Poolia : Interim Report 1 January – 31 March 2018

Publish date: 03-May 2018, 15:30

Quarterly period January-March

• Poolia's revenue amounted to SEK 200.4 (199.2) million.
• Operating profit amounted to SEK 4.8 (7.0) million, with an operating margin of 2.4% (3.5%).
• Profit before tax was SEK 5.2 (7.0) million.
• Profit after tax was SEK 3.7 (4.8) million.
• Earnings per share amounted to SEK 0.22 (0.28).
• Cash flow from operations for the quarter was SEK -11.1 (8.6) million.

From the CEO

Poolia's total Q1 revenue of just over SEK 200 million was a little higher than for the same period in 2017. This was despite the fact that there were fewer working days than in Q1 2017.

Demand for both permanent placement and temporary staffing remains good in all three countries in which Poolia operates. At the same time, the lack of candidates and the fact that a large number of our temps are taking employment with the clients continues to have an adverse effect on the Company's growth. This trend in the temporary staffing business has been evident in both Germany and Sweden over the last two years. We are now also seeing similar tendencies in Finland. There are no signs that the situation will change in the foreseeable future.

Poolia Sweden increased its revenue for the first quarter by SEK 2.2 million to SEK 139.1 million, corresponding to growth of 1.6% from the same quarter the previous year. During the period, Poolia Sweden won several tendering processes, including the Municipalities of Nacka and Umeå and the Swedish Transport Administration. We are also seeing strong demand from a number of the large Swedish clients we signed contracts with in 2017.

Poolia Germany's revenue for the quarter amounted to SEK 50.8 (52.0) million, a decline of 2.3% compared with the same period in 2017. Temporary staffing in particular has shown a decline in what is a challenging market, with intense competition for qualified professionals and an increasing tendency for clients to employ our temps.

Revenue for the Finnish operations amounted to SEK 10.5 (10.3) million during the quarter, an increase of SEK 0.2 million or 1.9%. Finland's economy is now showing growth in excess of 3% and we see increased demand for our services, particularly in permanent placement.

The Swedish operations' share of the Group's revenue increased to 69.4% (68.8%) in the first quarter, while the German operations accounted for 25.3% (26.1%) of revenue and the Finnish operations for 5.2% (5.2%).

Poolia's operating profit amounted to SEK 4.8 (7.0) million, a decline of SEK 2.2 million from the same quarter in 2017. The operating margin was 2.4%

In Sweden, operating profit for the quarter amounted to SEK 1.4 (1.2) million, with an operating margin of 1.0% (0.9%). The German operations reported operating profit of SEK 3.0 (5.5) million, with an operating margin of 5.9% (10.6%). Poolia Finland's operating profit improved slightly to SEK 0.4 (0.3) million, with an operating margin of 3.8% (2.9%).

Cash flow from operations for the period was SEK -11.1 (8.6) million and was largely due to a temporary increase in current receivables. The Group's liquidity and financial position are good.

We devote a great deal of time and resources to operational efficiency and adapting to new market conditions in order to better meet clients' and temps' expectations. And by doing so, we create the conditions for even stronger growth and improved profitability.

Poolia's long-term goals and strategies stand firm.

Morten Werner
Managing Director and CEO

This is information that Poolia AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication through the contact person above at 14.00 CET on 3 May 2018. The Swedish version was published 25 April 2018 at 14.00.

Poolia's business concept is to provide companies and organisations with the skills that, either temporarily or permanently, meet their needs for qualified professionals. Poolia specialise in temporary staffing and permanent placement of professional staff in our focus areas of Finance & Accounting, Financial Services, Office Support, IT, Life Science & Engineering, Sales and Marketing, Human Resources, Legal, and Executive Search. Poolia has business in Sweden, Finland and Germany. Poolia is listed on the NASDAQ OMX Stockholm AB since 1999.