FINANCIALS: Randstad sees rise in revenue

Recruitment giant Randstad has seen group gross profit rise 5.5% year-on-year, according to results for Q4 2016.

The results, published this morning, reveal revenue of €5,525m (£4,693m) buoyed by growth in the group’s Europe and Rest of the World operations, where revenue rose 8% and 10% year-on-year respectively with France, Germany and Australasia top performers.

Meanwhile, revenues increased 2% and 1% in the UK and North America respectively.

With regards to acquisitions, the quarter also saw Randstad complete its acquisition of global job board Monster and Dutch recruiter BMC, and gain control of French recruiter Ausy through a successful cash tender offer.

The group added its primary focus this year will be harnessing the full potential of deals and consequently expects M&A activity to be limited in 2017. 

Commenting on the results, Randstad CEO Jacques van den Broek called 2016 a year of several relevant acquisitions that he expects will help the group achieve its strategic ambitions.

"I would like to extend a warm welcome to our more than 5,000 new colleagues globally. We look forward to harnessing the full potential of our corporate development announced in 2016. I wish my colleagues every success in this process, and I am confident that, together, we will be able to take the next step. Our financial position remains healthy, reflected by the proposal of an all-cash dividend of €1.89 per ordinary share, a record high."

Randstad Q4 results at a glance:

  • Revenue of €5,525m; organic growth +6.6%; GP up 5.5%
  • Topline growth accelerated in Europe and ROW, remained positive in North America
  • Gross margin 20% (excl. Monster: 18.8%, down 10bp YoY); perm fees up 4%
  • Underlying earnings before interest, taxes, and amortisation (EBITA) of €268m; EBITA margin excl. Monster 4.9%, stable YoY
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