Flair Group A/S

The income statement for 2022 shows a loss of DKK 12,381 thousand against a loss of DKK 3,752 thousand last year, and the balance sheet at 31 December 2022 shows a negative equity of DKK 12,935 thousand. The negative development in earnings from 2021 to 2022 is primarily due to a combination of settlement with BJMF, inflation, the energy crises, as well as disrupted supply chains, particularly for industries relying on import of goods.
These challenges have made the markets more cautious about expanding their workforce and hence strained the demand for temporary workforce. The decrease in demand particularly in the blue-collar segment has had a negative impact on Adecco.
Adecco has invested strategically in the recruitment division in 2021 and 2022 and has reaped positive numbers in 2022 compared to previous years. Adecco A/S has furthermore undergone a strategic, commercial, and operational transformation in recent years. Throughout 2022, the company has continued to invest in digital awareness of Adecco A/S and proactively strengthening the company's professional relationships and demand for the services offered. At the same time Adecco A/S has continued a strong focus and investment in process optimization and automation since 2021, which is now evident in our lower cost to serve.
In 2021 the union (BJMF) opened a specific case against Adecco A/S for breach of the collective agreement Jord- og Betonoverenskomsten.The case primarily covered the years 2016-2019. Adecco A/S and BJMF reached an agreement in 2023, to settle the case outside of the arbitration court. The associated costs of DKK 5,0 million have been allocated in the results of 2022.
The combination of a cautious market and a continued investment in digitalization and process reengineering has had a negative impact on the results, but the strategic activities are expected to contribute positively to the earnings in 2023. It is expected that continued investment will take place in 2023.
The combination of inflation, the war in Ukraine, the energy crisis and a large investment in infrastructure/process engineering and the settlement with BJMF, are the main drivers behind the 2022 deficit. Management however still considers the loss for 2022 as non-satisfactory.

With the 2022 results, the equity of Adecco A/S is DKK -12,9 million. The equity will been reestablished in 2023, as described in “events after closing date.