From the CEO  

The market situation is largely the same as in recent quarters. This means that we have good demand for permanent placement and temporary staffing services in Poolia's three countries of operation. Unfortunately, there is still a major shortage of candidates and a tendency for our temps to take employment with clients, which means that we are not able to fully meet market demand in the temporary staffing business. However, we can see some signs that demand for temporary staffing services may slow down a little in the period ahead. This normally enables better access to candidates, who also stay longer in their assignments. 

Poolia's total revenue for the quarter was SEK 172.7 million, compared with SEK 181.2 million in the same period in 2017 - a decline of 5%. Poolia Sweden's revenue for the third quarter fell by SEK 6.5 million to SEK 114.3 million, a decline of 5% compared with the same quarter the previous year.  

Poolia Germany's revenue for the quarter showed a decline of 7% and amounted to SEK 48.0 million, compared with SEK 51.6 million in the third quarter of 2017. Revenue for the Finnish operations amounted to SEK 10.4 (8.8) million during the quarter, an increase of SEK 1.6 million or 18%.  

Finland continues to have one of Europe's fastest-growing economies (about 3%), which also has a positive effect on Poolia, with increased demand for our services, particularly in permanent placement. 

Poolia's operating profit for the quarter was SEK -3.6 (7.6) million. Operating profit for the period was affected by merger-related costs of SEK 4.3 million. The operating margin was -2.1% (4.2%). 

In Sweden, operating profit for the quarter was SEK -6.2 (2.2) million after merger-related costs of SEK 4.3 million. The operating margin in Sweden was -5.4% (1.8%). Excluding non-recurring items, operating profit for the third quarter amounted to SEK -1.9 million, with an operating margin of -1.6%. 

The German operations reported an operating profit of SEK 2.0 (5.2) million, with an operating margin of 4.2% (10.1%). Poolia Finland's operating profit amounted to SEK 0.6 (0.2) million, with an operating margin of 5.8% (2.3%). 

Cash flow from operations for the period amounted to SEK 1.4 (6.0) million. The Group's liquidity and financial position are good. 

The Swedish Companies Registration Office has now given the go-ahead for Poolia's acquisition of Uniflex AB through a statutory merger under the Swedish Companies Act. The merger will be completed on 31 October. The merged company will offer a considerably broader service offering, giving us significant market advantages, particularly in terms of large resource temp buyers. The revenue increases are expected to have an earnings effect of SEK 10 million in the medium term. Annual cost savings are estimated at SEK 20 million.  

The merger of Poolia and Uniflex is being carried out at book values, which means that goodwill arising from the merger will not appear in Poolia's balance sheet. The merger process is proceeding according to plan and Uniflex CEO Jan Bengtsson takes over as Managing Director of Poolia on 1 November.  

The merger has been well received by clients, suppliers and personnel. There is a high level of confidence and optimism for the future within the company.  

Morten Werner
Managing Director and CEO