Two different pictures in the company
While both Nordics & Baltics and the UK progressed well with positive organic growth and improved earnings y-o-y in Q2, Proact continued to struggle in segments West (the Netherlands) and Central (mainly Germany). It announced non-recurring costs of SEK 25m in Q2 to address the suboptimal organisation in these markets, to meet lower demand, and we estimate that this corresponds to around 20 employees (2% of the organisation). In terms of M&A, Proact sounded positive on areas where it has good momentum, i.e. Nordics & Baltics and the UK, while we would not be surprised to see a divestment of either the Dutch or the German business, although the company played it down. Improving the margins by shrinking the business would be possible to some degree, but reducing the business in a large market like Germany would make Proact a less known supplier, in our view.
LÄS MER
