International staffing group Adecco recorded a net loss of 22m euros (£19.7m) in the fourth quarter of 2008.

Revenue for Q4 fell 15% to 4.6bn euros as a result of what the company describes as  “an exceptionally challenging business environment”.

After adjusting for a 116m euros goodwill impairment, net income was 94m euros.

For the full year, net income was down 33% to 495m euros (2007: 735m euros). Revenue fell 5% to 19.96bn euros.

Revenue in the UK and Ireland declined by 19% with the region recording a loss of 8m euros in EBITA (earnings before interest tax and amortisation). The company describes these results as “unsatisfactory” and attributes some of the cause to weak permanent placement business.

Commenting on the results, Dieter Scheiff, chief executive of  the Adecco Group, says: “The industry was confronted with an exceptionally challenging business environment, particularly during the fourth quarter. Nevertheless, we have remained price disciplined and raised the gross margin on an underlying basis by 30 base points to 18.1% in 2008.

“We have also acted quickly to reduce our cost base, and accelerated headcount reductions throughout the year.  These actions together resulted in a good underlying EBITA margin of 4.2%, only down 20 base points compared to the previous year. Operating cash flow remains strong at over 1bn Euros on par with last year.”

The company says it sees “no signs of improvement” in the near future, with group revenues in January down 25% on January 2008. It says that “adapting the cost base remains at the forefront of management’s priorities” and that actions begun to achieve this which began in the second half of 2008 “are well underway”.