French staffing provider Mare Nostrum (ALMAR:PAR) reported revenue of €31.5 million, a decrease of 13.9% compared to €36.6 million the previous year. The group reported a sharp slowdown in March due to disruptions caused by the coronavirus pandemic.

Mare Nostrum launched its IPO in November 2019.

At the end of February, the group posted revenue growth of nearly 3% which was driven by the performance of its activities and successful integration of the AT Patrimoine group which was acquired in November 2019.

AT Patrimoine, based in France, specialises in employee training for caretakers, janitors and building employees. The acquisition contributed €1.5 million to consolidated turnover and posted dynamic growth of 14% over the quarter.

The group’s Temporary Work division represents 86% of group sales in the Q1 2020 compared to 90% last year.

“The Temporary Work division confirmed its ability to outperform the market by posting a 1.6% decline at the end of February in a market down 6% (source: Prism'emploi). At the end of March, however, activity stood at €27.1 million compared to €33 million last year,” the group stated.

Revenue for the group's Portage Salary and Recruitment segment fell 17% to €1.9 million. Revenue in the recruitment segment fell 14% to €0.5 million.

The integration of AT Patrimoine strengthened the group's Training division, which at the end of the first quarter represented 6% of consolidated turnover compared to 1% last year and amounted to €1.8 million in Q1 2020, up from approximately €0.2 million last year.

The company added that it expects the evolution of its business mix to help improve gross margin.

“Faced with this health crisis, the group has shut down most of its temporary work agencies, its training sites and generalised, as much as possible, teleworking within its teams in order to preserve the health of its permanent and temporary workers,” the group stated.

During the containment period, the Group continues to serve its customers whose activity is authorised (logistics, agro-food, etc.) and noted, since mid-April, a gradual continuation of activities in the construction sector.

“Nowadays, the group is unable to precisely determine the impact of Covid-19 on its activity, financial performance and its medium-term prospects but has taken the necessary measures to have room for maneuver, especially in cash, to overcome current disruptions.”

The group added that it has obtained pre-agreements from banks for a €7 million state-guaranteed loan to strengthen cash position.

As of last trade, Mare Nostrum traded at €3.16, down 5.67% on the day and 24.41% above the 52 week low of €2.54 set on 10 March 2020. Based on its current share price the company has a market value of €25.67 million.