NGS Group (NGS) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 fell 30% year-over-year to 91.1 MSEK, with EBITA at -15.4 MSEK, impacted by a 6.8 MSEK restructuring charge and a 50 MSEK goodwill impairment.

• H1 2024 net sales declined 30% to 191.4 MSEK, with EBITA at -22.2 MSEK and net result at -69.2 MSEK, mainly due to a weakened healthcare staffing market and lower demand in executive search and recruitment.

• Two successful share issues raised 51.3 MSEK in liquidity, and a cost-saving program is expected to reduce quarterly costs by 5 MSEK from Q3 2024.

Financial highlights

• Q2 2024 adjusted EBITA (excluding restructuring) was -8.6 MSEK, margin -9.4%; reported EBITA was -15.4 MSEK, margin -17.0%.

• Q2 net result was -62.9 MSEK (vs. -4.7 MSEK prior year); EPS -3.2 SEK.

• H1 2024 adjusted EBITA was -15.4 MSEK; net result -69.2 MSEK; EPS -4.8 SEK.

• Operating cash flow for Q2 was -11.0 MSEK; for H1, -17.4 MSEK.

• Group equity ratio at period end was 50% (vs. 65% prior year).

Outlook and guidance

• Cost reductions from restructuring are expected to lower costs by 5 MSEK per quarter from Q3 2024.

• Early signs of market improvement in executive search and interim sectors could positively impact H2 2024.