2014)

Contact person:
Morten Werner, MD and CEO, tel: +46 70 636 25 25

Poolia’s business concept is to provide companies and organizations with the skills that, either temporarily or permanently, meet their needs for qualified professionals. Poolia specialize 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, and Executive Search. 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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Year-End Report Poolia Permanent placement Temporary staffing Qualified professionals

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