Daily News

View All News

Europe — Hudson Highland returns to profitability

04 August 2010

Revenues were up by +12.1% from $173.8 million in Q2 2009 to $195 million in Q2 2010 at Hudson Highland Group, Inc. (HHGP:NMQ), the US-based international provider of permanent staffing, contract staffing and talent management services.

The group's second quarter results for the period ended 30 June 2010 show that operating income was up from a loss of -$12.4 million in Q2 2009 to a profit of $89,000 in Q2 2010.


EBITDA was up from a loss of -$9.5 million in Q2 2009 to $3.1 million in Q2 2010.

In Europe, revenues from external customers were up from $68.2 million in Q2 2009 to $80.7 million in Q2 2010.

European EBITDA was up from a loss of -$2.2 million in Q2 2009 to a profit of $2.46 million in Q2 2010.

In Europe, the gross margin was up by +16% compared to the second quarter of 2009, and up by +13% compared to the first quarter of 2010, led by a +35% growth in the UK compared to the second quarter of 2009 and by a +19% growth sequentially.
 
47% of total gross margin was derived from Europe making it the Company's most important region although almost half of the European gross profit is derived from the UK alone. Elsewhere in Europe, Hudson operates in Belgium, the Czech Repoublic, Denmark, France, Hungary, Luxembourg, Netherlands, Norway, Poland, the Slovak Republic, Spain, Ireland and the Ukraine.

Hudson Highland's business mix in Europe, based on gross margin, is 55% from permanent placement, 25% from temporary staffing and 20% from talent management although the proportion of temporary staffing in the UK is a more significant part of the Company's business than in continental Europe.

Jon Chait, Hudson Highland Group's Chairman and Chief Executive Officer, said "our second quarter was highlighted by strong sequential gross margin growth across every major geography, with particular strength in the UK, Australia and Asia."

"We have not seen any signs of client pull back from our key markets, but remain cautious given continuing uncertainties in the broader global economy."

Mary Jane Raymond, the company's Executive Vice-President and Chief Financial Officer, said "our operational cost discipline and targeted market investments have served us well throughout this economic cycle, and helped our return to profitability."

After the announcement of results, Hudson Highland shares were down by -1.09% to $4.53.

 

Comments

Add New Comment

Post comment

NOTE: Links will not be clickable.
Security text:*