NGS Group (NGS) Q4 2023 earnings summary

Executive summary

• FY23 revenue fell 13% to 499.6 MSEK as Swedish regions reduced nurse staffing; Q4 revenue declined 27% to 109.7 MSEK.

• Cost-saving measures met their targets in Q4, while Norwegian healthcare staffing and the new Assessment & Leadership Services area showed growth potential.

Financial highlights

• Q4 EBITDA was -1.9 MSEK versus 2.1 MSEK; EBIT was -3.2 MSEK versus 0.9 MSEK, and net loss was 3.4 MSEK versus net income of 0.1 MSEK.

• FY23 EBITDA was -14.5 MSEK versus 12.1 MSEK; adjusted for 4.7 MSEK restructuring costs, EBITDA was -9.8 MSEK.

• FY23 EBIT was -127.0 MSEK versus 6.9 MSEK; excluding 107.5 MSEK goodwill impairment and 4.7 MSEK restructuring costs, adjusted EBIT was -14.8 MSEK.

• FY23 net loss was 125.8 MSEK versus net income of 3.7 MSEK; excluding 112.2 MSEK in goodwill impairment and restructuring costs, net loss was 13.6 MSEK.

• Operating cash flow was 13.5 MSEK for FY23 versus -8.7 MSEK; Q4 operating cash flow was -4.2 MSEK versus 2.3 MSEK.

Outlook and guidance

• The restructuring program targets annual cost savings of 12 MSEK; expected effects were achieved in Q4 and the program is expected to continue contributing.

• The goal is to grow revenue at least 10% organically and through acquisitions over time, with a 7% operating margin target.

• Management expects Norway to be an important market and plans to expand the Oslo team; participation in Norway’s physician staffing prequalification was expected in Q2 2024.

• Board proposed no dividend for FY23.