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Hudson Highland Group, Inc. (Nasdaq:HHGP), the US-based provider of permanent staffing, contract staffing and talent management services, which in 2008 generated 47% of its gross margin in Europe, has published financial results for the fourth quarter of 2009 ended 31 December.
Revenues were down by -12.1% from $207.5 million in Q4 2008 to $182.5 million in Q4 2009. Compared to Q3 2009 revenues were up by +7.6% or $12.9 million.
In Europe, revenues were down by -18%, in constant currency, from $85.4 million in Q4 2008 to $74.5 million in Q4 2009. Gross margin in constant currency was down by -27% from $42 million in Q4 2008 to $33 million in Q4 2009.
41% of Q4 2009 revenues were generated in Europe (US 21%, Asia Pacific 38%). 47% of Q4 2009 gross margin was generated in Europe (US 15%, Asia Pacific 38%).
Year-on-year revenues in Europe were down by -24%, in constant currency, from $415.9 million in 2008 to $277 million in 2009. Year-on-year gross margin in Europe were down by -35%, in constant currency, from $212.6 million in 2008 to $124.2 in 2009.
In continental Europe, the approximate mix of gross margin was 20% temporary employment, 45% permanent employment and 35% talent management.
In the UK, the approximate mix of gross margin was 45% temporary employment, 50% permanent employment and 5% talent management.
Jon Chait, Hudson Highland Group's Chairman and Chief Executive Officer, said "we made sequential improvement during the fourth quarter in virtually all of our major markets and business units, and I am further encouraged by some continuing momentum into the first quarter of 2010."
"Our people around the world stepped up to make impressive contributions to our fourth quarter."
Mary Jane Raymond, the company's Executive Vice-President and Chief Financial Officer, said "we achieved positive adjusted EBITDA for the fourth quarter by improving top-line demand and continued cost management. We expect to make more progress during the year, but note that historically the first quarter is seasonally softer."
As of last close on 11 February 2010 Hudson's shares closed unchanged at $4.50