Proffice interim report January-June 2014

PRESS
RELEASE
                 Stockholm 2014-08-21

STABLE DEVELOPMENT DURING THE QUARTER

Q2 2014 year-on-year

  · Revenue decreased 5 per cent to SEK 1,078 million (1,130).
  · EBITA and operating profit decrease 17 per cent to SEK 25 million (30),
including restructuring costs totalling SEK 10 million (0).
  · EBITA and operating margin stood at 2.3 per cent (2.7)
  · Basic earnings per share totalled SEK 0.25 (0.32)
  · Cash flow from operating activities totalled SEK 24 million (10)

YTD 2014 year-on-year

  · Revenue decreased 5 per cent to SEK 2,074 million (2,192).
  · EBITA and operating profit increased 13 per cent to SEK 45 million (40),
including restructuring costs totalling SEK 10 million (5).
  · EBITA and operating margin stood at 2.2 per cent (1.8)
  · Basic earnings per share totalled SEK 0.44 (0.51)
  · Cash flow from operating activities totalled SEK 23 million (54)

Financial overview

                           Q2            Change   YTD           Change  Full
                                                                        year
Group                      2014   2013   quarter  2014   2013   YTD     2013
Revenue, SEK million       1,078  1,130  -5 %     2,074  2,192  -5 %    4,318
EBITA and operating        25     30     -17 %    45     40     13 %    125
profit, SEK million
EBITA and operating        2.3    2.7    -        2.2    1.8    -       2.9
margin, per cent
Profit after tax, SEK      17     22     -23 %    30     35     -14 %   104
million
Basic earnings per share,  0.25   0.32   -22 %    0.44   0.51   -14 %   1.52
SEK
Diluted earnings per       0.25   0.32   -22 %    0.44   0.51   -14 %   1.52
share, SEK
Cash flow from operating   24     10     -        23     54     -       207
activities, SEK million
Cash flow from operating   0.35   0.15   -        0.34   0.79   -       3.03
activities per share, SEK
Basic equity per share,    8.38   7.47   12 %     8.38   7.47   12 %    8.37
SEK
Return on equity, per      18.2   9.7    -        18.2   9.7    -       19.2
cent

CEO comments

Stable development during the quarter
In calendar terms, this year’s second quarter was the weakest in two years with
just 57.5 working days. Costs of SEK 10 million for the organizational change
that took effect on 1 June were recognised during the quarter. These two factors
affected our operating profit, which reached SEK 25 million (30). Excluding
restructuring costs, operating profit was SEK 35 million (30).

New agreements in Norway and Sweden
We are continuing to see positive signs in the Swedish market. During Q2 of this
year, revenue increased in comparison with Q1, from SEK 996 million to SEK 1,078
million. This was achieved despite Easter falling in Q2, which particularly
affected our Norwegian operations.

The business climate remains subdued in Norway, so we were pleased that Proffice
signed several new customer contracts in Norway during the quarter – for example
with PostNord, who chose Proffice to supply staffing and recruitment services.
Proffice also signed new customer contracts with Bertel O. Steen, for a variety
of Proffice’s staffing services; Coop, who are hiring warehouse and forwarding
staff; and Color Line, who Proffice will provide with healthcare services.

It is also positive to see that the areas of competence of Aviation, Finance, IT
& Technology and Care grew in Norway during Q2 this year compared to the
preceding year.

At the end of the quarter we saw a slight increase in activity among our Swedish
customers, especially in our recruitment operations. We also gained renewed
confidence from ICA Gruppen, with whom we signed a three-year agreement for
staffing services, recruitment and outplacement. ICA and Proffice started their
partnership in 2008, and today Proffice is a prioritized staffing supplier in
all of ICA’s competence categories throughout Sweden.

Summer staffing lifts Denmark and Finland
Revenue in Proffice Aviation was up on the previous quarter in all four markets
– particularly in Denmark and Finland. This is the result of a normal increase
in summer staffing demand for cabin crews, above all in the latter part of Q2.
This demand usually continues into the first part of Q3.

Secure jobs and flexible companies
During the summer business and finance newspaper Dagens Industri and Proffice
organised a panel debate during Sweden’s annual week of political debates in
Almedalen. There, we discussed how we create secure jobs for employees alongside
flexibility for companies. As a staffing company we have a key function with our
solid knowledge of matching – not just to help companies find the right
employees for their operations, but also to help people progress from
unemployment to employment.

A general election will take place in Sweden in a few weeks’ time; jobs comprise
one of the major issues. Irrespective of the election results, we can be sure
that Proffice and our industry colleagues meet important needs – both for
employees who want secure jobs and for companies who need flexibility to enable
them to compete in an international market.

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 21 August 2014 at 8 am CET.