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Netherlands – USG People reports positive Q2 growth

30 July 2014

Dutch staffing company USG People (USG: NL) reported revenue of €583.3 million for the second quarter ending 30 June 2014, an increase of +6% compared with €550 million during the same period last year.

Gross profit for the period increased by +2% to €118.1 million, up from €115.7 million a year ago. Net income for the period rose substantially to €7.9 million, compared with €1 million in Q2 2013.

Rob Zandbergen, CEO of USG People, commented: “The positive developments have continued in the second quarter. We are seeing that the recovery that started mid-2013 is gradually spreading. For the first time in years we are, once again, seeing a traditional pattern in demand for students in the holiday season and the number of permanent placements also rose in the second quarter.”

“These are clear signs that our clients need extra staffing capacity and that there is confidence that growth will continue. A positive development is now also visible in the SME segment too, where we are also experiencing a rise in the number of requests. The outlook is good and we are confident that the positive trend will continue this year. We continue to focus fully on providing the right solutions to facilitate our clients’ growth in the best possible way,” he added.

The company’s largest business General Staffing reported organic revenue growth of +6% to €351.1 million, up from €331.2 million last year. In its home market, the Netherlands, the company reported a +1% organic increase in revenue to €132 million, up from €131.1 million a year ago. Revenue from Belgium increased organically by +11%, rising from €85.2 million last year to €94.7 million this year. French revenue increased by +8% on an organic basis, rising to €124.4 million from €114.9 million last year.

USG People’s Specialist Staffing business reported organic revenue growth of +7% to €194 million, compared with €180.8 million last year. In the Netherlands, revenue increased organically by +16% to €91.8 million, up from €79.4 million last year. Revenue from Belgium increased by +3% to €46.4 million, on an organic basis, from €45.1 million a year ago. Revenue derived from the German market remained relatively unchanged, year-on-year, falling marginally to €54 million from €54.1 million in Q2 2013.

The company’s Professionals business reported revenue of €38.2 million, an organic increase of +1% from €38 million last year. Revenue in the Netherlands increased by +2% on an organic basis to €25 million, up from €24.4 million last year. In Belgium, however, the business reported a fall of -6% in constant currency to €12 million, down from €12.8 million a year ago.

Broken down geographically, revenue derived from the Netherlands during the quarter increased by +6% in constant currency to €248.8 million, compared with €234.9 million a year ago. The Belgian market reported organic revenue growth of +7% to €153 million, up from €143.2 million in Q2 2013.

Organic growth of +8% was reported in France, with revenue rising to €125.4 million, compared with €116 million last year. The German market remained static, year-on-year, with no change in reported revenue during Q2 2014 compared with the same quarter last year.

In trading today, the company’s share price increased by +3.1% to €10.37, an increase of +86.8% compared with a year ago. Based on its current share price, the company has a current market value of €814.4 million.