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France – DLSI expects recovery in second half

02 May 2013

French staffing firm DLSI SA (ALDSL:PAR) said market conditions in the country remained grim with the firm now looking abroad to offset a decline in domestic staffing services. This comes after the firm published more details on its financial performance last year, reporting difficulties in all sectors.

In an outlook statement, DLSI warned of weakening demand. “The French market remains bleak, we continue our international expansion and optimise our French branches. A plan for cost saving structures is on-going and should bear fruit in the second half. We expect a recovery in the second half of 2013,” the firm said.

The French temporary staffing market contracted by -12% last year, according to figures by the federation of private employment agencies (PRISME). Staffing Industry Analysts does not expect the French staffing market to return to growth this year after the industry noted a decline of over -13% in the first quarter of 2013. The industrial and construction sectors experienced the sharpest fall in activity.

DLSI posted more information on its 2012 annual results which saw revenue slip -10% to €183.873 million. Operating income was down a sharp -44% to 3.292 million. Pre-tax profit fell by nearly half to €2.429 million while net income plummeted -73% to €390,000 from €1.459 million in the prior year. International operations represented a quarter of 2012 revenue, an increase from the 21.6% in 2011 with the firm reporting continued progress.

In early trading, the company’s share price slipped by almost -7% to €3.90, a decline of -13% from a year ago. Based on this stock price, the firm has a market value of €10.65 million.

DLSI, ranked among the 20 largest staffing companies in France and has a wide network of branches throughout France, Luxembourg, Poland, Switzerland and Germany. The firm provides temporary employees in sectors including insurance, banking, finance and real estate.

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