FINANCIALS: Europe a ‘weak point’ for Hudson Global
Europe was a weak point for US-listed recruiter Hudson Global with some countries affected by “deteriorating economic conditions”, so states its 2014 Q3 results.
It said gross margin in Europe showed “minimal growth”, increasing by only 1% in constant currency terms as compared to the same period last year. Europe delivered an adjusted EBITDA loss of US$300k (£189k). In the UK, there was growth in permanent recruitment against “softness” in recruitment process outsourcing (RPO).
The Americas was the most profitable area for the company, with gross margin increasing 19% compared to the same period last year. RPO was a highlight – after becoming the company’s largest practice on a gross margin basis in Q1 this year, it delivered a 38% gross margin growth in Q3.
Overall, the company reported gross margin from continuing operations of $55.7m, an increase of 10.3% from Q3 2013, or 8.3% in constant currency.
Revenue from continuing operations was up 7.2% in Q3, or 4.3% in constant currency, to $149.3m.
The company also announced the sale of its Legal eDiscovery business to DTI, a privately-held legal process outsourcing company in the US, for $23m.
The results of that business, and the cessation of direct operations in Sweden, have been treated as discontinuing operations in the Q3 results.
When included, those two factors contributed to a $7m net loss, $2m more than in the same period last year.
The company also incurred restructuring charges from continuing operations of $800k in the quarter, compared to $600k in Q3 2013.
