Ework Group: Ework reports lower revenue and operating profit according to preliminary figures

Consulting broker Ework is flagging lower revenues and operating profit for the first quarter a week before publishing its full report. Revenue is expected to be approximately SEK 3,500 million (4,225), and operating profit SEK 34 million (44.7). Furthermore, significant exchange rate fluctuations are reported to affect profit after financial items, which is expected to land at SEK 21 million (45.7). The company writes that it continued to strengthen its gross margin during the quarter. However, this, combined with a positive trend in several of the company's markets, was not enough to compensate for the weak development in Sweden and Norway, where volumes declined in a continued challenging and cautious market. "In addition, the previously announced phase-out of unprofitable customer agreements in Sweden has continued," Ework writes. The company will publish its full report on May 14.