Revenues at international staffing group Randstad declined by 14%  in the fourth quarter of 2008, as the company was hit by worsening economic conditions. Revenues fell by 18% in December 2008 compared with 2007.

The company also recorded a fourth quarter net loss of 231m euros (£294m) due to a writedown on its Vedior acquisition.

UK revenue declined by 16% during 2008, compared with 2007.

For the full year, Randstad announced an increase in revenue and profits for 2008, following the acquisition of Vedior in May 2008.

Revenue rose 53% to 14,038m euros, while EBITA (earnings before tax and amortisation) increased by 16% to 554.5m euros when compared with 2007.

However, in order to strip out the effects of merger, a comparison of 2007 and 2008 results on a pro-forma basis, (which assumes that the two companies were combined for the whole of the year), shows that both revenue and profits decreased.

Underlying combined EBITA (earnings before taxation and amortisation) decreased by 9% to 834.4m euros, while revenue fell by 3% to 17,177m euros.

Commenting on the results, Ben Noteboom, Randstad’s chief executive, says: “From an operational point of view, progress in 2008 has been excellent. Our integration process is well on track. However, having grown in the first half of 2008, the unprecedented fall in demand in Q4 2008 and January 2009 reflects the major economic difficulties our clients currently face. It is good to see governments and regulators acting to protect major industrial sectors, and associated employment. However, the effects will only be visible in the longer term.

“Meanwhile we have taken the required measures to adjust our cost base although we regret having to let valuable people go. We are ready to take more measures if required, whilst ensuring to remain present in any markets with long-term potential.

“While current volume is down, the long-term prospects in our business are sound. Our people are focusing on what they can control: excellent service to our clients and candidates. We have all the ingredients to emerge from the current downturn stronger than ever.”