Helsinki-based HR services firm VMP Plc reported revenue today of €32.4 million for the second quarter, an increase of 19.1% compared to the same period last year.

VMP has a comprehensive offering of staffing, recruiting and organisational development, and self-employment services.

The group posted €0.2 million in personnel expenses relating to severance payments during the quarter which are excluded from the adjusted EBITDA result of €2.7 million.

VMP Plc Chief Executive Officer Juha Pesola, commented, “The revenue and profitability of VMP continued their strong growth in the second quarter. Growth was both organic and generated by acquisitions. I am especially happy that our focus on strategy execution and favourable economic development have led to the development and growth of our business both by service area and geographically. Furthermore, we have maintained a high customer satisfaction level amidst strong business growth.”

“Our adjusted EBITDA increased clearly, amounting to €2.7 million. The increased profitability was mainly due to our scalable business model and good demand for recruitment services. To support growth, we invested in marketing activities in the second quarter mainly in staffing and self-employment business areas,” Pesola said.

VMP stated that in the second quarter, revenue increased especially strongly in the staffing service area, which grew by 26.2%, when compared to the previous year. In staffing services, the service and industry sectors saw the strongest growth.

In the recruitment and organisational development service area, revenue increased by 14.1%. The revenue growth in the recruitment and organisational development service area was generated mainly in the areas of personnel evaluations, recruitments and executive searches.

The revenue of the self-employment service area increased by 10.8%. The growth in the self-employment revenue stemmed from the increase in the service’s user volume.

In the second quarter, 95.4% of the group’s revenue came from Finland, and the rest was generated in Sweden and Estonia.

During the quarter, VMP announced that it will merge its recruitment consultancies Romana Management and Personnel into the Personnel brand in September 2018.

In June, the company completed its Initial Public Offering and became listed on the Helsinki Stock Exchange’s First North Finland market place.  The merger is related to the group’s internal reorganisation arrangement mentioned in VMP’s Offering Circular.

Pesola commented on the listing, “With the transformation of work, the HR services industry is in a very interesting phase, and we believe that as [a] listed company our possibilities to execute our strategy are even better. With the initial public offering, VMP got more than 1,100 new Finnish and international shareholders.”

“The market fundamentals in the HR services industry, boosted by the economic growth in Finland, are favourable,” Pesola said. “Structural changes in the labour market create opportunities for growth. Our growth is supported by industry consolidation, labour scarcity challenges in customer companies, and the growth service project related to the Finnish health, social services and regional government reform. We will be an active player in the industry consolidation, and believe that as a listed company we are an even more attractive partner.”

The group also posted half-year revenue of €60.5 million, an increase of 20.0% compared to the previous year.

As of last trade, VMP shares traded at €5.75, up 0.35% on the day. Based on its current share price the company has a market value of €84.79 million.