Financials: Randstad, Impellam Group, Capita
25 July 2013
International staffing giant Randstad announced an increase in net profit of 73% to €63m (£54m) for the second quarter of 2103 as revenue fell by 5%.
Thu, 25 Jul 2013
Randstad
International staffing giant Randstad announced an increase in net profit of 73% to €63m (£54m) for the second quarter of 2103 as revenue fell by 5%.
Q2: Key figures:
• Revenue -4.8% at €4.096bn
• Net profit +73% to €59.9m from €34.7m in Q2 of 2012
• EBITDA (earnings before interest, tax and depreciation, and amortisation) rose 10% to €746.9m
In the UK, revenue grew from €192.8m to €198.1m, led by a strong performance in education, construction/engineering, IT, managed services and recruitment process outsourcing (RPO), predominantly through temporary staffing. However, permanent fees were 13% lower than in the same period in 2012.
In a statement, Randstad chief executive officer Ben Noteboom says: “Efficiency continued to improve in the second quarter on operational performance, and our people did an excellent job delivering more profit on a somewhat lower revenue base. This is the case for all lines of business.
“We amply fulfilled our commitment to reduce costs. The integration of the newly-acquired USG People staffing units is proceeding well.
“The month of June was robust, with growth in Spain, Portugal, Brazil and Hong Kong, as well as in Sweden, Norway, and Switzerland. We are confident that we will be able to maintain our discipline, and we are ready to grasp commercial opportunities that may present themselves."
Impellam Group
It was a case of contrasting fortunes for Impellam’s Group’s four divisions as it announced its unaudited results for the first six months of 2013.
The group’s performance was broadly flat compared with the same period in 2012. Revenue at £591.7m (2012: £590m) and gross profit at £83.8m (2012: £86.0m) were virtually unchanged.
However, while Impellam’s staffing business in the UK saw revenue rise by 1.5% to £372.1m and gross profit grow by 0.8% to £50.7m, with significantly stronger growth coming from its US staffing business, both Medacs Healthcare and Carlisle Health Services saw declines in both revenue and gross profit.
Andrew Wilson, chairman, comments:
"The outlook in our core staffing markets in the UK and North America is positive, with both divisions showing growth in their managed services and specialist staffing operations.
“Performance in both our Medacs Healthcare and Carlisle Support Services divisions was disappointing. However, the longer-term growth outlook for both of them remains positive. I am confident that the correct actions are being taken to address the weaknesses that have emerged in these businesses in the first half of this year.”
Capita
Business process management and integrated professional support services firm Capita reported double-digit growth in revenue and profit before tax for the first six months of 2103.
Revenue rose by 13% to £1,819m from £1,607m, while underlying profit was up 10% at £226.8m.
Boosting the company’s fortunes, the company announced “a record £2bn of major contract wins” in H1 of 2013, compared with £1.1bn in 2012. Among these were Telefonica UK, The Cabinet Office, and Carphone Warehouse.
Paul Pindar, chief executive of Capita, says:
“The return of strong organic growth, improved cash conversion, a replenished bid pipeline and a good pipeline of potential acquisitions, underpin our confidence in full-year performance and provide a strong platform for further progress in 2014 and beyond.”
Randstad
International staffing giant Randstad announced an increase in net profit of 73% to €63m (£54m) for the second quarter of 2103 as revenue fell by 5%.
Q2: Key figures:
• Revenue -4.8% at €4.096bn
• Net profit +73% to €59.9m from €34.7m in Q2 of 2012
• EBITDA (earnings before interest, tax and depreciation, and amortisation) rose 10% to €746.9m
In the UK, revenue grew from €192.8m to €198.1m, led by a strong performance in education, construction/engineering, IT, managed services and recruitment process outsourcing (RPO), predominantly through temporary staffing. However, permanent fees were 13% lower than in the same period in 2012.
In a statement, Randstad chief executive officer Ben Noteboom says: “Efficiency continued to improve in the second quarter on operational performance, and our people did an excellent job delivering more profit on a somewhat lower revenue base. This is the case for all lines of business.
“We amply fulfilled our commitment to reduce costs. The integration of the newly-acquired USG People staffing units is proceeding well.
“The month of June was robust, with growth in Spain, Portugal, Brazil and Hong Kong, as well as in Sweden, Norway, and Switzerland. We are confident that we will be able to maintain our discipline, and we are ready to grasp commercial opportunities that may present themselves."
Impellam Group
It was a case of contrasting fortunes for Impellam’s Group’s four divisions as it announced its unaudited results for the first six months of 2013.
The group’s performance was broadly flat compared with the same period in 2012. Revenue at £591.7m (2012: £590m) and gross profit at £83.8m (2012: £86.0m) were virtually unchanged.
However, while Impellam’s staffing business in the UK saw revenue rise by 1.5% to £372.1m and gross profit grow by 0.8% to £50.7m, with significantly stronger growth coming from its US staffing business, both Medacs Healthcare and Carlisle Health Services saw declines in both revenue and gross profit.
Andrew Wilson, chairman, comments:
"The outlook in our core staffing markets in the UK and North America is positive, with both divisions showing growth in their managed services and specialist staffing operations.
“Performance in both our Medacs Healthcare and Carlisle Support Services divisions was disappointing. However, the longer-term growth outlook for both of them remains positive. I am confident that the correct actions are being taken to address the weaknesses that have emerged in these businesses in the first half of this year.”
Capita
Business process management and integrated professional support services firm Capita reported double-digit growth in revenue and profit before tax for the first six months of 2103.
Revenue rose by 13% to £1,819m from £1,607m, while underlying profit was up 10% at £226.8m.
Boosting the company’s fortunes, the company announced “a record £2bn of major contract wins” in H1 of 2013, compared with £1.1bn in 2012. Among these were Telefonica UK, The Cabinet Office, and Carphone Warehouse.
Paul Pindar, chief executive of Capita, says:
“The return of strong organic growth, improved cash conversion, a replenished bid pipeline and a good pipeline of potential acquisitions, underpin our confidence in full-year performance and provide a strong platform for further progress in 2014 and beyond.”
