Key strengths of VMP Group

The Company operates in a market with strong structural growth

The Finnish staffing market is estimated to grow by about 10 percent in 2016–2020, the recruitment and organisational development services market by about 4–5 percent and the self-employment services market by about 15–20 percent during the same time period.[1]

VMP is well-positioned to benefit from the market growth, especially in Finland. We are able to take advantage of the growth factors in the industry by continuously renewing our services and by offering versatile services for numerous customer needs. In addition, VMP is capable of addressing the loss and creation of jobs by, for example, offering re-education and recruitment services as well as integration and training services for foreign labor.

Comprehensive and modern HR services offering and customer need driven approach to tailoring services

VMP’s comprehensive and high-quality service offering includes the placement of staffed employees, the recruitment of senior employees, other recruitment and headhunting services, personnel assessments, organisational development and training services, services utilising robotics process automation and self-employment services.

We utilise modern digital tools in service delivery and, among other things, we offer robotics process automation in collaboration with a partner. Robotics process automation is implemented as a cloud-based service. In recruiting and executive search assignments, we use a digital service platform from which clients can transparently monitor the progress of searches in real time. In the self-employment service area, we offer customers an easy-to-use browser-based solution.

Our service portfolio enables us to act as an comprehensive HR partner in several industries and helps us better serve the new needs of customers caused by the changing working life. With our modern and comprehensive offering we are able to react rapidly to the development of the labor market also in the future for instance by utilising our platforms.

Strong market position in the staffing services industry

VMP has 30 years of experience in operating in the HR services industry, and we are one of the largest HR services companies in Finland. In addition, we are the only company in Finland to offer self employment services to complement staffing services and recruitment and organisational development services. Our offering also includes HR services that are based on digital solutions.

Fragmented customer base and broad network

VMP’s customer base includes companies from several industries and therefore VMP has limited exposure to the demand fluctuations of specific industries.  The Staffing service area served around 3,300 corporate customers in 2017. [2] VMP has a fragmented customer base, as no individual customer accounts for a significant proportion of VMP’s sales. The five largest customers represented 10 per cent of VMP’s net sales in 2017.

VMP’s branch network is broad thanks to the franchise business model. VMP has branches widely across Finland from the Southern parts of the country up North until Rovaniemi. Altogether VMP has 76 business locations in Finland, Sweden and Estonia.[3]

Scalable franchising business model enabling flexibility and strong local presence

VMP offers staffing services directly through its group companies and franchising chain. The franchising model enables VMP to maintain an extensive network of business locations while having strong knowledge of local business insight and relations to customers.

The franchise business model has enabled our Company to achieve profitable growth during the past three years. While the amount of office employees[4] has grown on average by 26 percent per year the company’s adjusted EBITDA[5] has grown on average 68 percent per year. Over the same period VMP’s revenue has grown on average 25 percent per year.

The franchise business model also provides us with flexibility against economic cycles as fixed costs remain under franchise entrepreneurs’ responsibility. Additionally as the franchise entrepreneurs are responsible for attaining premises and hiring local employees the business ties little amount of VMP’s own capital. The capital light business model also enables VMP to seek new business opportunities and expand into new areas without significant investments.

Skilled and experienced management team and personnel

VMP’s management has strong experience from the field, company, customers, competitors, employees and management in general, which we believe is a competitive advantage against our competitors.

[1] Management analysis based on strategy work

[2] Includes franchise companies’ customers and is based on the total amount of customers without eliminating possible overlapping customers

[3] VMP Finland (38), VMP Sweden (15), VMP Estonia (4), Staff Plus (1), Sijaishaltija (1), Eezy (8, of which 6 are based in franchisee premises),  Personnel and Romana (9, of which 2 are based in franchisee premises)

[4] Office employees working in group functions, average for the year

[5] Operating profit + Depreciation and amortization and + Items impacting comparability