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Work Service completes the transformation processes and is ready to take advantage of the market situation in Central Europe

In 2017, revenues increased by 7,3% and EBIT from business activities reached PLN 67,9 million, according to preliminary and unaudited financial data presented by Work Service Group today. In the same period, three major sales processes were carried out, which allowed the Group to prepare itself for the implementation of a new development strategy assuming the achievement of 3-fold revenues from cross-border services by 2020. Preliminary results for the first two months of this year show an increasing use of the leadership potential of the Central European region and increasing trends in human resources shortages in this part of the continent.

Very active quarters allowed us to prepare the right ground for the implementation of a new development strategy for Work Service for 2018-20. In order to unify the business model, improve the transparency of the structure and long-term debt relief of the Group, we completed three significant transactions. In 2017, we decided to leave the Russian market, which was associated with too much business uncertainty. We also sold our IT Kontrakt Group at very attractive prices, and at the end of March of this year we concluded a preliminary agreement for the sale of shares in the Exact Systems Group. Thanks to this last activity, we will reduce our debt by PLN 140 million. It should be stressed that the changes have been translated into the creation of a coherent Group based on HR activities, on prospective and stable markets in Central Europe, which are growing at a double-digit rate. At the same time, at the end of last year, we made major optimisation changes, thanks to which we now have a lighter cost structure, which will allow us to improve our long-term business profitability - says Maciej Witucki, President of the Management Board of Work Service S.A.

2017 was a time of changes and improvement in revenues

The preliminary and selected unaudited financial data for 2017 show that the revenues of Work Service Group increased by 7,3% compared to the same period last year and reached the level of over PLN 2,6 billion. Excluding the IT Kontrakt result, which since the middle of the year does not belong to the Group, the growth rate of services sales was 11,5% year-on-year. The Czech market (+31% year-on-year), the Balkans (+16% year-on-year) and Poland (+11% year-on-year) were the main contributors to the improvement in the revenue side. In the same period the operating result on business activities reached the level of PLN 67,9 million. However, due to the necessity to make a non-monetary write-down, the Group's forecast for the EBIT result for 2017 is PLN 43 million.

Last year was associated with large M&A processes, which generated additional one-time costs charged to our balance sheet. At the same time, together with the auditor, we reviewed historical items and decided to make non-financial write-downs. – adds Maciej Witucki.

In 2018, the priority of development based on cross-border exchange services

The markets of Central Europe, which are strategic for the Work Service Group (Poland, the Czech Republic, Slovakia, Hungary, Romania), are currently characterised by historically low levels of unemployment and growing staff shortages, especially in large enterprises. This is a natural demand for HR and cross-border exchange services, which the Group has focused on in its development strategy. The first months of 2018 show that Work Service uses this potential, because preliminary and unaudited financial data for January and February of this year show that this year's result on the Polish market will be able to compensate for the gap created after the sale of IT Kontrakt.

Last year, as part of our cross-border exchange, we helped more than 10 thousand people find work in other countries. This applies to Poles in Germany and the Czech Republic, but also to Ukrainians in Poland, Hungarians in Austria and Serbs in Slovakia. This year in terms of labour migrations promises to be on record levels, because recruitment difficulties in our region are growing and the demand of companies is increasing. Our structure opened in Ukraine is already recruiting more than 400 people per month, and in our order portfolio for the second quarter we have already demanded more than 1800 new employees. What is more, we are planning to service new market segments in Poland, which report the demand for permanent employment of foreigners. In addition to the existing orders, we will also look for employees in Ukraine in the service, construction and food processing sectors, so that the portfolio of our customers will expand further - Maciej Witucki concludes.

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Work Service capital group was established in 1999 and is the largest provider of HR services in CEE. It operates in Poland through network of local branches and abroad in 12 countries (Germany, Czechia, Romania, Hungary, Slovakia, Belgium, France, Switzerland, Slovenia, Croatia, Serbia, Bulgaria). It specializes in personal advisory services, HR restructuring, recruitment, temporary staffing and outsourcing. More than 3,000 companies have already chosen Work Service as their business partner. Each day 50,000 persons and 300,000 persons annually find employment with support of Work Service Group. Work Service is listed on Warsaw Stock Exchange and London Stock Exchange. More information on: www.workservice.pl

 

Press officer:

Andrzej Kubisiak
Analyses and Communication Team Director at Work Service S.A.
mobile: +48 512 176 030      
e-mail: andrzej.kubisiak@workservice.pl 

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Press Officer

Andrzej Kubisiak


Andrzej Kubisiak

tel. +[48] 512 176 030
andrzej.kubisiak@workservice.pl

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