Continued growth and profitability April-June 2011 year-on-year · Proffice'srevenue continued upward during the second quarter, increasing by 15 per cent · Proffice's operating profit increased to SEK 50 million (25), representing an operating margin of 4.2 per cent (2.3) · Basic earnings per share improved to SEK 0.50 (0.20) · In Sweden, Proffice's operating profit increased to SEK 71 million (45) and reached an operating margin of 7.8 per cent (6.0) · Proffice launched a new organisation for increased speed and higher degree of specialisation · Proffice launched a new brand platform and a new visual identity with the goal of establishing clearer communication and better recognition January-June 2011 year-on-year · Proffice'srevenue grew 18 per cent and operating profit grew 83 per cent · Basic earnings per share improved to SEK 0.92 (0.43) · In Sweden, which accounts for more than three-quarters of consolidated sales, Proffice'srevenue increased 24 per cent and operating profit increased 53 per cent · Proffice is now ready for more growth and earnings with a specialised, client-driven organisation in Scandinavia Events after the January-June period · Proffice acquired Komet Holding AB after the period's close, strengthening its offering in staffing with students and young professionals Financial overview · Revenue, second quarter, 1182 SEK million · Revenue, first half year, 2278 SEK million · Operating profit, second quarter, 50 SEK million · Operating profit, first half year, 95 SEK million · Operating margin, second quarter, 4.2 % · Operating margin, first half year, 4.2 % · Profit after tax, second quarter, 38 SEK million · Profit after tax, first half year, 70 SEK million · Basic profit per share, second quarter, 0.73 SEK · Basic profit per share, first half year, 1.41 SEK · Diluted profit per share, second quarter, 0.73 SEK · Diluted profit per share, first half year, 1.41 SEK · Basic earnings per share, second quarter, 0.50 SEK · Basic earnings per share, first half year, 0.92 SEK · Diluted profit per share, second quarter, 0.50 SEK · Diluted profit per share, first half year, 0,92 SEK · Cash flows from operating activites, second quarter, -38 MSEK · Cash flows from operating activites, first half year, -23 MSEK · Basic equity per share, second quarter, 9.31 SEK · Basic equity per share, first half year, 9.31 SEK · Return on equity, second quarter, 8 % · Return on equity, first half year, 15.1 % Lars Kry, president and CEO, comments: April-June 2011 The company's need to inject new skills and greater flexibility is always increasing.The market for staffing services in the Nordics continued to grow during the second quarter and Proffice Group sales totalled SEK 1,182 million (1,024) , a 15 per cent increase over the same quarter last year.Operating profit increased to SEK 50 million (25), representing an operating margin of 4.2 per cent (2.3). Demand increased in the quarter in all countries, excluding Denmark.The operation in Sweden increased most, with sales totalling SEK 914 million (755), up 21 per cent from the same quarter last year.Operating profit totalled SEK 71 million (45), representing an operating margin of 7.8 percent (6.0) - a58 percent increase.This performance is particularly strong given that many public holidays in Sweden this year fell in the second quarter, reducing the number of billable days.The success in Sweden is due to a prominent market presence and a strong offer in each specialist unit. In Norway, sales totalled SEK 236 million (239), a 1 per cent decrease (or a 6 per cent increase in local currency), and operating profit was SEK 6 million (4) compared with the corresponding quarter last year.Our efforts to increase earnings are going as planned.During the quarter we implemented a new organisation and new management, which is generally the same as the Group.The increased focus on sales and earnings has not had a major impact as yet. In Finland, sales increased to SEK 24 million (21), which is 14 per cent more than the same quarter last year.This is a result of increased investments in sales representatives and recruiters, which initially increased costs and contributed to an operating loss of SEK -2 million (0). Further cost reductions in Denmark have been effective.The earnings improvement continued during the second quarter, but we did not reach a positive operating result.In Denmark, total sales decreased to SEK 8 million (9) and operating loss totalled SEK ‑2 million (-5). During the quarter, Dfind IT established a systems development consultancy called DfindRedpatch AB.This venture strengthens our offering and increases our profitability. After the end of the quarter, Proffice acquired student staffing company Komet Holding AB in Sweden.The acquisition is in line with our strategy of increased specialisation and our plan for increased earnings and growth.Komet strengthens our position in the fast-growing student staffing segment and complements our offering to small and medium-sized companies.The acquisition is expected to have a positive effect on earnings per share for the current fiscal year. During the spring we worked intensively to set the stage for enhanced profitability and growth while setting a record for number of consultants on assignments.We see this as a good sign for the autumn. For more information, please contact Lars Kry, CEO Proffice AB, + 46 8 787 17 00, lars.kry@proffice.com (lars.kry@proffice.com) Magnus Uvhagen, acting CFO Proffice AB, +46 8 787 17 00, magnus.uvhagen@proffice.com (magnus.uvhagen@proffice.com) 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. This is a translation from Swedish. In the event of any discrepancies between the Swedish and the translation, the former shall have precedence.
Continued growth and profitability
| Source: Proffice AB
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