Proffice year-end financial report

Proffice year-end financial report

January - December 2010

Strong fourth quarter

October - December 2010

  · Revenue amounted to SEK 1,136 million (963)
  · Operating profit amounted to SEK 45 million (30)
  · Operating margin of 4.0% (3.1%)
  · Profit after tax of SEK 35 million (25)
  · Basic earnings per share totalled SEK 0.45 (0.32)
  · Cash flow from operating activities amounted to SEK 105 million (95)

January - December 2010

  · Revenue amounted to SEK 4,095 million (3,908)
  · Operating profit amounted to SEK 140 million (160)
  · Operating margin of 3.4% (4.1%)
  · Profit after tax of SEK 97 million (111)
  · Basic earnings per share totalled SEK 1.20 (1.45)
  · Cash flow from operating activities amounted to SEK 57 million (201)
  · The Board proposes dividend of SEK 0.75 per share, totaling SEK 51
million
  · The Board proposes the AGM resolves further authorization to buy
back own shares
  · 438,919 shares were repurchased during the year, for a total of SEK
9 million

Lars Kry, president and CEO, commented:

Now we've closed the 2010 books and see the outline of how 2011 has
begun. It is striking how quickly the market has changed - and how
quickly Proffice has adapted to the new situation.

Proffice finished the year with strong growth and higher profitability
in the fourth quarter.  Net sales rose to SEK 1,136 million in Q4, an
increase of 18 percent, and operating profit rose 50 percent to SEK 45
million.

Proffice has three-quarters of its operations in Sweden, where the
market for staffing services rose substantially in 2010 by 39 percent in
the third quarter and 42 percent in the last quarter.

As we look at the year as a whole, I would like to highlight a number of
strengths:

1: Increased profitability in Temporary Staffing and Recruitment in
Sweden. Proffice in Sweden grew 33 percent in Temporary Staffing and
Recruitment. In these areas, the operating margin rose to 7.3 percent, a
highly satisfactory result that demonstrates that we can deliver on our
long-term target margin of 6 percent. During the year, several key frame
agreements were signed with customers such as Ericsson, ICA and
Vattenfall.

2: Increased profitability in our Norwegian operations. We see clear
results from our improvements in Norway. Here sales are up 12 percent to
SEK 255 million for the quarter. In local currency, this is an increase
of 37 percent.  The operating profit also rose to SEK 7 million from SEK
4 million.

Looking at the full year, the profit improvement in Norway becomes
extremely clear: From SEK -4 million to SEK 26 million. We are
continuing our efforts to build Proffice into a larger player on the
Norwegian market by reinforcing our focus on specialisations.

3: Outplacement operations in Sweden. Sales in Outplacement totalled SEK
30 million in Q4. Compare this to SEK 76 million during the same period
last year. The market for Outplacement services turned quickly in
Sweden, and as a result we reduced the cost of operations in one year
with over SEK 180 million.

We have taken measures to meet the new situation. New management, cost
efficiencies, integration with other Proffice areas, and modification of
our product offerings have resulted in operations that perform as
planned today.

A year ago, the Outplacement area accounted for much of the
profitability while Temporary Staffing and Recruitment returned lower
levels. This shows the intrinsic strength in our balanced offering.

4: Increased specialisation and additional acquisitions. In 2010, we
took several key steps to strengthen our specialisation strategy.

In August, we acquired Legevisitten Bemanning, and it has successfully
been integrated into Proffice Care, to create a Nordic market leader in
healthcare staffing with operations in Sweden, Norway, and Denmark.
Market drivers are the increasing need and higher efficiency
requirements on health care.

In addition, we started Proffice Finance, a new specialist company
focused on finance. We recruited key staff with the right expertise to
build a successful business.

5: We are properly equipped for the future. Proffice has successfully
navigated the challenges and shown that we can return profit even in a
recession.

Now we will seize the opportunities of a stronger market environment. We
have successfully created a good starting position in Sweden, Norway,
and Finland. In Denmark we now see profit in previously problematic
operations tailored to the white-collar segment. To reach our goal, we
are now boosting our market activity and making more sales visits.

 Proffice's strategy is to operate in specialist areas in which we have
high credibility and a strong capability to deliver. This allows us to
be a stronger, more crucial partner to our customers. Most of our growth
will be organic and our strong balance sheet will also allow us to make
further acquisitions. Our vision is for Proffice to be the most
successful staffing company in the Nordic region. We will succeed by
nurturing opportunities for both people and businesses to grow.

For more information, please contact

Lars Kry, CEO Proffice AB, + 46 8 787 17 00,
lars.kry@proffice.com (lars.kry@proffice.com)
Magnus Uvhagen, acting CFO Proffice AB, + 46 8 787 17 00,
magnus.uvhagen@proffice.com (magnus.uvhagen@proffice.com)

Proffice is the specialised flexible staffing company with more than
10,000 employees in the Nordic region. We provide temporary staffing,
recruitment services, and outplacement. Proffice is listed on the NASDAQ
OMX Stockholm, Mid Cap. www.proffice.com.

This is a translation from Swedish. In the event of any discrepancies
between the Swedish and the translation, the former shall have
precedence.