Dutch staffing firm DPA Group (DPA: NL) reported revenue for the third quarter ended 30 September 2018 of €39.2 million, an increase of 14.6% compared with the previous year.

Last year DPA stated it would firmly focus on organic growth and digitisation. The group said that the associated costs and efforts of this shift have proven to be an important investment in the future. Operational costs in the third quarter amounted to €8.8 million, 25.7% more than in 2017.

DPA also announced in the third quarter that it shifted its focus from organic growth to strengthening its core activities and improving profitability. This is supported by the new organisational structure. The business units were brought together in the Finance, Banking, Integrated Business Services, IT, Legal, Government and Participations clusters. The Participations cluster currently directs the privatisation of part of the start-ups and scaleups within the group. Due to the measures taken, the indirect costs are expected to decrease from 2019 onwards.

Eric Winter, CEO of DPA, commented, “In the current economic climate, we are dealing with a rapidly rising shortage of highly educated professionals. Because this impedes DPA in its further growth, we have shifted the focus from autonomous growth to strengthening the core activities.”

“To this end, we have taken measures to bring the cost structure in line with developments on the labour market,” Winter said. “Our new organisation model consisting of core clusters, in addition to more efficient management and coherence within knowledge communities, also gives extra attention to the added value for employees and customers.”

Looking ahead, DPA reiterated that it is currently focusing on profitability rather than autonomous growth. This means that the company is focusing sharply on return and cost efficiency.

“This makes it possible to continue the investments in attractive employment practices and the development of professionals,” the company stated. “DPA will also continue its efforts to achieve efficiency and effectiveness benefits through digitisation of the core processes.”

DPA will publish its annual figures for 2018 on 28 March 2019. 

As of last trade DPA Group traded at €1.57, down 4.85% on the day and 4.67% above its 52-week low of €1.50, set on 25 October 2018. Based on its current share price the company has a market value of €77.50 million.