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Work Service has one billion revenues and continues restructuring

In the first half of 2018, the Work Service Group generated over PLN 1,04 billion in revenue. On the Polish and Hungarian market, it continued to achieve positive results, but the Group's operating ratios were negatively affected by non-cash write-offs, which burdened the EBIT result by more than PLN 26 million. After excluding one-off charges, the Group achieved comparable results on y/y basis. The management of the company announces further active restructuring aimed at minimizing the levels of indebtedness. For this purpose, the sales process of the Exact Systems Group is being continued. On October 1 this year a decision was also made to sell the Hungarian Prohuman Group.

During the first six months of this year, sales revenues in the Work Service Group amounted to PLN 1.047 billion, which means an increase of over 2% during the year. The improvement in sales results was mainly due to the positive results achieved in the following markets: Polish (+5,1%), Hungarian (+13,7%) and Czech (+7,9%). The dynamics of revenue growth was adversely affected by the results on the German market and contracts executed by the Work Express group (cross-border exchange of employees). It is related to the business restructuring process of these two business units.

                                                                                            

- The first half results, excluding non-financial write-offs, are comparable to last year's, but are below our expectations. To a large extent, the loss on operating activities is the result of non-cash write-offs from previous years and one-off events, which lowered our result by PLN 26.6 million. We also bear the costs associated with restructurization processes and access to capital. However, following our strategy, we focus today on organic growth in key Central European markets. The effects of these activities can be seen in the results of companies from Poland, the Czech Republic and Hungary - emphasizes Maciej Witucki, CEO of Work Service SA. – What is more, due to falling unemployment and growing recruitment problems on the Polish labour market, the demand of companies for employees from the East remains at high levels. Among other things, this demand, as well as our increased operational and sales activities, translated into a doubling of the number of employees from Ukraine, which our Group recruited for customers over the last year - adds Witucki.

 

Disinvestment and transformation processes

 

According with previous announcements, Work Service is selling 69% shares in the Exact Systems Group. This process is at an advanced stage, with the expected completion and financial inflows in October 2018.

 

- The funds obtained from the sale of Exact Systems will be used to a significant reduction of the Group's net debt. At the same time, today we are opening a new disinvestment process. We decided to sell of companies from Prohuman Group, the leader on the Hungarian temporary work market. It is a very attractive asset, the sale of which will allow us to reduce our financial liabilities to a minimum. At the same time, this will enable us to introduce a new business model based mainly on low-cost and sustainable operations in Poland - summarizes Maciej Witucki, CEO of Work Service S.A.

 

 

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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 16 countries (Russia, Germany, Czechia, Turkey, Romania, Hungary, Slovakia, United Kingdom, Belgium, France, Switzerland, Slovenia, Croatia, Serbia, Bulgaria, China). 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

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