Interim Report for January 1 – June 30, 2007
Continued profitable growth – increased investment in Germany and the UK
During the second quarter, the Poolia Group’s revenues amounted to SEK 326.8 M, which is 13% higher than the corresponding period in 2006. For the first six months of the year, total revenues increased by 15% to SEK 669.2 M. The largest relative growth was within Poolia Germany and the health company Dedicare, while Swedish operations grew most in absolute terms
The Group’s operating profit for the quarter was SEK 16.1 M and during the January – June period totalled SEK 37.5 M. This means that revenues are unchanged compared with the year-earlier period. However, the figures for 2006 included the reversal of reserves from the discontinuation of former non-core businesses in Germany. The German operations have been able to cover their share of expenses for extensive investments in new establishments, while profitability in the UK remains unsatisfactory. Operating margin for the Group for the quarter was 4.9% and for the January – June period 5.6%.
During the quarter, the Group’s largest unit, Poolia Sweden, grew 19% to SEK 190.1 M. All regions and professional areas showed healthy growth, with the strongest growth in regions outside Stockholm. Profitability remains favourable within all areas and operating profit for the second quarter amounted to SEK 18.9 M, corresponding to a margin of 9.9%.
In the other Nordic countries, Finland and Denmark, sales during the quarter amounted to SEK 9.4 M, which is lower than the year-earlier period. The largest part of this decrease is attributable to the fact that Poolia’s former operations in Norway, which was discontinued during 2006, is included in the figures for the second quarter. Profitability for the other Nordic countries for the second quarter was 2.1%. During the period, José Majanen was appointed new manager of Poolia Finland.
In Germany, sales rose by 60% to SEK 17 M. If the former non-core business, which is no longer part of the company, is excluded, growth for the quarter was 89%. Growth was reported in all regions, with the strongest trend in Munich. Operating profit was SEK 1.7 M, including costs for two newly established offices, corresponding to a margin of 10.0%. This means that the core business in Germany has grown strongly since the restructuring at the beginning of 2006, and has shown favourable profitability for two consecutive quarters.
During the quarter, Poolia UK had sales of SEK 72.2 M, which is lower than the year-earlier period. Here, we have chosen to discontinue a number of assignments in the banking sector, where the increasing utilisation of subcontractors resulted in a considerable pressure on prices. In the UK, we have five newly established offices, and costs for this investment contributed to an operating loss for the quarter. The operation at the largest office in London/Holborn generates profit but does not fully cover the costs for new establishments. A measures program to increase profitability in the UK is under implementation.
The operation within Dedicare (formerly Poolia Healthcare) developed favourably, with the strongest growth in Sweden, and during the quarter, sales increased by 53% to SEK 38.1 M. Operating margin was 6.8%.
For further information, please contact:
Erik Strand, Managing Director and Chief Executive Officer (Tel: +46-8-555 650 60)
Mats Påhlson, Chief Financial Officer (Tel: +46-8-555 650 20)
Poolia’s success is based on constantly striving for premium quality. We specialise in temporary staffing and permanent recruitment within our focus areas of finance/accounting, administration, IT and healthcare. Poolia was founded in 1989 and is active in six countries.