Proffice Full year report January-December 2014

PRESS
RELEASE
                 Stockholm 2015-02-18

Increased margin and proposed dividend increase

Fourth quarter 2014

  · Revenue increased 1 per cent to SEK 1,071 million (1,060)
  · EBITA and operating profit increased 23 per cent to SEK 43 million (35)
  · EBITA and operating margin stood at 4.0 per cent (3.3)
  · Basic earnings per share totalled SEK 0.54 (0.35)
  · Cash flow from operating activities totalled SEK 147 million (91)
  · The Board proposes a dividend of SEK 0.90 per share (0.60), totalling SEK 62
million

Full year 2014

  · Revenue decreased 3 per cent to SEK 4,203 million (4,318)
  · EBITA and operating profit increased 12 per cent to SEK 140 million (125)
  · EBITA and operating margin stood at 3.3 per cent (2.9)
  · Basic earnings per share totalled SEK 1.51 (1.52)
  · Cash flow from operating activities totalled SEK 148 million (207)

Financial overview

                           Q4                      Full year
Group                      2014   2013   Change    2014   2013   Change
Revenue, SEK million       1,071  1,060  1%        4,203  4,318  -3%
Other operating income,    3      5      -40%      4      5      -20%
SEK million
EBITA and operating        43     35     23%       140    125    12%
profit, SEK million
EBITA and operating        4.0    3.3    -         3.3    2.9    -
margin, %
Profit after tax, SEK      38     25     52%       104    104    0%
million
Basic earnings per share,  0.54   0.35   54%       1.51   1.52   -1%
SEK
Diluted earnings per       0.54   0.35   54%       1.51   1.52   -1%
share, SEK
Cash flow from operating   147    91     62%       148    207    -29%
activities, SEK million
Cash flow from operating   2.15   1.33   62%       2.17   3.03   -28%
activities per share, SEK
Basic equity per share,    9.36   8.37   12%       9.36   8.37   12%
SEK
Return on equity, %        17.2   19.2   -         17.2   19.2   -

Comments by Henrik Höjsgaard, CEO

Increased margin and proposed dividend increase
Q4 ended with revenue growth of 1 per cent year-on-year and an operating profit
of SEK 43 million (35). The quarter’s operating margin was the best in years for
a fourth quarter, amounting to 4.0 per cent (3.3). The improved profitability
was primarily due to developments in the Swedish operation. Lower costs as a
result of the reorganization that was completed in Q3 and a changed customer mix
had positive effects. The full year also showed improved profitability with an
operating profit of SEK 140 million (125) and an operating margin of 3.3 per
cent (2.9). Cash flow from operating activities increased in Q4 to SEK 147
million (91). The strategic efforts being made to create a more efficient and
sales-oriented Proffice are beginning to show results. With better conditions
for stability and profitable growth, the Board therefore proposes increasing the
dividend to SEK 0.90 (0.60).

Focus on the customer
Despite the continued uncertain market conditions, revenue increased in Q4 when
compared year-on-year. The growth was a result of a continued increase in
staffing in Norway. From a full year perspective, revenue fell slightly due to
developments in the Swedish operation, which can be partly explained by a weak
market, but also as a result of increased internal focus on profitability.
During the year, we worked with becoming better at choosing profitable business
transactions and increasing specialization, which yielded good results. We are
now applying similar measures in Norway where profitability has been weaker.

We see clear signs that closer dialogues with customers have been successful.
The customer satisfaction survey conducted during the year reached a record
result for the second year in a row. New customers were added and the proportion
of small to medium-sized customers has increased, which means that we end the
year with a more diverse customer mix. The reorganization that was completed in
Q3 has allowed us to increase our sales efforts. In Q4, some 30 new sales
representatives were recruited who will begin their employment in early 2015.
With a strengthened sales organization, we are equipped to meet demand, expand
operations in profitable segments, and coordinate more efficiently.

A more stable Proffice emerging
Our efforts to take advantage of the potential that exists in the market will
continue in 2015 with further strengthening of the sales organization and system
support. A more stable Proffice is emerging, and we begin 2015 in better
condition for coping with fluctuations in the economy and generating profitable
growth.

Henrik Höjsgaard
President and CEO

If you have questions about this full year 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 Group is one of the Nordic region's largest specialists within
staffing, recruitment and outplacement. Our commitment and service help people
and companies to find solutions to develop. The Proffice Group consists of
Proffice, Dfind and Antenn and it has around 10,000 employees. The Proffice
share is listed on Nasdaq 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 18 February 2015 at 8 am CET.