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Work Service reports record sales in 1Q 2015

Work Service Capital Group begins to reap the rewards of successful acquisitions. The company's sales in the first quarter of 2015 grew by 37% YoY and amounted to over PLN  474 million. The Group’s foreign entities generated 44% of total sales, compared to 30% last year. Net profit before one-off costs increased by almost 27%.  With 154 new long-term contracts signed in Q1, the Group's customer base increased by c.5%, which will translate into sustainable growth of Work Service in the coming quarters.

In the first quarter of 2015, Work Service Group's sales increased by over 37% YoY and amounted to over PLN 474  million. Headline EBITDA amounted to PLN 19 million. Net profit before one-off costs increased to PLN 18,024  million (27% % growth YoY); and  PLN 11,824  million after one-off costs (16,94% % decline YoY). Of the PLN 6,2 million one-off costs, most (PLN 4,5 million) were related to investments in new high-margin companies on European markets.These projects led to the creation of new structures for Antal International and IT Kontrakt on the German, Swiss, Hungarian, Czech and Slovak markets. Acquisition  costs of PLN 1,7 million accounted for the rest of the one-off costs which influenced the Group's headline EBITDA, EBIT and Net Profit.

The financial results for the first quarter are in line with our expectations. Despite very large investments in structure development and integration of existing businesses within the Work Service Group, our growth rate still exceeded that of the market by a factor of almost two - said Tomasz Hanczarek, President of the Management Board of Work Service S.A. - In the first quarter we have achieved record sales of our services and a significant increase in the number of new contracts, which will be reflected in our performance in the coming quarters. We are confident that investments in new companies on new markets will contribute to even higher growth rates of sales in the months to come. We believe therefore that, on average, our operations will grow at c.20% YoY -  added Tomasz Hanczarek.

The consolidated financial results for the first quarter of 2015 will include the results of all the acquired companies. For the first time, 1Q financial figures include the contribution of the German Fiege Group companies, which were consolidated only from the 3rd quarter of 2014. The consolidation of Fiege's results contributed to the increase in the scale of the entire Work Service Group's operations and added 18 percentage points to the Group’s YoY sales growth rate.The company's organic growth is also impressive. Already in the first quarter, Work Service signed a record number (154) of new contracts, and generated positive cash flows from operations (after one-off costs) exceeding PLN 4 million.

We are fully committed to achieve a growth rate comparable to that of the largest global players in the HR sector. This means that we have to focus not only on short-term profits, but even more importantly, on strategic, sustainable growth in the long run. Therefore, we are looking for opportunities to expand our service portfolio in Poland and abroad through acquisitions of high-margin companies, we are investing in the Group's development and integration, and we are also diversifying revenue sources by expanding to new markets -  explained Tomasz Misiak, Chairman of the Supervisory Board of Work Service S.A.


Key financials of Work Service SA Group for 1Q 2015 vs 1Q 2015:



Consolidated data  (PLN)






% Increase


474 541

345 870


EBITDA (operating profit before  amortisation and depreciation)

19 035

17 963


Gross profit on sales  

17 357

16 722


EBIT (operating profit)

16 315

16 217


Net profit (before one-off costs)

18 024

14 236


Headline net profit (after one-off costs)

11 824

14 236

- 16,94%




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 specializes 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.



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