Ework Group — Interim / Quarterly Report 2019

Jul 18, 2019

January-June 2019

New digital platform deals, over 10,000 consultants on assignment

Second quarter 2019 compared to 2018

• Net sales increased by 13% to SEK 3,249 M (2,871).
• EBIT was up by 14% to SEK 30.7 M (26.8).
• Order intake rose by 8% to SEK 4,675 M (4,329).
• Earnings per share after tax and after dilution were SEK 1.23 (1.15), a 7% increase.
• Overall, the consulting market was somewhat weaker than last year.

First half-year 2019 compared to 2018

• Net sales increased by 16% to SEK 6,377 M (5,494).
• EBIT was up by 16% to SEK 57.1 M(49.3).
• Earnings per share after tax and after dilution were SEK 2.34 (2.12), a 10% increase.

"For the first time, we achieved over 10,000 consultants on assignment, rolling annualised sales of SEK 12 billion, and can conclude that the scale of our operations has doubled since 2016, when we set our 2020 targets."

Zoran Covic, CEO

Net sales and EBIT

Quarterly order intake

INTERIM REPORT 2 – 2019 | EWORK | 1

For the first time, we achieved over 10,000 consultants on assignment, rolling annualised sales of SEK 12 billion, and can conclude that the scale of our operations has doubled since 2016, when we set our 2020 targets.

Ework's net sales increased by 13% to SEK 3,249 M on the second quarter of the previous year. EBIT was up to SEK 31M. Ework's earnings growth continues—these are our best ever Q2 earnings, and our third-best quarterly earnings ever, up by 14% year on year. The somewhat weaker market did have some impact on growth rates, and the comparison is affected by the quarter having fewer billing days than last year.

As in the previous quarter, our new business is advancing our market positioning. We increased the share of business wins—our hit rate—while the total number of enquiries did reduce. Combined with more available consultants, this corroborates the view of cyclical weakening of the consulting market overall. This confirms the early signals that we reported in the previous quarter.

We continued to secure business, with our recently developed digital platform being decisive. There is great client interest in this solution, and I'm looking forward to following its implementation with clients during the year.

We're also asserting ourselves well against the competition. In our continued efforts to develop the company, we're improving management by focusing Magnus Eriksson's role as Deputy CEO and COO, with sharper concentration on core business and operational management, while hiring Ola Maalsnes as our new CFO, who takes up his position in August. Meanwhile, we've executed adaptation and streamlining within our organisation, which are expected to reduce our cost level going forward.

I'm proud that Ework passed a milestone in the quarter, providing over 10,000 consultants on assignment for the first time. Net sales were also double the level of 2016, when we formulated our aggressive growth targets for 2020. We're retaining our outlook for 2019, with the previously indicated risk of a weaker market meaning that achieving our growth target for earnings per share in 2019 will be more challenging than expected. However, our offering is standing strong on the market, and coupled with the investments and the hard work we've done in developing and digitising our delivery model, we're now advancing our positioning further.

Zoran Covic, CEO

Stockholm, Sweden, 18 July 2019

SECOND QUARTER 2019

Continuing to advance our market position

Market

The consulting market was somewhat weaker than the previous year, as we foresaw in the second quarter, after a long period of very robust demand. The demand for consultants for new assignments remained positive, but a somewhat lower activity level compared to previously was apparent in most of the skills segments where Ework is active. Ework's demand indicators revealed a downturn through a lower number of assignment enquiries received, and more applications from consultants.

The Group's net sales

Consolidated net sales for the second quarter were up by 13% to SEK 3,249 M (2,871). For the first half-year, net sales increased by 16% to SEK 6,377 M (5,494). Sweden and Poland—still reported jointly—generated the highest growth in absolute terms. Norway contributed the highest growth in percentage terms.

Sales growth was countered by some cyclical demand slowdown. Comparisons are affected by the quarter having fewer billing days than the corresponding period of the previous year.

The Group's earnings

The Group's EBIT for the second quarter increased by 14% to SEK 30.7 M (26.8). EBIT for the first half-year 2019 increased by 16% to SEK 57.1 M (49.3). Profit after financial items was SEK 27.5 M (25.8). Profit after tax for the quarter was SEK 21.3 M (19.8). Profit after tax for the first half-year was SEK 40.3 M (36.5).

Comments on progress

The Group's order intake increased by 8% on the second quarter of the previous year to SEK 4,675 M (4,329). Order intake includes new assignments and extensions. In recent years, order intake has varied more between quarters due to variations in how contracts are extended, which makes interpreting the numbers more difficult, although Ework's opinion is that the lower growth rate of order intake is partly due to cyclically weaker demand.

The number of consultants on assignment increased by 11%, to peak at 10,356 (9,320), thus passing 10,000 for the first time.

Sweden

The Swedish operation performed positively. Quarterly net sales were up by 13% to SEK 2,671 M (2,370). For the first half-year, net sales increased by 16% to SEK 5,238 M (4,532). This increase is partly due to new clients and assignments secured in the period, but the sales mix was less positive, with a higher share of lower-margin business. EBIT for the quarter was SEK 28.1 M (24.7), a 14% increase. For the first half-year, EBIT was up by 18% to SEK 52.5 M (44.6). The numbers for the Sweden segment still include the Polish operation, which continues its positive progress.

Norway

The net sales of the Norwegian operation rose by 45% to SEK 330.7 M (228.2). Net sales for the first half-year were SEK 644.6 M (430.7), a 50% increase. EBIT rose by 109% to SEK 4.6 M (2.2), and was up by 134% to SEK 7.5 M (3.2) for the first half-year. The sales gains are due to continued strong progress of our market position.

Finland

Net sales in the Finnish operation decreased in the quarter, to SEK 139.5 M (147.8). Net sales for the first half-year reduced to SEK 270.8 M (279.2). EBIT was SEK 1.2 M (-0.5) for the quarter, and SEK 1.9 M (-0.4) for the first half-year.

Denmark

The Danish operation experienced a setback in the quarter in year-on-year terms. Net sales decreased to SEK 107.5 M (124.4) in the second quarter, and net sales were SEK 223.5 M (251.4) in the first half-year. EBIT was SEK -3.2 M (0.5) for the quarter, and SEK -4.8 M (2.0) for the first half-year. Ework has taken measures to adapt its costs to lower sales.

Financial position

The equity/assets ratio at the end of the period was 3.4% (3.7). The somewhat lower equity/assets ratio is because of increased working capital due to Ework's continued sales growth.

Cash flow from operating activities for the second quarter was SEK -11.9 M (-28.2). Payments from clients and to consultants are made at month-ends. A modest shift in payments made or received can have a significant effect on cash flow at a specific time. The firm holds a SEK 470 M credit facility for support services offering faster payments to consultants. Accounts receivable have been pledged as collateral for this facility.

Workforce

The average number of employees increased to 311 (297) excluding employees hired for projects. The increase is due to new hirings relating to the company's growth and initiatives previously reviewed.

Parent Company

The Parent Company's net sales for the second quarter were SEK 2,599 M (2,323). Profit before financial items was SEK 27.1 M (25.5) and profit after tax was SEK 20.5 M (17.9).

The Parent Company's equity at the end of the quarter was SEK 88.4 M (85.2) and the equity/ assets ratio was 3.0% (3.2). Otherwise, the above comments regarding the Group's financial position also apply to the Parent Company where appropriate.

Subsequent events

To keep developing the company, Ework is improving its management by focusing the role of current Deputy CEO and CFO Magnus Eriksson to Deputy CEO and COO, with more concentration on core business and operational management, while hiring Ola Maalsnes as new CFO, to take up his position in August.

Material risks and uncertainty factors

Ework has received a claim from the Norwegian tax authority based on a several liability from a previous subcontractor's unpaid taxes and social security contributions for the period 2013-2016, of some SEK 10 M. Ework is contesting this claim and views the risk as low.

Otherwise, Ework's material business risks, for the Group and Parent Company, consist of reduced demand for consulting services, difficulties in attracting and retaining skilled staff, credit risks, and to a lesser extent, currency risks. The firm is not aware of any new material business risks over the next six months. For a more detailed review of material risks and uncertainty factors, please refer to Ework's Annual Report.

Outlook

In February 2016, Ework expressed the ambition of achieving average sales growth of 20% and an average increase of earnings per share of 20% per year in the years 2016 to 2020 inclusive. In the light of earnings performance in 2018, Ework does not expect to fully achieve its financial target for EPS for the period 2016–2020. Nevertheless, the ambition remains to increase earnings per share by 20% per year in 2019 and 2020.

As stated in the previous quarterly Report, Ework considers that the somewhat weaker market means that achieving its growth target for earnings per share for 2019 will be more challenging than expected. Ework is retaining its sales growth target for 2016-2020.

Zoran Covic, CEO

Stockholm, Sweden, 18 July 2019

This Report has not been subject to review by the company's auditor. The information disclosed in this Interim Report is mandatory for Ework Group AB (publ) to publish pursuant to the EU's Market Abuse Regulation (MAR). This information was submitted for publication at 1:00 p.m. (CET) on 18 July 2019, through the agency of the Chief Executive Officer.

Key performance data

SEK 000	April-June 2019	April-June 2018	January June 2019	January June 2018	Rolling 4 quarters Jul 18-Jun 19	Full year 2018
Net sales	3,249,054	2,870,732	6,376,675	5,493,608	11,918,680	11,035,613
EBIT	30,713	26,829	57,099	49,321	114,309	106,531
Profit before tax	27,452	25,804	51,891	47,979	105,625	101,713
Profit for the period	21,259	19,783	40,274	36,548	82,618	78,892
Sales growth, %	13.2	20.2	16.1	15.0	16.6	16.1
EBIT margin, %	0.9	0.9	0.9	0.9	1.0	1.0
Profit margin, %	0.8	0.9	0.8	0.9	0.9	0.9
Return on equity, %	61.1	59.1	57.9	54.6	69.3	51.3
Total assets	3,625,577	3,156,584	3,625,577	3,156,584	3,625,577	3,316,630
Equity	122,524	115,891	122,524	115,891	122,524	155,610
Equity/assets ratio, %	3.4	3.7	3.4	3.7	3.4	4.7
Acid test ratio, %	101	103	101	103	103	104
Average number of employees	311	297	310	290	306	297
Net sales per employee	10,447	9,666	20,570	18,943	38,918	37,157
Key ratios per share
Earnings per share before dilution, SEK	1.23	1.15	2.34	2.12	4.79	4.58
Earnings per share after dilution, SEK	1.23	1.15	2.34	2.12	4.79	4.58
Equity per share before dilution, SEK	7.1	6.7	7.1	6.7	7.1	9.0
Equity per share after dilution, SEK	7.1	6.7	7.1	6.7	7.1	9.0
Cash flow from operating activities per share before dilution, SEK	–0.69	–1.63	–4.18	–2.05	–0.30	1.83
Cash flow from operating activities per share after dilution, SEK	–0.69	–1.63	–4.18	–2.05	–0.30	1.83
Number of shares outstanding at end of period before dilution (000)	17,240	17,240	17,240	17,240	17,240	17,240
Number of shares outstanding at end of period after dilution (000)	17,240	17,240	17,240	17,240	17,240	17,240
Average number of shares outstanding before dilution (000)	17,240	17,240	17,240	17,240	17,240	17,240
Average number of shares outstanding after dilution (000)	17,240	17,240	17,240	17,240	17,240	17,240

Shareholders

As of 28 June 2019	No. of shares	Votes and equity
Staffan Salén and family through company 1	4,790,428	27.8%
Försäkringsbolaget Avanza Pension	3,110,234	18.0%
Investment AB Öresund	1,826,988	10.6%
Protector Forsikring ASA	1,720,499	10.0%
Katarina Salén, private and through family company	473,962	2.7%
Patrik Salén and family through company	385,000	2.2%
Ålandsbanken, on behalf of shareholders	378,480	2.2%
Erik Åfors through company	277,291	1.6%
Claes Ruthberg	180,000	1.0%
Mikael Gunnarsson	168,300	1.0%
Sub-total	13,311,182	77.2%
Other	3,928,493	22.8%
Total	17,239,675	100%

1 Salénia AB

Consolidated Statement of Income and Other Comprehensive Income

	April-June	April-June	January	January	Rolling 4 quarters	Full year
Note SEK 000	2019	2018	June2019	June2018	Jul 18-Jun 19	2018
Operating income
Net sales 1	3,249,054	2,870,732	6,376,675	5,493,608	11,918,680	11,035,613
Other operating income	0	0	0	2	65	67
Total operating income	3,249,054	2,870,732	6,376,675	5,493,610	11,918,745	11,035,680
Operating costs
Cost of consultants on assignment	–3,122,280	–2,749,435	–6,126,467	–5,260,059	–11,443,150	–10,576,742
Work performed by the company for its own use and capitalized	3,908	0	6,467	2,558	16,382	12,473
Other external costs	–25,106	–29,173	–51,589	–56,073	–104,086	–108,570
Personnel costs	–67,685	–63,634	–133,611	–128,585	–255,513	–250,487
Depreciation, amortisation and impairment of property, plant & equipment and intangible non-current assets	–7,178	–1,661	–14,376	–2,130	–18,069	–5,823
Total operating costs	–3,218,341	–2,843,903	–6,319,576	–5,444,289	–11,804,436	–10,929,149
Earnings before interest and taxes	30,713	26,829	57,099	49,321	114,309	106,531
Profit from financial items
Net financial income/expense	–3,261	–1,025	–5,208	–1,342	–8,684	–4,818
Profit after financial items	27,452	25,804	51,891	47,979	105,625	101,713
Tax	–6,193	–6,021	–11,617	–11,431	–23,007	–22,821
Profit for the period	21,259	19,783	40,274	36,548	82,618	78,892
Other comprehensive income
Items that have been reclassified, or are reclassifiable, to profit or loss
Translation differences on translation of
foreign operations for the period	2,196	987	4,219	5,231	1,231	2,243
Other comprehensive income for the period	2,196	987	4,219	5,231	1,231	2,243
Comprehensive income for the period	23,455	20,770	44,493	41,779	83,849	81,135
Earnings per share
before dilution (SEK)	1.23	1.15	2.34	2.12	4.79	4.58
after dilution (SEK)	1.23	1.15	2.34	2.12	4.79	4.58
Number of shares outstanding at end of reporting period:
before dilution (000)	17,240	17,240	17,240	17,240	17,240	17,240
after dilution (000)	17,240	17,240	17,240	17,240	17,240	17,240
Average number of outstanding shares:
before dilution (000)	17,240	17,240	17,240	17,240	17,240	17,240
after dilution (000)	17,240	17,240	17,240	17,240	17,240	17,240

Consolidated Statement of Financial Position

SEK 000	30 June 2019	30 June 2018	31 December 2018
Assets
Non-current assets
Intangible assets	36,720	25,743	32,882
Property, plant and equipment	5,255	5,224	5,235
Right-of-use assets	47,010	0	0
Non-current receivables	1,377	5,643	1,905
Total non-current assets	90,362	36,610	40,022
Current assets
Accounts receivable	3,312,047	2,917,589	3,038,540
Prepaid expenses and accrued income	115,193	103,723	84,410
Tax receivables	3,159	0	0
Other receivables	16,248	14,475	15,713
Cash and cash equivalents	88,568	84,187	137,945
Total current assets	3,535,215	3,119,974	3,276,608
Total assets	3,625,577	3,156,584	3,316,630
Equity and liabilities
Equity
Share capital	2,241	2,241	2,241
Other paid-up capital	59,636	59,273	59,636
Reserves	3,765	2,534	–454
Retained earnings including profit for the period	56,882	51,843	94,187
Total equity	122,524	115,891	155,610
Current liabilities
Current interest-bearing liabilities	470,000	350,000	350,000
Lease liabilities	47,618	0	0
Accounts payable	2,915,505	2,593,264	2,716,781
Tax liabilities	0	2,711	5,333
Other liabilities	33,215	28,056	42,861
Accrued expenses and deferred income	36,715	66,662	46,045
Total current liabilities	3,503,053	3,040,693	3,161,020
Total equity and liabilities	3,625,577	3,156,584	3,316,630

Consolidated Statement of Changes in Equity

SEK 000	Share capital	Other paid-up capital	Translation reserve	Retained earnings incl. profit for the period	Total equity
Opening equity, 1 Jan. 2018	2,241	59,273	–2,697	92,874	151,691
Comprehensive income for the period
Profit for the period				36,548	36,548
Other comprehensive income for the period			5,231		5,231
Comprehensive income for the period			5,231	36,548	41,779
Transactions with the Group's shareholders
Dividends				–77,579	–77,579
Closing equity, 30 Jun. 2018	2,241	59,273	2,534	51,843	115,891
Opening equity, 1 Jul. 2018	2,241	59,273	2,534	51,843	115,891
Comprehensive income for the period
Profit for the period				42,344	42,344
Other comprehensive income for the period			–2,988		–2,988
Comprehensive income for the period			–2,988	42,344	39,356
Transactions with the Group's shareholders
Premiums deposited on issuance of share warrants		363			363
Closing equity, 31 Dec. 2018	2,241	59,636	–454	94,187	155,610
Opening equity, 1 Jan. 2019	2,241	59,636	–454	94,187	155,610
Comprehensive income for the period Profit for the period				40,274	40,274
Other comprehensive income for the period			4,219		4,219
Comprehensive income for the period			4,219	40,274	44,493
Transactions with the Group's shareholders
Dividends				–77,579	–77,579
Closing equity, 30 Jun. 2019	2,241	59,636	3,765	56,882	122,524

Consolidated Statement of Cash Flows

SEK 000	April-June 2019	April-June 2018	January June 2019	January June 2018	Rolling 4 quarters Jul 18-Jun 19	Full year 2018
Operating activities
Profit after financial items	27,452	25,804	51,891	47,979	105,625	101,713
Adjustment for items not included in cash flow	7,178	1,661	14,376	2,130	18,069	5,823
Income tax paid	–6,412	–6,655	–15,636	–14,025	–26,737	–25,126
Cash flow from operating activities before changes in working capital	28,218	20,810	50,631	36,084	96,957	82,410
Cash flow from changes in working capital	–40,124	–48,994	–122,642	–71,504	–102,076	–50,938
Increase (-)/decrease (+) in operating receivables	–115,378	–227,271	–281,088	–277,058	–401,277	–397,247
Increase (+)/decrease (-) in operating liabilities	75,254	178,277	158,446	205,554	299,201	346,309
Cash flow from operating activities	–11,906	–28,184	–72,011	–35,420	–5,119	31,472
Investing activities
Acquisition of property, plant & equipment	–567	–46	–864	–292	–1,740	–1,168
Acquisition of intangible assets	–3,915	–55	–6,584	–2,697	–16,597	–12,710
Cash flow from investing activities	–4,482	–101	–7,448	–2,989	–18,337	–13,878
Financing activities
Premiums deposited on issuance of share warrants	0	0	0	0	363	363
Dividend paid to Parent Company shareholders	–77,579	–77,579	–77,579	–77,579	–77,579	–77,579
Amortisation of lease liability	–5,070	0	–10,981	0	–10,981	0
Borrowings	70,000	149,813	120,000	149,829	120,000	149,829
Cash flow from financing activities	–12,649	72,234	31,440	72,250	31,803	72,613
Cash flow for the period	–29,037	43,949	–48,019	33,841	8,347	90,207
Cash and cash equivalents at beginning of period	119,029	39,393	137,945	48,630	84,187	48,630
Exchange rate difference	–1,424	845	–1,358	1,716	–3,966	–892
Cash and cash equivalents at end of period	88,568	84,187	88,568	84,187	88,568	137,945

Parent Company Income Statement

SEK 000	April-June 2019	April-June 2018	January June 2019	January June 2018	Rolling 4 quarters Jul 18-Jun 19	Full year 2018
Operating income
Net sales	2,599,475	2,322,984	5,101,531	4,442,307	9,581,378	8,922,154
Other operating income	11,709	7,173	20,828	13,599	32,311	25,082
Total operating income	2,611,184	2,330,157	5,122,359	4,455,906	9,613,689	8,947,236
Operating costs
Cost of consultants on assignment	–2,505,018	–2,231,596	–4,915,492	–4,266,395	–9,218,650	–8,569,553
Work performed by the company for its own use and capitalized	3,908	0	6,467	2,558	16,382	12,473
Other external costs	–33,356	–24,523	–65,179	–50,230	–116,220	–101,271
Personnel costs	–47,980	–47,022	–94,615	–94,648	–180,637	–180,670
Depreciation, amortisation and impairment of prop erty, plant & equipment and intangible non-current assets	–1,675	–1,515	–3,340	–1,843	–6,716	–5,219
Total operating costs	–2,584,121	–2,304,656	–5,072,159	–4,410,558	–9,505,841	–8,844,240
Earnings before interest and taxes	27,063	25,501	50,200	45,348	107,848	102,996
Profit/loss from financial items
Other interest income and similar items	1,796	333	3,051	1,853	2,560	1,362
Interest expense and similar items	–2,542	–2,279	–4,274	–2,022	–7,353	–5,101
Profit after financial items	26,317	23,555	48,977	45,179	103,055	99,257
Tax	–5,770	–5,607	–10,737	–10,411	–22,594	–22,268
Profit for the period *	20,547	17,948	38,240	34,768	80,461	76,989

* Profit for the period is consistent with comprehensive income for the period.

Parent Company Balance Sheet

SEK 000	30 June 2019	30 June 2018	31 December 2018
Assets
Non-current assets
Intangible assets	36,720	25,743	32,882
Property, plant and equipment	3,446	3,255	3,530
Financial assets
Other non-current receivables	633	4,932	1,182
Participations in Group companies	34,215	22,084	22,084
Total financial assets	34,848	27,016	23,266
Total non-current assets	75,014	56,014	59,678
Current assets
Accounts receivable	2,701,285	2,420,167	2,561,357
Receivables from Group companies	119,485	68,040	107,316
Other receivables	58	70	90
Tax receivables	1,955	0	0
Prepaid expenses and accrued income	64,117	78,960	54,154
Cash and bank balances	32,544	42,710	51,435
Total current assets	2,919,444	2,609,947	2,774,352
Total assets	2,994,458	2,665,961	2,834,030
Equity and liabilities
Equity
Restricted equity
Share capital (17,239,675 shares with par value of SEK 0.13)	2,241	2,241	2,241
Statutory reserve	6,355	6,355	6,355
Development fund	36,023	25,005	32,174
Total restricted equity	44,619	33,601	40,770
Non-restricted equity
Share premium reserve	9,405	40,486	40,848
Retained earnings	–3,848	–23,687	–30,855
Profit for the period	38,241	34,768	76,989
Total non-restricted equity	43,798	51,567	86,982
Total equity	88,417	85,168	127,752
Current liabilities
Liabilities to credit institutions	470,000	350,000	350,000
Accounts payable	2,378,747	2,154,356	2,280,246
Tax liabilities	0	1,721	4,889
Liabilities to Group companies	5,532	0	15,285
Other liabilities	25,205	17,422	22,142
Accrued expenses and deferred income	26,557	57,294	33,716
Total current liabilities	2,906,041	2,580,793	2,706,278
Total equity and liabilities	2,994,458	2,665,961	2,834,030

Accounting policies

The Interim Report for the Group has been prepared in accordance with IAS 34 Interim Financial Reporting and the appropriate provisions of the Swedish Annual Accounts Act.

Ework is applying IFRS 16 Leases, which replaces IAS 17 Leases, effective 1 January 2019. Ework is adopting the modified transition approach and the main impact on Ework's accounting is sourced from the recognition of lease contracts on premises. The opening effect in the Consolidated Balance Sheet as of 1 January 2019 was SEK 57,732,000. This change means that lease arrangements (apart from short-term leases and leases of low value) are recognised as a right-of-use asset and a lease liability in the Balance Sheet. In the Income Statement, the straight-line operating lease is replaced with an expense for amortising the right-of-use asset and the interest expense related to the lease liability.

Otherwise, the accounting policies and computation methods are unchanged compared to those applied in the annual accounts for 2018.

The operations in Poland are reported in the Sweden segment for the present.

Note 1 The Group's operating segments

Second quarter 2019 compared to the second quarter 2018

		Sweden Apr-Jun	Finland Apr-Jun		Denmark Apr-Jun		Norway Apr-Jun		Total Apr-Jun
SEK 000	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018
Income from clients		2,671,335 2,370,324	139,532	147,822	107,451	124,366	330,736		228,220 3,249,054	2,870,732
Profit per segment	42,009	49,689	2,164	988	–2,176	1,896	,6,650	3,872	48,647	56,445
Group-wide expenses	–13,877	–25,031	–979	–1,475	–1,043	–1,445	–2,035	–1,665	–17,934	–29,616
EBIT	28,132	24,658	1,185	–487	–3,219	451	4,615	2,207	30,713	26,829
Net financial items	-	-	-	-	-	-	-	-	–3,261	–1,025
Profit/loss for the period before tax									27,452	25,804

First half-year 2019 compared to the first half-year 2018

		Sweden Jan-Jun	Finland Jan-Jun		Denmark Jan-Jun		Norway Jan-Jun		Total Jan-Jun
SEK 000	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018
Income from clients		5,237,743 4,532,316	270,761	279,167	223,547	251,435	644,624		430,690 6,376,675 5,493,608
Profit per segment	81,080	91,295	4,238	2,591	–2,542	4,684	11,707	6,887	94,483	105,457
Group-wide expenses	–28,618	–46,728	–2,327	–3,025	–2,219	–2,694	–4,220	–3,689	–37,384	–56,136
EBIT	52,462	44,567	1,911	–434	–4,761	1,990	7,487	3,198	57,099	49,321
Net financial items	–	–	–	–	–	–	–	–	–5,208	–1,342
Profit/loss for the period before tax									51,891	47,979

Definitions

Ework Group utilises a number of financial metrics in Interim Reports and Annual Reports that are not defined according to IFRS, known as alternative performance measures, according to ESMA (the European Securities and Markets Authority) guidelines.

A number of metrics and key indicators appearing in Interim Reports and the Annual Report are defined below. Most should be considered generally accepted, and of such nature that they could be expected to be presented in Interim Reports and the Annual Report to give a view of the Group's results of operations, profitability and financial position.

Key indicator	Definition and usage
Earnings per share	Profit for the period in relation to the number of outstanding shares before dilution at period-end. Defined in IAS 33.
Equity/assets ratio	Reported equity in relation to reported total assets at period-end. Metric illustrating interest rate sensitivity and financial stability.
Equity per share	Equity in relation to the number of shares outstanding before dilution at the end of the period. Metric illustrating shareholders' proportion of total net assets per share.
Operating margin, EBIT	EBIT in relation to net sales.
Profit margin	Profit after financial items in relation to net sales.
Quick ratio	Current assets in relation to current liabilities.
Return on equity	Profit for the period in relation to average equity in the period. Return on equity is restated at an annualized rate in interim reporting. A profitability metric that illustrates returns on the capital shareholders invested in opera tions in the period.
Sales growth	Net sales for the period less net sales for the comparative period in relation to net sales for the comparative period.

Ework Group is a market-leading and independent consultant provider operating in northern Europe, which focuses on IT, telecom, technology, and business development. Without having consultants employed, Ework can impartially match every assignment with the right competence from the whole market. Ework was founded in Sweden in 2000, and is now active in Sweden, Denmark, Norway, Finland and Poland. The firm has framework agreements with over 170 leading corporations in most sectors, and over 10,000 consultants on assignment. Ework's head office is in Stockholm. Its shares are listed on Nasdaq Stockholm.

Ework Group AB (publ)

Mäster Samuelsgatan 60 SE-111 21 Stockholm Sweden Tel: +46 (0)8 506 05500 Corporate ID no. 556587-8708

Forthcoming financial reports

Interim Report, July-September 2019 22 October 2019

Contacts for more information

Zoran Covic, CEO +46 (0)8 506 05500 mobile +46 (0)70 665 6517 Magnus Eriksson, Deputy CEO & CFO +46 (0)8 506 05500 mobile +46 (0)73 382 8480