INTERIM REPORT 1 JANUARY 31 MARCH 2012

Transcription

1 INTERIM REPORT 1 JANUARY 31 MARCH 2012 Quarterly period January-March Poolia's operating income amounted to SEK (283.6), million, which is a decline of -2.4%, (-2.6% in local currency). Operating profit amounted to SEK 2.8 (10.4) million and the operating margin was 1.0% (3.7%). Profit before tax was SEK 2.5 (10.4) million. Profit after tax was SEK 1.4 (7.2) million. Earnings per share was SEK 0.08 (0.44). Cash flow from operations amounted to SEK 9.4 (7.4) million. The equity/assets ratio ended the period at 35.4% (35.6%) and the Group s equity per share was SEK 6.66 (8.42). The shares in Dedicare were distributed to Poolia's shareholders during the second quarter of Dedicare is reported under Discontinuing operations (distribution) in the consolidated statement of comprehensive income and is therefore not included in the above comparative figures. Other significant events For the second year in a row, Poolia has been named "Best in Sector" in Universum's annual survey. Poolia Sweden is undergoing reorganisation aimed at achieving higher growth and profitability. From the CEO "Positive results in all our countries" Strategically, we are working towards the goal of being the natural choice in the professional segment. We work throughout the entire HR chain: employment (permanent or temporary), development and outplacement. Poolia Sweden reported an operating margin of 1.9% (6.1%). Profitability needs to be significantly higher. A new organisation is being implemented, built on the principles of proximity to customers, decentralisation and profit centres with total responsibility from sales to operating profit. We are establishing a company for large volume customers, with its own delivery resources based in Stockholm and dedicated resources in the rest of the country. In Stockholm, we are dividing the remaining temporary staffing business into four sector companies. It is our intention that these changes will enable us to further increase our focus externally and achieve higher profitability. growth amounted to 13%, while the operating margin was 7.0% (7.1%). We are continuing to work on central costs, which were reduced to 3.1 (4.4) million during the period. The Group's operating profit of SEK 2.8 (10.4) million is low, and is a reflection of the structural work we are carrying out to achieve our long-term goal of significantly higher growth and an improved operating margin. Monika Elling MD and CEO Poolia UK's operating profit of SEK 0.4 (-1.3) million is an effect of the vigorous cost-savings programme that has been implemented. We are moving to new offices during the second quarter. The move will give us greater flexibility and is expected to bring annual savings of approx. SEK 2 million. In the second quarter, Poolia UK will be adversely affected by moving costs and double rental costs of approx. SEK 1 million. We are continuing our efforts to achieve good long-term profitability. Poolia Germany developed according to plan with an operating profit of SEK 0.7 (1.8) million. The comparative figures contain very low operating expenses as several offices had a high turnover of staff in the previous year. Sales growth is on a par with the previous year. Permanent placement sales show a positive trend. Poolia Finland remains on track, and is taking market shares and achieving growth in sales and earnings. Sales 1

2 Business concept Poolia s business concept is to provide companies and organisations with the expertise that meets their temporary or permanent needs for qualified professionals and outplacement services. Poolia Quality Poolia's business is temporary staffing and permanent placement of qualified professionals. We specialise in the areas of Finance & Accounting, Financial Services, Human Resources, Sales & Marketing, IT & Engineering, Office Support and Executive Search. The specialisation focuses our expertise and deepens our commitment to our customers' business operations. We understand our customers staffing needs, and we have the processes and tests in place to ensure the customer gets the right person. Our experience, specialisation, commitment and working methods combine to create the quality that gives our customers a crucial advantage: employees who go the extra mile. This what we call Poolia Quality. Market conditions There is still some uncertainty about economic development. We continue to monitor the enquiries status weekly. It is our assessment that the market will remain somewhat unstable at least during the present quarter. However, we believe that market penetration, and consequently the proportion of agency staff in companies in our markets, will increase over time. JANUARY - MARCH GROUP The Group's operating income declined by 2.4% to SEK (283.6) million. Exchange rate movements had a positive impact of 0.2% on the figure. Temporary staffing is the largest service area. Permanent placement's share of sales was unchanged at 11%. Finland was responsible for the increase in growth during the quarter, with 13%. The operating margin shown in the diagram below does not include goodwill impairment recognised in the UK during the fourth quarter of Earnings Operating profit amounted to SEK 2.8 (10.4) million, while the operating margin was 1.0% (3.7). The diagram below shows operating profit/loss net of the UK's goodwill impairment loss recognised in Unallocated parent company expenses declined to SEK -3,1 (-4,4) million. The Group's net finance income/expense was SEK -0.3 (0.0) million. Profit before tax amounted to SEK 2.5 (10.4) million. The Group's tax amounted to SEK -1.1 (-3.2) million. SEK -0.5 million of this amount relates to a correction from the previous year. MSEK % MSEK Consolidated revenue Growth in local exchange rate Consolidated operating profit Consolidated cash flow from operating activities 2

3 Poolia segments during the quarter POOLIA SWEDEN Poolia Sweden's operating income amounted to SEK (224.4) million, an increase of 1% compared with the same period the previous year. Temporary staffing achieved growth of 1% during the quarter, while permanent placement experienced a decline. Permanent placement's share of revenues fell from 11% to 9%. Earnings Poolia Sweden s operating profit was SEK 4.2 (13.7) million. The operating margin was 1.9% (6.1%). We have implemented a major reorganisation aimed at improving our working efficiency and bringing us closer to our clients and candidates. Two of the three newly established units in Sundvall, Umeå and Helsingborg are already profitable at operational level. Poolia Lead, TalentEye and Utvecklingshuset have consolidated their positions and all three are progressing through the development phase. Share of group revenue in the quarter MSEK Poolia Sweden 80,4% Operating revenue Operating margin 7% 6% 5% 4% 3% 2% 1% 0% POOLIA UK Poolia UK reported operating income of SEK 23.8 (29.5) million, a decline of 19%. Exchange rate movements had a positive effect of 2% on the figure during the quarter. Permanent placement's share of revenues fell from 15% to 14%. Earnings Poolia UK s operating profit for the period was SEK 0.4 (-1.3) million. The operating margin was 1.7% (-4.4%). The improvement was due to vigorous cost-saving measures. The future structure for the United Kingdom is not completely established. Poolia UK is moving its London office during the second quarter. We are working to identify long-term stable and profitable business. Share of group revenue in the quarter MSEK Poolia UK 8,6% 2% 1% 0% -1% -2% -3% -4% -5% -6% -7% Operating revenue Operating margin 3

4 POOLIA GERMANY Poolia Germany's operating income amounted to SEK 21.8 (22.2) million, a decline of 2%. The figure was not affected by exchange rate movements during the quarter. Permanent placement's share of revenues increased from 12% to 21%. The percentage increase varied from office to office. Earnings Poolia Germany s operating profit was SEK 0.7 (1.8) million, while the operating margin was 3.1% (8.1%). Germany has low operating costs in the comparative figures for 2011, as we had a high turnover of staff. We now have a stable workforce with qualified and committed employees. We are very delighted with the new team's development. Share of group revenue in the quarter MSEK Poolia Germany 7,9% Operating revenue Operating margin 12% 8% 4% 0% -4% -8% POOLIA FINLAND Poolia Finland's operating income amounted to SEK 8.6 (7.6) million, an increase of 13%. The figure was not affected by exchange rate movements during the quarter. Permanent placement's share of revenues fell from 15% to 14%. Earnings Poolia Finland s operating profit was SEK 0.6 (0.5) million, while the operating margin was 7.0% (7.1%). Operations in Finland are stable and showing a positive trend. Finland is gaining new customers and increasing market shares. Share of group revenue in the quarter MSEK Poolia Finland 3,1% 20% 17% 13% 10% 6% 2% -1% Operating revenue Operating margin 4

5 JANUARY - MARCH GROUP The following diagram shows the distribution of the Group's revenues for the period by segment. Share of revenue according to segment Poolia UK 9% Poolia Finland Poolia 3% Germany 8% Poolia Sweden 80% Seasonal fluctuations Number of working days during the year: United Sweden Kingdom Germany Jan-Mar 64(63) 64(59) 65(64) Apr-Jun 59(60) 60(60) 59(60) Jul-Sep 65(66) 64(69) 65(63) Oct-Dec 62(64) 63(63) 62(62) Full year 250(253) 251(251) 251(252) Parent company The parent company engages in general corporate management, development, financial management and IT administration. Sales during the period were SEK 6.6 (5.4) million, and profit after financial items was SEK -0.5 (-4.3) million. Liquidity and financing The Group s cash & cash equivalents at 31 March 2012 were SEK 11.7 (10.2) million. Cash flow from operating activities during the period was SEK 9.4 (7.4) million. The equity/assets ratio at 31 March 2012 was 35.4% (35.6%). The Group s Swedish business has an overdraft facility of SEK 40 million. SEK 6.0 million of this amount had been utilised at 31 March Investments The Group's investments in non-current assets in the period January to March amounted to SEK 0.4 (1.4) million. The share The Poolia share is listed on the NASDAQ OMX Stockholm AB stock exchange under the ticker POOL B. The number of shares issued is 17,121,996. The price on the reporting date was SEK During the period, 1,860,543 shares were traded at a total value of SEK 27.4 million. Significant risks and uncertainties Risks and risk management are described in Poolia's 2011 Annual Report. The risks can be summarised as economic fluctuations, dependence on customers and individuals, legislation and regulation, and financial risks. Significant risks and uncertainties at 31 March 2012 were unchanged from 31 December Events after the end of the period There are no other significant events to report. Related party transactions There were no related party transactions during the period that had a significant effect on the Company s financial position and earnings. Dividend policy The Board of Directors long-term dividend policy is that the annual dividend shall normally exceed 50% of the Group s profit after tax. Employees The average number of FTEs for the year, excluding Dedicare, was 1,760 (1,843 excl Dedicare). At 31 March 2012, the total number of employees was 1,863 (2,008). 5

6 SUMMARY OF CONSOLIDATED COMPREHENSIVE INCOME Amounts in SEK millions Jan-Mar Jan-Mar Jan-Dec Continuing operations Operating income ,122.6 Operating expenses Personnel expenses Other expenses Depreciation, amortisation and impairment of assets Operating profit/loss Financial items Profit/loss before tax Tax Profit/loss for the period from continuing operations Discontinuing operations (distribution) Profit/loss for the period from discontinuing operations Profit/loss for the period Other comprehensive income Translation differences Total comprehensive income for the period Operating margin, continuing operations, % Profit margin, continuing operations, % Profit/loss for the period attributable to: Owners of the Parent Non-controlling interests Earnings per share, before and after dilution, SEK Earnings per share from continuing and discontinuing operations Earnings per share from discontinuing operations Total comprehensive income attributable to: Owners of the Parent Non-controlling interests

7 CONDENSED CONSOLIDATED BALANCE SHEET Amounts in SEK millions 31/03/ /03/ /12/2011 Assets Non-current assets Goodwill Other non-current assets Deferred tax assets Current assets Current receivables Cash & cash equivalents Assets attributable to discontinuing operations Total assets Equity and liabilities Equity Minority share of equity Provisions Current liabilities to credit institutions Other current liabilities Liabilities attributable to discontinuing operations Total equity and liabilities Pledged assets and contingent liabilities CONDENSED CONSOLIDATED CASH FLOW STATEMENT Amounts in SEK millions Jan-Mar Jan-Mar Jan-Dec Profit/loss before tax Adjustments Income tax paid Cash flow from operating activities before changes in working capital Increase (-)/decrease (+) in current receivables Increase (+)/decrease (-) in current liabilities Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Cash flow for the period Cash & cash equivalents at beginning of period Exchange differences Cash & cash equivalents at end of period

8 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Amounts in SEK millions Jan-Mar Jan-Mar Jan-Dec Opening amount Dividend Distribution, Dedicare Total comprehensive income for the period attributable to owners of the Parent Closing balance attributable to owners of the parent Minority share of equity Closing balance including minority share CONDENSED STATEMENT OF COMPREHENSIVE INCOME PARENT Amounts in SEK millions Jan-Mar Jan-Mar Jan-Dec Net sales Operating expenses Personnel expenses Other expenses Depreciation, amortisation and impairment of assets Operating profit/loss Financial items Profit/loss after financial items Appropriations Tax Profit/loss for the period Other comprehensive income Total comprehensive income for the period CONDENSED BALANCE SHEET PARENT Amounts in SEK millions 31/03/ /03/ /12/2011 Assets Non-current assets Investments in Group companies Other non-current assets Current assets Current receivables Cash and bank balances Total assets Equity and liabilities Equity Untaxed reserves Provisions Current liabilities to credit institutions Other current liabilities Total equity and liabilities Pledged assets and contingent liabilities

9 QUARTERLY OVERVIEW OF KEY FINANCIAL RATIOS Jan-Mar Oct- Oct- Jul-Sep Apr-Jun Jan-Mar Dec Dec Jul-Sep Apr-Jun Operating income Growth 3,% Growth in local currency 3,% Operating margin 3, % Profit margin 3, % Return on capital employed 1, % Return on total assets 1, % Return on equity 1, % Equity/assets ratio, % Proportion of risk-bearing capital, % Number of full-time equivalents, average Income per employee 3, SEK Number of shares, average (000) Number of shares, outstanding (000) Earnings per share before dilution 2, SEK Equity per share, SEK Rolling 12 months. 2 No dilutive effects. 3 Group, excluding Dedicare 4 Excluding goodwill impairment, UK SUMMARY OF KEY FINANCIAL RATIOS FOR THE PERIOD Jan-Mar Jan-Mar Operating margin 2, % Profit margin 2, % Earnings per share before dilution 1, SEK Equity per share, SEK No dilutive effects 2 Group, excluding Dedicare DEFINITIONS Proportion of risk-bearing capital Equity plus minority interest and provisions for taxes as a percentage of total assets. Number of FTEs, average The total number of hours worked during the period divided by the normal number of working hours for a full-time employee. Return on equity Profit after tax divided by average equity. Return on capital employed Profit after financial items plus finance costs divided by average capital employed. Return on total assets Profit after financial items plus finance costs divided by average total assets. Equity per share Equity divided by the number of shares outstanding. Income per employee Operating income divided by the average number of FTEs. Earnings per share Profit for the period after tax divided by the average number of shares. Operating margin Operating profit as a percentage of operating income. Equity/assets ratio Equity, including non-controlling interests, as a percentage of total assets. Capital employed Total assets less non-interest-bearing liabilities, including provisions for taxes. Profit margin Profit after financial items as a percentage of operating income. 9

10 Operating segments and geographical segments Poolia applies IFRS 8 Operating Segments. Operating segments are reported in such a way as to reflect internal reporting, which for Poolia means division into geographical segments and business segments. An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, and for which discrete financial information is available. The operating segment s operating results are reviewed regularly by the Company s chief operating decision maker, i.e. the Poolia Group s management group, in order to allocate resources to the segment and assess its performance. Poolia s geographical segments are Sweden, Finland, Germany and the UK. One business segment encompassed the healthcare operations in Dedicare, providing doctors and other healthcare staff on a temporary basis (divested in May 2011). The other business segment comprises Poolia's other activities, i.e. temporary staffing and permanent placement of qualified professionals. The healthcare activities formed a separate segment, as their market, clients, candidate structure and business logic differ from those of Poolia's other activities. Dedicare, which conducted its business under its own operational management, is established in Sweden and Norway. It is reported as a discontinuing operation on the basis of the adopted and implemented distribution to shareholders. There were no significant changes in total assets or the distribution of assets within or between segments. REVENUES BY OPERATING SEGMENT SEK millions Jan-Mar Jan-Mar Jan-Dec Continuing operations Poolia Sweden Poolia UK Poolia Germany Poolia Finland Total ,122.6 Discontinuing operations Dedicare Total revenues ,132.6 OPERATING PROFIT/LOSS BY OPERATING SEGMENT SEK millions Jan-Mar Jan-Mar Jan-Dec Continuing operations Poolia Sweden Poolia UK Poolia Germany Poolia Finland Total Discontinuing operations Dedicare Total Unallocated parent company costs Total operating profit/loss

11 Discontinued operations The annual general meeting adopted a distribution of the Company s entire shares in the subsidiary Dedicare AB. The transaction was completed on 29 April On 4 May 2011, the Company's shares were admitted to trading on NASDAQ OMX Stockholm Small Cap List. Dedicare s income was included in consolidated income up to the end of April Income for the first quarter was SEK - (81.9) million. Earnings Operating profit amounted to SEK - (0.4) million, an operating margin of - (0.4%). PROFIT/LOSS FROM DISCONTINUING OPERATIONS (DISTRIBUTION) Amounts in SEK millions Jan-Mar Jan-Mar Jan-Dec Operating income Operating expenses Personnel expenses Other expenses Depreciation, amortisation and impairment of assets Operating profit/loss Financial items Profit/loss before tax Tax Profit/loss for the period Other comprehensive income Translation differences Total comprehensive income for the period Assets attributable to discontinuing operations: Amounts in SEK millions 31/03/2011 Intangible assets 15.5 Property, plant & equipment 0.6 Deferred tax asset 1.2 Trade receivables 33.3 Other current receivables 28.3 Cash & cash equivalents 24.9 Total: Liabilities attributable to discontinuing operations: Amounts in SEK millions 31/03/2011 Trade payables 8.3 Liabilities to Parent 18.5 Other current liabilities 46.5 Total: 73.3 Cash flow from discontinuing operations: Amounts in SEK millions 31/03/ /12/2011 Operating activities Investing activities Financing activities - - Total:

12 Accounting policies The interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act, and for the parent company in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board s recommendation RFR 2 Accounting for Legal Entities. Unless specified otherwise below, the accounting policies applied for the Group and the parent company correspond with the accounting policies applied when preparing the most recent annual report. New and revised IFRS standards and interpretations from IFRIC coming into effect from 2012 have not had any significant effect on the Group s financial reporting. The Board of Directors and the Chief Executive Officer hereby certify that the interim report provides a fair view of the activities, financial position and financial results of the parent company and the Group, and describes significant risks and uncertainty factors faced by the company and the companies that are part of the Group. Future reporting dates Interim report Jan-Jun July at Interim report Jan-Sep October at The Annual General Meeting will be held at the Company s premises in Stockholm, at Kungsgatan 57 A, 2nd floor, at 4 p.m. on 25 April Stockholm, 25 April 2012 Björn Örås Chairman of the Board Margareta Barchan Board member Monica Caneman Board member Håkan Winberg Board member Dag Sundström Board member Monika Elling MD and CEO This interim report has not been reviewed by the Company s auditor. For further information, please contact: Monika Elling, MD and CEO, tel. +46 (0) , +46 (0) Yvonne Helander, CFO, tel. +46 (0) , +46 (0) POOLIA AB (PUBL) Kungsgatan 57 A Box 207 SE Stockholm Tel: +46 (0) Fax: +46 (0) Reg. no: