From the CEO

CEO Juha Pesola in connection with the Financial Statements Release 2018:

”In the last quarter of 2018, our business operations proceeded according to plans. Revenue continued to grow and reached EUR 33.3 (31.5) million. Profitability continued at a good level, and our adjusted EBITDA was EUR 2.4 (2.7) million.

In addition to organic growth, we pursue a significant role in industry consolidation. In the fourth quarter we executed two significant corporate acquisitions. In November, we acquired Henkilöstötalo Voima, and in December we acquired Enjoy group, which is focused on the HoReCa industry. After the review period, we acquired Henkilöstöratkaisu Extraajat Oy, which is focused on the retail industry. With these acquisitions, we further strengthened VMP’s position in the HR services industry, bringing a lot of new talent, customers and business into VMP. The total revenue of the companies we acquired was approximately EUR 50 million in 2018, and by improving the efficiency of our operations we can achieve significant synergy benefits.

The executed acquisitions strengthen our business in the service industry, which further balances the distribution between industries of the Group’s clientele, and creates even growth over fluctuations in economic cycle. By acquiring Enjoy, we expanded our operations to Lapland, where growth in tourism is expected to continue also in the coming years. I am pleased to see that VMP is seen as a good and strong partner, and as one that has the capability to develop its business and the entire industry.

The Ministry of Economic Affairs and Employment’s (TEM) growth services reform aims to promote employment and the availability of skilled labor while responding to changes in the labor market. Due to the elections drawing closer, the reform has entered the political debate stronger than before. I believe that the ongoing and new pilot projects related to the growth service reform, where VMP Urapalvelu career service is actively involved, will continue. The pressure to renew employment services has not disappeared, and the private sector is strongly involved in this development.

2018 was a time of significant changes for VMP. The company listed, and its business grew both organically and through acquisitions. I believe that the transformation of the labor market will present many new business opportunities in the future, and as a company we are well positioned to help businesses and employees succeed amidst these changes. “