FINANCIALS: Adecco revenues increase, but UK growth is weak
7 August 2014
Global staffing group Adecco’s profits increased by 15% year-on-year to €145m (£115m) in the second quarter, but growth was slow in the UK & Ireland.
Thu, 7 Aug 2014Global staffing group Adecco’s profits increased by 15% year-on-year to €145m (£115m) in the second quarter, but growth was slow in the UK & Ireland.
Revenues increased by 3% year-on-year to €502m in the UK & Ireland, making it one of the poorer performing regions. Approximately two-thirds of UK & Ireland’s revenue is from professional staffing, which grew by 7%.
The strongest regional growth was recorded in Iberia [Spain and Portugal], with revenue up 21% year on year in Q2 2014, and Italy, which recorded 18% growth. Australia and New Zealand was the only region to see a decrease in revenue, with sales down 18% to €85m.
Patrick De Maeseneire, chief executive of the Adecco Group, said: “Growth remained steady in Europe, led once again by our Industrial business, and as expected we saw a pick-up in activity in North America.”
Adecco’s share price had fallen 4% on the announcement at time of press.
Industrial showed the strongest growth across Adecco’s operation, increasing by 8%, general staffing was up 5%, professional staffing 2% and there was no change in office.
The announcement highlighted progress on profitability, with gross margins increasing 0.2% to 18.1%. This was “driven by our continued strict approach to pricing as well as the effect of the French CICE (tax credit for competitiveness and employment),” according to a statement from the company.
Gross profit was up 6% to €905m year-on-year and revenue increased by 5% to €4,987m.
Revenues increased by 3% year-on-year to €502m in the UK & Ireland, making it one of the poorer performing regions. Approximately two-thirds of UK & Ireland’s revenue is from professional staffing, which grew by 7%.
The strongest regional growth was recorded in Iberia [Spain and Portugal], with revenue up 21% year on year in Q2 2014, and Italy, which recorded 18% growth. Australia and New Zealand was the only region to see a decrease in revenue, with sales down 18% to €85m.
Patrick De Maeseneire, chief executive of the Adecco Group, said: “Growth remained steady in Europe, led once again by our Industrial business, and as expected we saw a pick-up in activity in North America.”
Adecco’s share price had fallen 4% on the announcement at time of press.
Industrial showed the strongest growth across Adecco’s operation, increasing by 8%, general staffing was up 5%, professional staffing 2% and there was no change in office.
The announcement highlighted progress on profitability, with gross margins increasing 0.2% to 18.1%. This was “driven by our continued strict approach to pricing as well as the effect of the French CICE (tax credit for competitiveness and employment),” according to a statement from the company.
Gross profit was up 6% to €905m year-on-year and revenue increased by 5% to €4,987m.
