Half Year Financial Report 1.1.-30.6.2018

VMP Plc Half Year Financial Report 1.1.-30.6.2018 has been published on Wed 29.8.2018 at 8.00.

Audiocast (in Finnish): https://vmp.videosync.fi/h1-katsaus

 

VMP’S HALF-YEAR REPORT JANUARY 1–JUNE 30, 2018: STRONG GROWTH OF REVENUE AND PROFITABILITY CONTINUED

April–June 2018 in brief

  • The Group’s revenue was EUR 32.4 million (EUR 27.2 million in April–June 2017). Revenue increased by 19.1%.
  • The Group’s adjusted1 EBITDA was EUR 2.7 million (2.1). Adjusted EBITDA increased by 24.8%.
  • The Group’s earnings per share (EPS) was -0.26 euro2. The result was impacted by the increased amortizations of goodwill, EUR 1.7 million, and listing expenses, EUR 3.3 million.

January–June 2018 in brief

  • The Group’s revenue was EUR 60.5 million (EUR 50.4 million in January–June 2017). Revenue increased by 20.0%.
  • The Group’s adjusted3 EBITDA was EUR 5.0 million (3.7). Adjusted EBITDA increased by 37.0%.
  • The Group’s earnings per share (EPS) was -0.29 euro2. The result was impacted by the increased amortizations of goodwill, EUR 3.2 million, and listing expenses, EUR 3.3 million.

Outlook for 2018 (unchanged)

VMP expects adjusted EBITDA to grow clearly during the financial period ending December 31, 2018, compared to the financial period ended December 31, 2017.

Key figures

(EUR million)4–6/20184–6/2017Change1–6/20181–6/2017Change2017
Revenue32.427.219.1%60.550.420.0%109.5
Adjusted EBITDA2.72.124.8%5.03.737.0%9.3
Adjusted EBITDA margin,%8.2%7.8%8.3%7.3%8.5%
EBITDA2.52.115.7%4.53.722.2%9.3
Earnings per share2, EUR-0.26-0.29

VMP Plc Chief Executive Officer Juha Pesola

“The revenue and profitability of VMP continued their strong growth in the second quarter. Growth was both organic and generated by acquisitions. I am especially happy that our focus on strategy execution and favourable economic development have led to the development and growth of our business both by service area and geographically. Furthermore, we have maintained a high customer satisfaction level amidst strong business growth.

Our adjusted EBITDA increased clearly, amounting to EUR 2.7 million. The increased profitability was mainly due to our scalable business model and good demand for recruitment services. To support growth, we invested in marketing activities in the second quarter mainly in staffing and self-employment business areas.

The market fundamentals in the HR services industry, boosted by the economic growth in Finland, are favourable. Structural changes in the labor market create opportunities for growth. Our growth is supported by industry consolidation, labor scarcity challenges in customer companies, and the growth service project related to the Finnish health, social services and regional government reform. We will be an active player in the industry consolidation, and believe that as a listed company we are an even more attractive partner.

VMP was listed in Nasdaq Helsinki’s First North marketplace on June 19, 2018. With the transformation of work, the HR services industry is in a very interesting phase, and we believe that as listed company our possibilities to execute our strategy are even better. With the initial public offering, VMP got more than 1,100 new Finnish and international shareholders. I am very satisfied with the interest shown by investors, and want to thank all our new shareholders for their trust in us. The company is in excellent shape, and we are well equipped to continue our profitable growth.”

Result publication event

A press conference for analysts and media will be held on Wednesday, August 29, 2018 at 11.00 a.m. Finnish time as a live audiocast at vmp.videosync.fi/h1-katsaus. The conference will be held in Finnish. The conference will be hosted by Juha Pesola, CEO, and Jarmo Korhonen, CFO. During the presentation, there will be an opportunity to ask questions.

The presentation material will be available at company website at www.vmpgroup.fi/en/investors/reports-and-presentations/ before the conference.

A recording of the audiocast will be available at the same website later on the same day.

More information:

Juha Pesola, CEO
tel. +358 (0)40 307 5105

Jarmo Korhonen, CFO
tel. +358 (0)40 510 9336

Certified Adviser: Danske Bank A/S, Finland branch, tel. +358 10 546 7934

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