Randstad perm fees set post-recession record
11 August 2014
International staffing giant Randstad recorded its strongest quarter for permanent placements since Q4 2008 in the second quarter, according to its latest results.
Mon, 11 Aug 2014International staffing giant Randstad recorded its strongest quarter for permanent placements since Q4 2008 in the second quarter, according to it's latest results.
“Permanent placement is a green shoot. We grew 13% globally in permanent placements and this is also [happened] in markets where the economy is not yet very hot, such as France. We are very happy with that result,” Randstad chief executive Jacques van den Broek told investors on a conference call on 31 July 2014.
Group revenue increased by 4% year on year, reaching 4.3bn in the second quarter of 2014. That compares to 3.6% year-on-year growth in Q1, with the results showing that a “gradual” recovery was continuing.
Revenue in the UK grew by 3% (Q1 2014: 5%), with gross profits increasing by 7% (Q1 2014: 8%). Construction and engineering grew by over 20%, professionals by 8% and education by 2%; however, the finance business “remained under pressure”.
“This [the UK results] is definitely driven by a few good businesses – education and construction, property and engineering – not, incidentally, by the businesses in which we invested marketing in Q4,” said Broek.
In Europe, revenue grew by 4% (Q1 2014: 4%), with performance improving in nearly all countries except for Germany and France.
Underlying earnings before interest, taxes, depreciation, and amortisation (EBIDTA) increased by 19% to € 174.1 million, EBIDTA margin up from 3.6% to 4.1%.
Group headcount reached 28,550 in the quarter, 1% higher than Q1 2014.
“Permanent placement is a green shoot. We grew 13% globally in permanent placements and this is also [happened] in markets where the economy is not yet very hot, such as France. We are very happy with that result,” Randstad chief executive Jacques van den Broek told investors on a conference call on 31 July 2014.
Group revenue increased by 4% year on year, reaching 4.3bn in the second quarter of 2014. That compares to 3.6% year-on-year growth in Q1, with the results showing that a “gradual” recovery was continuing.
Revenue in the UK grew by 3% (Q1 2014: 5%), with gross profits increasing by 7% (Q1 2014: 8%). Construction and engineering grew by over 20%, professionals by 8% and education by 2%; however, the finance business “remained under pressure”.
“This [the UK results] is definitely driven by a few good businesses – education and construction, property and engineering – not, incidentally, by the businesses in which we invested marketing in Q4,” said Broek.
In Europe, revenue grew by 4% (Q1 2014: 4%), with performance improving in nearly all countries except for Germany and France.
Underlying earnings before interest, taxes, depreciation, and amortisation (EBIDTA) increased by 19% to € 174.1 million, EBIDTA margin up from 3.6% to 4.1%.
Group headcount reached 28,550 in the quarter, 1% higher than Q1 2014.
