Synergie, the sixth-largest staffing firm in France, has approved its interim financial statements  for the six months ended 30 June 2020. Revenue decreased to €1.00 billion, down 23.3% on a like-for-like basis.

The company characterized the six months as a first quarter in which the business performed particularly well, and a second quarter in which the Covid-19 pandemic significantly affected the employment market in France and abroad. The group had already reported second-quarter results on 30 July with revenue down 37.1% in reported rates due to the impact of the pandemic.

In France, turnover reached €454 million, a decrease of 28% compared to last year’s revenue of €630.8 million.

The group’s international business held up better, reaching €546.6 million, compared with €664.8 million in 2019, a decrease of 17.8%.

During the period, the group enacted country-specific action plans, including the implementation of government measures aimed at preserving employment and supporting companies. In addition, costs were cut in all of the subsidiaries. Due to these measures, the vast majority of the group's geographical entities generated positive current operating profit.

In France, operating margin reached €13.8 million compared with €34.1 million in 2019, demonstrating good resilience despite the considerable fall in activity. Current operating profit from the international business reached €16.2 million compared with €20.5 million in 2019, underpinned by resilience in Italy and Belgium.

After taking into account amortisation and impairment of intangible assets of €5.4 million and financial expenses of €1.9 million (of which €0.9 million linked to exchange rate fluctuations), pre-tax profit came out at €22.6 million. The tax expense of €12.6 million factors in the French value-added contribution for businesses (CVAE) in the amount of €6.1 million.

“Net profit came to €10 million, demonstrating Synergie’s capacity to continue making a profit in an economic environment reeling from an unprecedented crisis,” the group stated.

The financial structure of the group was bolstered with shareholders’ equity of €552.9 million and a sharp increase in the cash position due to a reduction in working capital requirement of €100 million over the period, limited investment and the decision not to pay dividends.

Looking ahead, the group said that due to a solid financial structure, it holds further attributes underpinning its confidence in its ability to withstand the health crisis and make revenue in excess of €2 billion in 2020.

Shares in Synergie last traded at €22.05, up 6.27% on the day and 69.62% above the 52 week low of 13.00 set on 23 March 2020. The company has a market cap of €505.51 million.