Proffice Interim Report January-September 2013

PRESS
RELEASE
                  Stockholm 2013-11-21

Increased profitability for the quarter in all markets

Q3 2013 compared year‑on‑year

  · Revenue decreased 10 per cent to SEK 1,066 million (1,182)
  · EBITA and operating profit increased 61 per cent to SEK 50 million (31)
  · EBITA margin and operating margin stood at 4.7 per cent (2.6)
  · Basic earnings per share totalled SEK 0.66 (0.28)
  · Cash flow from operating activities totalled SEK 62 million (104)

January-September 2013 compared year-on-year

  · Revenue decreased 11 per cent to SEK 3,258 million (3,677)
  · Other operating income totalled SEK 0 million (13)
  · EBITA and operating profit declined 27 per cent to SEK 90 million (124)
  · EBITA margin and operating margin stood at 2.8 per cent (3.4)
  · Basic earnings per share totalled SEK 1.16 (1.16)
  · Cash flow from operating activities totalled SEK 116 million (-20)

Financial overview

                           Third         Change   Nine          Change  Full
                           quarter                months                year
Group                      2013   2012   quarter  2013   2012   nine    2012
                                                                months
Revenue,   SEK million     1,066  1,182  -10%     3,258  3,677  -11%    4,876
Other   operating income,  0      0      -        0      13     -       40
SEK million*
EBITA,   SEK million       50     31     61%      90     124    -27%    110
EBITA   margin, per cent   4.7    2.6    -        2.8    3.4    -       2.3
Operating   profit, SEK    50     31     61%      90     124    -27%    110
million
Operating   margin, per    4.7    2.6    -        2.8    3.4    -       2.3
cent
Profit   after tax, SEK    44     19     132%     79     83     -5%     78
million
Basic   earnings per       0.66   0.28   136%     1.16   1.16   0%      1.11
share, SEK
Diluted   earnings per     0.66   0.28   136%     1.16   1.16   0%      1.11
share, SEK
Cash   flow from           62     104    -        116    -20    -       0
operating activities, SEK
million
Cash   flow from
operating activities per
share,   SEK               0.90   1.51   -        1.69   -0.29  -       0.00
Basic   equity per share,  7.95   7.44   7%       7.95   7.44   7%      7.46
SEK
Return   on equity, per    14.0   20.5   -        14.9   14.0   -       12.9
cent

*Deviation between actual additional purchase price from previous acquisitions
and expected outcome.

CEO comments

Increased profitability for the quarter in all markets

In an economic climate that continues to be tough, we further increased
profitability in all markets. EBITA reached SEK 50 million (31), and the EBITA
margin improved to 4.7 per cent (2.6). The intensive action plan we initiated
when the market gave way in the autumn of 2012 continues to have a positive
effect, but the improved performance is also the result of a conscious effort to
increase focus on margins across the Group.

Action plan results in additional effects in Sweden

Although the Swedish market is showing signs of greater stability and increased
activity, customers continue to be cautious. Revenue fell by 14 per cent during
the quarter, primarily due to the market situation but also as a consequence of
a change in customer mix. The proportion of revenue from major customers
decreased, which benefited small and medium-sized customers and affected both
profitability and cash flow in a positive direction. Despite decreased revenue
and the continuing effects of higher-than-normal guaranteed wages, operating
profit increased by 60 per cent compared with the same quarter last year and we
attained an EBITA margin of 5.2 per cent (2.8).

Our successful specialization strategy creates opportunities for better
profitability. With leading-edge expertise in each business area, we can
continually refine our services to meet our customers’ needs and develop their
businesses. During the quarter, we extended or initiated several important
agreements with NCC, Peab, ICA, Swedavia, the Swedish Transport Administration,
Intersport, Sandvik, SVT, and others.

Improved earnings in Norway

Operating profit increased 44 per cent in the third quarter, which results in an
operating margin of 5.1 per cent (3.3).

The market in Norway was characterized by a continued uncertain economic climate
during the quarter. Growth slowed and our business was adversely affected by the
new work and employment conditions brought about by the Vikarbyrå Directive.
Revenue dipped 5 per cent compared year-on-year, but our high ambitions for
Proffice Norway remain. We will strengthen both our market position and
profitability by creating a better balance in the customer mix, continuing to
focus on margins, and through efficiency and cost control at every stage.

Through our specialization strategy, we can better meet the skills shortage
prevailing in so many industries. For example, our focus on engineers continues
in a positive direction.

Profitable growth in Denmark and Finland

Proffice in Denmark once again delivered a positive result. Revenue tripled
compared with the same quarter last year and we attained an EBITA margin of 25.0
per cent (0.0). Operating profit was positively impacted by the successful
establishment of specialist areas as well as the increasingly profitable
recruitment business.

Our operations in Finland continued in the black during the quarter despite the
enduring unsettled economic climate. We achieved an operating margin for the
quarter of 6.5 per cent (-7.1), and revenue more than doubled. The positive
earnings trend in Finland is mainly due to the establishment of specialist
company Proffice Aviation, but also to a conscious strategy to redirect the
business towards hiring a larger proportion of white collar employees.

During the quarter, we signed a recruitment agreement with Outokumpu.

Customers and profitability remain in focus

Thanks to our intensive action plan we are back up to a good level of
profitability. However, we know that the third quarter is normally strong in
calendar terms, and that the fourth quarter contains a large number of non
-working days this year. In addition, there is uncertainty about how the market
will develop, which means that we must continue to be able to quickly adapt to
prevailing market conditions.

We will continue our long-term efforts to become the most successful staffing
company in the Nordics. With our strong local sales culture, Proffice stands
ready to strengthen its market position in all markets. By maintaining cost
control, continuing to focus on margins, and being first with the best services,
we will generate profitable growth and become an increasingly prominent player
in the Nordic staffing market.

Lars Kry
President and CEO

If you have questions about this interim report, please contact:

Lars Kry, President and CEO, telephone +46 8 787 17 00, lars.kry@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 November 2013 at 8 am CET.