Recruitment classifieds business NetJobs Group has posted its eighth consecutive quarter of losses. The company is listed on the OMX First North and runs niche verticals in Sweden and Germany.
NetJobs was already on shaky ground after Q3 when it was close to running out of cash. Its equity is now down to SEK 0,5 million ($54,000 U.S.) from SEK 5.4 million in Q4 2017. But majority shareholder Henrik Kvick will bail the company out with a SEK 2 million short-term loan, through his company Trottholmen AB.
The loan carries an 8 percent interest rate. Kvick believes it will be enough to keep the company running in 2019, as long as it sticks to its business plan.
NetJobs saw turnover of SEK 8.4 million during Q4. That’s down from SEK 10.4 million in 2017. Full-year turnover came in at SEK 33.5 million — down from SEK 38 million last year.
The company is losing most of its money in Germany where revenue dropped from SEK 10 million in 2017 to SEK 7.5 million in 2018. It began operating in Finland last quarter and is in the process of launching in Norway.
CEO Georg Tsaros has been away on holiday and was unable to respond to the AIM Group’s requests for comment.
To add insult to injury, NetJobs recently switched over to a new telecommunications system. Reports from staff say it hasn’t been a smooth transition and many phone numbers aren’t currently working. The development paints a bleak picture of a business scrambling for new revenue without any contact with the outside world.
NetJobs shares have dropped by almost 10 percent since the company reported its Q4 results. But considering the company only has 486 shareholders, there’s probably not a lot of trading going on.