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France – DLSI Q1 revenue drops after reorganisation

May 21 2012

The France-based temporary and permanent staffing group DLSI SA (ALDSL:PAR) saw a -13% decline in first-quarter revenue from €48.44 million in 2011 to €42.22 million in 2012, following the closure and reorganisation of some branches which lacked profitability, the firm said. 

This comes after the number of temporary workers in France continued to decline in the first quarter of 2012. In March, temporary employment fell by -12.7%, following on from a -6.8% drop in February and a -3.9% decline in January.  

After publishing its financial results late on Friday, DLSI said that its performance is still in line with market expectations despite the decrease in first-quarter revenue. The firm pointed out that last year’s first quarter saw a steep +58% sales increase which needed to be taken into consideration as a comparison base.

The staffing company also revealed that turnover outside France – including Luxembourg, Poland, Switzerland and Germany – grew only marginally by +0.23% in Q1 2012.

At the end of April, DLSI reported that full-year revenue was up +19% to €205.2 million but cautioned that 2011 saw stagnation in the French market. The firm only expects to make a recovery in the second half of the year, forecasting higher full-year 2012 revenue of €210 million.

DLSI has a network of employment agencies located throughout France, Luxembourg, Poland, Switzerland and Germany. Established in 1992, the firm provides both permanent and temporary employees for its clients in a range of sectors, including insurance, banking, finance and real estate.

According to Staffing Industry Analysts, DLSI is among the top 25 staffing firms in France.

In early trading today, the company set a new 52-week low when the share price dropped by -3.3% to €3.50, which is down -56.8% from a year ago. DLSI has a market capitalisation of €9.20 million. 

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