Full Year Report 2011

Full Year Report 2011

Record year for Proffice

Year-on-year 2011 comparison

  · Proffice’s net sales increased 16 per cent to SEK 4,770 million
  · EBITA increased 62 per cent to SEK 227 million (140)
  · Operating profit rose 56 per cent to SEK 218 million (140)
  · Goodwill related to Proffice Care Denmark was written down by SEK 9 million
  · Basic earnings per share increased to SEK 2.02 (1.20)
  · In Sweden, which accounts for more than three-quarters of consolidated
sales, Proffice's net sales increased 23 per cent to SEK 3,667 million and
operating profit increased 47 per cent to SEK 262 million
  · The board proposes a dividend of SEK 1.10 per share, totalling SEK 76
million
  · The board proposes that the AGM continues to authorise the board to buy back
shares
  · The board proposes that the AGM authorises the board to make decisions on
new share issues

Q4 2011 year-on-year comparison

  · Proffice's net sales continued upward during the fourth quarter, increasing
by 13 per cent
  · Proffice's operating profit rose 22 per cent to SEK 55 million (45), which
corresponds to operating margin of 4.3 per cent (4.0)
  · Proffice’s EBITA increased 42 per cent to SEK 64 million (45), representing
an EBITA margin of 5.0 per cent 4.0)
  · Goodwill related to Proffice Care Denmark was written down by SEK 9 million
in Q4
  · Sales in the staffing industry in Sweden increased 9 per cent in Q4 compared
year-on-year. Proffice increased its sales in Sweden by 17 per cent. In Sweden,
Proffice's operating profit increased to SEK 72 million (50) and reached an
operating margin of 7.2 per cent (5.9)
  · Basic earnings per share amounted to SEK 0.45 (0.45)

After year’s end

  · Proffice AB acquired the minority share in Dfind AB in advance

 
Financial overview

January – December 2011
Net sales amounted to SEK 4,770 million (4,095)
EBITA amounted to SEK 227 million (140)
EBITA margin in per cent 4.8 (3.4)
Operating profit amounted to SEK 218 million (140)
Operating margin in per cent 4.6 (3.4)
Profit after tax SEK 154 million (97)
Basic earnings per share SEK 2.02 (1.20)
Diluted earnings per share SEK 2.02 (1.19)
Cash flow from operating activities amounted to SEK 128 million (57)
Basic equity per share SEK 10.27 (8.99)
Return on equity in per cent 22.0 (15.8)

October – December 2011
Revenue amounted to SEK 1,284 million (1,136)
EBITA amounted to SEK 64 million (45)
EBITA margin in per cent 5.0 (4.0)
Operating profit amounted to SEK 55 million (45)
Operating margin in per cent 4.3 (4.0)
Profit after tax SEK 37 million (35)
Basic earnings per share SEK 0.45 (0.45)
Diluted earnings per share SEK 0.45 (0.45)
Cash flow from operating activities amounted to SEK 99 million (105)
Basic equity per share SEK 10.27 (8.99)
Return on equity in per cent 5.3 (5.7)

 
CEO comments

2011 – a record-breaking year

The year 2011 was the strongest year for Proffice to date. Group sales increased
by a total of 16 per cent. EBITA rose 62 per cent in the same period to SEK 227
million (140), which correspond to an EBITA margin of 4.8 per cent (3.4).

The company’s profitability boost was particularly strong in light of the
comprehensive long-term investments in structural capital made in 2011. These
investments include a new business system and a common platform to unify
processes and streamline our working methods. In addition, Proffice implemented
a new value-based organisation across the Group that promotes our specialisation
strategy, as well as a new brand platform that enables more clear communication
with our target groups.

During the year, profitability in Norway increased and losses in Denmark
diminished. Proffice in Finland also improved its profitability and returned an
even result for 2011 (SEK -2 million in 2010). Our Swedish operation accounted
for the largest growth in the Group, and continued to return good profitability.
We continued to build on our successful specialisation strategy that included
several new units, including the purchase of Komet, a well-established staffing
company in the fast-growing student staffing segment.

Fourth quarter continued strong

Proffice closed 2011 strongly. Group EBITA rose in Q4 to SEK 64 million (45),
which corresponds to an EBITA margin of 5.0 per cent (4.0). Sales increased 13
per cent compared year-on-year, mainly due to substantial growth in temporary
staffing and recruitment.

In Sweden, our long-term efforts continue according to plan. Proffice grew 17
per cent in Sweden and continued to take market shares in an increasingly
competitive market. In Q4, Proffice showed very strong profitability with an
EBITA margin of 7.2 per cent (5.9). We continued to develop our specialisation
strategy in several areas, including Aviation and Mining, and exceeded market
growth in Q4 in our Finance and Industrial & Logistics units. Proffice also
signed several key agreements with, among others ICA Sverige and Sandvik AB in
Q4.

Norway continues to perform according to plan. In Q4, its EBITA margin remained
unchanged at 2.7 per cent, despite costs taken to implement changes designed to
ensure stable progress on the Norwegian market. Work to improve the Norwegian
operations continues. Our specialisation strategy continues to show good effects
in Norway, and we launched another unit, Dfind Finance, in Q4.

We are building a stable, sustainable Group

In preparation for 2012, the Proffice Group stands well equipped for any market
fluctuations. Global economic growth is more sedated, and we face a tougher
economic climate in the Nordics as well. A solid balance sheet and strong
corporate culture will ensure the best possible conditions to continue
increasing profitability and growth. Proactive measures such as weekly meetings
to quickly identify any change in market trends helps us maintain a relevant
picture of market conditions. At the same time, we know that an uncertain market
is often a positive climate for our business, as customers’ needs for flexible
employee expertise increases.
As a result, the Proffice Group has greater opportunities to offer staffing
solutions to new and existing customers, and meet its vision to be the most
successful staffing company in the Nordics.

 
For more information, please see PDF or contact
Lars Kry, CEO Proffice AB, + 46 8 787 17 00, lars.kry@proffice.com
Magnus Uvhagen, acting CFO Proffice AB, +46 8 787 17 00,
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.

Proffice Aktiebolag discloses the information provided herein pursuant to the
Securities Markets Act and/or the Financial Instruments Trading Act. The
information was submitted for publication at 08:00 on February 23 2012.