NGS Group (NGS) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 were 86 MSEK, down 27% year-over-year, mainly due to a weaker Swedish healthcare staffing market and lower contract prices.

• EBITA for Q3 improved to -2.2 MSEK from -8.3 MSEK (excluding prior year goodwill impairment), with a margin of -2.6%.

• Result for Q3 was -2.5 MSEK, or -0.10 SEK per share, compared to -114.8 MSEK and -12.72 SEK per share last year.

• Cash flow from operations in Q3 was -7.9 MSEK, compared to 13.9 MSEK last year.

• Executive search, recruitment, and interim segments outside healthcare showed increased demand and improved results.

Financial highlights

• Nine-month net sales were 278 MSEK, down 29% year-over-year, mainly due to lower healthcare staffing volumes.

• EBITA for January–September was -24.5 MSEK (margin -8.8%), compared to -16.2 MSEK (-4.2%) last year.

• Net result for the period was -71.7 MSEK, or -4.03 SEK per share, including -56.8 MSEK in non-recurring items (goodwill impairment and restructuring). Adjusted result: -14.9 MSEK.

• Cash flow from operations for the nine months was -25.3 MSEK, compared to 17.7 MSEK last year.

• Equity ratio improved to 53.5% from 50.9% year-over-year.

Outlook and guidance

• Gradual improvement expected in executive search, recruitment, and interim consulting as the economy recovers.

• Continued focus on cost savings and sales activities, especially in higher-margin segments.

• Norwegian healthcare staffing business showed good growth in Q3, with positive outlook.