<a id="bm-comp-7a5ae186-2727-432f-9d0b-48d41ae3d95c" name="bm-comp-7a5ae186-2727-432f-9d0b-48d41ae3d95c" class="BMCustomAnchor"></a><table><tr><td bm-component-id="7a5ae186-2727-432f-9d0b-48d41ae3d95c" style="vertical-align: top; width:100.000000%;"><ul><li>Organic sales decline of 9% y-o-y</li><li>EBIT margin of 5.2% (8.1%)</li><li>Signs of stabilised market conditions</li></ul></td></tr></table><a id="bm-comp-b6d2329e-88cb-4f24-add6-b26ccaa463ce" name="bm-comp-b6d2329e-88cb-4f24-add6-b26ccaa463ce" class="BMCustomAnchor"></a><table><tr><td bm-component-id="b6d2329e-88cb-4f24-add6-b26ccaa463ce" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3">Continues to take market share in a tough market</h3><p>Ogunsen reported Q1 sales of SEK 117m (129m), corresponding to a y-o-y decline of 9%. Consulting services revenue decreased by 8% y-o-y, while recruitment services saw a steeper drop of 18% y-o-y. This result was 4% below ABGSCe. However, we note that Ogunsen again outperformed key peers PION Group and Ework, which saw Q1 sales declines of 21% and 17%, respectively. Adj. EBIT was SEK 6.1m (10.4m), translating to an adj.EBIT margin of 5.2% (8.1%), a bit below our expectation of SEK 8m. The company incurred additional costs of SEK 2.2m in the quarter related to workforce reduction efforts, but it is unlikely that we will see further measures, as it also saw stabilised market conditions in the quarter. Historically, downturns in the staffing industry usually persist for 6-8 quarters, and now we have seen seven quarters of contraction.</p><h3 class="bm-h3">Delayed recovery means we cut '25e EBIT by 20%</h3><p>We lower our expectations on the back of the report, with '25e sales down 5% on lower-than-expected FTEs—something that we think will persist across the forecast period. For profitability, we lower our '25e assumptions, resulting in 20% lower EBIT. For '26e-'27e, we only make minor adjustments to profitability, as we think the business model will prove quick to recover once recruitment revenues improves, as these have much higher profitability than the staffing/consultancy revenues.</p><h3 class="bm-h3">'25e EV/EBIT of 9.6x with a dividend yield of 7.1%</h3><p>On our revised numbers, the company is trading at a '25e P/E of 13.2x, EV/EBIT of 9.6x and a dividend yield of 7.1%. We argue that Ogunsen is slightly less cyclical than the overall industry because of its focus on specialised assignments within economics and finance, which has historically led to stable profitability over business cycles.</p></td></tr></table>