EEZY PLC — Financial Statements — February 15, 2024 8:00
Eezy Plc Financial Statement Update December 1, 2023: Profitability Improvement Program Implementation – New Strategy Sets Clear Direction
October to December 2023
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Sales were 52.1 million euros (62.2 million euros for October-December 2022). Revenue was down 16%.
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EBITDA was 3.6 million euros (4.6 euros).
-
EBIT was -0.7 million euros (2.7), or -1.3% (4.3%) of revenue. EBIT includes an impairment charge of EUR 2.3 million related to acquisition-related trademarks and customer relationships.
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Earnings per share were EUR -0.06 (EUR 0.08).
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Implemented a profit improvement program and launched a strategic renewal project.
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As a result, personnel costs of €800,000 related to severance payments were recorded.
January to December 2023
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Sales amounted to 219 million euros (247.6 million euros for January-December 2022). Revenue decreased 12%.
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EBITDA was 14.5 million euros (18.2 euros).
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EBIT was EUR 4 million (10.0), or 1.8% (4.0%) of sales. EBIT includes an impairment charge of EUR 2.3 million related to acquisition-related trademarks and customer relationships.
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Earnings per share were €0.03 (€0.29).
-
As a result, personnel costs of €1.1 million related to severance payments were recorded.
Dividend proposal
The Board of Directors proposes that no dividend be paid for 2023.
Outlook for 2024
Eezy has not provided guidance for 2024.
Key figures (IFRS)
|
However, 1 million euros |
October – December 2023 |
October-December 2022 |
January – 12, 2023 |
January – 12, 2022 |
|
revenue |
52.1 |
62.2 |
219.0 |
247.6 |
|
EBITDA |
3.6 |
4.6 |
14.5 |
18.2 |
|
EBITDA,% |
6.8% |
7.5% |
6.6% |
7.4% |
|
EBIT |
-0.7 |
2.7 |
4.0 |
10.0 |
|
EBIT,% |
-1.3% |
4.3% |
1.8% |
4.0% |
|
EPS, undiluted, euro |
-0.06 |
0.08 |
0.03 |
0.29 |
|
EPS, diluted, euro |
-0.06 |
0.08 |
0.03 |
0.28 |
|
Net debt/EBITDA |
– |
– |
4.0× |
2.9 times |
|
Whole chain profit |
73.7 |
86.4 |
307.6 |
351.6 |
CEO Shiina Sakshi:
We focus on building a good working life with new strategies
“2023 for Eezy is characterized by an economic downturn and a significant decrease in labor demand in the staffing services business sector. Despite the difficult economic conditions, the company achieved growth in professional services. Sales in 2023 was €219 million (€247.6 million in January-December 2022), a decrease of 12%. Our operating profit decreased to €4 million (10.0), or 1.8% (4.0) of sales. %) We have successfully completed our profitability program and will enter 2024 with lower cost levels and a clear plan in line with our new strategy.
Our revenue last quarter decreased to €52.1 million (€62.2) due to a sharp decline in demand for our staffing services. Revenues in the Staffing Services business area decreased from 42.7 million euros (-21%) in the previous quarter to 188.3 million euros (-14%) in the January-December period. This decline occurred across all industries, but was particularly pronounced in the construction and industrial sectors, where demand for labor decreased significantly. The overall staffing market contracted by -15% in December (vs. 2022, source: HELA).
Revenues in the Professional Services business area increased from 9.6 million euros (8.6) in the previous quarter to 31 million euros (28.4) in the January-December 2023 period. Growth was driven by Eezy Employment Services' consulting and coaching services related to rehabilitation and integration services, employee research, and management development. We believe that the positive development of professional services is a positive outcome in economically difficult times.
Operating profit for the previous quarter was -700,000 euros (2.7). Operating income includes an impairment charge of 2.3 million euros related to trademarks and customer relationships. Operating profit for the full year 2023 was EUR 4 million (10.0). The decrease in operating profit is mainly explained by lower revenues from staffing services and changes in customer mix, as well as temporary write-downs and costs of approximately EUR 1 million related to the termination of employment relationships. Profitability program.
In 2023, we employed approximately 25,000 employees and recruited 500 professionals from abroad to Finland. Through our Eezy Employment services, we have trained approximately 8,000 people, approximately 40% of whom have found employment on the open labor market or started training. Our employee experience survey has involved approximately 200,000 respondents and we have coached approximately 20,000 people on leadership topics.
2024 will be a time to secure profitability and build a foundation for growth
The year began amid a weak economy, with an uncertain view of customers' own labor demand and investment capacity. We want to ensure profitable operations even during periods of weak demand, and we will closely monitor fixed costs in relation to revenue. Based on economic forecasts, the possible rate cuts that may be initiated are expected to have a positive impact on economic development towards the end of the year. During business cycle transitions, our industry has responded quickly to economic changes. Due to the uncertain economic outlook, we will not provide guidance for 2024.
Strategy for profitable growth
I began my term as CEO in June during a very difficult economic climate, which continues to be challenging. We took immediate action and implemented a significant revenue improvement program in the fall. This included, for example, reducing the number of office staff by approximately 60 people and adjusting other fixed costs in line with current business levels. We've also made our operating model more agile, restructured our organization, and now operate closer to our customers. Achieved the profitability program goal of reducing costs by 3 million euros per year.
Throughout the fall and winter, we carried out strategic work based on comprehensive market analysis. I am a strong believer in strategic direction and believe that a clear focus and focus on your company's strengths is the guarantee of success.
We focus on areas where we already have strengths: services related to our clients' human resources, leadership and culture design. We are more than the sum of our parts. We have a wide national presence and offer a wide range of services to build a good working life with our customers.
Over the strategic period to 2028, the company's goals are to grow faster than the market in its largest business area, staffing services, and to double revenue in its professional services business line. We recognize significant growth potential, both in our existing business and in new staffing client sectors such as health and social services and office work. These sectors are less cyclical than the construction and industrial sectors, which have traditionally been strong for us. Although Eezy aims to grow primarily organically during the strategic period, growth may also be supported by acquisitions that are complementary to our business.
Our goal is to significantly improve profitability and aim for 8% operating profit by the end of the strategy period. In addition to economies of scale through growth, we will leverage technology and artificial intelligence extensively in a variety of services. In particular, the gradual introduction of a new AI-powered operating system for staffing services during 2024 will significantly improve productivity. We are one of the first companies in Finland to extensively utilize artificial intelligence in our core business processes. This is also a competitive advantage in our field and is very difficult to imitate.
Finally, I would like to thank all Eezy employees. The past few months have not been easy, but I am confident that we have all the ingredients needed for success. If we focus on doing together what we are already good at, we will be successful and achieve our strategic period goals. Our reputation and excellent customer survey results confirm that our customers trust us and value our professionalism. ”
Results announcement event:
A briefing in Finnish for analysts and media will be held as a webcast on February 15, 2024 at 13:00 Finnish time at https://eezy.videosync.fi/q4-2023.
The briefing will be hosted by CEO Shiina Sakshi and CFO Hannu Naiman. There will also be an opportunity to ask questions during the presentation. Presentation materials will be published on the company's website (https://eezy.fi/en/financials/reports-and-presentations/) prior to the conference. A recording of the audiocast will be available later on the same website.
Attachments: Financial Statements January to December 2023 (PDF format)
Further information:
Eezy Plc
Shiina Sakshi
CEO
siina.saksi@eezy.fi
Phone number +358 50 550 3912
Hannu Nyman
CFO
hannu.nyman@eezy.fi
Phone number +358 50 306 9913
marina basque
Communications and Marketing Director
marleena.bask@eezy.fi
Phone number +358 50 352 3643
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