NGS Group (NGS) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 were 76 MSEK, a 20% decrease year-over-year, mainly due to a weaker healthcare staffing market following political decisions reducing demand for external staff.

• EBITA improved significantly to -0.1 MSEK from -6.6 MSEK in Q1 2024, reflecting successful cost control and sales efforts.

• The school staffing business was divested, generating a 2.5 MSEK gain, mostly in shares of Tellusgruppen AB.

• The long-term Nordea loan was fully amortized (10.4 MSEK), eliminating covenant requirements.

Financial highlights

• Net income for Q1 2025 was -0.8 MSEK, compared to -6.1 MSEK in Q1 2024.

• Earnings per share improved to -0.03 SEK from -0.68 SEK year-over-year.

• Cash flow from operating activities was -10.2 MSEK, down from -6.4 MSEK in Q1 2024.

• Liquidity at period end was 4.5 MSEK, up from 1.3 MSEK a year earlier.

• Soliditet (equity ratio) increased to 61.9% from 51.2% year-over-year.

Outlook and guidance

• The company aims for at least 10% organic and acquisition-driven sales growth over time, with an EBITA margin target of 4%.

• Dividend policy is to distribute 40-50% of net profit, subject to financial position.