German staffing firm Amadeus FiRe (AAD: GR) reported revenue for the six months ending 30 June 2017 of €88.7 million, an increase of 6.2% compared with €83.5 million during the same period last year. 

According to Amadeus FiRe, all business segments in the group contributed to the growth in revenue with the exception of Interim/Project Management. The growth in the group’s gross margin was due to a higher share of revenue from the more profitable Permanent Placement segment.

The financial year 2017 had three billable working days less than the previous year overall. While the number of billable days in the first half of the year was the same year-on-year, the three fewer days in the second half of the year will have a negative impact on revenue, gross profit and earnings of around €1.5 million.

Amadeus FiRe operations two divisions; Personnel Services, which includes temporary staffing, interim & project management, and permanent placements; and Training Services.

Revenue by division and segment was as follows: 

Amadeus FiRe stated that the increase in the temporary staffing segment was a direct result of the higher salary level for temporary staff. The group’s Permanent Placement segment showed the biggest growth among the segments with a year-on-year growth of 44%. Amadeus FiRe states that significant growth is expected in this segment over the year.

The company stated, “The shortage of qualified specialists and executives on the labour market is a major obstacle to company’s recruitment plans. The opportunity to recruit candidates through direct placement is therefore intensively taken advantage of. This is leading to a significant increase in demand in Permanent Placement.”

The group added that the training segment should deliver a higher contribution to earnings in the second half of the financial year than in the first.

Meanwhile, Amadeus FiRe stated that the German Act Amending the Temporary Employment Act is not expected to have “any particular effect on the 2017 financial year.”

“The change will not take effect until from 2018 on account of the wording of the new law,” the group stated. “It is still too soon to estimate the extent to which the effective increase in the cost of temporary employment will lead to an adjustment in customers’ recruitment patterns.”

In trading today, Amadeus FiRe traded at €78.41, up 0.81% on the day and 11.89% below its 52-week high of €88.99, set on 16 May 2017. Based on its current share price the company has a market value of €404.3 million.