Adecco sees revenue jump amid operational changes

Recruitment giant Adecco has seen group revenues increase 4% year-on-year driven by strong global growth, especially in Italy, Iberia and France.

Recruitment giant Adecco has seen group revenues increase 4% year-on-year driven by strong global growth, especially in Italy, Iberia and France.

The group’s Q4 and full-year results, published this morning, reveals full-year revenues of €22,708m (£19,461m) up from €22,010m, while gross profit increased to €4,276m, from €4,179m over the same period.

In Q4, revenues rose to €5,689m from €5,672m in the previous quarter, while gross profit increased to €1,106m from €1,091m in Q3 2016.

In the UK and Ireland, the group saw revenues of Q4 revenues of 517m, up 3% or 5% trading days adjusted. Revenues in professional staffing fell by 5%, with declines of 3% in IT and 19% in finance and legal.

Within general staffing, revenues increased by 14%, while permanent placement revenue in the UK and Ireland fell 15%.

The group also announced that from 1 April 2017 its operations in North America and UK amd Ireland will be combined and managed according to its general staffing and professional staffing business lines. At this point, the firm will also make the following changes to management of these operations:

  • Federico Vione, currently chief sales and innovation officer, is appointed regional head of North America, UK and Ireland general staffing (Adecco, Pontoon).
  • John Marshall, currently regional head of UK & Ireland, is appointed regional head of North America, UK & Ireland professional staffing, while Bob Crouch, currently Regional head of North America, has decided to leave Adecco pursue his career outside the company.

Commenting on the results, group CEO Alain Dehaze said: “In Q4 and full-year 2016, the Adecco Group delivered a solid performance, thanks to our more than 33,000 colleagues and over 700,000 associates around the world.

In 2016, we improved our relative growth compared to peers, maintained our EBITA [earnings before interest, taxes and amortisation] margin leadership and generated good cash flow. We have also been taking the steps necessary to turn our long-term vision for the company into a reality for all stakeholders.  

“Emerging on the horizon is a new world of work. It brings exciting opportunities for the Adecco Group. Our approach to capture these opportunities is to perform, transform, and innovate. With perform, we are strengthening our current operations and reinforcing our competitive position. With transform, we are enhancing the solutions and experience that we provide to our clients, candidates, associates and colleagues. And with innovate, we are developing and acquiring new approaches and capabilities to capture the emerging opportunities in the changing world of work. This strategic agenda will allow us to drive revenue growth, expand our operating margin, and generate strong cash flow, consistent with our through-the-cycle financial objectives.  

“We are pursuing this agenda within the context of our ongoing commitment to invest in the business and return excess capital to shareholders. At the AGM 2017, the board of directors will propose a dividend of CHF 2.40 to shareholders, a 50% payout of 2016 adjusted earnings per share. Given our strong financial position, the board has also decided to initiate a share buyback programme of up to €300m.”

 

Adecco results highlights: FY 2016 summary

  • Revenues up 4% organically, driven by strong growth Italy, Iberia, and Rest of World and a pick-up in France
  • EBITA margin excluding one-offs 5.0%;
  • Net income attributable to Adecco Group shareholders €723m
  • Proposed dividend of CHF 2.40 per share, €300m share buyback programme announced today FY 2017
  • Revenues in January and February 2017 up 4–5%, organically and trading days adjusted

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