Eezy Plc's Interim Report 1–3/2024

Demand for staffing services remains weak – focus on increasing productivity - Seite 2

Our Professional Services business area's revenue grew 7% in the first quarter to EUR 8.0 million (7.4), a great result in this challenging economic environment. The growth was driven by Employment Services for the public sector and Employee Surveys. Demand for direct recruitment, personal assessments and light entrepreneurship services has declined in this weak economic climate.

Our EBIT for the first quarter was EUR 0.5 million (1.3), a decrease mainly explained by the decline in the revenue of Staffing Services and the industry focus in our clientele, which was unfavorable in this market situation. EBIT was decreased by one-off costs of EUR 0.3 million in personnel expenses related to severance payments. We have implemented the profitability program we launched in August. Guaranteed yearly savings of EUR 3 million in fixed costs will improve our profitability. We will continue the detailed examination of costs and the optimization of operations according to our plan without compromising the business or our ability to grow faster than the market when the cycle improves.

Our strategy is on track – first results already visible

We published our new strategy "Good Work 2028" in February. Our long-term goals are to grow faster than the market in our Staffing Services, double the revenue of our Professional Services and achieve an EBIT level of 8% in 2028.

A key source for growth is to harness the power of our nationwide network of regional operators, and, of our digital service, which is independent of time and place.

The core of improving profitability lies in leveraging the economies of scale brought by growth and in harnessing technology and artificial intelligence in our core business processes.

In April, we started rolling out the AI-enabled ERP system in Staffing Services with first customers and staffed employees. We see now in practice what a significant source of productivity, growth and competitive advantage our new system, developed by us, is. We will continue the development and deployment work throughout 2024. I am beyond excited about this.

The economic cycle has been exceptionally difficult throughout my time as CEO. However, I still see strong opportunities for growth and productivity gains over this strategic period. Our competitive advantages include the largest national network, a strong and responsible brand, satisfied customers, and a broad client base. We can also offer our customers the widest range of services within the market. We will revolutionize the staffing service industry with our AI-enabled technology. By focusing together with the Eezy team on what we do best in the country, we will achieve our strategic goals.”