RPO provider Hudson Global Inc. (NASD: HSON) reported fourth-quarter revenue rose 13.3% in constant currency. Revenue rose in the Asia Pacific and European regions, while growth in Hudson Americas declined.

The US-based firm rebranded in December to Hudson RPO in December, completing a strategic realignment process launched several years ago to focus on its core recruitment process outsourcing business. The company sold all of its recruitment agency and talent management businesses in three separate transactions that closed at the end of March 2018. 

Europe's gross profit increased 26% in constant currency in the fourth quarter of 2018 compared to the fourth quarter of 2017.  Gross profit growth was driven by the UK, which was up 26%

Asia Pacific's gross profit increased 10% in constant currency in the fourth quarter of 2018 compared to the same period in 2017. 

Gross profit in the Americas region decreased 15% year over year in constant currency, primarily due to weaker volumes at two existing clients.

Revenue by geography

Net loss at the company narrowed to $620,000 from $2.0 million in the year-ago quarter. The results in the fourth quarter of 2018 included a net loss from continuing operations of $193,000 and net loss from discontinued operations of $427,000; the year-ago quarter included a net loss from continuing operations of $1.1 million and net loss from discontinued operations of $856,000.

“We delivered solid revenue and gross profit growth in the fourth quarter in constant currency, particularly so in the Asia Pacific region,” said CEO Jeff Eberwein. “In addition, we are pleased to report positive cash flow from operations in the fourth quarter. For 2018, we delivered revenue and gross profit growth while also focusing on carving out the RPO business from legacy entities and right-sizing the new company by reducing corporate costs.”

Full-year results

Looking ahead, the company said that for 2019, it expects to grow revenue and gross profit more than 10% against 2018, and stated that adjusted EBITDA before corporate costs should grow faster than this rate. 

“This combination of growth in its RPO business and reduction in corporate costs should enable the company to generate positive adjusted EBITDA in 2019,” the company stated.

On Friday, Hudson Global shares closed at $1.51, up 0.67% on the day and 23.77% above the 52 week low of $1.22 set on 24 January 2019. Based on its current share price the company has a market value of $48.39 million.