The UK/Ireland divsion of global recruitment giant Adecco performed poorly during the third quarter of 2008, the company reported today.
 
UK revenues were down 29% (-13% after adjusting for currency fluctuations) at 344m euros (£277m) compared to 483m euros (£389m) in Q3 2007. This compares with -3% and -6% respectively for the group as a whole
 
UK operating income fell 64% (-58% after currency fluctuations) to 5m euros (£4.03m), compared to 14m euros (£11.27m) in Q3 2007.  This was significantly worse than the figures for the group as a whole which were -18% and -16% respectively.
 
Group net income fell 23% to 168m euros. However, the company maintained its gross margin at 18%.  EBITA (earnings before interest, tax and amortisation) margin was down 0.3% at 5%.
 
Commenting on the results, Dieter Scheiff, chief executive officer of the Adecco Group, said: “Despite tough market conditions and declining revenues, I am pleased to report that we maintained a solid gross margin of 18%, equal to the underlying gross margin in Q3 2007. On the cost side, we continue to work hard to adapt to revenue developments in order to protect our EBITA margin, which still stands at a solid 5%. I am proud of this achievement, especially given the increasingly difficult economic environment.

“Looking ahead, we anticipate a progressively more difficult environment in terms of revenue development. September saw the negative revenue trend accelerate in most countries, with the exception of the emerging markets, which continued to grow strongly.”