Calian Group Ltd. (TSX: CGY), which ranks among Canada’s largest staffing providers, reported revenue rose 15.0% to C$77.1 million (US$59.8 million) in its fiscal second quarter ended March 31.

Revenue rose 12.5% in the Ottawa-based company’s “business and technology services” segment, which includes staffing. The increase was attributed to a combination of the inclusion of the science and technology company Calian acquired in May — International Safety Research, headquartered in Ottawa — and organic growth, specifically in the health and training service lines with increased demand on mainstay contracts.

Revenue rose 22.8% in Calian’s “systems engineering” segment, which provides a range of activities including RF system projects, product developments and contract manufacturing for commercial and defense customers. Additional signings in defense contract manufacturing helped grow Calian’s backlog in test, aerospace and defense.

Revenue by segment

Calian CEO Kevin Ford in April suffered a cardiovascular event over the Easter weekend. The company stated his prognosis is good and he is expected to fully recover and return to work. During his absence, the board initiated its emergency succession plan and established a CEO operating committee comprising CIO Jerry Johnston, who will focus on the Business and Technology Services division; Pat Thera, president of the Systems Engineering division; and CFO Jacqueline Gauthier.

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“I’m currently staying informed by participating in meetings remotely in support of the team’s continued progress towards organic and acquisitive growth,” Ford said in a statement yesterday. “I am also excited by the recent contract signings in support of our customer retention and customer diversification pillars of our growth strategy.”

Guidance

Calian expects revenue for fiscal 2018 to be in the range of C$290 million to C$310 million.

Share price and market cap

Shares in Calian fell 1.40% to C$31.05 as of 1:28 p.m. Eastern time. The company had a market cap of C$240.15 million.