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Germany – Sick temporaries cause margin decline at Amadeus FiRe

25 April 2013

Frankfurt-based recruiter Amadeus FiRe (AAD:GER) today reported that first-quarter revenue fell by -0.7% to €33.06 million from €33.31 million a year ago. Sales in the temporary staffing business suffered and contracted by -4%.

But the firm reported an improvement in other business segments with revenue rising +8% in the interim and project management unit. Permanent placement revenue grew by +15% in the first quarter.

In the first three months of the year, gross profit was €13.15 million compared to €14.16 million a year ago. The gross profit margin was 39.8%, down from 42.5% in the prior year. “The margin effect is primarily due to a shortfall in temporary staffing sales from three fewer chargeable work days as well as an exceptional high level of sickness absence among temporary staff in the first quarter of 2013,” the firm explained.

In the first quarter, operating profit declined to €4.06 million from €5.23 million a year ago, a drop of over -22%.

Looking ahead the recruiter said: “Based on the current order situation and assuming macroeconomic factors develop as forecast, the management board expects earnings for the 2013 financial year to again be higher than the industry average for specialist personnel service providers.” 2012 revenue grew by +5% to €137.0 million, driven by increased demand for temporary and permanent workers.

In early trading, the company’s share price improved by a marginal +0.01% to €45.80, an increase of +27% from a year ago. Based on its stock price, the firm has a market value of €238.03 million.

Amadeus FiRe is among the top 20 of staffing firms in Germany. The firm provides specialist staffing services for business professionals and executives into banking, accounting, IT and office sectors.

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