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Work Service improves business profitability in the first quarter

After the first 3 months of 2018, the revenues of the Work Service Capital Group, in a comparable structure of the Group, increased by 5% and its net result improved by over 13% in comparison to the results from the previous year. In the same period, the operating profit exceeded PLN 20 million, and the greatest improvement in results was attributed to the Polish structures of the company. This was possible, inter alia, due to the doubling of the employment pool of Ukrainian employees in Poland.

In the first quarter of 2018, the revenues of the Work Service Group amounted to over PLN 629 million and compared to the same period of the last year, when comparing with a corresponding structure of the group, this result increased by 5,12%. The main driving force behind the development was the organic growth and the focus on strengthening existing business and territorial lines. At the time, 48,2% of the revenues have been generated from foreign activities, and 51,8% from the Polish market.

 

The summary of the first quarter was for us the first opportunity to present the effects of the implementation of the newly adopted “Work Service 2020 strategy”. By implementing it, we have improved the scale and profitability of our business, and this was mainly due to the organic growth in the prospective markets of Central Europe. Our revenues in Hungary and the Czech Republic increased by 14% and 10%, respectively, and margins on contracts in Poland increased by 17% during the year. This is a result of, among other things, a strong upward trend related to the cross-border processes. At the end of the first quarter, we provided employment in Poland for almost 4,000 employees (FTE) from Ukraine, which is twice as high as one year ago – says Maciej Witucki, President of the Management Board of the Work Service S.A.

 

At the end of the first quarter, the operating result of the Work Service Group, plus depreciation, amounted to PLN XX million, and EBIT reached PLN XX million. At the same time, the net profit improved, amounting to PLN XXX million, which was almost XXX% higher result than in the corresponding period, compared to a comparable structure of the Group.

 

Currently, one of the key driving forces behind the growth is for us the Polish market. After optimisation of the cost side and making even better use of our recruitment background, the favourable market conditions of the candidate allowed us to improve the EBIT result by almost PLN 4 million, compared to the corresponding period last year. Thus, today, the Polish structures fill the gap in the result of the Group, which appeared after selling of the IT Kontrakt companies. Despite such a notable improvement in Poland, the operating results are at comparable levels as compared to the previous year, due to increased costs related to the ongoing restructuring of our company in Germany. We hope that this year's activities will bring tangible benefits and will help to restore the profitability of the German business line – concludes Maciej Witucki.

 

Consolidated results of the Work Service Capital Group from the continued
and discontinued business, for the period from 1 January 2018 to 31 March 2018. In order to achieve better data comparability, the comparative data for the first quarter of 2017 does not include the results of the companies from the IT Kontrakt Group, which were sold in the second quarter of 2017.

consolidated

 ***

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

 

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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