Proffice Full Year Report January-December 2014

Regulatory News:

Proffice (STO:PROEB):

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

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

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.

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