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DPA Group (DPA:AEX), a Dutch staffing firm, reported on Tuesday that revenues for 2011 went up from €36.3 million in 2010 to €50.3 million, helped by acquisitions. Gross profit in the year was also up from €7.8 million to €13.8 million, resulting in an improved gross margin of 27.4% in 2011, compared to 21.5% in 2010.
But the firm posted a net loss of €11.5 million in 2011 while the EBITDA percentage in 2011 went up to 2.8%, compared to -7.4% in 2010.
The recruitment firm, ranked 31st in Staffing Industry Analysts’ list of top staffing firms in the Netherlands, also published its H2 results which reveal that revenues amounted to €29.8 million and thus the second half of the year saw a better performance than the first half.
The acquisition of NIG in 2011, a Dutch interim group, turned out to be fruitful as the firm contributed €18 million to the total annual revenue. DPA had spent €10.5 million to acquire the rival firm in 2011.
The segment that performed the strongest in the second half of 2011 was finance, banking & insurance which saw a gross profit of €4.3 million, followed by the legal & public segments which achieved a gross profit of €2.5 million. IT saw a gross profit of €2.4 million in the second half of the year.
The firm said that it plans to further refine its positions in the selected niche markets and seeks both qualitative and quantitative growth of its network. It also said that it expected “positive results” for 2012.
Eric Winter, CEO at DPA Group, said to Staffing Industry Analysts that "2011 was a transition year for DPA. We have integrated the Netherlands Interim Group (NIG) and undergone a thorough restructuring. As a result, the financial results have steadily improved in the second half-year of 2011. These results strengthen our conviction that we are on the right strategic path. Our niche approach enables us to adapt to uncertain economic conditions. With the increased size and diversification of our activities, we are well positioned for large-scale contracts and framework agreements.”
“Also, we can offer our interim professionals greater variety in assignments and growth opportunities. By pursuing a buy-and-build strategy, we plan to expand our business units’ footprint and achieve further economies of scale. We recognize a number of trends that will cause increase in the demand for flexible professionals for specific fields and markets, and aim to be at the forefront of such developments in our chosen markets," he added.
DPA Group is based in the Netherlands and specialises in the provision of staffing solutions. The firm operates in three segments, which are financial secondment services, IT secondments, as well as supply chain management, procurement and logistics.
In early trading this morning the company’s share prices jumped +19.16% to €1.25, down -32.80% from a year ago and -28.44% below its 52-week high of €1.89 set on 14 March 2011. This values the company at €43.82 million.