Randstad (RAND: NV), today reported revenue for the fourth quarter ending 31 December 2017 of €5.9 billion, an increase of 9% on an organic basis compared with €4.9 billion a year ago.

European markets fueled growth in the fourth quarter with revenue up 26% organically in Italy, while Iberia showed organic growth of 15%, over the year.

The financial results for the fourth quarter were broken down as follows:

Currency effects had a negative impact on gross profit of €31 million compared to Q4 2016. Perm fees grew to 13%, with Europe up 18% and North America up 5%, on the year. In the 'Rest of the World' region, perm fee growth was 14%, on the year. Perm fees for the group made up 8.8% of gross profit.

Underlying EBITA increased organically by 14% to €307 million. Currency effects had a €5 million adverse impact, year-on-year.

"We look back on another exciting year for Randstad," Randstad CEO Jacques van den Broek, said. “Our organic sales growth remained robust at 9% in Q4, while our profitability and Free Cash Flow increased substantially. We aim to gain further market share, driven by our differentiating Tech & Touch strategy, lifting the barriers to entry. We are integrating technology into our everyday activities in such a way that we create experiences for our clients and candidates that are smart, personal and effective.”

Revenue by Geography was broken down as follows.

In North America, the group’s biggest market, revenue for combined US businesses was flat. US Staffing/Inhouse Services grew by 1%. US Professionals revenue was down 1%. In Canada, revenue was up 10%.

Randstad added that wage inflation in Europe remains modest.

“The strong job markets is leading to labour shortages, especially in the US, but also in certain sectors in Europe,” Randstad CFO Robert Jan van de Kraats told Reuters. “You would expect wage inflation, but we don’t really see it. Many companies still deal with price pressures due to heavy competition, leaving little room for higher wages.”

In the Netherlands, overall perm fees were flat while staffing and Inhouse Services businesses grew 2%, with Randstad stating growth was impacted by a strong focus on client profitability. Randstad’s Professionals business in the Netherlands was up 5%.

Meanwhile, in France, the group stated that revenue growth was ahead of the market despite markedly tougher comparisons. Perm fees were up 37% compared to last year while Staffing/Inhouse Services revenue grew 11%. The Professionals business was up 18%, again driven by Expectra and healthcare.

In Germany, combined Staffing and Inhouse Services business was up 10%, while Professionals was up 11%. In Belgium and Luxembourg, revenue was ahead of the market with the Staffing/Inhouse Services business up 9%, while the Professionals business was up 30%.

In Iberia, Staffing/Inhouse Services combined grew 15%. Spain was up 16%, while the group stated that its focus on permanent placements (up 16%) continued to pay off. In Portugal, revenue improved by 12%.

Italy showed the highest growth in revenue at 26% on the year, with Randstad highlighting that the growth offset much tougher comps. Randstad added that the integration of Obiettivo Lavoro continued to deliver results ahead of expectations.

In the group’s other European countries, which include the UK, revenue was up 12%. In the UK, revenue was up by 11% while perm fees were down by 9%. In the Nordics, sales increased by 13% on an organic basis and revenue in the group’s Swiss business was up 20% on the year.

In Japan, part of the Rest of the World market, revenue grew 9%, Revenue in Australia/New Zealand grew 8%, while revenue in China declined by 10% over the year. The group’s business in India was down by 3%, while in Latin America revenue grew 27%, driven by Argentina and Brazil.

For the group’s global business, overall revenue growth per working day was up by 7%, over the year and organically, mainly driven by Randstad Sourceright. Monster sales growth was down by 15% for the same period.

Revenue by business line was broken down as follows.

The group also reported full year revenue of €20.6 billion, up 8% organically from 2016.

Randstad said its dividend for 2017 would be up 46% over a year earlier, at a record high of €2.76 per share.

“The digital transformation we are going through as a company culminated in the launch of our new brand promise in the last quarter of 2017: Human Forward,” van den Broek said. “Our financial position remains healthy, reflected by the proposal of a cash dividend of € 2.76 per ordinary share, including a special dividend of € 0.69, a record high. I feel very proud of all my colleagues and I would like to thank them and all stakeholders for an excellent 2017."

Looking ahead, the group pointed to revenue growth in January, which stood at 7% and added that the development of volumes in early February indicate a continuation of the January growth rate. Q1 2018 gross margin is expected to be broadly stable sequentially and operating expenses are expected to increase sequentially. Randstad added that there will be an adverse 0.5 working day impact in Q1 2018. The company also announced that it would focus on value creation on the basis of its current footprint with only limited M&A in 2018 and no large transformational M&A going forward.As of last trade Randstad Holding traded at €56.32, up 2.59% on the day and 3.83% below its 52-week high of €58.56, set on 24 January 2018. Based on its current share price the company has a market value of €10.06 billion.