US-listed professional recruiter Hudson Global yesterday announced it made a net loss of US$6.8m (£4.35m) in the first quarter of 2015. This is set against decreasing revenue, currency headwinds and restructuring costs.

The company has ceased its “non-profitable operations” in Ukraine, the Czech Republic and Slovakia, and approved the exit from Luxembourg, which is expected to cease operating later this year. 

It has also sold its Netherlands operations to InterBalance Group BV effective 30 April for €8.1m (£5.8m) and signed an agreement to sell its Americas IT staffing business to Mastech for $17m. That deal is expected to close in the second quarter.

During the three months to 31 March, the company’s revenue decreased 13.8% year-on-year to $124.3m, or a fall of 3.3% in constant currency terms. 

Gross margin for Q1 was $47.9m, or 38.5% of revenue, a decrease of 11.3% from the same period in 2014, or 0.2% in constant currency. 

Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) saw a $4.3m loss, compared to a $1.9m loss in Q1 2014. This included $700k of severance costs relating to the transition of the chief executive.

As of today, chairman and CEO Manolo Marquez’s contract officially ends. Executive vice president and chief financial officer Stephen Nolan is stepping up into the CEO's position, as announced last month. Nolan will also continue as CFO until a successor is named.

The company incurred restructuring charges in continuing operations of $1.3m for “headcount reductions” primarily in Europe and the Americas, and $400k in discontinued operations.

It has also approved restructuring charges of up to $11.1m to be taken by Q3 2015 and an additional $1.5m, as approved in March, related to the exit of Americas IT and some European countries.

Revenue from external customers for the company’s European operations decreased from $75.5k in Q1 2014 to $60.2m in Q1 2015. The Asia Pacific region returned revenue of $53.1m, compared to $56.4m last year. The Americas returned revenue of $11k, compared to $12.2m last year.

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