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Australia – Skilled Group releases positive trading update

23 October 2014

The CEO of Australian staffing firm Skilled Group (SKE: ASX), Mick McMahon advised that, overall, revenue and earnings in the three months to 30 September 2014 were more than +10% higher than during the same three-month period last year.

During the company’s annual general meeting, Mr McMahon said that the run-rate in activity levels across the Group during the second half of financial year 2014 (ending 30 June 2014) continued into the first quarter of financial year 2015 (ending 30 September 2014).

In a statement, the company advised: “Demonstrating the results of Skilled’s strategy to invest in higher skill, higher margin segments; Engineering & Marine Services (which contributed 53% of Group EBITDA in financial year 2014) continued to grow in Q1 2015.”

“Techinical Professionals (15% of Group EBITDA in financial year 2014) experienced stable contractor numbers in the Swan Contract Personnel business and improved performance in other segments, including Permanent Placements, Telecommunications, Health, and Training Services.”

Swan specialises in the provision of project management, engineering, and project support labour to the onshore and offshore oil & gas, petrochemical, mineral, and infrastructure sectors.

The statement continued: “Workforce Services (32% of Group EBITDA in financial year 2014) has continued to experience difficult market conditions. Activity levels relative to the [same period last year] are variable across sectors and geographies, and margin pressure has continued.”

“The Group has accelerated its transformation programme, with at least AUD 15 million (USD 13.2 million) in savings anticipated to be achieved in financial year 2015 through process improvement and the benefit from systems investment,” it concluded.