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Work Service 2014 Record Performance

As a result of successful implementation of its business development strategy and excellent effects of its international expansion, in 2014 Work Service Group recorded its best results ever. Its revenues for 12 months of 2014 increased by 89% yoy to over PLN 1 739 million and its net profit reached over PLN 52,4 million, a 77% % yoy growth. These are the first results showing the benefits of the recent years’ acquisitions in Poland and Central and Eastern Europe. The Group’s international operations are becoming a major pillar of the revenue side, with foreign companies already contributing over 40%.

The excellent 2014 financial results of Work Service Group are the outcome of the successful implementation of its business development strategy to become a leader in the Berlin-Moscow-Istanbul triangle. Thanks to the completed transactions, Work Service Group has a physical presence in nine European countries (in CEE, Turkey, Russia, Germany and the UK), creating a complementary offer for over 3,000 customers. Continually improving sales margins, improved cash conversion cycle and integration of the acquired companies into the Group, translated into a 2014 operating profit of over PLN 89 million.

The achievement of such good financial results for 2014 confirms that our efforts and the consistently implemented strategy are delivering the expected effects. Last year, we already achieved market leadership in Central Europe in terms of market share (measured by value*), and our ambitions go much further. With this strong position and our auspicious geographical location, we want to take advantage of this unique situation on the personnel service market. That market is growing at double digit rates year on year, while its penetration in Central and Eastern Europe is still far lower than in Western European countries - emphasizes Tomasz Hanczarek, Management Board President of Work Service SA. -This gives us great opportunities for further business development in international markets- adds Tomasz Hanczarek.

Consolidated financial results for the four quarters of 2014 include the results of the following companies: Antal International (since 4thQ 2013), Work Express together with its subsidiaries (since 1stQ 2014), Prohuman together with its subsidiaries (since 1stQ 2014), Human Existence (since 3rdQ 2014). It is worth noting that, had Fiege Group companies been consolidated for the entire 12 month period of 2014, the growth in the scale of the Group’s operations would be even more impressive – reaching a level of  PLN 1 877,5 million, meaning a more than two-fold increase in the scale of operations (by 104%).

Total revenues generated outside of Poland increased in 2014 to 40,2% on 22,2% in 2013. The Work Service Group is growing not only through consolidation of acquired companies’ performance but also through its dynamic organic growth. For the entire 2014, the Group generated a record positive cash flow from operations and its operating profit (EBIT) increased by 85% compared to the previous year.

This was a breakthrough year for the Work Service Group. In just 12 months, our Group expanded by 14 new companies, set up a joint-venture with a powerful German group, completed its SPO with a huge success, raising money for further acquisitions, and began analyzing new markets for possible further acquisitions. 2015 promises to be equally active. We are planning successive acquisitions in Central and Eastern Europe and Turkey, and we will also focus on buying out minority interests in the Group’s subsidiaries. The effect of those efforts will strengthen our position in particular markets and initiate our  global growth initiative - says Tomasz Misiak, Chairman of the Supervisory Board of Work Service SA.

 

Key financial data of Work Service Group for the period from 1 January 2014 to 31 December 2014, compared to the same period of last year:

Consolidated data (PLN)

 

2014

 

 

2013

 

% Increase

Revenue

1 739 756 267.24

918 391 397.72

89.44%

EBITDA (operating profit before amortisation and depreciation)

98 675 262.18

52 802 129.95

86.88%

Gross profit on sales  

91 446 451.26

49 210 427.93

85.83%

EBIT (operating profit)

89 142 645.61

47 987 544.33

85.76%

Profit before tax

62 559 482.92

32 893 980.98

90.17%

Net profit

52 422 555.27

29 484 916.77

77.79%

 

Work Service Group’s financial stability is also greatly supported by doing business sustainably and responsibly. In March 2015, Work Service Group published its first-ever social responsibility report, which was the beginning of the implementation of the Group's CSR strategy. -Doing business ethically, while taking into account the needs of all our stakeholders, has been our guideline since the very beginning, i.e. for 15 years. Being a market leader commits Work Service to approaching the issue of social responsibility strategically. For that reason, we have decided to implement a Group CSR strategy which sets out specific non-financial goals and directions for business growth in 2014-2018. We want to focus heavily on educating and inspiring the market in order to promote top quality HR practices-  sums up Tomasz Hanczarek.

 

* Figures based on the report Temporary Staffing in CEE5 2014, presented by Interconnection Consulting Group, covering Central European CEE-5 countries (Poland, Russia, Hungary, Czech Republic, Slovakia).

 

***

Work Service Group was established in 1999 and is the top supplier of end-to-end HR services on the Polish market. It operates through its extensive branch network present in 8 CEE countries, including Poland, Russia, Germany, Czech Republic, Turkey, Romania, Hungary, and Slovakia. The Group specialises in HR consulting services, as well as HR restructuring processes, permanent and temporary recruitment, and employee outsourcing. More than 3000 companies have trusted Work Service as their business partner, and with the help of the Company, 35 000 persons find a job in Poland and abroad every month. Work Service is the first HR services company quoted on the Warsaw Stock Exchange.

 

For further information:

 

Krzysztof Inglot

Market Development Director, Press Spokesman

mobile: +48 508 040 345

phone: +48 71 371 0927

e-mail: krzysztof.inglot@workservice.pl

 

Andrzej Kubisiak

Head of the Work Service Press Office

mobile: +48 512 176 030

e-mail: andrzej.kubisiak@workservice.pl

 

Magdalena Kowalska

Bridge Sp. z o.o.

mobile: +48 506 189 404

phone: +48  22 565 48 80

e-mail: m.kowalska@bridge.pl

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