Resources Connection Inc. (NASDAQ: RGP) reported revenue rose 13.2% on a same day, constant currency basis in its fiscal first quarter ended Aug. 27.

“We have grown top line to levels not experienced in any first quarter period in over 10 years while significantly improving our profitability,” said Kate Duchene, CEO of the Irvine, California-based professional staffing provider.

Digital transformation initiatives at clients continue to drive demand for RGP’s Veracity business, the company noted.

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RGP also reported that it divested its taskforce business at the beginning of the first quarter and noted revenue, excluding taskforce, grew 17.0% on a same day, constant currency basis. Taskforce was a German professional service brand; RGP completed the sale on May 31 for approximately $5.9 million. The buyers were the original founder and a member of the senior leadership team of taskforce.

Gross margin improved, with RGP citing a 230-basis point improvement in its pay/bill ratio driven by efforts to enhance pricing while offering competitive consultant wages. This was partially offset by an increase in benefits.

Revenue by geography

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Share price and market cap

Shares in RGP were down 9.24% to $16.30 as of 12:38 p.m. Eastern time; shares had set a new 52-week low in the trading session when they reached $15.69, according to FT.com. The company had a market cap of $609.9 million.