2013 – Increased profitability in all markets
Year-on-year comparison with 2012
· Revenue decreased 11 per cent to SEK 4,318 million (4,876)
· EBITA and operating profit increased 14 per cent to SEK 125 million (110),
including SEK 5 million (40) in other operating income
· EBITA margin and operating margin stood at 2.9 per cent (2.3)
· Basic earnings per share totalled SEK 1.51 (1.11)
· Cash flow from operating activities totalled SEK 207 million (0)
· The Board proposes a dividend of SEK 0.60 per share, totalling SEK 41
million
· The Board proposes that the AGM continue to mandate repurchase of treasury
shares and to authorize the issuance of new shares as in prior years
Q4 2013 year-on-year comparison
· Revenue decreased 12 per cent to SEK 1,060 million (1,199)
· EBITA and operating profit totalled SEK 35 million (-14), including SEK 5
million (27) in other operating income
· EBITA margin and operating margin stood at 3.3 per cent (-1.2)
· Basic earnings per share totalled SEK 0.35 (‑0.06)
· Cash flow from operating activities totalled SEK 91 million (20)
Financial overview
Fourth quarter Change Full year Change
Group 2013 2012 quarter 2013 2012 full year
Revenue, SEK million 1,060 1,199 -12% 4,318 4,876 -11%
Other operating income, 5 27 -81% 5 40 -88%
SEK million*
EBITA, SEK million 35 -14 - 125 110 14%
EBITA margin, per cent 3.3 -1.2 - 2.9 2.3 -
Operating profit/loss, 35 -14 - 125 110 14%
SEK million
Operating margin, per 3.3 -1.2 - 2.9 2.3 -
cent
Profit after tax, SEK 25 -5 - 104 78 33%
million
Basic earnings per 0.35 -0.06 - 1.52 1.11 37%
share, SEK
Diluted earnings per 0.35 -0.06 - 1.52 1.11 37%
share, SEK
Cash flow from operating 91 20 - 207 0 -
activities, SEK million
Cash flow from operating
activities per
share, SEK 1.33 0.29 - 3.03 0.00 -
Basic equity per share, 8.37 7.50 12% 8.37 7.50 12%
SEK
Return on equity, per 19.2 12.9 - 19.2 12.9 -
cent
*Deviation between actual additional purchase price from previous acquisitions
and expected outcome.
CEO comments
2013 – Improved profitability in all markets
The beginning of 2013 was marked by a continued sluggish market. Proffice’s
focus was on completing the action plan that was initiated when the market
declined in autumn 2012 and ensuring profitability over growth. Thanks to the
efforts of our employees and the action plan in Sweden, profitability improved
in all markets, and the EBITA margin was 2.9 per cent (2.3) for the full year.
In the second half of the year, an improvement in the Swedish market was
cautiously anticipated. Overall, 2013 turned out to be a transitional year for
our Swedish operation, where continued cost conciousness and internal efficiency
resulted in increased profitability, despite substantial price pressure. The
proportion of revenue from small and medium-sized customers continued to
increase, affecting both profitability and cash flow in a positive direction.
Demand from of a number of our major customers was lower, as well.
Growth continues to be our ambition in Norway. We see great potential in the
Norwegian market and our goal is to strengthen our market position. However, the
business was affected by the slump in early 2013 that affected the Norwegian
economy and by increased uncertainty among customers with the introduction of
the Vikarbyrå Directive*. Despite this, we managed to increase profitability in
2013 to an EBITA margin of 3.5 per cent (3.2). Our specialization strategy has
continued to ensure the right conditions exist for better profitability by
meeting our customers’ needs with excellence and continuously refined service
offerings.
Both in Finland and Denmark, revenue and profitability increased significantly
during the year as a result of the establishment of Proffice Aviation, one of
our specialist companies.
A strong fourth quarter
Despite the negative impact of the weak market and unfavourable calendar
effects, Proffice finished the year profitably. Consolidated operating profit
was SEK 35 million (-14), resulting in an EBITA margin of 3.3 per cent (-1.2).
In Sweden, economic indicators continue to straggle. That fact that the
Recruitment operating area improved while Outplacement declined and that revenue
increased from the third quarter, convinces us that the economic situation may
be about to brighten. Our Swedish operation reached an EBITA margin of 4.8 per
cent (-1.6).
Despite focused efforts, we were not able to increase profitability in Norway
during the fourth quarter. The Institutes of Economic Research reports that the
Norwegian market’s economic climate remains tough. Revenue decreased 13 per cent
in local currency compared year-on-year. We reached an EBITA margin of 3.0 per
cent (4.4).
In Finland and Denmark, Proffice Aviation continued to contribute to increased
growth and a stronger market position. Fourth quarter revenue was several times
higher than its previous low levels in both Finland and Denmark, while
profitability improved significantly.
In the fourth quarter, Proffice signed several important agreements with
organizations such as the City of Stockholm, Husqvarna, Familjebostäder, ICA,
Vattenfall, and Kommentus in Sweden, as well as Telenor, Oslo Kommune, and
Deloitte in Norway, and Outokumpu in Finland.
Prepared for growth
As the new CEO, I can conclude that Proffice made it through a period of tough
economic market conditions. The Group has successfully implemented major cost
savings, streamlined internal processes, and improved profitability, while
winning major contracts. At the end of the year, Proffice took over development
responsibilities for the enterprise resource planning (ERP) system from the
vendor. We estimate that this will allow for better potential to transform and
develop the infrastructure according to our future needs.
Proffice is an efficient, profitable company that is well prepared to meet
changes in the market with attractive offerings and good sales pressure. Our
long-term strategy remains unchanged and our 2014 agenda reflects the Group’s
ambitious business plans. Proffice will continue to play its leading role in the
market and generate profitable growth through innovation and improved customer
experiences. I look forward to leading Proffice toward our vision of becoming
the most successful staffing company in the Nordics.
Henrik Höjsgaard
President and CEO
If you have questions about this interim report, please contact:
Henrik Höjsgaard, President and CEO, telephone +46 8 787 17 00,
henrik.hojsgaard@proffice.com
Benno Eliasson, CFO, telephone +46 8 787 17 00, benno.eliasson@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.
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
Information in this interim report is such that Proffice AB (publ) is obligated
to disclose it pursuant to the Swedish Securities Markets Act. The information
was released for publication on 20 February 2014 at 8 am CET.
Proffice Full year Report January-December 2013
| Source: Proffice AB
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