Amadeus FiRe (AAD: GR), the German staffing firm, reported revenue for the six months ending 30 June 2018 of €97.8 million, an increase of 10.3% compared with the same period last year.

During the first half of the year, there was one less billable day than in the same period of the previous year. This impacted revenue by approximately €0.5 million. Amadeus FiRe added that in the course of the 2018 financial year, this impact will be offset by a billable day in the fourth quarter and will ultimately offset it.

Amadeus FiRe said the rise in margins can be attributed primarily to a growth-driven increase in the share of revenue generated by higher-margin permanent placement.

The group added that all service sectors contributed to the increase. In particular, sales in recruitment saw an increase of 23.6% when compared to the same period last year.

Amadeus FiRe operates two divisions; Personnel Services, which includes temporary staffing, interim & project management, permanent placement, and training services. Revenue by division and segment was as follows: 

Amadeus FiRe said the implementation of the Equal Pay Act on 1 April 2017 had an impact on temporary staffing. The number of contracts at the start of the year was down by around 3% as a direct result of the first-time application of the equal pay regulation. In addition, the group said that sales in temporary work were burdened by an unusual flu outbreak in Germany in the first quarter and the one less available working day in the first half of the year.

Furthermore, the group said another change from the reformed Labour Leasing Act, a legally required maximum leasing period of 18 months, will be applied for the first time in the upcoming fourth quarter. Amadeus FiRe said the effects of its implementation cannot yet be estimated, however they added that its impact will be lower than that of the Equal Pay Act.

The group added that another impact of temporary staffing is an increase in fees that came into effect within the framework of the valid temporary work collective agreement. In the western federal states this amounted to an increase of 2.8% and in the eastern federal states, an increase of 4.0%.

As of last trade Amadeus Fire traded at €92.80, down 0.75% on the day and 10.25% below its 52-week high of €103.40, set on 10 May 2018. Based on its current share price the company has a market value of €488.12 million.