Revenues at French staffing firm DLSI SA (ALDSL:PAR) slumped by -12.6% in the first half of the year to €89.2 million compared to €102.0 million a year ago as a slowdown in temporary employment impacted trading conditions , the company reported on Monday evening.

It said that the decrease in revenue needed to be measured “against a very high comparison base” as the 2011 half-year results showed a steep increase in sales of +45.5%. Outside of France, the staffing firm performed better with international revenues rising slightly by +1.7% to €24.2 million, now representing 27.1% of total turnover.

In the six months to June, the firm has undergone a reorganisation due to some of its branches showing a “lack of profitability”.

However, the Group said that despite “adverse market conditions”, the industry showed some signs of improvement in June. Recent statistics from the French association of employment agencies (Prisme) show that the fall in temporary employment was starting to ease in June and may be on the route to recovery.

DLSI is not the first France-based recruitment agency struggling with a slowdown in temporary employment. Last week Groupe Crit also reported lower sales in France in the six months to June while Synergie’s results indicated a further fall in domestic revenue.

DLSI, ranked 17^th in France amongst staffing firms, has a network of employment agencies located throughout France, Luxembourg, Poland, Switzerland and Germany. The firm provides temporary employees for its clients in a range of sectors, including insurance, banking, finance and real estate.

In early trading this morning, the company’s share price was up by +1.9% to €3.25, down -51.9% from a year ago and +8.3% above its 52-week low of €3.00 seen in August 2012. The firm has a market value of €7.68 million.