Uniflex
Uniflex - Returning to mother Poolia (ABG Sundal Collier)
2018-07-18 09:26
Estimate beat from all business areas
Merger focus, major cost savings likely
Business mix keeps driving sales growth
Back-to-back growth performance from NorwayUniflex managed to beat our estimates for sales by 4.5% and for adj. EBIT by 9%. Business area Norway managed an impressive EBIT margin of 4.6% (0.6) compared to our expectations of 3.5%. Besides Norway, the majority of the quarter’s positive deviation derived from Sweden, which continued to grow in the blue-collar segment, which in January-June accounted for 76% (66) of the consultants. This is an all-time high for the company and a main driver for top-line growth as blue-collar contracts in general have higher rates than white collar for Uniflex. Moreover, Norway continued its growth trend from Q1 and Finland received a boost from its recent office openings. Group EBIT was affected by two EO items: 1) merger costs from the proposed fusion with Poolia and 2) GDPR-related costs. Adjusted for these, adj. EBIT was slightly above our expectations.
Still chasing consultants with Poolia merger ahead
On our calculations, the number of Uniflex employees in Q2 amounted to 2,330 (2,520). The negative trend in total number of employees is thus continuing and is primarily an effect of acquiring and keeping white-collar consultants. Although management cites additional efforts to find employee growth, we are cautious and expect flat to slightly negative staff growth for the current year. On 4 June, Uniflex announced that it will merge with Poolia. An extraordinary general meeting has been called for 26 July with the proposition that shareholders of Uniflex are to receive 1.7 shares in Poolia for each share in Uniflex. The new company is to be active on 1 November with SEK 20m in yearly cost reductions, fully realized from autumn 2019. Total costs for the fusion are estimated at SEK 20m, where SEK 2.4m was taken in Q2 by Uniflex.
EBIT down due to EO, adj. EBIT up slightly
We have raised our margin assumptions slightly for all b
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